USCIB Talks Poverty Reduction at Development Conference

SDG Goal 1 End poverty in all its forms everywhere
SDG Goal 1 End poverty in all its forms everywhere

Eliminating poverty everywhere is the first goal of the United Nations’ 17 Sustainable Development Goals (SDGs). Its placement at number one underscores the importance given to poverty reduction by the international community and the urgent need to achieve it with respect to the subsequent goals. Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, spoke at a poverty reduction panel at the 2016 Annual Conference of the Society for International Development on May 23 in Washington D.C..

Meyerstein gave the business perspective on the challenges associated with achieving sustainable development and poverty reduction in low- and middle-income countries. The panel touched on a wide range of topics, including how metrics and indicators help civil society engage with the broader SDG process, which goals play a vital role in poverty reduction, which kinds of partnerships can be the most effective towards achieving the SDGs, and how the international community will fund and implement the UN’s ambitious goals.

Other panelists included Adolfo Lopez-Claros, director of the Global Indicators Group of the World Bank Group and Casey Dunning, senior policy analyst at the Center for Global Development.

USCIB has played a central role in marshaling business support for sustainable development. In September 2015, USCIB officially launched its well-received Business for 2030 web portal, a catalog of business engagement that showcases the private sector’s contributions to the SDGs. Business for 2030 features over 140 initiatives from 35 companies in over 150 countries of how businesses are helping to achieve 72 of the 169 SDG targets.

In addition to educating the business community about the 2030 Agenda for Sustainable Development and the SDGs, the website highlights concrete initiatives and public-private partnerships to inspire renewed trust in the private sector, and to catalyze sustained and active business engagement in the 2030 Agenda for Sustainable Development. Through its blog and Twitter presence, the site also targets business perspectives to the UN community to sensitize them to business views on SDG priorities and implementation.

Business for 2030 features hundreds of case studies of business contributions to sustainable development through the filter of the SDGs. Three USCIB members – Dupont, Mastercard and Qualcomm – have contributed case studies under the End Poverty goal.

US Labor Secretary Talks TPP at USCIB Meetings

(Photo credit: U.S. Department of Labor)
L-R: Ariel Meyerstein (USCIB), Laura Rubbo (Disney), Thomas Perez (US Labor Department), Ronnie Goldberg (USCIB), Kevin Coon (Baker & McKenzie) (Photo credit: U.S. Department of Labor)

USCIB members and government officials gathered in Washington, D.C. on May 3 and 4 to review several important upcoming events and initiatives regarding labor policy, business and human rights, and corporate social responsibility. Convening at the offices of Baker & McKenzie for the first of two yearly meetings, USCIB’s Corporate Responsibility Committee and Labor and Employment Policy Committee discussed member priorities and concerns about upcoming transnational regulatory events and initiatives throughout 2016.

On May 3, U.S. Secretary of Labor Thomas Perez briefed members on a wide range of international labor policy issues. He expressed support for the Trans-Pacific Partnership (TPP), saying it has the strongest labor provisions of any trade agreement the United States has ever negotiated, and noted he expects TPP to pass, but not without continued advocacy and support from the business community. Perez also made a pitch for apprenticeships to help spur youth employment, saying apprenticeships are broadly applicable in many different sectors. The current administration has backed-up its belief in job training and skills development with a $175 million new grant-making initiative.  And he argued America needs to do more on progressive paid leave for mothers to include more women in the workforce to keep the United States competitive with its peers. USCIB is actively involved in all these areas at the global level, particularly on apprenticeships, which it has advanced by helping establish the Global Apprenticeships Network (GAN) through its global partner, the International Organization of Employers (IOE). Eric Biel and Mark Mittelhauser of the Bureau of International Labor Affairs accompanied Secretary Perez and remained on hand to answer member questions.

Laura Chapman Rubbo (Walt Disney) chaired the committee meetings while USCIB Vice President for Labor Affairs, Corporate Responsibility and Corporate Governance Ariel Meyerstein facilitated the discussions. On the first day of meetings, members reviewed developments at the International Labor Organization (ILO), including the update of the ILO Multinational Enterprise Declaration and the General Discussion on Decent Work in Global Supply Chains that will take place at this June’s International Labor Conference; legal developments related to the United Nations Guiding Principles on Business and Human Rights; international tax avoidance and how it relates to illicit financial flows and human rights and development, and future of work developments at the OECD. Other government guests included Lewis Karesh, assistant U.S. Trade Representative for Labor Affairs, who briefed members on TPP’s labor provisions.

