Business In Society Archives

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.

Mastercard CEO Ajay Banga to Be Honored by USCIB at Annual Gala

Published on October 26, 2017

New York, N.Y., October 26, 2017 – Ajay Banga, president and chief executive officer of Mastercard, will be honored by the United States Council for International Business (USCIB), which represents America’s leading global companies. Banga will receive USCIB’s International Leadership Award at a gala dinner on November 28 at United Nations headquarters in New York, in recognition of Mastercard’s ongoing leadership to extend the benefits of an expanding economy to all segments of society.

“Ajay Banga and Mastercard were among the first to recognize that financial inclusion can set in motion a virtuous cycle of equitable economic growth,” said USCIB Chairman Terry McGraw, chairman emeritus of McGraw Hill Financial (now S&P Global). “As we saw during last month’s UN General Assembly opening, many companies have now joined this movement to support the UN Sustainable Development Goals. Mastercard was one of the first supporters when the global goals were launched in 2015, and the company has been working with the public and private sectors to use its technology and expertise to help address issues such as poverty, hunger and gender equality.”

McGraw added that the November 28 gala would provide a platform to underscore ongoing American and global business support for the SDGs, policies that promote more open cross-border trade and investment, and robust U.S. engagement with the UN and other international bodies.

Mastercard has connected more than 300 million people around the world to the formal economy, providing critical access to services that allow them to live and work with greater efficiency, security and dignity. Through innovative products such as Mastercard Aid Network, which is helping NGOs improve the delivery of humanitarian aid so that people can get back on their feet after a disaster, and Masterpass QR, which gives small businesses a low-cost way to accept digital payments, Mastercard is making progress towards the SDGs as well as advancing its mission to create a more inclusive economy.

Banga is a member of the President’s Advisory Committee for Trade Policy and Negotiations, and is a founding trustee of the U.S.-India Strategic Partnership Forum. He is a member of the U.S.-India CEO Forum, co-chairs the board of directors of the American India Foundation, and served as a member of President Obama’s Commission on Enhancing National Cybersecurity.

Banga serves on the executive committees of the Business Roundtable and the Financial Services Roundtable, and is vice chairman of the Business Council. He is a member of the board of overseers of the Weill Cornell Medical College and the board of governors of the American Red Cross. He also serves on the board of directors of The Dow Chemical Company.

Prior to Mastercard, Banga was chief executive officer of Citigroup Asia Pacific. He began his career at Nestlé in India and also spent two years with PepsiCo in India. He is a graduate of Delhi University and the Indian Institute of Management, Ahmedabad.

Established in 1980, USCIB’s International Leadership Award is presented annually to a leading CEO, international figure or institution, recognizing outstanding contributions to global trade, finance and investment, and to improving the global competitive framework in which American business operates. Recent recipients have included Randall Stephenson, chairman and CEO of AT&T, and Roberto Azevedo, director general of the World Trade Organization. More information on the event is available at www.uscibgala.com.

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, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

USCIB Travels to Geneva to Deliver Employers Statement on Human Rights

Published on October 23, 2017
USCIB Vice President for Corporate Responsibility and Labor Affairs at the International Labor Conference earlier this year

USCIB’s Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog is attending this week’s Intergovernmental Working Group on transnational corporations and other business entities with respect to human rights (IGWG) in Geneva. This is the third meeting of the IGWG.

USCIB participated in each of the first two IGWG sessions in 2015 and 2016, which entailed general discussions on issues including the scope and applicability of a proposed binding instrument. On this point, business and key governments stated clearly their view that focusing solely on transnational corporations was not appropriate, and that any future instrument should cover all business entities – in particular national companies. The expectation was set that the third session would entail a discussion of proposed “elements” of what might get included in a binding instrument.

