Part III The Social Dimension, 13 Labour Relations
This chapter examines labour relations. The main elements of corporate social responsibility (CSR) applicable to multinational enterprises (MNEs) revolve around labour relations, human rights and environmental sustainability, which form the core contents of international corporate social responsibility (ICSR) instruments. The extension of CSR to MNEs arises from the perceived risk that they have the power to act with impunity against the interests of stakeholders affected by their operations, giving rise to growing demands for rebalancing corporate responsibilities towards more social ends. Labour rights represent the oldest category of social rights under national and international law and are key to understanding the rise of ICSR and its legal responses. The chapter then explores the historical role of labour rights in ICSR. It considers how the operations of MNEs and global value chains (GVCs) have caused changes in labour practices. It also studies the consequences of these changes on the regulation of labour relations in MNEs and GVCs, including the shift in contemporary transnational labour standards to the notion of ‘decent work’. Finally, the chapter assesses how the ‘decent work’ idea can be put into practice through national laws, international labour rights and transnational labour practices.