ICC: Business Leaders Call for Collaborative SDG Effort

Published on September 29, 2015

Business leaders representing companies with operations in over 190 countries have thrown their weight behind the new UN Sustainable Development Goals (SDGs).

The SDGs – launched at a major summit in New York during the UN General Assembly – set out a new vision for a brighter, safer and more prosperous world for all. In a letter to the Financial Times the business leaders wrote: “Many businesses are already playing a leading role in promoting sustainable development, but with the right support and incentives from government we can do much more. A collaborative effort is also required to enable the transformation of business practices towards sustainability more broadly – including within the small business sector.”

Commenting on the release of the letter, ICC Secretary General John Danilovich said: “This is a clear and visible demonstration of the business community’s commitment to the new Global Goals. We call on governments to work constructively with the private sector to deliver fully on the promise of the SDGs”.

Read the full text of the letter at ICC’s website.

USCIB Members Attend 4th International Conference on Chemicals Management

Published on September 29, 2015

On the heels of the approved United Nations Sustainable Development Goals and as the UN General Assembly continues, the fourth session of the International Conference on Chemicals Management (ICCM4) began on September 28 in Geneva. During this week-long conference, ICCM, the governing body of the Strategic Approach to International Chemicals Management (SAICM), brings over 700 stakeholders from sectors that include agriculture, environment, health, industry, labor, economics, science and academia for discussions about how chemicals can be used and produced in ways that minimize adverse effects on human health and the environment by 2020.

“High on the agenda will be an important discussion of how SAICM and its stakeholders can contribute to the Sustainable Development Goals (SDGs) in the context of the SAICM 2020 goal and beyond,” said Helen Medina, USCIB’s vice president for product policy and innovation. “We will also discuss emerging policy issues including chemicals in products, environmentally persistent pharmaceutical pollutants and highly hazardous pesticides.”

Given the new workstreams that may materialize from ICCM4, several USCIB members are attending ICCM4 this week. USCIB members comply with a variety of national chemicals regulations, and are engaged in initiatives that go well beyond legal minimums, supporting efforts to protect human health and the environment.

“USCIB and its members are actively engaged in the activities related to SAICM, chemicals and green economy discussions at UNEP, chemical deliberations at the OECD and at the Asia-Pacific Economic Cooperation (APEC) Chemical Dialogue,” said Medina. “We are also participating in the ICCM4 dialogue by developing industry positions on SAICM initiatives, coordinating with governments and multinational organizations, and contributing directly to the SAICM process.”

USCIB members attending ICCM4 include the American Chemistry Council, the American Cleaning Institute, Boeing, American Petroleum Institute, Toy Industry Association, Exxon, Procter and Gamble, CropLife America, Pfizer, Johnson and Johnson and many more.

USCIB Statement on China’s WTO Commitments

Published on September 28, 2015

The economic relationship between the United States and China is both vital and complex, and U.S. business holds an important stake in this relationship’s success. Since China joined the World Trade Organization in 2001, the United States Trade Representative has submitted a yearly report to Congress on China’s compliance and commitments to its WTO accession. As part of this submission, USCIB is invited to provide a statement to USTR on behalf of its members, providing feedback, comments and recommendations on China’s compliance with its WTO commitments.

USCIB appreciates the significant efforts China has made since joining the WTO to meet its obligations under the terms of its accession agreement. However, there still remain general WTO obligation compliance concerns. Broad business concerns are listed below, excerpted from USCIB’s statement:

China’s Antimonopoly Law (AML): Chinese antitrust enforcement authorities continue to use the AML as a tool to advance industrial policies goals and limit competition by U.S. and other foreign companies. While we support China’s efforts to address anti-competitive practices, Chinese regulators have repeatedly used AML enforcement against U.S. companies absent any proof of market power or anti-competitive harm, and often in disregard of basic norms of fairness, due process, and transparency. USCIB members urge the U.S. government to continue to focus on this issue and its effects on U.S. companies.

