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Private International Law Aspects of Corporate Social Responsibility

Part of the book series: Ius Comparatum - Global Studies in Comparative Law ((GSCL,volume 42))

Abstract

The National Report provides a general overview of the concept of Corporate Social Responsibility in the Czech Republic and its reflection in rules pertaining to company law, contract law, tort law and private international law. The core issues cover the applicability of CSR’s rules as part of a governing law and analysis of rules determining jurisdiction of a relevant forum for deciding disputes relating to CSR’s values. The awareness of the international CSR instruments is rather low in the Czech Republic amongst both businesses and the general public. The recent initiatives, including the National Action Plan and the National Action Plan on Business and Human Rights, seem essential for further development and achieving a more systematic and coordinated approach to these issues at the domestic level. Companies play an essential role in economic development and their activities shall be respectful of human rights, irrespective of where their operations take place. Norms of private international law are broad as regards their scope of application but have inherent limits to enable disputes regarding breaches committed by overseas operations to be litigated in the Czech courts or the courts of the EU Member States.

Research for the report was supported by the long-term strategic development financing of the Institute of State and Law of the Academy of Sciences of the Czech Republic (RVO: 68378122).

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Notes

  1. 1.

    See Ministry of Industry and Trade of the Czech Republic (2016).

  2. 2.

    Ministry of Industry and Trade of the Czech Republic (2016), p. 15.

  3. 3.

    The Constitutional Court of the Czech Republic underlined the voluntary nature of the CSR concept in its judgment ref. no. I. ÚS 3278/15 dated 21 November 2017. The Court held that: “the CSR institute is of strictly voluntary nature. The fact that obligations beyond compliance do not establish legally enforceable obligations is a decisive factor for a number of corporations when adhering to the CSR rules. It is voluntary and marketing oriented “do-gooding”.

  4. 4.

    Background in the Czech Republic, Ibid., 5.

  5. 5.

    See Archalous (2017), p. 10.

  6. 6.

    OECD (2015), p. 75.

  7. 7.

    The official website of NCP is: https://www.mpo.cz/en/foreign-trade/international-organizations-and-trade/oecd/national-contact-point-for-the-implementation-of-oecd-guidelines-for-multinational-enterprises%2D%2D-165673/.

  8. 8.

    Statutes of the National Contact Point for the Implementation of the OECD Guidelines for Multinational Enterprises.

  9. 9.

    For details see https://www.mpo.cz/en/foreign-trade/international-organizations-and-trade/oecd/national-contact-point-for-the-implementation-of-oecd-guidelines-for-multinational-enterprises%2D%2D-165673/.

  10. 10.

    For details see http://mneguidelines.oecd.org/annualreportsontheguidelines.htm.

  11. 11.

    Archalous (2017), p. 10.

  12. 12.

    The NAP on BHR was prepared with the support and approval of the Minister for Human Rights, Equal Opportunities and Legislation with the participation of public sector, private sector, NGOs and trade unions.

  13. 13.

    For details see https://www.vlada.cz/cz/ppov/rlp/aktuality/vlada-prijala-prvni-narodni-akcni-plan-pro-byznys-a-lidska-prava-161702.

  14. 14.

    The NAP on BHR refers in this respect to the document of the Council of Europe named “Recommendation CM/Rec (2016)3 of the Committee of Ministers to member States on human rights and business” of 2 March 2016.

  15. 15.

    The NAP on BHR refers in this respect to the document of the European Commission named “A renewed EU strategy 2011-14 for Corporate Social Responsibility, Brussels, 25. 10. 2011, COM (2011) 681 final”, available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:en:PDF.

  16. 16.

    NAP on BHR, 3.

  17. 17.

    Ibid., 4.

  18. 18.

    Ibid 5.

  19. 19.

    Ibid., 6.

  20. 20.

    ISO 26000 – Social Responsibility Standard. Available at: https://www.iso.org/iso-26000-social-responsibility.html.

  21. 21.

    Ministry of Industry and Trade of the Czech Republic (2016), p. 31.

