Business In Society Archives

IOE, IOM, Partner Companies Take Part in Expert Meeting on Ethical Recruitment

Published on July 24, 2015

Two machinists working on machine

The International Organization of Employers (IOE) is deepening its engagement with the International Organization for Migration (IOM) on the interface between employment and migration. As part of this, USCIB Senior Counsel (and IOE Regional Vice President for North America) Ronnie Goldberg and IOE Senior Adviser Frederick Muia attended a recent expert meeting on ethical recruitment.

The two day meeting, which was also attended by Cindy Sawyer of The Coca-Cola Company and Annemarie Muntz of Randstad Holding NV, two IOE partner companies, discussed the development of the operational protocol of the International Recruitment Integrity System (IRIS), an international voluntary ethical recruitment framework that will benefit all stakeholders in the labor migration process.

Speaking during the opening session, Goldberg called for a practical operational tool that would recognize, reward and build on the efforts being undertaken by the “good” actors in the recruitment chain and find ways to identify, isolate and hopefully eliminate the bad actors. She noted that companies were taking measures to ensure transparency in their labor supply chain and that all recruitment activities were being performed in accordance with ethical recruitment principles. These efforts are helping companies mitigate the risk of unforeseen links to forced labor, child labor and human trafficking. 

Speaking during the session dedicated to partners of the initiative, Muia underscored the importance of the IOE in enabling member federations and partner companies to have a platform to push for immigration policies that are efficient and transparent so that companies can move skills and talent across borders. Muia also spoke about the need to strengthen government institutions particularly in fragile states. As IRIS was a voluntary initiative it could only compliment government efforts whose role was critical in addressing cases of criminal activity such as human trafficking. 

Muntz, who is also president of the International Confederation of Private Employment Agencies (CIETT), underscored the role of the recruitment industry in self-regulation. She explained how the CIETT code of conduct helps mobilize member companies and associations to promote ethical recruitment practices both at national and international levels. She highlighted the need to continue efforts to promote the ratification of ILO Convention 181 on private employment agencies as it gave these agencies the necessary recognition to carry out their legitimate activities. 

Sawyer focused on the role of multinational enterprises in taking the lead in ethical recruitment of migrant workers and promotion of good employment practices. She gave the example of The Coca-Cola Company that had issued Supplier Guiding Principles that expressly prohibit the use of all forms of forced labor and trafficking.

Private Sector’s Critical Role Recognized at UN Development Finance Conference

Published on July 9, 2015

FfDThis is a landmark year that will define the global development agenda for the next 15 years. The financing needed to achieve the United Nations Sustainable Development Goals (SDGs) by 2030 will far surpass current official development flows, so the international community will have to leverage complementary forms of financing, including from the private sector.

At the Third International Conference on Financing for Development (FfD3), in Addis Ababa, Ethiopia from July 13 to 16, UN member states will establish a new financing framework to support sustainable development for the next 15 years, following upon previous high-level gatherings in Monterrey (2002) and Doha (2008). The outcomes from FfD3 hold special importance this year, as they will set the means of implementation for the SDGs.

Negotiators in Addis Ababa will tackle a cross-cutting global policy agenda – one that touches on multiple areas of interest to USCIB members and the global business community. These include global tax harmonization, trade and investment policies, climate and energy, intellectual property, food and agriculture, and corporate responsibility issues such as transparency and anti-corruption.

USCIB has played a central role in marshaling business input into the FfD process, having worked actively with members and our global network to ensure that the private sector’s voice is heard in Addis. USCIB and its members has engaged on several occasions with the U.S. negotiating team, and USCIB Vice President Ariel Meyerstein has met with the co-facilitators of the FfD3 process as part of a delegation of the Business Steering Committee for Financing for Development, chaired by the International Chamber of Commerce Permanent Representative to the UN, Louise Kantrow.

In addition, USCIB was instrumental in organizing the conference’s Business Forum to be held on July 14, concurrently with the FfD3 Conference. The Business Forum will provide an opportunity for business participants to interact with senior government officials, business leaders and other experts, and let companies and other stakeholders showcase their initiatives related to development finance.