Just three weeks prior to this 3rd meeting, Ecuador released “draft elements” for a binding instrument. In response, Business at OECD, the International Organization of Employers (IOE), the International Chamber of Commerce (ICC) and the Foreign Trade Association have produced a final joint business statement, found here. USCIB, as the U.S. affiliate of IOE, Business at OECD and the ICC, was able to provide substantive input. This statement was shared with the Office of the UN High Commissioner for Human Rights, other business groups abroad, governments and other stakeholders, and it serves as the basis of business’ interventions during the IGWG session this week.

Rigg Herzog will be part of the IOE delegation and will participate in a panel on corporate liability on Wednesday.

USCIB Applauds 20 Years of Anti-Bribery Convention

Published on October 23, 2017

As the OECD celebrates 20 years of the Anti-bribery convention and 40 years of the FCPA (Foreign Corrupt Practices Act) this year, the U.S. Department of Justice, the Organization for Economic Cooperation and Development (OECD), and the U.S. Securities and Exchange Commission and Business at OECD will host a conference on “No Turning Back: 40 Years of the FCPA and 20 Years of the OECD Anti-Bribery Convention” on November 9th in New York. USCIB will be represented at this event by Eva Hampl, director for Investment, Trade and Financial Services.

USCIB, through its affiliation with Business at OECD, has been working with the OECD Working Group on Bribery, which monitors the implementation and enforcement of the OECD Anti-Bribery Convention. Through annual consultations and USCIB’s advocacy efforts, the Working Group has taken up issues that are of interest to U.S. business in their future work plan.

The conference will draw upon expertise and examine the major impact of ground-breaking instruments and corporate behavior and law enforcement priorities. It will explore the role of cooperation between nations in investigating and persecuting foreign bribery and the effectiveness of different approaches to corporate responsibility for bribery. The event will be hosted by NYU School of Law’s Program on Corporate Law and Enforcement. U.S. businesses interested in anti-bribery issues may learn more about the conference and register here.

Prior to the NY event, Hampl will also speak on a panel in a similar event on November 8 in Washington DC and hosted by American University Washington College of Law. Hampl will speak on a panel titled, “Leveraging the Convention and Addressing the Corruption Challenges Ahead,” alongside representatives from the Department of Justice, OECD’s Anti-Corruption Division and Global Financial Integrity. Registration for the Washington event is available here.

USCIB Huddles with US Mission in Geneva

Published on October 16, 2017
USCIB’s Shaun Donnelly at meetings in Geneva

On the margins of the UN Conference on Trade and Development  (UNCTAD) meetings in Geneva, USCIB Vice President for Trade Services Shaun Donnelly went to the U.S. Mission (i.e. the multilateral US Embassy) to UN agencies for a morning of meetings on October 12. Donnelly, a retired State Department ambassador, had a wide-ranging, hour-long meeting with the U.S. Mission Chargé D’affaires Ted Allegra in the absence of a new U.S. Ambassador (yet to be nominated.)

Donnelly also had a roundtable with U.S. Mission staff managing U.S. participation on a range of UN agencies including the International Labor Organization, World Health Organization, WIPO, Human Rights Commission and the World Trade Organization. They discussed concerns of USCIB and its members on policies, budgets, and business access in several Geneva agencies.

Donnelly noted afterwards, “I really appreciated the opportunity to sit down with U.S. Chargé in Geneva Ted Allegra, an experienced and respected diplomat, and to highlight priorities and policy concerns of our members.”

Donnelly and other USCIB staff routinely stay in close contact with various staffers in the U.S. mission in Geneva. “But the opportunity to voice our key concerns directly to the acting U.S. Ambassador in Geneva was both timely and useful,” he added.

Global Nutrition Event Aims to Ensure “No More Missed Opportunities”

Published on October 6, 2017
USCIB Vice President for Product Policy and Innovation Mike Michener at the Nutrition Roundtable

Poor diet is the number one risk factor for early death, contributing to 20 percent of global deaths, with the burden falling disproportionately on children under five and women of reproductive age. On October 2-3, the USCIB Foundation, the educational and research arm of USCIB, joined with the Global Alliance for Improved Nutrition (GAIN) and Wilton Park USA, to begin tackling this problem – a situation nutrition experts have described as a “missed opportunity” (Lancet, 2013) – through a roundtable dialogue in New York City under the banner of “No More Missed Opportunities.”

