Standard Clause in which the supplier covenants to the buyer that it will conduct its business during the term of the agreement in accordance with the buyer's corporate social responsibility (CSR) policies and with CSR-related laws, rules, and regulations. This Standard Clause can be used alone or to supplement CSR representations and warranties in a commercial sale of goods or services transaction. Companies increasingly use the term “environmental, social, and governance” (ESG) to refer to CSR. The concepts overlap and the terms are often used interchangeably. For a sample ESG covenant of ongoing compliance, see Standard Clause, General Contract Clauses: ESG Covenant of Ongoing Compliance.

This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.