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Hampl Addresses the Costs of Corruption and Bribery on Panel

Published on November 14, 2017
USCIB’s Eva Hampl second from left. Photograph courtesy of Washington College of Law

As the OECD celebrated 20 years of the Anti-Bribery Convention last week, USCIB’s Director for Investment, Trade and Financial Services  Eva Hampl took part in a panel at the event “Celebrating the OECD Anti-Bribery Convention at 20, the FCPA at 40 & Addressing the Challenges Ahead”.

Hampl addressed the cost that corruption and bribery present to business and the important role the OECD plays to level the playing field in that regard. Specifically, companies from OECD countries, who have to comply with the OECD Anti-bribery Convention, compete with companies from non-OECD countries that are not subject to the same anti-bribery measures.

“This leads to unfair competition and can even create an environment favorable to corrupt practices,” warned Hampl. “U.S. companies of course have to comply with the FCPA, which means they spend a significant amount of resources on developing anti-corruption policies and compliance programs as well as training systems for employees so that they are well-equipped to withstand demands for corruption.”

Other speakers at the event included Stuart Eizenstat, former domestic policy advisor, President Carter & U.S. Ambassador to the EU, Under Secretary of Commerce, Deputy Secretary of Treasury, Drago Kos, chair of the OECD Working Group on Bribery, as well as officials from the Department of Justice and anti-corruption experts from international and policy organizations.

The OECD Anti-bribery Convention is a landmark instrument addressing the bribery of foreign officials. The OECD, with its multi-disciplinary nature, has the capacity to take a coordinated approach to the right against corruption. While we commend the work the OECD has already done in this space, there are several issues where USCIB advocates for further work to be done: (1) Increased adherence to the Convention, particularly b G20 countries; (2) Increased efforts to address the demand side of bribery (i.e. bribe solicitation and extortion by public officials); (3) More measures to facilitate voluntary self-disclosure; and (4) Addressing the growing complexity and costs of complying with multiple anti-bribery regimes by promoting clarity and greater international consistency.

Additionally, Hampl also attended the event No Turning Back: 40 Years of the FCPA and 20 Years of the OECD Anti-Bribery Convention. The agenda included speakers from various U.S. government offices that play an integral part enforcing the FCPA, OECD officials, foreign government officials, representatives from academia and international institutions, as well as the private sector, including General Electric and Citibank. The keynote address to kick off the event was given by Acting Assistant Attorney General Kenneth Blanco.

Business Dialogue at Climate COP Underscores Need for Inclusive Engagement

Published on November 14, 2017

Continuing a series of Business Dialogues at UN Climate Conference meetings (COPs) in Doha, Warsaw, Lima and Marrakesh, the Major Economies Business Forum on Energy Security and Climate Change (BizMEF) and USCIB organized a successful Business Dialogue on Sunday, November 12 in Siegburg, Germany on the margins of this year’s UN Climate Conference, known as COP23.

BizMEF is a partnership of over 20 major multi-sectoral business organizations – including USCIB – from major economies and international sectoral organizations.

This year’s BizMEF Business Dialogue discussed where business can contribute to national pledge development and review, and how business can be involved in the global review of pre-2020 climate action by countries and business, known as the Talanoa Dialogue, to be administered by Fiji.

USCIB and BizMEF have called for the establishment of a recognized channel for business engagement on these and other elements of the Paris Agreement and UNFCCC.  BizMEF’s 2017 COP23 Issue Papers address business issues and are now available here.

The dialogue featured Fijian Ambassador to the EU Deo Saran. Fiji holds the presidency of this year’s climate negotiations, and will facilitate the Talanoa Dialogue.  Ambassador Saran stated: “We are aiming for a COP that delivers tangible results and inspires a race to the top.  When it comes to climate change action, each of us has a responsibility, including business. We are all in the same canoe.”

