#DominicanRepublic🇩🇴 #BDS_Article: Corporate Social Responsibility (CSR): The Ethical Challenge for Companies

One day, as I was leaving Mirador Sur Park, I noticed some workers promoting the products of one of the largest companies in the country, with its logos and name clearly displayed. However, what caught my attention was the accent of all these workers, which was evidently foreign, leading me to immediately think about Corporate Social Responsibility (CSR).

(Before delving into this issue, I want to clarify that I do not know the immigration status of these workers, but I refer to them as an example, given the well-known immigration situation in our country. This does not mean that these workers lacked a work permit.)

CSR is a concept that implies that companies have an ethical obligation to contribute to sustainable development and the well-being of society as a whole; this includes respecting human rights, protecting the environment, promoting diversity and inclusion, and upholding ethical standards.

Ethically, it is established that all relationships with workers, customers, suppliers, and/or contractors must be based on an ethical model that is not only adhered to by the company itself but also by each of these parties with whom it has business relationships.

Therefore, when using the services of a contractor or advertising agency to carry out a campaign on its behalf, the company must exercise due diligence to ensure that the contractor complies with labor and tax laws at the same ethical and legal level as the hiring company; this is essential for fulfilling CSR, the cornerstone on which all companies should rely.

Hiring, particularly by outsourcing services to individuals who do not have a work permit in the country, has serious implications for CSR. While it is true that these individuals work for a third party, in the event of any type of occupational accident, it may result that, due to non-compliance, not only the outsourced company but also the contracting company could be sued.

Moreover, the company has the responsibility to promote a fair and equitable work environment among its employees, in line with the respect for all human rights, by supervising the entire supply chain, including outsourced companies in basic matters such as advertising, to ensure CSR compliance.

From a corporate social responsibility perspective, the company should ensure that its contractors and suppliers adhere to the same ethical and legal standards that such company commits to following. This involves conducting due diligence in selecting suppliers, monitoring labor practices throughout the supply chain, and taking corrective action in case of non-compliance.

As my colleague Andrés Noboa Pérez, a Regulatory Law and Business expert, suggests: "It would be advisable to include clauses regarding compliance with labor and immigration laws in their contracts, which in turn would generate penalties for contractors."

In short, being socially responsible is not just about following the rules but also about doing what is right for society and the planet. If a company wants to be truly responsible, it must ensure that everything it does —including hiring employees— is in line with these values and contributes to making the world a better place for everyone.

Javier A. Suárez

Partner, BDS Asesores

 

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