On the second day, members listened to presentations about new empirical studies benchmarking company responses to human trafficking regulation, international policy developments and company initiatives around ethical recruitment, public-private partnerships with USAID on labor rights capacity-building, partnerships with the U.S. Department of Labor’s International Labor Affairs Bureau, and new software for issues management, benchmarking and stakeholder engagement. Government guests included Bama Athreya of USAID’s s Center of Excellence on Democracy, Human Rights and Governance and acting division chief of labor and employment rights; Prairie Summer of USAID’s Global Development Lab; Ana Aslan, global coordinator of the Better Work Program at the U.S. Department of Labor; and Josh Kagan, senior labor advisor for trade policy at the U.S. Department of Labor.

USCIB’s Labor Policy and Corporate Responsibility Committees will reconvene in early Fall 2016. The Committee will also have a substantial role in the upcoming 9th Annual Engaging Business Forum in Atlanta, hosted by the Coca-cola Company. For more information on the committee’s work and meetings please contact Ariel Meyerstein at ameyerstein@uscib.org.

 

Forum on Responsible Mineral Supply Chains

Gold Rush Fuels DR Congo CrisisThe OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas provides detailed recommendations to help companies respect ‌human rights and avoid contributing to conflict through their mineral purchasing decisions and practices. The guidance has been developed with the active participation of business.

Members of the Business and Industry Advisory Committee (BIAC) to the OECD will participate in the upcoming Forum on May 10-12, which will focus on compliance and implementation of the OECD Due Diligence Guidance and other initiatives to enable responsible mineral supply chains. The agenda as well as the OECD Due Diligence Guidance are available on the OECD website.

IOE Calls for Structural Reforms at DC B20 Gathering

worker_femaleInternational Organization of Employers (IOE) President Daniel Funes delivered a strong message in Washington over the weekend at several meetings of the B20, whose deliberations followed those of the G20 Finance Ministers.

While the final communiqué issued by the finance minsters expressed concern over “modest global growth,” Funes went further, saying that persistent delay to structural reforms in G20 labor markets risked turning an already serious employment challenge into a “huge social crisis”.

“What we really need are structural reforms that create an enabling environment for companies, especially SMEs, to hire more easily.”

He expressed the disappointment of the B20 Employment Task Force that the G20 had yet to prove itself the engine of reform it had promised to be.  This, he said, was a direct result of G20 governments failing to implement their commitments at the national level, consistently falling short of tackling the “the core issues to make labor markets more flexible and dynamic”.

Giving his reaction to the new multi-annual work plan of the G20 Employment Working Group, to be adopted at the end of the month in Shanghai, he noted that language around structural reform was conspicuous by its absence: “What we really need are structural reforms that create an enabling environment for companies, especially SMEs, to hire more easily.”  Additional urgent reforms were needed to help job growth catch up with GDP growth, such as better aligning education and training systems to labor market needs. “Employment opportunities for young workers are not keeping pace with demand,” said Funes, “This is a major concern and could impact social stability.”

He concluded by saying that the IOE would continue to support the International Chamber of Commerce (ICC) in producing an annual scorecard, mapping the extent to which the G20 was delivering on its commitments and that the IOE, in collaboration with the Business and Industry Advisory Committee to the OECD, would be paying particular attention to the level of ambition of G20 employment plans, as well as progress in their implementation.

Funes met with B20 leadership, spoke in the B20 plenary, and made an intervention in his capacity as co-chair at the B20 Employment Task Force session in a series of meetings on April 16 and 17.

ILO Will Review MNE Declaration

The International Labor Organization’s (ILO) 1977 Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration) provides guidelines for regulating the conduct of global businesses and defines the terms for their relations with workers and host countries in the developing world. The ILO Governing Body has recently discussed the possible review of the declaration, which was last updated in 2006, with some groups pushing for a full revision of the text that could include additional burdens and obligations on businesses.

While the business community, represented within the ILO by the global employers’ group facilitated by the International Organization of Employers (IOE), supports the MNE Declaration and recognizes the importance of updating it to reflect recent developments – such as the endorsement of the United Nations Guiding Principles on Business and Human Rights – the employers’ group does not believe a more comprehensive revision of the declaration would be needed.

During a meeting of the ILO Governing body this week, the employers’ group warned against any excessive revision of the declaration for the following reasons. First, any major changes to the declaration could create a conflict between it and other international regulatory texts, such as the OECD Guidelines on Multinational Enterprises, which has a chapter on Employment and Industrial Relations that is already carefully aligned to the existing text of the MNE Declaration. Significant changes to the MNE Declaration  could create confusion for OECD member states and the companies subject to the Guidelines’ recommendations, which were substantially revised in 2011 after much multistakeholder discussion. Second, the employers noted it is unrealistic to believe that the text can be fully updated in just one year, in time for the 40th anniversary of the declaration in 2017. Finally, the employers’ group argued that given the ILO’s limited resources, money should be invested in essential work in the field, rather than formal bureaucratic procedures in Geneva.

