Three pathways for standardisation and ethical disclosure by default under the European Union Artificial Intelligence Act

Under its proposed Artificial Intelligence Act (‘AIA’), the European Union seeks to develop harmonised standards involving abstract normative concepts such transparency, fairness, and accountability. Applying such concepts inevitably requires answering “hard normative questions”, i.e., endorsing specific interpretations or theoretical approaches or specifying acceptable or preferred trade-offs between competing interests. Considering these normative challenges, we argue that there are three possible pathways for future standardisation under the AIA. First, European standard-setting organisations (‘SSOs’) could answer hard normative questions themselves. This approach would raise concerns about its democratic legitimacy. Standardisation is largely a technical discourse and tends to exclude non-expert stakeholders and the public at large. Second, instead of passing their own normative judgments, SSOs could track the normative consensus they find available. SSOs would then defer to norms posited in documents with a higher pedigree of democratic legitimacy such as national and international laws. By analysing the standard-setting history of one major SSO, we show that such consensus tracking has historically been its pathway of choice. If standardisation under the AIA took the same route, we demonstrate how this would lead to a false sense of safety as the process is not infallible. Trends identified through this analysis suggest that future standardisation work on AI by European SSOs will be unlikely to produce detailed, specific, and coherent normative thresholds and requirements for the development and use of AI in the European Union. Consensus tracking would furthermore push the need to solve unavoidable normative problems down the line. Instead of regulators, AI developers and/or users could define what, for example, fairness requires within a concrete implementation of AI. By the institutional design of its AIA, the European Commission would have essentially kicked the ‘AI Ethics’ can down the road. To not miss the opportunity of addressing hard normative questions around AI, we thus suggest a third pathway which aims to avoid the pitfalls of the previous two: SSOs should create standards which require “ethical disclosure by default.” These standards will specify minimum technical testing, documentation, and public reporting requirements to shift ethical decision-making to local stakeholders and limit provider discretion in answering hard normative questions in the development of AI products and services. Compliance would require AI providers to furnish relevant third parties with a standardised set of test results and documentation to enable local decision-makers to set normative requirements in a procedurally consistent way. Our proposed pathway is about putting the right information in the hands of the people with the legitimacy to make complex normative decisions at a local, context-sensitive level

Return on Experience from Sustainability Audits in European Engineering Educational Institutions

International audienceSustainability efforts of higher educational institutions in engineering have today a strong influence on their accountability and on continuous improvements of their programs and organization. Following the recent ISO 26000 guidelines promoted for the all types of organizations, accreditation or quality assurance systems for engineering education start to consider sustainability dimensions. In Europe, various initiatives have recently proposed specific dimensions and criteria for evaluation of universities or schools, e.g. the QUESTE-SI LLP Erasmus European project (QUality system of European Scientific and Technical Education - Sustainable Industry), or the Plan Vert validated by the French Ministry of sustainable development. The purpose of this paper is to present and analyze the evaluation process for a campus sustainability audit. Based on experienced reporting and evaluations, both from an audited engineering school (i.e. quality referents) and auditor perspectives, the quantitative and quantitative results drawn in the paper should permit institution stakeholders to regularly collect internal sustainability initiatives, track records, in a way to better prepare self-evaluation reports and manage future audit visits. After an overview of some existing international accreditation procedures for higher educational institutions, both in engineering and business, the proposed analysis relies on four 2012 audits, two of them conducted in a French engineering school, and two other conducted in two different European technical universities. Several sustainability dimensions, linked to criteria, are considered and discussed. As an example for the QUESTE-SI label, the audit relied on (i) institution policy and strategy, (ii) social responsibility & sustainable engineering education (SRSE) and curriculum, (iii) student involvement & cultural development in SRSE, and (iv) research & innovation. As findings, apart from the score and ranking results thanks to the evaluations, the audit preparation, reporting and process permits to engage in an internal reflection that should contribute to coherently enhance the research & educational missions and strategies of the institution, so as to favour a national and international recognition of its politics and dynamicity in the area of sustainability issues. Thanks to a clear referential, framework, and guidelines for evaluation based on a systemic interdisciplinary approach, an integrated governance of sustainability dimensions at institutional level can be more flexibility formalized. Based on those results, the paper claims for possible cross-evaluations between institutions as a complement to external evaluations to better organize and institutionalize continuous improvement processes, so as implicate to students as key actors in the change process

