- Toyota Peugeot Citroën Automobiles Czech Ltd. - CSR monitoring
The Toyota Motor Company and PSA Peugeot Citroën joint venture plant is the biggest foreign direct investment in the Czech Republic. A special Memorandum of Understanding was signed on February 12, 2002 between Toyota and PSA, as well as with various Czech ministries. A similar memorandum was also signed with the city of Kolín. The Czech government´s effort to accommodate this big investment resulted in insufficient evaluation of the Kolín Production Plant´s environmental impact, leading to failures in the permitting procedures, proved negative impact on residents living in the nearby neighborhood of the plant and traffic complications.
GARDE programme of the Environmental Law Service ("GARDE-ELS" hereinafter) prepared a legal analysis of the irregularities of the permitting process of the plant. Simultaneously, GARDE-ELS was contacted by affected neighbours, small municipalities and other civil society representatives, asking it to represent them in negotiations with the investors. GARDE-ELS prepared a Proposal for Putting Corporate Social Responsibility into Practice for Toyota Peugeot Citroën Automobile Czech, s. r. o. (hereinafter "Proposal"). More than 30 non-governmental organisations, including local community NGOs and local people supported the demands included in the Proposal and called Toyota M. C. and PSA Peugeot Citroën to behave in a socially responsible manner. The company accepted to implement some of the demands contained in the
Proposal.
For more information please see attached case study.
- LG.Phillips Displays
One of the largest foreign “green field” investments in the Czech Republic at the turn of the millennium was construction of the LG.Phillips Displays Colour Monitors Plant in Hranice. Construction of the plant took place very quickly, but in conflict with the law the risks of occurrence of serious accidents were not assessed before production commenced. The plant subsequently started to fulfil some of its statutory obligations after its was indirectly forced to do so by the activities of the Environmental Law Service GARDE programme.
During the proceedings for issue of an integrated permit LG.Philips did not have its whole technological centre assessed. The permit was then cancelled by a court on the basis of a complaint. However on issue of a new permit LG.Philips did not react to the demand by GARDE-EPS and refused comprehensive assessment of its production complex.
LG.Philips received investment incentives from the Czech government in the value of approx. 1.6 milliard CZK. The planned development of the plant did not take place and in conflict with the conditions of the Contract for Provision of Investment Incentives L.G. Phillips employed less than half of the promised 3250 employees.
In January 2006 the LG.Philips Displays Holding B.V. controlling company was forced to file a petition in bankruptcy. In spite of the fact that the LG.Philips concern is successfully developing its LCD division, the Czech plant will not be converted to production of LCD monitors. To satisfy creditors it will be necessary to sell the plant and instead of this LG will establish a new LCD factory in Poland.
For more information please see attached case study.
