Abstract
While private sector investment plays a key role in fostering sustainable economic development in developing countries, respect for internationally recognized worker rights is also a vital component. The paper presents a methodology to assist investors in large-scale private infrastructure and other industry sector projects to utilize internationally recognized core labor rights and related standards for fostering sound labor management. The methodology involves due diligence or analysis of labor conditions and subsequent supervision and monitoring of performance and promotes the use of best practices to complement existing minimum requirements. Case study examples are presented and challenges in applying the approach are discussed.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Ames, L., P. Brew and C. Ersmarker: 2005, ‘Human Rights: It is your business’, The Prince of Wales International Business Forum
BSR: 2003, Overview of Business and Human Rights. Business for Social Responsibility. San Francisco, California
CSPA: 2005, ‘Sustainable Agriculture Standards. Certified Sustainable Products Alliance’, Coordinated by Rainforest Alliance and funded by USAID
DFID: 2002, Guidelines on Implementing Labour Standards in Construction (draft). Department for International Development. UK
DFID: 2004, Labour Standards and Poverty Reduction. Department for International Development. UK
EP: 2006, ‘Equator Principles: A Financial Industry Benchmark for Determining, Assessing and Managing Social and Environmental Risk in Project Financing’
FLA: 2005, ‘Fair Labor Association Workplace Code of Conduct’, Washington DC
FLA: undated, ‘Principles of Monitoring. Fair Labor Association’, Washington DC
FMO: 2003, Social Policy (FMO, The Hague, Netherlands)
GRI: 2006, ‘Social Performance Indicators: Labor Practices and Decent Work’, Global Reporting Initiative
HRW: 2007, ‘Discounting Rights; Walmart’s Violation of US Workers’ Right to Freedom of Association’, Human Rights Watch Report 19 (May 2007) No. 2(G)
IDB: 2003, Labor Guideline. Private Sector Department, Inter-American Development Bank. Washington, DC
IDB: 2006, Managing Labor Issues in Infrastructure Projects. PRI Environmental and Social Paper. Private Sector Department, Inter-American Development Bank. Washington, DC
IFC: 2002, Good Practice Note: Addressing Child Labor in the Workplace and Supply Chain. International Finance Corporation. Washington DC
IFC: 2006a, Good Practice Note: Non-Discrimination and Equal Opportunity. International Finance Corporation. Washington DC
IFC: 2006b, Labor and Working Conditions Performance Standard. International Finance Corporation. Washington DC
IIC: 1999, Environmental Policy. Inter-American Investment Corporation. Washington DC
ILO: 1998a, Declaration on Fundamental Principles and Rights at Work. International Labour Organization. Geneva, Switzerland
ILO: 1998b, Employment Intensive Infrastructure Programmes: Labour Policies and Practices. International Labour Organization. Geneva, Switzerland
ILO: 1999, Employment Intensive Infrastructure Programmes: Capacity Building for Contracting in the Construction Sector. International Labour Organization. Geneva, Switzerland
ILO: 2001, The construction industry in the twenty-first century: Its image, employment prospects and skill requirements. Tripartite Meeting on the Construction Industry. International Labour Office. Geneva, Switzerland
ILO: 2006, Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy. International Labour Office. Geneva, Switzerland
ILO: 2007, Safe and healthy workplaces: Making decent work a reality. International Labour Office. Geneva, Switzerland
Kiernan, M., 2004, “Sustainable Development”, in George Dallas (ed.), Governance and Risk. New York, McGraw Hill
Kiernan, M, 2005. A New Long-Term View. Pensions & Investments 33(1): 10
Kolben: 2007, ‘Integrative Linkage: Combining Public and Private Regulatory Approaches in the Design of Trade and Labor Regimes’, Harvard International Law Journal 48(Winter), 203
Ladbury S., A. Cotton, M. Jennings, 2003. Implementing Labour Standards in Construction: A sourcebook. Water, Engineering and Development Centre. Loughborough University. UK
NRC: 2003, ‘Monitoring International Labor Standards: Quality of Information, Summary of a Workshop’, in M. Hilton (ed.), Division of Behavioral and Social Sciences and Education and Policy and Global Affairs Division (The National Academy Press, Washington, DC)
OECD: 2000, OECD Guidelines for Multinational Enterprises. Organization for Economic Cooperation and Development, Paris France
OPIC: 2007, Investment Policy. U.S. Overseas Private Investment Corporation. Washington. DC
Palley, T., 2004. The economic case for international labour standards. Cambridge Journal of Economics 28(1):21–36
SAI: 2001a, Social Accountability 8000 (Social Accountability International, New York) Social Accountability Requirement 4.2
SAI: 2001b, Social Accountability 8000. Social Accountability International. New York
UN: 1948, ‘Universal Declaration of Human Rights’, United Nations, December 1948
UN: 1976a, ‘International Covenant on Civil and Political Rights’, United Nations, Art. 22, March 1976, Art. 22
UN: 1976b, ‘International Covenant on Economic, Social and Cultural Rights’, United Nations, Articles. 6–8, January 1976
WRAP: 2008, Worldwide Responsible Apparel Production. Production Facility Handbook, Arlington, Virginia
WTO: 1996, ‘World Trade Organization Singapore Ministerial Declaration’, WT/MIN(96)/DEC. December 1996
WTO: 2001, ‘World Trade Organization Doha Ministerial Declaration’, WT/MIN(01)/DEC/1. November 2001
Author information
Authors and Affiliations
Corresponding author
Additional information
The views and opinions are those of the authors and do not necessarily reflect the official position nor opinion of the United States Government.
Rights and permissions
About this article
Cite this article
Montgomery, R.H., Maggio, G.F. Fostering Labor Rights in Developing Countries: An Investors’ Approach to Managing Labor Issues. J Bus Ethics 87 (Suppl 1), 199–219 (2009). https://doi.org/10.1007/s10551-008-9808-y
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-008-9808-y