Sustainable global agrifood supply chains: exploring the barriers

The article investigates the factors that make businesses postpone integrating the performance dimension of sustainability in global agrifood supply chains. Based on literature-based conceptual reasoning, the article conceptualizes a double company lens distinguishing between substantial supply chain management and mere public relations endeavors as a major obstacle for businesses pursuing comprehensive supply chain performance in global agrifood chains. We point out that many supply chain performance attributes represent in fact credence attributes that cannot be verified by the consumer, hence entailing an information asymmetry between the company and its consumers. Rational business responses to this situation tend to focus on symbolic actions and communication efforts by means of sustainability reports and other brand-enhancing marketing tools that may be decoupled from substantial operations and supply chain improvements. The research propositions developed have partly been corroborated by a content analysis of annual and sustainability reports of four major agrifood companies (Nestlé, PepsiCo, Unilever, Mondelez International). The conceptual arguments and empirical analysis presented in the article may serve as the basis for managers and academics to develop innovative inter- and intra-organizational business processes that reconcile tradeoffs between various agrifood supply chain performance dimensions, thus pushing the performance frontier outwards; and that provide the necessary transparency for overcoming the currently adverse setting of incentives inherent in the food production, processing, retailing, and consumption system

Three pathways for standardisation and ethical disclosure by default under the European Union Artificial Intelligence Act

Under its proposed Artificial Intelligence Act (‘AIA’), the European Union seeks to develop harmonised standards involving abstract normative concepts such transparency, fairness, and accountability. Applying such concepts inevitably requires answering hard normative questions. Considering this challenge, we argue that there are three possible pathways for future standardisation under the AIA. First, European standard-setting organisations (‘SSOs’) could answer hard normative questions themselves. This approach would raise concerns about its democratic legitimacy. Standardisation is a technical discourse and tends to exclude non-expert stakeholders and the public at large. Second, instead of passing their own normative judgments, SSOs could track the normative consensus they find available. By analysing the standard-setting history of one major SSO, we show that such consensus tracking has historically been its pathway of choice. If standardisation under the AIA took the same route, we demonstrate how this would lead to a false sense of safety as the process is not infallible. Consensus tracking would furthermore push the need to solve unavoidable normative problems down the line. Instead of regulators, AI developers and/or users could define what, for example, fairness requires. By the institutional design of its AIA, the European Commission would have essentially kicked the ‘AI Ethics’ can down the road. We thus suggest a third pathway which aims to avoid the pitfalls of the previous two: SSOs should create standards which require “ethical disclosure by default.” These standards will specify minimum technical testing, documentation, and public reporting requirements to shift ethical decision-making to local stakeholders and limit provider discretion in answering hard normative questions in the development of AI products and services. Our proposed pathway is about putting the right information in the hands of the people with the legitimacy to make complex normative decisions at a local, context-sensitive level

ASPECTOS RELEVANTES SOBRE LA SOSTENIBILIDAD EN LATINOAMÉRICA

El concepto de sostenibilidad ha generado interés en las actividades empresariales, debido al impacto en aspectos sociales, ambientales y económicos. El objetivo de este estudio es analizar los factores más relevantes que afectan la sostenibilidad de los países en Latinoamérica, a nivel macro, empresarial y legal, a través de una revisión de la literatura, de carácter exploratorio con un enfoque descriptivo. Los resultados son diversos y se exponen bajo tres temáticas relacionadas con la sostenibilidad: aspectos macro, relacionados con temas de desigualdad socio-económica y los impuestos sobre las emisiones; aspectos micro, relacionados con la inclusión de la sostenibilidad en la estructura y operación de las organizaciones; y, por último, la heterogeneidad y nivel de aplicación del marco legal del modelo de las sociedades de beneficio e interés colectivo en los países latinoamericanos. Palabras clave: Sostenibilidad, triple impacto, empresas BIC, ambiente, responsabilidad social. AbstractThe concept of sustainability has generated interest in business activities due to its impact on social, environmental and economic  aspects. The objective of this study is to analyze some relevant aspects related to sustainability in Latin America at the macro, business and legal levels, through an exploratory literature review with a descriptive approach. The results are diverse and are presented under three topics related to sustainability: macro aspects, related to issues of socio-economic inequality and taxes on emissions; micro aspects, related to the inclusion of sustainability in the structure and operation of organizations; and, finally, the heterogeneity and level of application of the legal framework of the model of the Collective Benefit and Collective Interest Societies in Latin American countries. Keywords: Sustainability, triple impact, BIC companies, environment, social responsibility. &nbsp

Hide-and-seek in corporate disclosure: evidence from negative corporate incidents

Purpose This paper investigates the legitimacy tactics used in the annual reports of UK listed companies in the aftermath of major corporate scandals. Design/methodology/approach We carried out a content analysis of annual reports of 19 companies that have been involved in corporate scandals with a view to understand how firms communicate negative scandals affecting them. Findings The findings reveal that firms use a wide range of legitimisation strategies in the manner that contribute to shape disclosure communications concerning negative incidents. For instance, some firms may offset the negativity linked to an incident by rendering such explanations amidst positive information. Originality/value Contrary to earlier studies conducted on accounting scandals, the authors incorporated extensive corporate scandals such as human rights violations, controversies concerning child labour, environmental scandals, corruption, financial embezzlement and tax evasion

Tradicionalno i novo “globalno” međunarodno radno pravo – može li se uskladiti njihovo djelovanje?