USCIB President and CEO Peter Robinson called for an open, inclusive framework for business engagement in the UNFCCC and the Paris Agreement. He welcomed the Talanoa Dialogue as “a way to bring together and consider the diverse national experiences and actions, to understand what has worked well, and identify where changes could be made to promote progress.  It is to be a dialogue, not a zero-sum negotiation. As such it is well suited for inclusion of business know how and experiences.”

The BizMEF Business Dialogue brought together over 50 participants from among government delegations, business leaders, academics and officials from the UNFCCC and relevant international organizations. High-level speakers at the event included:

  • Tomasz Chruszczow, Poland, SBI chair (Subsidiary Body for Implementation)
  • Marion Ferrat, IPCC Working Group III (Intergovernmental Panel on Climate Change)
  • Yvon Slingenberg, director general for environment, European Commission
  • Ambassador Patrick Suckling, [minister of?] environment, Australia
  • Trigg Talley, head of the Office of Global Change, U.S. Department of State
  • Jun Arima, professor of energy and environmental policy, University of Tokyo

Norine Kennedy, USCIB’s vice president for environment, energy and strategic international engagement, highlighted the growing issue of perceived conflict of interest and proposed sectoral bans at the UNFCCC and elsewhere in the multilateral system.  “We need to move forward, not backward,” she remarked. “If business and industry have contributed to climate change, it should be equally true that we play a significant role in tackling climate change. The reality is that it will not be possible to meet the objectives of the Paris Agreement without the robust and coordinated participation of the global business community in all its diversity.”

USCIB will continue to represent the private sector at COP23, through its conclusion on November 16. USCIB will also host an “on-the-ground” webinar from Bonn for USCIB members on Wednesday, November 15.  For more information on the webinar, please contact Mia Lauter (mlauter@uscib.org).

Business at OECD Publishes 2017 Annual Report

Published on November 6, 2017

Business at OECD (BIAC) has recently launched its 2017 Annual Report, which offers a comprehensive account of BIAC’s activities this year and outline ways for engagement in 2018 and beyond.

In addition, this Annual Report gives an overview of:

  • BIAC high-level policy dialogue with OECD Ambassadors, the Secretary General, Ministers from 35 OECD countries and key partners, as well as G20 and B20 activities
  • The work across BIAC and OECD committees in BIAC’s quest for policies that allow people participation into open economies
  • BIAC’s work with members in Paris and abroad

Best Practices and Challenges Facing Apprenticeships in New York

Published on November 6, 2017

On October 10, 2017, USCIB gathered with the Global Apprenticeship Network (GAN), the New York City Mayor’s Office of Workforce Development, and representatives from the hospitality industry, including Marriott, Hilton, the American Hotel & Lodging Association and the National Restaurant Association, to discuss the future of apprenticeships in NYC. This informal meeting was a continuation of the July 20th Roundtable on Apprenticeships, where USCIB and GAN brought together the U.S. Department of Labor and over 20 industry representatives for a dialogue on current and potential apprenticeship programs throughout the U.S.

The most recent meeting served as an informative exchange of best practices and greatest challenges facing implementation of apprenticeships in New York City. The NYC Mayor’s Office of Workforce Development welcomed greater establishments of apprenticeships in the city, citing a recently published goal of establishing 100,000 good jobs in the city over the next 10 years, with each job generated through city action and paying $50,000 per year or more. Additionally, they emphasized their current work with local colleges for a greater focus on the work-based learning model that can better enable registered apprenticeships.

The hospitality industry discussed their significant work on apprenticeships, and how much progress has been made in the last several years, but also highlighted the challenges of working under different regulations for apprenticeships, state-by-state. Another identified challenge was working with regulations originally created for specific sectors; for example, NY State’s apprenticeship regulations were originally formulated for the construction industry, but – if modernized – could better enable apprenticeships in the IT, banking and hospitality industries as well.

For a full summary of the meeting, including key final messages and next steps, please click here.

USCIB Submits Comments on Trade Barriers to Telecommunication Products

Published on November 6, 2017

USCIB submitted comments in response to the United States Trade Representative’s (USTR) request for public comments to compile the National Trade Estimate Report on Foreign Trade Barriers and the so-called Section 1377 trade barriers to telecommunications products and services.

