The role of international trade liberalization in the implementation and financing of corporate social responsibility

Abstract

In light of the crucial role that international trade plays in incorporating corporate social responsibility (CSR) aspects—such as environmental protection, human rights, labor rights, and sustainable development—into both national and multinational enterprises. In this sense, free trade agreements and global value chains are among the primary means of international trade in the implementation and financing of CSR. Various approaches have been explored in this context, including referencing CSR or internationally acknowledged frameworks in the preambles of these agreements, as well as integrating specific clauses that explicitly address these issues while also considering the demands of stakeholders like suppliers and customers. This approach thus prompts questions regarding its effectiveness in regulating multinational companies in the context of international and regional economic integration, as well as access to financing programs. In addition, mechanisms provided for in these agreements may contribute to this, but there remain several obstacles and limitations to the successful integration of CSR.