National Treatment and Non-Discrimination: Chinese authorities continue to use a variety of policy tools and regulatory measures—including AML enforcement (described above), technology standards policies, IPR enforcement practices, and licensing and investment reviews—to compel transfer of U.S. IP or technologies to Chinese entities at below-market rates and to exclude U.S. companies from full and equal participation in the Chinese market. USCIB members continue to call on China to abide by their WTO commitments of national treatment and non-discrimination and ensure a competitive market that allows for foreign business participation on a level playing field with domestic Chinese firms.

IT Security Measures: Chinese policymakers and regulators have recently proposed or enacted a variety of trade-restrictive and discriminatory requirements on information technology (IT) under the guise of protecting security. These measures, many of which require the use of IT products that are “secure and controllable,” disadvantage U.S. firms by requiring Chinese IT users to purchase Chinese products or suppliers, imposing domestic R&D or content requirements, requiring the transfer or disclosure of source code or other IP, restricting cross-border data transfers, and in other ways. USCIB members urge the U.S. government to continue to press for full suspension of all existing and proposed measures involving trade-restrictive requirements in this area.

Read USCIB’s full statement on China’s WTO commitments.

Call to Action: Bringing Down Legal Barriers for Women’s Economic Empowerment

Published on September 28, 2015

The global economy has much to gain from the full empowerment of women. As arguably the world’s most underutilized resource, women are essential to increasing economic growth, establishing more just societies, improving quality of life for families and communities and boosting the profitability of enterprises.

Around the world, too many laws still discriminate on the basis of gender, with dramatic consequences on women’s ability to contribute to economic growth. To address these injustices, USCIB partnered with the United Nations Global Compact, the International Chamber of Commerce, the Business and Industry Advisory Committee to the OECD, the International Labor Organization, the World Bank Group and other organizations to “call upon Governments from around the world to bring down legal barriers restricting economic opportunities for women, and by doing so, help create an enabling environment for inclusive economic growth.”

The call to action was publicly launched on Saturday September 26 at the Private Sector Forum held during the UN General Assembly, the day after the UN Sustainable Development Goals were launched. A number of USCIB companies are actively involved in initiatives to fulfill Goal 5 of the SDGs, which is focused on empowering women and several others have taken a lead role in the UN Global Compact’s “Business for Rule of Law” initiative and other rule of law promotion activities.

USCIB has been active on women’s empowerment for some time. In March, USCIB co-organized an event titled “Bringing Down the Barriers: Women, Business and the Rule of Law,” held in parallel with the UN meeting of the Commission on the Status of Women (CWS) and in support of the 2014 World Bank report on Women, Business and the Law, which evaluated the economic impacts of gender discrimination laws across the world. USCIB has also taken a lead role in authoring a number of reports with BIAC for the OECD’s work on empowering women.

Forging a Path for Business in the UN 2030 Development Agenda

Published on September 25, 2015

L-R: Amina Mohammed (UN), Peter Robinson (USCIB), Alex Thier (USAID) and Shawn Miles (MasterCard). — L-R: Amina Mohammed (UN), Peter Robinson (USCIB), Alex Thier (USAID). Shawn Miles (MasterCard) and moderator Matthew Bishop (The Economist).

USCIB welcomed the agreement reached today by the United Nations General Assembly of the UN 2030 Development Agenda and its 17 Sustainable Development Goals (SDGs). A product of extensive consultation with all stakeholders, the SDGs represent the UN’s most ambitious vision for sustainable development. These goals will reshape the practice of development globally as well as the private sector’s role in building a more prosperous, healthy world.

USCIB is deeply engaged in all aspects of the UN 2030 sustainable development agenda, advocating for good governance and the rule of law, inclusive economic growth, investment in infrastructure, enabling environments to foster innovation, strong public-private partnerships and above all, an open channel for business input into policy negotiations and implementation at the international and national levels. USCIB feeds into UN development agenda as the U.S. national committee of the International Chamber of Commerce (ICC), which chairs the Global Business Alliance for Post-2015 and the Finance for Development Business Sector Steering Committee.