The article provides an account of how international labour law, which had previously been promulgated mostly by the International Labour Organization, has been confronted by a new type of “global” labour law that has arisen from recent changes in the structure of employment brought about by the advent of globalization and multinational corporations. These rival influences on the regulation of labour have not yet reached a stable and productive accommodation to each other, and the author identifies several points of contact and conflict between them, as well as some of the background forces that bear on those conflicts. The article also evaluates several suggestions for the way the relationship between them should be managed. Separate attention is devoted to the possibility of linkage between the application of international labour standards and international trade. To date, the negotiations on inclusion of the “social clause” in the agreements on international trade within the WTO framework have been unsuccessful. However, the author considers that the current infrequent and weak linkage of international trade agreements with labour issues is inadequate, and concludes that significant limitation of the free flow of capital from one country to another is needed in order to avoid the “race to the bottom” between developing countries that leads to the degradation of the labour rights regime worldwide.U radu se razmatra problem kako je međunarodno radno pravo, do sada uglavnom razvijano odlukama Međunarodne organizacije rada (MOR), suočeno s novim oblikom “globalnog” radnog prava nastalog uslijed promjena u oblicima zapošljavanja zbog globalizacije i rasta uloge međunarodnih korporacija. Konkurentni utjecaji u području uređenja radnih prava još nisu postigli stabilan i produktivan odnos te autor u radu identificira nekoliko dodirnih točaka u kojima se oni sukobljavaju, kao i pozadinske silnice koje utječu na navedeni odnos. U članku se također analizira nekoliko prijedloga kako bi trebalo urediti odnos međunarodnog i “globalnog” radnog prava. Posebna pozornost posvećena je mogućnosti povezivanja standarda međunarodnog radnog prava i međunarodne trgovine. Naime, dosadašnji napori na uključenju “društvene klauzule” u međunarodne trgovinske ugovore u okviru WTO-a bili su neuspješni. Autor smatra da je trenutačno stanje rijetkog i slabog povezivanja međunarodnih trgovinskih ugovora s radnopravnim pitanjima problematično te zaključuje da je potrebno znatnije ograničenje u slobodnom protoku kapitala iz jedne u drugu zemlju kako bi se izbjegla “utrka do dna” među zemljama u razvoju te da bi se izbjeglo općenito smanjenje prava radnika u cijelom svijetu

Managerial perseptions on corporate social responsbility: A Transatlantic comparison between forest products companies in Europe and North America

Corporate Social Responsibility (CSR) addresses the responsibility of companies for their impacts on society. The concept of strategic CSR is becoming increasingly mainstreamed in the forest industry, but there is, however, little consensus on the definition and implementation of CSR. The objective of this research is to build knowledge on the characteristics of CSR and to provide insights on the emerging trend to increase the credibility and legitimacy of CSR through standardization. The study explores how the sustainability managers of European and North American forest companies perceive CSR and the recently released ISO 26000 guidance standard on social responsibility. The conclusions were drawn from an analysis of two data sets; multivariate survey data based on one subset of 30 European and 13 North American responses, and data obtained through in-depth interviewing of 10 sustainability managers that volunteered for an hour long phone discussion about social responsibility practices at their company. The analysis concluded that there are no major differences in the characteristics of cross-Atlantic CSR. Hence, the results were consistent with previous research that suggests that CSR is a case- and company-specific concept. Regarding the components of CSR, environmental issues and organizational governance were key priorities in both regions. Consumer issues, human rights, and financial issues were among the least addressed categories. The study reveals that there are varying perceptions on the ISO 26000 guidance standard, both positive and negative. Moreover, sustainability managers of European and North American forest companies are still uncertain regarding the applicability of the ISO 26000 guidance standard to the forest industry. This study is among the first to provide a preliminary review of the practical implications of the ISO 26000 standard in the forest sector. The results may be utilized by sustainability managers interested in the best practices on CSR, and also by a variety of forest industrial stakeholders interested in the practical outcomes of the long-lasting CSR debate

Integrating a Triple Bottom-Line Approach into the Management System: A Framework for Institutions and Businesses Alike

Organizations are increasingly considering a transition to a more sustainable management approach, primarily as a result of drivers related to operational efficiency, regulatory compliance, and corporate reputation. Accordingly, organizations that are adapting to this trend are often gaining a competitive edge. Though research has linked industrial ecology to sustainable business, there is a void on the practical level that leaves businesses unequipped to implement this approach, now commonly known as triple bottom-line management. In response, this paper uses concepts of material flow analysis to create a multi-sectoral framework that guides organizations through the process of achieving a triple bottom-line management system. Specifically, the framework outlines a set of steps and considerations for comprehensive assessment, indicator development, measurement schemes, and reporting that are necessary to achieve an integrated result