  22. 22.

    The website is available in Czech language only and is gradually amended: http://narodniportal.cz.

  23. 23.

    See Sections 32f – 32i of Act no. 563/1991 Coll., on Accounting, as amended.

  24. 24.

    See Explanatory report to Act no. 462/2016 Coll., [online], available at http://www.psp.cz/doc/00/12/66/00126641.pdf.

  25. 25.

    Ibid.

  26. 26.

    See Section 51 (1) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act), of 25 January 2012, which states: “A person shall be deemed to act with due care and the necessary knowledge where, in business-related decisions, he or she could in good faith and reasonably assume to be acting on an informed basis and in justifiable interest of the business corporation. The foregoing shall not apply in cases where such decision-making was carried out without the necessary loyalty” in connection with Section 212 (1) of Act no. 89/2012 Coll., the Civil Code, which states: “By accepting membership in a corporation, a member undertakes to act, with respect to the corporation, with integrity and comply with its internal order. A corporation may not unreasonably discriminate in favour or against its member and must protect his membership rights as well as legitimate interests.”

  27. 27.

    Štenglová et al. (2013), p. 135.

  28. 28.

    Černá (2006), p. 243.

  29. 29.

    Štenglová et al. (2013), p. 135.

  30. 30.

    NAP on BHR, 11.

  31. 31.

    Section 63 (1) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act). English translation is available at: http://obcanskyzakonik.justice.cz/images/pdf/Business-Corporations-Act.pdf.

  32. 32.

    Section 63 (2) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act).

  33. 33.

    Section 76 (2) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act).

  34. 34.

    NAP on BHR, p. 12.

  35. 35.

    NAP on BHR, pp. 30–31.

  36. 36.

    See Sections 1810-1867 of Act no. 89/2012 Coll., Civil Code and Act no. 634/1992 Coll., on Consumer Protection.

  37. 37.

    Ministry of Industry and Trade of the Czech Republic (2016), p. 64.

  38. 38.

    See Section 5 (3) of Act no. 634/1992 Coll., on Consumer Protection which stipulates: “(3) A business practice is also considered to be unfair, if in the factual relations, taking into account all their attributes and circumstances leads or may lead to the consumer making a decision concerning a purchase that he would not have made otherwise and if it includes […] (c) failing to abide with the unambiguous obligation included in a code of conduct to which observance the seller provably bound himself.” Further pursuant to Annex 1 listing unfair trade practices: “Trade practices are always considered unfair if an entrepreneur a) declares its commitment to observe certain rules of conduct (Code of Conduct), or that this Code of Conduct has been approved by a certain entity, if this is not the case […].”

  39. 39.

    See Section 2900 of Act no 89/2012 Sb., Civil Code.

  40. 40.

    See Sections 2904, 2909 and 2910 of Act no 89/2012 Sb., Civil Code.

  41. 41.

    See Section 2910, first sentence, of Act no 89/2012 Sb., Civil Code.

  42. 42.

    See Section 2910, second sentence, of Act no 89/2012 Sb., Civil Code.

  43. 43.

    See Section 2914 of Act no 89/2012 Sb., Civil Code.

  44. 44.

    See Hulmák (2014), p. 2914.

  45. 45.

    Act no. 262/2006 Coll., Labour Code.

  46. 46.

    See Article 9 of Rome I Regulation and Section 3 of Act no. 91/2012 Coll., on Private International Law.

  47. 47.

    See Article 21 of the Rome I Regulation and Section 4 of Act no. 91/2012 Coll., on Private International Law.

  48. 48.

    Act no. 216/1994 Coll., on Arbitration Proceedings and on Enforcement of Arbitral Awards.

  49. 49.

    Act no. 202/2012 Coll., on Mediation and Change of Some Laws (Mediation Act).

  50. 50.

    Sections 20d - 20m of Act no. 634/1992 Coll., on Consumer Protection having transposed Directive 2013/11/EU of the European Parliament and of the Council on alternative dispute resolution for consumer disputes.

