Social standards are based on the two United Nations human rights conventions dating from 1966. By signing these conventions, most states pledged to comply with minimum social standards. An additional set of standards, the so-called Core Labour Standards, were adopted by the International Labour Organization (ILO) in 1998. These standards include Freedom of association and the right to, collective bargaining, and demandequal pay for equal work. Furthermore, they prohibit discrimination in employment and occupation, forced and child labour.

When it comes to monitoring compliance with the Core Labour Standards, the ILO's influence on its member states is limited, as it cannot impose sanctions if standards are not observed. As a result, private initiatives such as codes of conduct and social labels gain more and more significance. Increasingly, "multi-stakeholder initiatives" are being set up jointly by the private sector, non-governmental organisations and unions to introduce social standards on a long-term basis.

The German Government believes social standards are an instrument to fight poverty, as they have been shown to improve living standards in developing countries. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GTZ supports actors in developing and industrialised countries in introducing social standards.