INDEX: 1. Whereas – 2. Definition and historical development of the concepts of sustainability – 3. Multinational Enterprises and sustainable principles – From Codes of Conduct to sustainability contractual clauses – 4. Regulatory effects of Sustainable Contractual Clauses over the suppliers – 4.1 The enforceability of SCCs obligations in ISCAs – 4.2 Contractual remedies – 4.3 Relational enforcement tools – 4.4Case studies – 5. Conclusion
A key area of corporate social responsibility (CSR) is the extent to which in the globalization phenomenon companies manage their supply chains responsibility. In other words how they ensure their chains of suppliers and/or subsidiaries respect basic rights (from labors such as decent work, freedom of association, health and safety at work) to more ethical and social rights (such as respect for the environment and of local communities).
The historical development of the concept of sustainability proves that the contactualistion of sustainability goals reflects nowadays globalized economy based on Multinational Enterprises and their supply chains.
In fact, Multinational Enterprises in addition to corporate codes of conduct, are implementing into their models of commercial agreements (e.g. international investment and supply chain contracts) another private and soft tool for promoting social, ethical and environmental accountability: the sustainability contractual clauses (hereinafter “SCC”).