Section 1377 of the Omnibus Trade and Competitiveness Act of 1988  requires USTR annually to review the operation and effectiveness of all U.S. trade agreements regarding telecommunications products and services that are in force with respect to the United States. USTR will consider written comments in response to this notice regarding the trade barriers pertinent to the conduct of the review called for in Section 1377.

USCIB submitted comments on 43 individual countries regarding foreign trade barriers to U.S. exports for the following countries: Argentina, Australia, Belarus, Brazil, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Fiji, France, Germany, Ghana, Greece, Gulf Cooperation Council, India, Indonesia, Israel, Japan, Kazakhstan, Korea, Latin America Malaysia, Mexico, Middle East and North Africa, the Netherlands, New Zealand, Nigeria, Norway, Pakistan, Peru, Philippines, Russia, Singapore, South Africa, Thailand, Tonga, Turkey, Uganda, the United Kingdom, Uruguay, and Vietnam.

Click here to view USCIB’s comments.

USCIB Gears Up for APEC CEO Summit in Vietnam

Published on November 6, 2017

This week, USCIB’s Vice President of Product Policy and Innovation Mike Michener will attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Da Nang, Viet Nam, as a business delegate and representative of the U.S. APEC Business Coalition.

Organized under the leadership of the National Center for APEC (NCAPEC), USCIB will be joining other Coalition and NCAPEC members on the ground, including CEOs and executives from USCIB member companies. NCAPEC serves as the designated 2017 U.S. Strategic Partner for the CEO Summit, Secretariat to the U.S. members of the APEC Business Advisory Council (ABAC) and as Chair and Secretariat of the U.S. APEC Business Coalition.

Throughout 2017, USCIB has addressed a number of issues through APEC to advance discussions across a range of issue. These include chemicals regulation, advertising self-regulation, data privacy, customs, and digital trade. USCIB members and staff have engaged in several APEC working groups, including the Chemical Dialogue, APEC Business-Customs Dialogue, Customs Procedures Virtual Working Group, Alliance for Supply Chain Connectivity, the Electronic Commerce Steering Group and Data Privacy Subgroup.

In Da Nang, Michener will meet with USCIB members, leaders from APEC economies and representatives of intergovernmental organizations to discuss member companies’ APEC priorities and USCIB’s work. They look forward to hearing from USCIB members in Da Nang, in addition to joining with Coalition partners, to advance common objectives.

“USCIB appreciates the numerous committed partnerships that APEC has established with the private sector,” said Michener. “These partnerships are addressing many economic opportunities, particularly on trade and regulatory issues, that will help foster greater economic integration among APEC’s twenty-one member economies.”

The upcoming APEC meetings in Da Nang include, in addition to the CEO Summit, the Concluding Senior Officials’ Meeting, Fourth APEC Business Advisory Council (ABAC) Meeting, APEC Ministerial Meeting and APEC Economic Leaders’ Meeting. USCIB has collected priority issues from its membership for 2018, and will have the USCIB 2018 APEC Priorities and Recommendations Paper available in Da Nang.

USCIB Participates in UN Meeting on Proposed Human Rights Treaty

Published on October 30, 2017
Gabriella Rigg Herzog speaks on behalf of Employers at Human Rights meeting in Geneva

USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog  traveled to Geneva last week to represent Employers at the United Nations Intergovernmental Working Group on transnational corporations and other business entities with respect to human rights (IGWG). Chaired by Ecuador, the meeting followed two IGWG sessions in 2015 and 2016 which entailed general discussions on issues including the scope and applicability of a proposed binding instrument. This third meeting focused on a “Draft Elements” paper which was drafted by the Chair and served as a deliverable from the first two sessions.

As in previous sessions, business and key governments clearly stated their view that a treaty was unnecessary, and could risk distracting time and focus from the established global consensus surrounding the primacy of the UN Guiding Principles on Business and Human Rights (UNGPs) as the authoritative global framework that sets out the roles for governments and business on protecting and respecting human rights, and the need for greater access to justice for victims of alleged corporate-related human rights abuse. Additionally, business and key governments stressed that focusing solely on transnational corporations was not appropriate, and that any future instrument should cover all business entities, in particular, national companies.