  51. 51.

    See Section 20t of Act no. 634/1992 Coll., on Consumer Protection.

  52. 52.

    See Section 20u of Act no. 634/1992 Coll., on Consumer Protection.

  53. 53.

    Ministry of Industry and Trade of the Czech Republic (2016) at 69.

  54. 54.

    Act No. 91/2012 Coll., on Private International Law (Private International Law Act). English translation of the PIL Act is available at: http://obcanskyzakonik.justice.cz/home/zakony-a-stanoviska/preklady/english. See also translation by Bříza & Trubač at www.brizatrubac.cz.

  55. 55.

    See Section 6 of PIL Act.

  56. 56.

    Act No 99/1963 Coll., Code of Civil Procedure.

  57. 57.

    See Section 7 of PIL Act.

  58. 58.

    See Article 4 Brussels I Recast.

  59. 59.

    For details see Article 8 Brussels I Recast.

  60. 60.

    Bilateral agreements on legal assistance with third States may have special rules in this respect.

  61. 61.

    See e.g. Decisions of the Upper Court in Prague No. 3 Cmo 316/2013 and No. 5 Cmo 141/2013.

  62. 62.

    Act no 89/2012 Sb., Civil Code (hereinafter ‘Civil Code’). English translation of the Civil Code available at: http://obcanskyzakonik.justice.cz/home/zakony-a-stanoviska/preklady/english.

  63. 63.

    ASPI Commentary, Sec 87 CCP.

  64. 64.

    ECJ, Case No 21/76.

  65. 65.

    Decision of the Upper Court in Prague No. 6 Cmo 66/2010.

  66. 66.

    See Articles 20/1 and 21/2 Brussels I Recast.

  67. 67.

    Act no 90/2012 Sb., Business Corporations Act (hereinafter ‘Business Corporations Act’), English translation of the Business Corporations Act available at: http://obcanskyzakonik.justice.cz/home/zakony-a-stanoviska/preklady/english.

  68. 68.

    Act no 125/2008 Sb., on the Transformation of Business Corporations and Cooperatives (hereinafter ‘Transformations Act’). An English translation is not available.

  69. 69.

    Act no 304/2013 Sb., on Public Registers of Legal and Natural Persons (hereinafter ‘Public Registers Act’). An English translation is not available.

  70. 70.

    See Article 3 Rome I.

  71. 71.

    See Article 4 Rome I.

  72. 72.

    Constitutional Act No. 1/1993 Coll.

  73. 73.

    Constitutional Act No. 23/1991 Coll.

  74. 74.

    See Section 87/2 of the Constitution.

  75. 75.

    See Article 16 of the Rome II Regulation.

  76. 76.

    For details see Article 36 Brussels I Recast.

  77. 77.

    See Section 16 of the PIL Act.

  78. 78.

    See Section 71 (1) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act).

  79. 79.

    See Section 71 (3) of Act no. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act).

  80. 80.

    Štenglová et al. (2013), p. 174.

  81. 81.

    ECJ, Case C-186/12.

  82. 82.

    See e.g. Judgment of the Supreme Court ref. no. 23 Cdo 111/2009 dated 23. 2. 2011.

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Authors and Affiliations

  1. Institute of State and Law, Czech Academy of Sciences, Prague, Czech Republic

    Monika Feigerlová & Monika Pauknerová

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  1. Monika Feigerlová
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  2. Monika Pauknerová
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Correspondence to Monika Feigerlová .

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Editors and Affiliations

  1. Université Panthéon-Assas Paris II, Paris, France

    Catherine Kessedjian

  2. School of Law, University of Monterrey, Monterrey, Mexico

    Humberto Cantú Rivera

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Feigerlová, M., Pauknerová, M. (2020). Czech Republic. In: Kessedjian, C., Cantú Rivera, H. (eds) Private International Law Aspects of Corporate Social Responsibility. Ius Comparatum - Global Studies in Comparative Law, vol 42. Springer, Cham. https://doi.org/10.1007/978-3-030-35187-8_9

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