“The 2030 Development Agenda identifies the private sector as part of the solution, in more meaningful and concrete ways than ever before,” said USCIB President and CEO Peter Robinson. “This is an agenda that we can support, and are indeed already supporting, because we in the business community have helped to build it.”

Business for 2030 Launch Event

On September 24, over 100 business leaders, government officials, UN delegates and representatives from business and civil society attended USCIB’s launch event for its Business for 2030 web portal, which showcases the private sector’s contributions to the SDGs.

Part informative resource, part catalog of business engagement, Business for 2030 features over 120 examples from 30 companies in over 100 countries of how businesses are helping to achieve 70 of the 169 SDG targets. Business for 2030 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.

“We wanted to highlight concrete initiatives and partnerships that our members and partners are undertaking to support the 2030 Agenda,” said Robinson. “We believe that Business for 2030 can inspire renewed trust in the private sector, while catalyzing active, sustained business engagement in support of the SDGs.”

At the half-day event held at the Harvard Club, USCIB member companies and international business representatives discussed the examples featured on Business for 2030 with the broader development community, with a focus on the critical role of infrastructure and the need to transform public-private partnerships. USCIB organized the event in partnership with Bechtel, MasterCard and the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA).

High-level speakers introduced the event and framed the discussions around the private-sector engagement. Robinson and Amina Mohammed, special adviser to the UN secretary general on post-2015 development planning, gave opening remarks. A panel discussion followed, moderated by Matthew Bishop of The Economist with Alex Thier, assistant administrator for policy, planning and learning at USAID; and Shawn Miles, executive vice president for global public policy at MasterCard.

“It is really exciting times,” said Mohammed, addressing business leaders in the room. “Grab this opportunity.”

Mohammed said partnerships with businesses of all sizes would be encouraged, and that the private sector will be provided with incentives to invest in achieving the SDGs.

View photos of the event (Flickr)

Meeting with WTO Director General and ICC’s SDG Business Forum

The importance of cross-border trade and investment as a key facilitator of achieving the SDGs was a core theme of discussion this week.

On Friday, September 25, USCIB Vice Chairman Dennis Nally hosted a meeting with Roberto Azevedo, director general of the World Trade Organization, with Peter Robinson and ICC leadership.

“The ultimate success of many of the SDGs‎ – including for example those dealing with climate, infrastructure, and access to water and sanitation – will depend on transfer of technology and know-how,” said Robinson. “The WTO will play a critical role as the facilitator and delivery mechanism for that process.”

Also on Friday, ICC hosted the day-long SDG Business Forum, providing solutions and resources for sustainable development by 2030. The event brought together CEOs, heads of state, UN delegates and civil society leaders to discuss what business is already doing in support of the SDGs, and how business can be an effective partner and contribute positively to the implementation of the new UN development framework.

Business for 2030 Portal & Talks about Infrastructure and Partnerships

During the Business for 2030 launch event on September 24, USCIB Vice President for Labor Affairs and Corporate Responsibility Ariel Meyerstein gave a well-received virtual tour of the Business for 2030 website.

“This site showcases business’ past and continuing contributions to sustainable development through the prism of the SDGs,” said Meyerstein. “The goal of the site is to stimulate a more productive partnership between the public and private sectors at the UN and at national levels and to demonstrate the need for a proportionate role for business in the negotiations, implementation and follow-up mechanisms of the 2030 development agenda.”

L-R: George Ingram (Brookings), Angela Baker (Qualcomm), Terri Bresenham (GE), Mike Eckhart (Citi) — L-R: George Ingram (Brookings), Angela Baker (Qualcomm), Terri Bresenham (GE) and Mike Eckhart (Citi)

The event’s first panel – “Infrastructure in the 2030 Development Agenda: Highlights from Business for 2030” – addressed the challenges of public-private sector cooperation around building infrastructure. Because infrastructure is so critical for development and so often implicates the core duties of the state, the stakes are high to achieve results in a cost-effective manner. This issue raises the bar for how national governments work with the private sector, including the critical need for more comprehensive strategic planning at the national level that involves all stakeholders.