Although the employers called for a limited revision of the declaration to be executed by the ILO Secretariat, the ILO governing body agreed to undertake a full revision of the Declaration through a tripartite working group over the coming year, with the aim of completing the update in time for the text’s 40th anniversary. However, the employers’ group was able to negotiate a clause in the text regarding the structure of the tripartite working group, which underlines that the tripartite working group will make its decisions by consensus. This provision will give the employers considerable leverage as the process unfolds.

More information on the ILO’s decision can be found on the IOE’s website.

USCIB Webinar Series: Bretton Woods II, March 23

Globe with Money UnderneathUSCIB will host a webinor on Bretton Woods II, New America’s multi-stakeholder platform for reducing global volatility, which will take place Wednesday, March 23 from 11:00 a.m. – 12:00 p.m. EST. This will be the third webinar in the USCIB Corporate Responsibility series; please see below for further information on the series.

To register, please fill out the registration form here.

The non-partisan BWII, led by Tomicah Tilleman, is working with a large coalition of organizations – including the White House, the World Bank, McKinsey, Gates Foundation, and a range of long-term asset holders – to demonstrate that large long-term financial actors (institutional investors like pension funds and sovereign wealth funds) can significantly increase their long-term returns by dedicating a percentage of their holdings to investments that address root causes of volatility, i.e. poverty, corruption, poor governance and the lack of rule of law. Such directed investments can also improve investment climates in countries throughout the world in ways that have a multiplying effect for multinational enterprises. BWII also presents an opportunity for companies with unique competencies to lend their talents to this important endeavor.

Featured speaker

Tomicah Tillemann is a leader in the fields of social impact, civic innovation, and diplomacy. He currently serves as Senior Fellow and Director of New America’s Bretton Woods II.

Between 2010 and 2014, Tillemann served under Hillary Clinton and John Kerry as the Secretary of State’s Senior Advisor for Civil Society and Emerging Democracies. Tillemann led a team of experts that operated like venture capitalists in translating promising ideas and technologies into successful foreign policy. He also established and chaired the State Department’s Global Philanthropy Working Group and the State Department’s Federal Advisory Committee on civil society.

Tillemann joined the State Department in 2009 as Secretary Clinton’s speechwriter and collaborated with her on over 200 speeches. Previously, he spent four years on the professional staff of the Senate Foreign Relations Committee as an advisor to Chairmen Joe Biden and John Kerry. Tillemann’s other professional experience includes work with the White House, five U.S. Senate and Congressional campaigns, Reuters New Media, and the World Bank.

Tillemann is a co-holder of four patents on advanced clean technologies and a co-founder of IRIS Engines. He serves on the Advisory Board of BitFury, the world’s largest provider of blockchain infrastructure, and has helped launch and lead numerous civil society organizations and foundations. He received his B.A. magna cum laude from Yale University and holds a Ph.D. with distinction from the School for Advanced International Studies at Johns Hopkins University (SAIS). He has lectured at Yale and Princeton and testified repeatedly before Congress. He is a frequent guest on the BBC, NPR, and other news outlets.

USCIB Proud to Sponsor Global Partnerships Week 2016

Business for 2030

New York, N.Y., March 1, 2016 – The United States Council for International Business is supporting next week’s Global Partnerships Week, an annual series of events in Washington, D.C. on public-private partnerships that for government, business and development professionals, organized by the U.S. Department of State, USAID and Concordia.

“Partnership among diverse stakeholders is essential to achieving the United Nation 2030 Development Agenda and many other shared objectives,” said USCIB Vice President Ariel Meyerstein. We are delighted to provide private-sector business support to this timely and informative series of events.”

USCIB will sponsor a breakout session during the week’s kick-off event on March 7, the Global Practitioners’ Forum as well as the event’s cocktail reception. The panel discussion will focus on “Making the Business Case with Social Metrics,” and will include representatives from USCIB member companies Citi, Microsoft and Nestle.

Global Partnerships Week brings together leaders from the public, private and nonprofit sectors working in diplomacy, development and peace-building to share best practices in the creation and implementation of cross-sector collaborations. This year’s keynote speakers include John Brennan, director of the Central Intelligence Agency, and Abigail Disney, filmmaker and philanthropist.

USCIB’s Business for 2030 web portal serves as a platform for companies and business organizations to showcase partnerships and other activities that advance the UN’s 2030 Development Agenda. Launched last year, the portal features examples of private-sector engagement with the UN Sustainable Development Goals (SDGs), with the goal of stimulating more productive partnerships between the public and private sectors in support of the SDGs.

“In less than a year, Business for 2030 has grown into a vibrant, trusted and widely recognized platform for the development community,” said Meyerstein. “Thanks to strong support from our members and other stakeholders, we will be further growing the portal throughout 2016.”

