Ewa Staworzynska Archives

OECD Takes New Approach to Measuring Development Assistance

Published on January 9, 2015

4927_image002Business cares about how finance for development is measured. The OECD (Organization for Economic Cooperate and Development) Development Assistance Committee (DAC) recently agreed to modernize its development finance measurement framework to ensure that it is credible and practicable in today’s global context.

This decision and the actions taken at the DAC’s 2014 High Level Meeting on December 15 and 16 in Paris will enable OECD members to make an important contribution to future monitoring of the financing framework underpinning the United Nations’ forthcoming Sustainable Development Goals.

“Today the world’s leading donors have made a commendable step towards using aid more efficiently and effectively while at the same time catalyzing more private investment into developing countries”, said Thomas de Man, chair of the BIAC (Business and Industry Advisory Committee to the OECD) Development Task Force, at the High Level Meeting of the DAC. “This is a crucial element of the Post-2015 development agenda”, he added.

To date, private-sector instruments such as credit guarantees have not been properly captured in official development statistics. Now new methodologies will be adopted to reveal the budgetary effort involved in using these instruments.

“While many businesses can welcome the modernization of the development finance statistical frameworks, reaching agreement on the details will now be of critical importance”, said de Man. 

The DAC improves global access to reliable statistics on different types of financing into developing countries. This work sheds light on the full range of financial options available to these countries and helps them to plan their development strategies.

In October 2014, BIAC submitted a paper to the DAC presenting private sector views on the mobilization of development finance. It emphasizes the creation of enabling environments for private investment, efficient use of donors’ development finance, and means to incentivize the use of credit guarantees that result in positive impacts on countries’ development. 

USCIB, NYU Host Dialogue About U.S. Plan on Responsible Business Conduct

Published on December 22, 2014
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

In September, President Obama said the administration would develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with the United Nations Guiding Principles on Business and Human Rights.

As part of the consultative process leading up to the development of the action plan, U.S. officials will attend a series of open dialogues hosted by independent organizations where stakeholders can provide input on the NAP process and content.

USCIB and New York University’s Stern School of Business hosted the first event in this series on December 15 on the NYU campus.

Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

U.S. government representatives from the Department of Labor, Department of State and the U.S. Mission to the United Nations came together at the open dialogue to gather input from the private sector and other stakeholders that promote respect for human rights internationally.

“There is in fact a huge new appreciation for the role of the private sector and business generally,” said Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council. “And what business can do, together with communities and civil society, to contribute to development and human rights.”

The dialogue began with a plenary session, where Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, moderated a panel with representatives from the State and Labor Departments on the development of the U.S. National Action Plan. The plenary was followed by small workshop discussions on a range of topics related to responsible business conduct.

The NAP will aim to unify government efforts in promoting best practices in the areas of human rights, labor rights, corruption and transparency abroad, with clear and predictable guidelines.

More about the National Action Plan can be found in the White House’s fact sheet and on the Business and Human Rights Resource Center website.

 

USCIB Reinforces Business Commitment to Human Rights at UN Forum

Published on December 3, 2014

UN GenevaThe United Nations Forum on Business and Human rights was larger than ever this year, drawing over 2,000 registered participants. USCIB attended the forum, which took place from December 1 to 3 in Geneva along with representatives from USCIB’s global network, including the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE).

The global event focused on strengthening multistakeholder dialogue and engagement, discussing national action plans to implement the UN Guiding Principles on Business and Human Rights, exploring access to effective remedy and identifying current and good practice.

USCIB co-organized and co-hosted a business-only side event along with the ICC and IOE and several other global business associations on December 1 with close to 100 business representatives, during which business views were garnered on progress and challenges relating to corporate respect for human rights. Overall business attendance at the event was up from previous years and was estimated to be between 10-20 percent of all attendees.

Attendees agreed that the Forum’s atmosphere improved over previous years and was very conducive to constructive dialogue between the stakeholders. The quality of the dialogue was no doubt influenced by the chair of the Forum, Sudanese businessman Mo Ibrahim, who bucked traditional UN protocol in favor of a more collegial and engaging atmosphere, referring to participants as “brothers and sisters,” rather than relying on the traditional honorifics.

A primary area of interest to business and other stakeholders was governments’ progress in creating National Action Plans (NAPs) to implement the UN Guiding Principles on Business and Human Rights. Countries that have submitted NAPs thus far include the UK, the Netherlands, Italy, Denmark and Spain, while the United States, Colombia, Finland and Switzerland are in the process of developing theirs. The IOE has prepared a synopsis of the completed NAPs.