“The forum is a unique platform to demonstrate the value the private sector offers to sustainable development,” Meyerstein said. “A key focus will be on the business enabling environment required to attract investment to least developed countries, the role of public-private partnerships and the need for new innovative approaches to financing, such as blended finance, which uses public funds, including official development assistance (ODA), to catalyze increased private flows, particularly to least developed countries.”

USCIB lined up an impressive array of member speakers for the business forum, including Jay Collins, vice chairman of corporate investment banking at Citi; Peter Sullivan, head of the Africa public sector group at Citi; Walt M. MacNee, executive vice chairman of MasterCard; Elaine Weidman, vice president for sustainability and corporate responsibility at Ericsson; and Jay Ireland, CEO of GE Africa. Speakers will share their insights about investing in emerging markets and developing countries.

The Addis Ababa Accord, which will be adopted by UN member states at FfD3, is positive for business, as the private sector is called upon as a partner in global efforts to finance sustainable development. The policies business supports in the outcome document include an emphasis on governance and domestic resource mobilization, support for blended finance and a move away from an overly-narrow focus on official development assistance and towards an openness to modernize the measurement of ODA, including consideration of the OECD’s proposed “total official support for development” metric. Concerns remain on a proposed technology transfer mechanism and its impact on intellectual property rights protection, but overall the outcome document is positive for the international business community.

Partnerships in Post-2015: Converging Perspectives for Action

Ahead of the Addis Ababa conference, USCIB member Citigroup hosted an event on public-private partnerships on June 17 in New York. This breakfast brought together business representatives and UN delegates from over ten countries for a discussion about how private finance can be used to ensure sustainable development through investment, job creation and inclusive growth.

Speakers at the breakfast included Louise Kantrow, the International Chamber of Commerce’s permanent representative to the UN and chair of the UN FfD Business Sector Steering Committee, Robert Annibale, global director of inclusive finance and community development at Citi, Amina Mohammed, special advisor to the UN secretary general on post-2015 development and Arthur Karlin, chief strategist of the International Finance Corporation.

Participants discussed the role of the private sector in scaling up financial and technical resources for sustainable development, as well as what non-state actors can do to work more effectively together. Conversations focused on the benefits of public-private partnerships and blended finance, as well as the practical steps countries can take to scale up their access to private capital.

The well-attended event emphasized business engagement for and after FfD3. Many speakers referenced the need for rule of law, sound investment climate and investment in infrastructure, all of which are touchstones of USCIB’s advocacy on the post-2015 development agenda.

“Most interesting was the emerging recognition that there needs to be an interface for business with the UN, that was in line with transparency, accountability, conflict of interest and governance,” said Norine Kennedy, USCIB’s vice president strategic international engagement, energy and the environment, who attended the event.

USCIB has also created an online platform that showcases the private sector’s continuing contributions to sustainable development, and demonstrates the need for a role for business in the UN’s Post-2015 Development Agenda. Visit businessforpost-2015.org to learn more.

 

Business Weighs in on UN Treaty Process on Business and Human Rights

Published on July 2, 2015
Photo credit: UN, Pierre Albouy
Photo credit: UN, Pierre Albouy

As the United Nations Human Rights Council begins work on a legally binding treaty aimed at regulating transnational enterprises with respect to human rights, USCIB’s global network published a position paper representing the views of international business on the UN treaty process.

Jointly written by the International Chamber of Commerce, the International Organization of Employers, the Business and Industry Advisory Committee to the OECD and the World Business Council for Sustainable Development, the paper argues, among other things, that the UN treaty process must not undermine the ongoing implementation of the UN Guiding Principles on Business and Human Rights, that the process must be inclusive of all stakeholders and that the treaty should address all companies, not just multinationals.

As one of the only trade associations with membership in three of the four organizations that drafted the position paper, USCIB was instrumental in working with the IOE to draft the document, and was decisive in the ICC and BIAC decisions to support the final version.

The global business community has expressed concern that the proposed UN treaty process may hinder the implementation of the UN’s Guiding Principles, which were developed over the eight year mandate of former UN Special Representative on Business and Human Rights John Ruggie, and have very quickly become the authoritative international framework on the issue. The Guiding Principles’ “protect, respect, remedy” established a framework that reaffirmed states’ obligations under international law to protect human rights, while businesses, regardless of size or ownership structure, are responsible for respecting these rights throughout their operations. The principles also establish that both states and corporations share the task of ensuring access to effective remedies for human rights victims.