Each year, malnutrition is a factor in almost half of the six million deaths of children under five, and 159 million children are stunted, with impacts on their physical and cognitive abilities that last a lifetime. More than 500 million women are anemic, with an increased risk of maternal death and delivering premature and low-birth-weight babies. At the same time, 600 million adults are obese, and 420 million have diabetes, with rates rising steeply. Every country is now struggling with some aspect of malnutrition, and a growing number are experiencing both undernutrition and obesity.

The roundtable sought to support the accelerated achievement of internationally agreed global nutrition goals, and broader commitment to the UN Sustainable Development Goals (SDG’s), by convening a high-level group of leaders from government, business and other key stakeholders. Participants set themselves three objectives:

  • Discuss the draft Principles of Engagement for Government-Business Collaboration to frame and guide progress towards achievement of the food and nutrition SDG’s and the implementation of the UK Government’s commitment to Overseas Development Assistance (ODA)
  • Identify ways to improve business engagement in global nutrition goals and engage multisector platforms to specifically address food and nutrition supply chains, distribution channels, and technical and scientific research to accelerate achievement of the global nutrition goals and directly benefit ODA recipient countries
  • Forge new relationships between government and business food and nutrition leaders to kick-off a new era of constructive partnership.

In his opening remarks, USCIB President and CEO Peter Robinson said, “The USCIB Foundation is here looking for ways to improve and accelerate business engagement in the implementation of the global nutrition goals, which we believe is absolutely essential if we hope to achieve these goals by 2030.”

Robinson also highlighted the significance of the draft Principles of Engagement for Government-Business Collaboration, noting, “consensus around a set of principles like these would establish a framework that would encourage more joint efforts and public-private partnerships.”

While Robinson said he is “highly optimistic” about the future of nutrition, he remarked on some barriers to private-sector engagement. These include the perceived conflict of interest between business motivation for public-private partnerships and public-sector goals, lack of trust between business, governments and other stakeholders and too much regulatory red-tape, seemingly designed to deter the private sector from engaging in partnerships.

Panels throughout the dialogue focused on the knowledge revolution and data, the pace of innovation, incentives for government-business collaboration, multi-sectoral platforms that can facilitate results, and concluded with a spirited discussion of draft Principles of Engagement to guide further discussion.

It is hoped that these principles will serve as a platform to enable further, more pointed conversations and serve as a model example for other institutions from a good governance perspective. USCIB and the USCIB Foundation will continue conversations and action with our partners in this dialogue to ensure progress towards our shared goals.

The event was hosted by the Harvard Club.

Roundtable participants. USCIB President and CEO Peter M Robinson front row, sixth from left, alongside representatives from GAIN and WiltonPark

USCIB Strengthens Business Voice at UNGA

Published on September 26, 2017

The high-level portion of the 72nd United Nations General Assembly (UNGA) wrapped up last week in New York, attended by President Donald Trump and other heads of state, and featuring numerous parallel events involving business and business issues.

For the first time, USCIB convened a series of meetings during UNGA week to highlight challenges and opportunities for the U.S. business community in advancing inclusive growth and sustainable development, working with the United Nations, and the importance of partnering with the U.S. government in advancing economic and other benefits at home and abroad.  USCIB events highlighted key U.S. business recommendations and involvement to advance the UN Sustainable Development Goals (SDG’s), inform climate change policy and implementation, and advance inclusive business engagement as part of UN reform.

These discussions explored the “ingredients for impact” to catalyze business contributions to the SDG’s under the theme, “Business Makes It Happen.”   Over the course of the week, USCIB worked closely with and welcomed representatives of the U.S Department of State, the Office for Management and Budget, the U.S. Agency for International Development (USAID) and the U.S. Mission to the United Nations.