USCIB will co-host an open consultation about the U.S. NAP along with NYU Stern Center for Business and Human Rights on December 15, which will engage representatives from the United States government on their plans for the U.S. NAP.

Another focus of the discussions was on the question of access to remedy, ranging from the current practices of companies to provide non-judicial, operational grievance mechanisms, and emerging legislative efforts by governments to influence the conduct of their companies operating extraterritorially.

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and governance, spoke at a panel on “Identifying options for international coordination and regulation to overcome challenges in access to remedy,” which involved NGOs as well as a Dutch national prosecutor and a former Canadian Supreme Court justice. The dialogue explored the wide array of existing legal frameworks for addressing issues like corruption as well as the deficiencies in these approaches, which rely on prosecutors and courts from different countries to support one another with legal assistance and sharing of information.

Another aspect of access to remedy that featured prominently at the Forum was the intergovernmental working group to be established in 2015 to explore the creation of a binding international instrument on transnational corporations and human rights. This initiative, spearheaded by Ecuador, was the focus of an IOE side event during the forum, in which IOE Secretary General Brent Wilton called on business to show results with respect to human rights to pre-empt other actors from giving their own take and detracting from the momentum behind the UN Guiding Principles on Business and Human Rights, which the business community actively supports.

“We have to continue to proactively and constructively promote the implementation of the UN Guiding Principles,” said Wilton, reminding participants that existing mechanisms to address human rights should not be undermined.

Staff contact: Ariel Meyerstein

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Public Consultation on the OECD Corporate Governance Principles

Published on December 2, 2014

The OECD Corporate Governance Principles are intended to assist governments and regulators in their efforts to evaluate and improve the legal, regulatory and institutional framework for corporate governance and provide guidance for stock exchanges, investors, corporations and others to foster good corporate governance. The objective of the OECD Principles is to contribute to economic efficiency, sustainable growth and financial stability.

The principles are currently being reviewed to ensure their continuing relevance and usefulness, and to take into account recent developments in the corporate sector and capital markets. After detailed discussion on the revised draft at the October OECD corporate governance meeting, on which the Business and Industry Advisory Committee (BIAC) to the OECD submitted comments, the OECD is currently inviting public comments on the latest draft text. Based on the outcome of the public consultation, a revised draft will be discussed at the next OECD Committee meeting in February 2015. BIAC will continue to contribute all along the process, both during the public consultation and in the discussions at committee level.

Staff contact: Ariel Meyerstein

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US ILO Launch Initiative to Improve Labor Rights in Myanmar

Published on November 21, 2014

Myanmar_TowerThe government of Myanmar has made significant strides toward reform that have created opportunities for foreign investment. As Myanmar’s reform efforts continue, the White House recently announced a multilateral initiative to improve labor rights in Myanmar which will set a strong foundation for sustainable growth and development. The U.S., Myanmar, Japan, Denmark and the International Labor Organization (ILO) launched the “Initiative to Promote Fundamental Labor Rights and Practices in Myanmar” on November 14 to help Myanmar modernize its labor code, improve compliance with international labor standards and foster dialogue between government, business and labor.

As explained by a United States Trade Representative Fact Sheet, “this innovative engagement is designed to use a multilateral, multi-stakeholder approach to strengthen labor reform, enforcement, transparency, and domestic stakeholder consultations. The Initiative is based on two pillars

Labor Reform: The Initiative will support development by the government and stakeholders, in cooperation with the ILO and partner governments, of a multi-year labor reform plan. Burma has already undertaken some significant labor law reforms, but the labor reform plan should solidify those reforms, help Burma comply with international standards, and lay out a plan to build the capacity of the government to implement these reforms.

Stakeholder Consultative Mechanism: The Initiative expects to bring stakeholders into the discussion on labor reforms and build the foundations for good industrial relations and civil society consultations in Burma. Specifically, the Initiative envisions the establishment of a stakeholder consultative mechanism that is expected to foster both tripartite engagement (i.e., engagement by the government, employers, and workers), and civil society consultation at the domestic level as well as build relations among international stakeholders from business, labor and civil society that are engaged in Burma.