“We’ve seen tremendous uptake of the UN Guiding Principles in a very short period of time, but not enough implementation, particularly on the National Action Plans that states have been tasked with creating.  The treaty process will prove most effective if it reinforces the ’protect-respect-remedy’ framework with further international legal weight, creating more pressure on states take to their duty to protect more seriously, which includes supporting and encouraging business enterprises’ efforts to respect human rights.  ,” said USCIB Vice President Ariel Meyerstein. “The treaty also provides an opportunity to strengthen the rule of law and access to remedy through national courts where harms occur. That will ultimately provide redress for more victims more efficiently than other proposed means of ensuring access to remedy, which in effect may only offer hope to victims of the most heinous violations. .”

Last year, the UN Human Rights Council voted in favor of a proposal sponsored by Ecuador and South Africa to negotiate a binding treaty on business and human rights. On July 6, the Intergovernmental Working Group (IWG) on Transnational Corporations and Human Rights, which will develop the treaty, will hold the first of several annual meetings. The position of the United States – which voted against the treaty last year – remains not to participate in the IWG. The IOE will participate in the IWG and will also host a side event to  provide business input.

Other positions by business on the UN Treaty Process include:

  • The treaty should contribute to the effective implementation of UN Guiding Principles by requiring states to draft National Action Plans.
  • The treaty’s scope of must be limited to business and human rights, not other issues such as climate change.
  • The treaty must not shift the responsibility from the entity perpetrating a human rights violation to the enterprise linked in some way to that entity, a principle well-established by both the UN Guiding Principles and OECD Guidelines for Multinational Enterprises.
  • To strengthen national implementation, the treaty should require governments to report back to the UN supervisory machinery about measures taken.

Read the position paper: “UN Treaty Process on Business and Human Rights: Initial Observations by the International Business Community on a Way Forward.”

 

Business Prepares for OECD Health Ministerial on Next-Gen Health Reforms

Published on June 29, 2015
Helen Medina (USCIB)
Helen Medina (USCIB)

In the wake of the financial crisis, global health issues, such as the rising cost of medicines and the need for health reform, have risen to the top of the global agenda as policymakers struggle to insure the best quality healthcare at an affordable price. As the OECD gears up for its Health Ministerial in 2017, USCIB and the Business and Industry Advisory Committee (BIAC) to the OECD are providing industry input ahead of an expected high-level declaration that will guide governments’ future health priorities.

Helen Medina, USCIB’s vice president for product policy and innovation, attended BIAC and OECD Health Committee meetings in Paris this week to prepare formal comments for the OECD Workshop on High-Cost Medicines. She also attended a BIAC strategy session on June 22 to prepare for the 2017 OECD Health Ministerial, the theme of which is “The Next Generation of Health Reforms.” At the meeting attendees discussed their work on obesity and nutrition, to be presented at an upcoming meeting OECD Health Committee secretariat.

“The OECD’s work on healthcare issues often mirrors World Health Organization priorities,” Medina said. “Because there are limited opportunities for business to engage with the WHO, our engagement with the OECD is especially important as it allows industry to provide expertise and information into the policymaking process that otherwise would not be heard.”

Participants at the BIAC Health Committee meeting agreed that with healthcare issues at the forefront of the global agenda, it is important that the OECD’s work reflects a balanced and holistic approach to dealing with healthcare challenges as the organization gears up for the Health Ministerial in January 2017. The BIAC meeting produced alignment on industry messages on the various OECD projects which could impact industry sectors such as pharmaceuticals, alcohol, beverages, and food. In addition, a task force was created to prepare for the 2017 Health Ministerial.

OECD Workshop on High-Cost Medicines

To provide input for the upcoming 2017 Health Ministerial, the OECD Health Committee organized the “Workshop on High-Cost Medicines” on June 24 to encourage dialogue between governments, experts and the industry on access to effective medicines. Attendees talked about the need to maintain the financial sustainability of health systems while also steering innovation in the pharmaceutical industry. Given that OECD governments are increasingly challenged by the expanding costs of healthcare, the workshop explained how the pharmaceutical industry’s business models impact health sector spending. Industry experts discussed how governments can encourage the right innovation in pharmaceutical care to better respond to unmet medical needs.