Herzog made two interventions during the proceedings, focusing on legal liability and on international cooperation. On legal liability, Herzog underscored that “States have the primary duty to develop strong national institutions, as well as promulgate and effectively enforce domestic laws covering ALL companies within its borders, regardless of whether they participate in global supply chains or not.” Given that, Herzog emphasized the need to “avoid creating a two-tiered compliance system, whereby individuals, communities or workers that suffer business-related alleged harms involving TNCs have greater protections, but the rest get lesser or diluted protections and remediation.”

On international cooperation, Herzog highlighted the power of peer pressure, and existing UN mechanisms that could be leveraged by governments to encourage other governments to fulfil their State duty to protect human rights  – including through the development of National Action Plans in accordance with the UNGPs. “Peer pressure between States can be realized under the existing architecture by better harnessing the Human Rights Council’s Universal Periodic Review process.” said Herzog. “We understand that States are starting to receive more recommendations from other States on the topic of business and human rights. This process could be used to encourage more “national action plans” (NAPs) on business and human rights that take note of the guidance prepared by the UN Working Group.”

According to Herzog, NAPs have not had as much attention in this third session because there is no explicit reference to them in the “elements” paper. “This is a pity,” she said in her intervention. “Taking aside the critique that some existing plans could have included more focus on the third pillar of the UN Guiding Principles, NAPs are a practical and useful tool.”

Herzog also emphasized in her comments that “international cooperation” is a broad topic that expands out beyond the specific discussions of this third session. The international business community is actively involved in a large number of initiatives on how to respond to social, labor and environmental challenges across the world, including the UN 2030 Agenda for Sustainable Development (SDGs). Human rights are a central part, and the SDG agenda explicitly seeks to harness global partnerships and bring together governments, the private sector, civil society, the United Nations system and other actors and mobilize all available resources.

This third meeting concluded with some confusion over next steps, with the Chair expressing the position that its IGWG mandate would continue until a treaty was drafted and agreed. Other key parties, however, believe the Chair needs to seek a renewal of its 3-year mandate next summer from the Human Rights Council in order to proceed with a fourth meeting. USCIB will continue to monitor developments on this issue closely.

 

USCIB Meets with OECD Director to Discuss Health Work

Published on October 30, 2017

USCIB’s Food and Agriculture and Healthcare Working Groups met last week with Stefano Scarpetta, director of Employment, Labor and Social Affairs for the Organization of Economic Cooperation and Development (OECD). The meeting reinforced longstanding USCIB and Business at OECD cooperation in other issue areas and the need to improve the engagement between business and the OECD Health Committee.

USCIB outlined four areas of recommendations to Scarpetta in the hopes of improving future interactions with member states and the health division secretariat, including helping member states understand the role of Business at OECD and its national affiliates, tracking input from Business at OECD and national affiliates, increasing diversity in perspectives among OECD health division staff and better use of OECD expert groups.

“The OECD benefits from broad input from the private sector on its work on health policy.  We believe that increasing the number and diversity of business representatives allowed to attend OECD Health Committee and related expert group meetings can only improve OECD’s work in the health sector,” said Mike Michener, USCIB’s vice president for Product Policy and Innovation who leads USCIB’s work on health, food and agriculture.

Michener noted that while concerns remain, good progress was made in initiating an improved dialogue with the OECD Health Committee going forward.

Hampl Raises Anti-Corruption and Transparency Concerns at SOE Meeting

Published on October 27, 2017
USCIB’s Eva Hampl speaks on panel at OECD meetings on SOE’s in Paris

Eva Hampl, USCIB’s director for investment, trade and financial services was in Paris last week representing USCIB at a special roundtable at the OECD on Integrity, the Fight Against Corruption and Responsible Business Conduct in the State-Owned Enterprises (SOE) Sector.