USCIB has stepped up its advocacy for business in Myanmar, particularly on issues related to investment and responsible business practices. A number of USCIB members currently have operations tied to Myanmar, and many wish to do business in the country. USCIB has played a key role in the multi-stakeholder discussions hosted by the U.S. government and the International Labor Organization and several of its members plan on engaging in the process going forward.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

USCIB to Host Dialogue on US Action Plan on Responsible Business Conduct

Published on November 21, 2014

hands_and_huddleFollowing the September announcement by President Obama to develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with United Nations Guiding Principles on Business and Human Rights, USCIB and the NYU Stern Center for Human Rights will co-host an open dialogue on the U.S. NAP on December 15 at the campus of NYU Stern.

White House media release: Announcement of Opportunity to Provide Input into the U.S. National Action Plan on Responsible Business Conduct.

As the White House develops the National Action Plan, U.S. officials will attend a series of events hosted by independent organizations where stakeholders will be able to provide input on the National Action Plan process and content. Officials will outline current U.S. initiatives and plans to develop an effective national action plan in line with international standards. The New York consultation is the first in this series. U.S. officials also will participate in similar events in California, Oklahoma and Washington, DC throughout 2015.

The event will open with a plenary session and continue with small-group workshop discussions on a range of topics related to responsible business conduct. An agenda will follow. More about the National Action Plan can be found in the White House’s fact sheet and on the Business and Human Rights Resource Center website.

Staff contact: Ariel Meyerstein

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ILO Governing Body Tackles Differences Over Labor Standards

Published on November 21, 2014

On November 20, during the 322nd session of the ILO Governing Body (GB), agreement was reached on a way to address the ongoing dispute over whether Convention 87 contains a right to strike. Following months of intensive consultations and outreach by the Employers’ Group, its “package approach gained traction during the course of the two week session.

The GB decided to convene a three-day tripartite meeting in February 2015 on the controversial Convention 87 and its relationship with the right to strike, as well as the modalities and practices of strike action at national level.

The February meeting will bring together the three constituencies of the ILO, tasked to produce a report on which the March 2015 session will base a decision on the need for a request to be made to the International Court of Justice for an advisory opinion on the interpretation of a right to strike in Convention 87.

Speaking for the group, employers’ vice chairperson, Jørgen Rønnest said that, even though all parties made important concessions, the decision was “welcomed by the Employers for being constructive, practical and forward-looking.”

“We anticipate making further positive steps next February and March towards an ILO standards supervisory system that is fit for purpose well into the future,” Rønnest said

Read the IOE Report on the 322nd Session of the ILO Governing Body

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

USCIB Labor CSR Committees Review Business Priorities

Published on October 24, 2014

washington-Lincoln-MemorialsLast week, USCIB members and government officials gathered in Washington, D.C. for two days of meetings on human rights, labor policy, and corporate social responsibility, as USCIB’s Corporate Responsibility Committee and Labor & Employment Policy Committee met on consecutive days. Laura Chapman Rubbo (Walt Disney) acted as chair of the Corporate Responsibility Committee meeting, while Ed Potter (Coca-Cola) chaired the Labor & Employment Policy Committee meeting.

UN debates Ecuador proposal on human rights

One focus of discussion was renewed action in the United Nations on human rights and business. The ground is shifting, with the UN Human Rights Council recently voting, at the behest of Ecuador and a few other states, to pursue talks toward a binding UN instrument on business and human rights.

The United States and numerous other governments voted against the Ecuador resolution, but their opposition was insufficient to prevent the measure from moving ahead. Members heard updates on this fast-moving topic from Jason Pielemeier, special advisor at the State Department’s Bureau of Democracy, Human Rights and Labor; Lene Wendland, advisor to the UN High Commissioner for Human Rights; and Amol Mehra, director of International Corporate Accountability Roundtable.

Myanmar open for business

Members also discussed new opportunities and challenges as Myanmar (formerly Burma) increasingly opens itself for business and foreign investment. The Burmese government has expressed an interest in bolstering the country’s relationship with American businesses, and a number of USCIB members operate in the country. Company representatives said their decision to expand in the country came after intensive due diligence and numerous dialogues with the government. American business activity in the country is only a small percentage of overall investment in Myanmar, which is dominated by companies from other Asian countries.