“Fifteen years ago, this conference wouldn’t have happened. It was all about official development assistance,” said Ingram. “I’m at the end of a 180 degree change in my lifetime. Today, the private sector is being seen as the essential driver of inclusive development.”

L-R: Adeeb Mahmud (FSG), Karen Newman (UNDP), Gilbert Houngbo (ILO), Mario Ottiglio (IFPMA), Carlos Cornejo (MasterCard) and Claus Stieg Pederson (Novozymes) — L-R: Adeeb Mahmud (FSG), Karen Newman (UNDP), Gilbert Houngbo (ILO), Mario Ottiglio (IFPMA), Carlos Cornejo (MasterCard) and Claus Stieg Pedersen (Novozymes)

The second panel on “Transforming Partnerships in the 2030 Development Era” addressed the UN’s call for renewed global partnerships for sustainable development. The private sector and civil society are invited as key players in achieving the SDGs, creating opportunities for business to leverage its collective resources to help steer and amplify the UN’s development efforts. For that to happen, however, governments need to create the right enabling environments for business.

“The Debate is Over”

The event concluded with remarks from Erik Solheim, chair of the development assistance committee at the OECD. He enthusiastically exclaimed that “the debate is over” in the development community over whether the private sector is a force for good.

“The evidence is so overwhelming that the private sector is part of the solution,” he said. “Without the private sector, development wouldn’t be possible.”

Now that the debate is won, he explained that the next step is to determine how governments and businesses can establish practical and effective partnerships to achieve the goals of the 2030 development agenda. For example, public-private partnerships have had enormous success in limiting childhood mortality around the world. Going forward, all stakeholders must come together to help set up practical partnerships.

See the event agenda.

BIAC-B20 Event: Financing SMEs in Global Markets

Published on September 24, 2015

Charles R. Johnston, chair of USCIB's Trade and Investment Committee and Vice Chair of BIAC — Charles R. Johnston, chair of USCIB’s Trade and Investment Committee and Vice Chair of BIAC

Conscious of the financing challenge facing small- and medium-sized enterprises (SMEs) and the consequences for growth and investment, the Business and Industry Advisory Committee to the OECD (BIAC) and B20 Turkey hosted a special event on Business Access to Global Value Chains and Financing SMEs on June 4, 2015 at the OECD Headquarters in Paris. Participants included senior representatives from SME associations, financial firms, multinational companies, governments, international organizations, and business federations. The event sought to pave the way for actions to support SMEs in global value chains (GVCs), in contribution to the G20 Leaders’ Summit in November 2015.

As national economies endure the slowest post-crisis global investment recovery since the early 1970s, there is a pressing need to unlock growth, investment and jobs. More must be done to enable businesses to serve their clients through GVCs, which form the centerpiece of world trade and investment, and thereby enhance companies’ competitiveness, productivity, and propensity to invest.

However, SMEs – which account for about 60 to 70 percent of employment and over 50 percent of value-added in OECD countries – have struggled to access the financing they require to participate in and across world markets, as banks have deleveraged to meet new regulatory requirements.

Following the event, BIAC and B20 Turkey released a publication to convey key priorities to the G20 agenda in 2015. It presents a compilation of chapters by prominent thinkers on the financing of SMEs in GVCs, and draws upon the discussions held at the special event held on June 4. The final chapter of the publication presents three overarching recommendations to G20 Leaders:

Focus on coordination, consultation and impact assessment
Raise SME access to finance and skills through an integrated approach
Maximize the sharing of information through digital platforms

The publication is intended to serve as a key point of reference in preparing the G20 Leaders’ Summit Communiqué in 2015. The publication is below for your perusal.

BIAC and B20 give appreciation to the following co-sponsors of the event and report: Lloyds Banking Group, Toronto-Dominion Bank Group, the Association of Chartered Certified Accountants (ACCA), the SME Finance Forum, and Willis Ltd.