As a discussant on the issue of transparency, Hampl noted that SOEs are increasing in global commerce, where 22% of the world’s largest 100 firms are effectively under state control. “As SOEs proliferate, they disadvantage companies operating without state support or control,” warned Hampl.

The OECD Foreign Bribery Report, which was published December 2014 and is based on data from the 427 foreign bribery cases that have been concluded since the entry into force of the OECD Anti-Bribery Convention in 1999, found that bribes were offered or given most frequently to employees of SOEs at 27% of the total cases.

“SOEs are particularly vulnerable to corruption due to factors such as a close relationship between government, politicians and the SOE senior management, and in some cases lack of transparency and reporting,” said Hampl. In addition to the foreign bribery report, OECD research has found that 43 % of SOE employees surveyed have witnessed corruption and other rule-breaking in their company in the last three years.

“Corruption is a cost, also for SOEs,” Hampl added. “The OECD has stated that disclosure and transparency are some of the main concerns regarding market distortions caused by SOEs – the other concern is that SOEs are acting as agents of a sovereign government. The focus on transparency, in which space the OECD has done further work, is certainly important, however with the caveat that in the case of leveling the playing field as to SOEs, it is not a goal in itself.”

Hampl added that there has been a concerning global trend in recent years toward transferring liability from governments onto companies. “This is something that needs to be addressed. To truly level the playing field between SOEs and companies competing in the global market, SOEs must be held to the same standards.”

Following the roundtable, Hampl also participated in the consultation with the OECD Working Party on State Ownership and Privatization Practices, where she reiterated many of the points made at the roundtable, as well as emphasized the importance of the OECD to focus on the demand side of bribery.

Additionally, on the afternoon of Wednesday November 29, USCIB Vice President for Trade and Financial Services Shaun Donnelly will offer business perspectives on a panel discussion on “The OECD Anti-Bribery Convention at 20:  Successes and Challenges for the Future” organized by the Coalition for Integrity on the margins of their annual gala dinner later that evening.   Panelists being finalized but those invited include: Lucinda Low, member, Board of Directors, Coalition for Integrity, Nicola Bonucci (OECD) and Bruce Swartz, Department of Justice.

Business at OECD Calls for Integrated Health Policies to Stimulate Growth and Productivity

Published on October 27, 2017
OECD Secretary General Angel Gurria (left) makes remarks at the Health Forum

Well-designed health policies that are put into practice are essential for the growth and productivity of our economies and the well-being of our societies. This was the main message from private sector, government representatives, and the OECD gathered for the 2nd Business at OECD (BIAC) Annual Forum on Health.

The Forum saw the work undertaken by the private sector to develop truly integrated healthcare, foster innovation, and promote balanced choices for improving well-being. “The digital transformation of healthcare systems will provide fresh opportunities for better care, newer treatments and greater focus on the needs of patients,” said Nicole Denjoy, chair of the BIAC Health Committee. “To achieve this, we need policies that create the right incentives and collaborative environments to drive investment in innovation and technology” she added.

Experts also addressed efforts to encourage balanced nutrition and active lifestyles as an important part of the fight against non-communicable diseases. Speakers stressed the critical role that policy coherence in the fields of health, trade, finance, industry, and education sectors plays in supporting growth and productivity. Commenting on the role of international collaboration, OECD Secretary General Angel Gurría stated, “Poor health harms people, lowers productivity, and ultimately undermines growth. The OECD is supporting the business community’s efforts to help shape the future of health policy and promote good employee and customer health”.

Also addressing Forum participants, World Intellectual Property Organization Director General Francis Gurry said “Innovation is vital for addressing the health challenges of today and tomorrow. But the innovation we need is more complex than ever before and requires greater collaboration, benefiting from a wide range of knowledge and expertise. We must provide a framework for bringing new medicines and technologies from concept and creation to production and patients. Intellectual property, in particular patents, are a necessary encouragement to this innovation.”

The Forum was moderated by Riz Khan, international journalist and TV host.