Browsing by Subject "Corporate Social Responsibility"

This thesis in law examines the legal effects that companies may face if they use carbon dioxide (CO2) offset as a basis for their carbon neutrality claim and this offset is in later scrutiny revealed as double counted. Double counting renders the carbon neutrality claim void, as the offset is also counted for elsewhere and therefore does not deliver climate change mitigation outcome for the company. Avoiding double counting is one of the established quality criterions of carbon offset, however it is not straightforward to assess the criterion ex-ante as the practise occurs ex-post. Double counting can occur unintentionally but also intentionally by fraud. This thesis examines the topic in relation to EU law and draws examples from national legislations of the Member States, notably from Finland. Companies can purchase carbon offset from the voluntary carbon market. They can purchase it for varied reasons related to corporate social responsibility. However, most often offset is purchased to claim carbon neutrality. Carbon neutrality is a voluntary goal for companies. It can be achieved by reducing CO2 emissions that can be reduced and then compensating the residual emissions by purchasing offset. Carbon offset is a commodity - one kiloton of CO2 emissions equivalent is valued as a one carbon credit. Carbon credits are constructed under different schemes, and as such are based on different standards and have different prices. The market is international in nature, and in many cases the actors are in different countries. The voluntary carbon market is not regulated by substantive law and therefore, the market remains regulated by self-regulation. This creates issues in quality assurance and also the problem of lack of oversight and enforcement. The differently constructed commodities are also difficult to compare, and the market includes information asymmetry and integrity risks. The legal effects of double counting in relation to carbon neutrality claims is a phenomenon currently related also to the Paris Agreement, as both offset project host country and a company might claim the same emissions reductions. This current state of affairs makes it probable that the corporate offset is double counted. If the corporate claims are rendered void, it has negative effect on climate change mitigation but also to the company’s reputation which can in turn can lead to significant monetary losses. In relation to ‘green’ consumer products, companies may face accusations of misleading marketing practices or greenwashing, if it is revealed that compensation was purchased from a poor-quality offset project. Also, the rise of human rights consciousness in relation to emissions reductions under the Paris Agreement may play part in the risk of environmental litigation also for companies.

This thesis examines actual and potential human rights impacts of fashion industry. The main approach on subject is from the viewpoint of business and human rights, but corporate social responsibility and sustainability are utilised and discussed as well. Fashion industry in the thesis is defined in an encompassing manner, including productions, marketing and retailing of clothes, footwear, accessories, and cosmetics. Fashion industry is the second largest sector of industry in the world. Many different areas of human rights, recognised in international human rights instruments, are impacted directly and indirectly through actions and functions of fashion industry. ‘Race to the bottom’ and fast fashion phenomenon have pushed down the prices and quality of fashion merchandise during the past decades. Fashion industry is labour-intensive and low prices are often the result of poor working conditions and remunerations that are significantly below living wages. Child labour, forced labour, dangerous working conditions and lack of unionisation are common and result to widespread egregious human rights violations in the manufacturing and production of the raw materials in fashion industry. Industry’s use of natural resources is often reckless and wasteful, and overproduction has resulted to discarding and destroying large quantities of unsold merchandise. More direct human rights impacts, relating to fashion industry and environment, can occur through use and disposal of chemicals and dyes in the manufacturing processes that can have an affect on the living standards and health of the surrounding communities. Different forms of discrimination have been commonly manifested within the industry. There have been numerous lawsuits on discrimination and harassment in workplaces in fashion industry. Statistics, as well as researches based on interviews, show diversity to be realised poorly in the fashion business. Portraying harmful and offensive stereotypes in marketing practices and advertisement reflects problems of discrimination that are deep rooted in the company cultures of the industry and portrays lack of awareness on the issue. Right to property is often infringed in the fashion industry, since copying designs is a common custom. Most well-known cases are between major fashion labels, but in this work, the focus is on rights of small designers and on cultural property of distinct culturally unified groups of people. Taking intellectual property without permission from independent designer can potentially infringe their right to property as well standard of living and using cultural property of a distinct community can be an offensive on the group’s dignity, beliefs and traditions as well as infringement on their economic rights. In this thesis these issues are approached with a somewhat holistic manner. The main tool is the UN Guiding Principles on Business and Human Rights and a loose template of human rights impact assessment, based on the principles, but issues are processed from multiple focus points. There are currently various voluntary models for responsible business practices as well as national laws and different initiatives on corporate social responsibility, business and human right and sustainable business conduct. This fragmentation makes it essential to approach the issue with an all-inclusive method.