USCIB serves as the voice of American business in the UN and other multilateral bodies, primarily through its role as the American affiliate of several global business groups, including the International Chamber of Commerce.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 917.420.0039, jhuneke@uscib.org

More on USCIB’s Corporate Responsibility Committee

Reforms Make Myanmar Open for Business

Dawn in Bagan

Over the past several years the Obama administration has engaged the government of Myanmar to advance a range of political reforms aimed at strengthening the country’s rule of law and economy. Steps taken by the United States to normalize relations with Myanmar, including lifting an import ban, have brought tangible benefits to the people of Myanmar as well as to American companies, who have made positive contributions to Myanmar society through their high standards of corporate social responsibility.

On February 18, USCIB joined four other business groups urging U.S. cabinet officials not to renew sanctions against Myanmar in light of the country’s recent democratic reforms. Myanmar held elections last year that neutral observers noted were free and fair. Given this progress, the U.S. business community believes expanded economic relations with Myanmar are appropriate. Remaining sanctions should be eliminated, the business groups argued, because they create uncertainty for investors.

“The remaining U.S. sanctions are a significant reason why U.S. investment in Myanmar remains modest and Myanmar entrepreneurs cannot truly take advantage of their putative access to the American market,” USCIB and the other groups said in a statement. “By contrast, virtually all other countries that had previously maintained sanctions against Myanmar have removed them entirely, placing U.S. companies who wish to invest in Myanmar or otherwise support engagement at a unique disadvantage.”

The statement concludes that not renewing sanctions against Myanmar would signal the beginning of a new relationship with a country that has made substantial progress toward improved governance and the rule of law.

OECD: Increase Private Investment in Developing Markets

Global_Development_ChartThe United Nations estimates that the world will have to contribute over $4 trillion annually to finance the Sustainable Development Goals. It is clear that official development assistance from public coffers will not be enough to meet this daunting financing challenge. Private investment will not only be welcome, but indispensable for moving from “billions to trillions” in development finance.

Recognizing the much-needed role of business in this effort, OECD governments agreed last week at the High-Level Meeting of the OECD Development Assistance Committee (DAC) to enable greater private-sector investment in developing markets.

“The successful implementation of the Sustainable Development Goals will hinge to a large extent on the mobilization of private investment,” commented Marie Gad, vice chair of the BIAC Development Committee. “And to make that happen, the DAC is breaking new ground to create an enabling environment and help mitigate the risks facing foreign and domestic businesses investing in developing markets.”

Key elements agreed by OECD DAC member governments include:

  • A new OECD DAC work program to focus on good practices for providing concessional public international finance (such as loans, guarantees, equity holdings, and mezzanine finance) to investment projects in developing economies in order to attract international private capital.
  • A set of principles for the measurement of official development assistance designed to reflect the effort of donors in providing the right incentives and removing disincentives for instruments that engage private-sector investment.
  • A new measure that will track the Total Official Support for Sustainable Development (TOSSD), which will be agreed by October 2016, after which initial data collection will get underway in 2017, leading to a report to the UN 2030 Development Agenda implementation review in 2019. TOSSD will measure – and help encourage – private-sector financial flows generated through donors’ actions.
  • DAC engagement in the Global Partnership for Effective Development Cooperation will seek to expand the application of the OECD’s Policy Framework for Investment, as well as other OECD tools and analyses, aimed at strengthening the enabling environment for businesses in developing economies.

A number of steps now taken by the DAC correspond with a paper by the Business and Industry Advisory Committee to the OECD released in 2014 “Private Sector Perspectives on Private Sector Financing for Sustainable Development.

Read the Communiqué of the OECD DAC High Level Meeting

USCIB-NYU Stern Fellowship in Business and Human Rights

In order to run companies successfully, business leaders must have an awareness of human rights and corporate social responsibility issues and an understanding of how to confront them. For the second year in a row, USCIB has partnered with the NYU Stern Center for Business and Human Rights to offer first-year MBA students a paid opportunity to work at a multinational company on a business and human rights challenge during their summer. USCIB is inviting member companies to participate in the fellowship program that matches talented NYU Stern MBA students interested in corporate responsibility with USCIB members willing to provide a hands-on summer internship opportunity.

The deadline to apply is February 29, 2016. This year’s participating USCIB members include Facebook, New Balance, Newmont Mining and PepsiCo. All applicants will go through at least two rounds of interviews. First, a number of qualified NYU Stern MBA students will be selected by the Center from a general pool through an application and interview process. Applications of initially selected candidates will then be forwarded to participating companies so they can select which candidates they would like to meet for a second round interview. Each company will be able to make the final decision as to which candidate, if any, to extend an offer.

Last year, two fellows interned with USCIB members PepsiCo and DirectTV Latin America. The fellows discuss their experiences in blog posts here and here, as well as in the video below:

The fellows had very substantive experiences, completing tasks through their internships that contributed directly to key business operations and strategy in the area of CSR, sustainability and human rights