The steady growth of Myanmar’s garment manufacturing sector has spurred U.S. and other foreign investors to take stock of factory safety, in order to avoid a repeat of last year’s Rana Plaza disaster in Bangladesh, and to work closely with the International Labor Organization to improve working conditions in the country. Members cited greater ease in intergovernmental and private-sector dialogue with the Burmese government then was experienced in Bangladesh, a positive sign for the well-being of workers moving forward.

Corporate Responsibility Updates

Members also reviewed progress on a wide range of business and human rights issues, including a discussion on how and where to functionally embed oversight for human rights into a company’s organization, updates on the various regulatory measures related to conflict minerals, emerging trends in CSR and human rights reporting, and a recap of USCIB’s UN-business door knock event on engaging the private sector with the UN Sustainable Development Goals (SDGs).

Bennet Freeman (Calvert Investments) gave a presentation on evolving trends in CSR and human rights reporting for businesses. Respect for human rights now constitutes a core part of companies’ business models, as opposed to being limited to CSR or philanthropic activities, and business is making steady progress in reporting in this area. Freeman gave a similar presentation at USCIB’s September conference on Engaging Business and Human Rights in Atlanta.

On the UN SDGs, Ariel Meyerstein (USCIB) and Tam Nguyen (Bechtel) reported on USCIB’s doorknock event, “Practical Private Sector Engagement in the UN Post-2015 Development Agenda,” hosted at Pfizer’s New York headquarters. They noted that business is much more engaged with the UN’s Post-2015 Development Agenda than it was for the UN’s Millennium Development Goals, and that the private sector hopes that the UN takes into consideration existing CSR reporting mechanisms when formulating the SDG targets, so that companies won’t have to grapple with new and redundant sets of metrics and indicators.

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

More on USCIB’s Corporate Responsibility Committee

IOE European Social Charter Must Support Job Creation

Published on October 23, 2014

Europe from spaceAdopted in 1961, the European Social Charter is an EU treaty that guarantees social and economic human rights, such as the rights to fair remuneration and safe working conditions.

Speaking at the High-Level Conference on the European Social Charter in Turin, Italy on October 17, the International Organization of Employers (IOE) Vice President for Europe, Renate Hornung-Draus said that the European Social Charter will only gain relevance if it supports reforms for job creation and sustainable social security systems. She warned that the way in which the supervisory bodies of the Council of Europe interpreted the principles of the European Social Charter was undermining its relevance for Member States.

Since 1990 many new member States have joined the Council of Europe. They have different economic and social challenges than the founding members. The interpretation of the European Social Charter by its Supervisory bodies has to be more responsive to their specific situation.

Hornung-Draus said: “The Social Charter will achieve its goal of promoting economic and social development only if its principles are implemented in a way that respect the variety of situations of Member States, and if they are conducive to the structural reforms and fiscal consolidation required by the changing economic and social context.”

Globalization, technological changes require open, dynamic and flexible labor markets and a commitment to life-long learning. In some European countries, where labor market regulation has not adapted to this changing context, very high unemployment, and especially youth unemployment, can only be properly addressed with profound structural labor market reforms.

In addition, social spending in some countries European countries has reached levels that overwhelm economic resources, leading to high public debt. Public debt crowds out investment, because social security systems in those countries become unsustainable in light of changing demographics. Fiscal consolidation in these countries is urgently required, not only to restore the credibility of financial markets and attract investment, but also as an act of social justice towards the young generation.

Staff contact: Ariel Meyerstein

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OECD Update on Corporate Governance Principles

Published on October 10, 2014
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Business and Industry Advisory Committee to the OECD

Good governance contributes to sustainable value creation and is in the interest of companies as it facilitates access to capital as well as increased investor and stakeholder confidence. The OECD Principles of Corporate Governance, which are currently being revised, are an international benchmark for policy makers, investors, corporations and other stakeholders worldwide. The Financial Stability Forum has designated them as one of the 12 key standards for sound financial systems.

The October 13 consultation with the OECD Corporate Governance Committee will be an important opportunity for a discussion on the first revised draft of the OECD Principles of Corporate Governance. As a follow up, a public consultation on the draft revised Principles is planned for the end of 2014. BIAC has been involved all along the process and will continue its active contribution to ensure that the final text to be presented to the 2015 Ministerial Council Meeting reflects business considerations. BIAC is also actively involved in the review of the Guidelines on Corporate Governance of State-Owned Enterprises, which are being revised in parallel, and will participate in the next consultation on October 22.

Staff contacts: Ariel Meyerstein

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