More Effort Needed on Trade for Jobs and Growth, ICC leaders say

Published on September 22, 2015

The shrinkage in global trade flows over the first two quarters of 2015 was highlighted as a major concern for global business by the International Chamber of Commerce (ICC), at its executive board meeting in New Delhi, India on September 16.

Discussing strategic priorities for the international business community, ICC leaders called for a major push to ensure the potential benefits of the WTO’s Trade Facilitation Agreement are realized. This agreement, concluded in 2013, has significant potential to boost global trade flows, up to an estimated $1 trillion over time.

“The TFA has significant potential to support the recovery of global trade flows, by making it easier, quicker and less costly to export,” said ICC and USCIB Chairman Terry McGraw. “Ratifying the TFA must be the starting point for a concerted effort to promote trade as a driver of growth.”

Comprising CEO’s and business leaders from over 20 countries, executive board members discussed a core work program for ICC focusing on four major summits – each of which is expected to have a major impact on business for years to come. Specifically, the 10th Ministerial meeting of the World Trade Organization in Nairobi, the UN Sustainable Development Goals Summit in New York, the G20 leaders Summit in Antalya and the landmark Climate Conference, COP21, in Paris.

The TFA tops a list of four priorities set out by the Business-20 International Business Advisory Council (IBAC), established under this year’s Turkish presidency. The executive board endorsed the IBAC priorities that also include financing for small- and medium-sized enterprises, youth and women’s engagement in the labor force and infrastructure investment.

“We as businesses can’t generate jobs and growth without government support,” McGraw said. “As the voice of business with representation in over 130 countries we are ready to do all we can in the weeks ahead to promote the G20 agenda for growth, jobs and opportunity.”

ICC Executive Board members met in Delhi on the eve of the 2015 India Economic Convention.

Engaging Business Forum: Demonstrating Respect for Human Rights

Published on September 21, 2015

L-R: Brent Wilton (Coca-Cola), James Plunkett (U.S. Chamber of Commerce), Ariel Meyerstein (USCIB), Linda Kromjong (IOE)

Since the United Nations Human Rights Council endorsement of the landmark UN Guiding Principles on Business and Human Rights in 2011, USCIB, The Coca-Cola Company, the U.S. Chamber of Commerce and the International Organization of Employers (IOE) have organized an annual forum on business and human rights to foster candid discussion on the corporate responsibility to respect human rights. The forum built upon earlier annual discussions of how companies can keep forced labor and child labor out of their supply chains.

The Guiding Principles, which were prepared under the stewardship of former UN special representative on human rights John Ruggie, established a framework under which states are obligated to protect human rights in their territories, while businesses, both foreign and domestic, are responsible for respecting these rights throughout their operations. The principles also propose a framework for greater access to human rights victims to effective remedy.

The 2015 Engaging Business Conference took place on September 17 at Coca-Cola’s headquarters in Atlanta under the theme of “Addressing the Challenges of Demonstrating Respect for Human Rights.”

The day-long forum drew over 100 company executives, along with select representatives from the public-sector, NGOs and the UN for discussions on the importance of the corporate responsibility to respect human rights and the challenges faced by business in demonstrating respect for human rights in their operations.

Speakers at the event included Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, Linda Kromjong, secretary-general of the IOE, James Plunkett, director of labor policy at the U.S. Chamber of Commerce, and Brent Wilton, director of global workplace rights at Coca-Cola. Company presentations came from representatives of Barrick Gold Corporation, Coca-Cola, HP and Kosmos Energy.

“This event underscored the strong commitment and ingenuity that leading American and global businesses bring to addressing the human rights impacts of their operations,” said Meyerstein.

The event’s agenda is available here.

Wilton framed event with an overview of the challenging systemic issues that impact respect for human rights for businesses today.