USCIB organized 2 Breakfast Roundtables on:

  • Data analytics for SDGs and national reports, and
  • Public private partnerships for SDG impact
OECD Secretary General Angel Gurria speaks at one of USCIB’s UNGA side-events

USCIB members KPMG, Deloitte and Pfizer hosted USCIB events, which drew high-level participants and speakers including OECD Secretary-General Angel Gurria, Assistant UN Secretary General for Economic and Social Affairs Thomas Gass, Assistant UN Secretary General and Head of the NY office of UN Environment Programme (UNEP) Elliott Harris and Chief of the NY office of the UN Conference on Trade and Development (UNCTAD) Chantal Line Carpentier.  CEO of Novozymes and USCIB Board member and sustainability champion Peder Holk Nielsen presided over USCIB’s UNGA week wrap up event.

In addition to USCIB-organized events, USCIB was honored to work with the International Chamber of Commerce (ICC) and to represent the International Organization of Employers (IOE) in the launch of two important initiatives: the Equal Pay International Coalition (EPIC) and the ILO Alliance 8.7 study, “Global Estimates on Modern Slavery.”

USCIB joined forces with Business Fights Poverty to co-host the September 18 Business Fights Poverty Conference, “Rethinking Collaboration for the SDG’s”.

A full review of these meetings, their recommendations and next steps, as well as other USCIB involvement in UNGA week will be shared later this week.

USCIB Hosts Business & Human Rights Symposium

Published on September 18, 2017
L-R: Jonathan Drimmer (Barrick Gold), Sarah McGrath (ICAR), Ariel Meyerstein (Citi and formely, USCIB), Gabriella Rigg Herzog (USCIB)

USCIB teamed up with Barrick Gold and Article One Advisors on September 13 to hold a symposium—Human Rights and Remedy in Business Relationships with Limited Leverage. The symposium was hosted by Marriott International and held under Chatham House Rule.

Businesses often have different types of leverage that can be used to help promote corporate responsibility and respect for human rights in their operations and with their business relationships. Contracts provide a clear source of leverage, such as agreements with business partners or sourcing agreements with direct suppliers. This leverage can also extend to using business relationships influence to help promote greater access to judicial and non-judicial remedy for victims – in keeping with the United Nations Guiding Principles on Security and Human Rights (aka Guiding Principles).

“First and foremost, the Guiding Principles set out the critical duty of States to protect the human rights of their citizens through the development and enforcement of national laws,” noted Gabriella Rigg Herzog, USCIB’s vice president for corporate responsibility and labor affairs. “They also include the corporate responsibility to respect human rights and operate with due diligence, and the need for greater access to remedy for victims of alleged human rights abuse,” she added.

But what happens if a business’s leverage is limited? How can a company identify new ways to exercise leverage – especially when it relates to promoting respect for human rights and greater access to remedy – when faced with leverage-limiting scenarios franchises, licensing, sponsorships and non-operated joint ventures?

These questions were the focus of the symposium, which was attended by over 70 representatives of business, U.S. government and civil society. Presenters representing industries as diverse as extractives, hospitality and banking, as well as civil society, discussed stakeholder expectations for business, brainstormed on how to increase trust between stakeholders and business on the issue of leverage, the challenge of defining remedy, and moving from theory to action around key issues like performance, timing and achieving scale.

“Our conversation today is a continuation of the important business and human rights dialogue series launched by Coca-Cola, and which USCIB – together with the International Organization of Employers and the U.S. Chamber of Commerce – has been proud to co-sponsor,” said USCIB President and CEO Peter M Robinson. “And while we won’t likely resolve all of these important questions today, we’re proud to participate in this dialogue and we’ll look forward to seeing you all and continuing the conversation together in Geneva this November at the UN Annual Forum on Business and Human Rights – and beyond.”