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Published 02 June 2003, updated 28 May 2012

Social labels allow consumers to make decisions about which products to purchase on the basis of ethical considerations. It is becoming increasingly evident that a growing number of consumers view this as an important factor when making purchases. The Commission has said that its research into this matter indicates that European consumers are particularly concerned that the health, safety and human rights of workers are protected and respected. Companies have also become increasingly more aware of the potential benefits of communicating through labels their socially responsible way of operating.

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Issues
Positions
Timeline
External Links

Issues

Social labelling is a difficult issue, since there is no harmonised system. Different labels represent different aspects of socially responsible behaviour, as well as relating to specific goods. The Rugmark, Kaleen and Abrinq labels address the issue of child labour certain industries; the Fairtrade label includes decent working conditions and a fair market price; Max Havelaar stands for a guaranteed purchase price for ecologically and socially responsible coffee, tea, and other fair trade products. The Max Havelaar and Fairtrade label as well as the FSC label for wood products are attempting to link all three aspects of the triple bottom line approach: social, environmental and economic considerations.

In contrast to eco-labels, where many national initiatives exists (such as the Nordic Swan, Ecocert and the EU eco-label, the Flower) there is nothing similar for social labels. The only exception is Belgium, where a government bill on a voluntary social label on the basis of the ILO core labour standards has been introduced.

The Commission's Communication on Corporate Social Responsibility of July 2002, stat es that the Commission welcomes the effort made by industry and NGOs in developing social labels. It will examine the need to adopt further measures at EU level to promote fair and ethical trade. As a concrete action, the Commission invites the CSR multi-stakeholder Forum to seek to define commonly agreed guidelines for labelling schemes supporting ILO core conventions and environmental standards.

Positions

A few year ago, the former ILO Director-General Michael Hansenne, proposed to introduce a global social label. The proposal was very controversial and was fiercely criticised by southern countries. There was a fear of hidden protectionism and barriers of trade, particularly against developing countries. India's workers delegation stated that "We are opposed to the system of a 'global social label' to be awarded to 'countries which show comprehensive respect for fundamental rights and principles, and agree to submit to reliable and legally autonomous international inspections.'... This system will in the future subject the developing countries to fall under pressure from countries which control the WTO".

Timeline

A Communication on CSR was published by the European Commission on 2 July 2002, and it is now being discussed by the EU institutions and other stakeholders.