“The global human rights agenda for business continues to evolve. For eight years now these conferences have given participants an opportunity to hear from those who are shaping that agenda as well as from peer companies who are working to give effect to the corporate responsibility to respect human rights,” said Wilton. “The conferences provide a safe place for information sharing, networking and knowledge building. There is no one answer to the challenges we all face in this space and no one person has all the answers. However, by coming together we all benefit from the collective experiences and knowledge present in the room.”

The following overarching topics were discussed by panelists and participants throughout the day:

Supply Chain Impacts: forced labor and land rights
Freedom of Association and Collective Bargaining: linkage to human rights
Human Rights Due Diligence: how to do it, the importance of transparency and understanding stakeholder expectations
Human Rights Remedy: a discussion of business’ accountability for remedy and what effective remedies look like

Meyerstein moderated the panel on “Freedom of Association and Collective Bargaining.” Following the panels, participants held breakout sessions to share experiences and insights.

ILO Symposium: Global Supply Chains Good for Gender Equality

Published on September 17, 2015

The International Organization of Employers participated in the International Labor Organization Symposium on Trade and Employment on September 2, which explored the impact of international trade on employment in developing countries. The session on trade and workers’ skills was particularly useful in supporting the Employer position that global supply chains produce better employment outcomes and contribute to gender equality.

Key takeaways for advocacy:

MNEs play an important role in closing the gender gap through cultural convergence; there is significant evidence from China that foreign firms transfer their corporate culture of employing women to their subsidiaries and that this effect ripples out to local firms
Gender prejudices contribute to macroeconomic imbalances in many developing countries
Firms that perpetrate prejudice against women have smaller profits and lower aggregate productivity
Exporters pay 31 percent higher wages than non-exporting counterparts and are on average 130 percent larger in terms of employee levels
Contrary to the belief that preferential trade agreements are more advantageous to MNEs, in fact, only a small percentage of large MNEs benefit from such trade liberalisation

USCIB Weighs in on Chinese Banking Regulations

Published on September 16, 2015

As President Obama and Chinese President Xi Jinping get set to hold their highly anticipated summit meeting next week, USCIB joined twelve business organizations in signing a letter to the Chinese Banking Regulatory Commission (CBRC), urging China to implement regulations that reflect global banking principles rather than localized solutions.

China’s proposed new banking regulations would require foreign technology companies to give source code and encryption keys to Beijing officials. The global business community has argued that these regulations discriminate against foreign providers of information and communications technologies (ICTs) and would effectively shut foreign firms out of China’s banking sector.

In a letter whose signatories represent companies from Asia, Europe and North America and do business across all industry sectors in China, USCIB and others encouraged China to “implement a prudential regulatory framework which reflects [internationally recognized] principles, allowing appropriate industry-level benchmarking and avoiding the pitfalls associated with mandating prescriptive mechanisms of technology and cybersecurity standard-setting.”

Read the full letter.

The letter summarizes a list of principles for enhancing IT security in the banking sector on which signatories encourage China to base its regulations. These high-level principles include:

Transparency in the policymaking process – together with sufficient time for consultation with industry on proposed approaches.
Polices that are flexible and adaptable to confront emerging threats while enabling companies to continue to innovate.
A risk-based approach to examining whole systems for cyber threats to foster a prudential regulatory framework that can be more efficient and more effective than focusing on individual functions or processes.
Reliance on global security standards based on consensus industry processes, which will ensure that the best practices from around the world are incorporated and that security requirements will be regularly updated to respond to evolving threats.
An important role for market-based approaches that achieve desirable outcomes.

“Use of such standards also avoids the insurmountable challenge of asking international firms with global platforms to comply with conflicting rules and regulations between markets,” the letter stated. “To that end, we urge the CBRC to consult with other national regulators for rules that avoid exclusive use of localized solutions, prescriptive technologies and restrictions on data flows.”

The signatories noted that the best approach for developing technology policies is “open and transparent formulation and implementation, which allows stakeholders to provide helpful input to regulators.” They urged China to base its banking regulations on internationally accepted principles to ensure that global financial systems are as secure as possible.

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