Business delivered the following key messages to policymakers during the workshop:

  • Innovative medicines improve patients’ lives;
  • Assessing the value of medicines requires a holistic approach;
  • Innovation requires investment in health;
  • Innovation can deliver significant patient and societal value;
  • A “whole health system” approach is needed to maximize efficiencies;
  • Multi-sectoral partnerships can help address access and affordability.

 

IOE Report of the 2015 International Labor Conference

Published on June 26, 2015
Ronnie Goldberg speaks at the closing ceremony of the 2015 ILC.
Ronnie Goldberg speaks at the closing ceremony of the 2015 ILC.

The International Organization of Employers (IOE) published its report on the 104th session of the International Labor Conference, which gives a roundup of the technical discussion on labor protection. The conclusions from these discussions provide guidance to the International Labor Organization and its constituents.

A chapter on the work of the 2015 Committee on the Application of Standards (CAS) is also included, as is an outline of the examination by the Credentials Committee of three objections and two complaints brought by employers.

Ronnie Goldberg, USCIB’s senior counsel, presided at the International Labor Conference as the employers’ co-chair.

Download the report.

USCIB’s Goldberg Presides at 2015 International Labor Conference

Published on June 5, 2015
Ronnie Goldberg speaks at the closing ceremony of the 2015 ILC.

Every year, USCIB organizes the American Employers’ delegation to the International Labor Conference (ILC), the highest decision-making body of the International Labor Organization (ILO) which brings together government delegates from the organization’s 185 member states, representatives from workers’ organizations and employers’ organizations such as the International Organization of Employers (IOE). USCIB is the American affiliate of the IOE.

With this year’s ILC underway, which runs from June 1 to June 13, Ronnie Goldberg, USCIB’s senior counsel, is serving as the employer’s co-chair during the proceedings.

Noteworthy projects of the 2015 ILC include an item proposed by global employers, led by the International Organization of Employers (IOE), is the Committee on the Transition from the Informal to the Formal Economy, which will conclude its two-year work on a draft Recommendation to governments on facilitating transitions to more formal economies. In addition, the conference covered discussions on building enabling environments for small- and medium-sized enterprises and on ILO’s work on social protection, focused on labor inspection.

During his opening address to the ILC, ILO Director General Guy Ryder called for a global debate on the future of work. “The issues of jobs, equity, sustainability, human security, labor mobility, social dialogue, which need to be tackled in a future of work initiative, are almost by definition the key policy issues of our time,” said Ryder.

The proposed initiative would be structured around four conversations: work and society; the organization of work and production; decent jobs for all; and the governance of work. Subsequently, a high-level commission on the future of work would prepare a report to the ILO’s centenary Conference in 2019.

Also on June 1, Ryder, Goldberg and other ILO delegates signed a signature panel symbolizing support for the “50 for Freedom campaign” to end modern-day slavery. The campaign’s goal is to encourage 50 member states to ratify, by 2018, a protocol to the ILO Forced Labor Convention.

Read more: IOE Stresses B20 Recommendations for Skills Development and Inclusive Labor Markets

UN Members, Private Sector Prepare for Big Development Finance Conference in Ethiopia

Published on June 3, 2015

FfD

Members of the United Nations are busily negotiating the planned outcome document for the Third International Conference on Financing for Development (FfD3), which will be held in Addis Ababa, Ethiopia from July 13 to 16. This pivotal conference aims to map out the framework for global development finance for the coming years, following upon previous high-level gatherings in Monterrey (2002) and Doha (2008).

Negotiators are tackling a cross-cutting global policy agenda – one that touches on multiple areas of interest to USCIB members and the global business community. These include global tax harmonization, trade and investment policies, climate and energy, intellectual property, food and agriculture, and corporate responsibility issues such as transparency and anti-corruption.

According to Ariel Meyerstein, USCIB’s vice president for labor, corporate responsibility and corporate governance, the potential impact of the Addis Ababa conference is broad. “It’s important the companies view what goes on in the UN holistically,” he said. “Decisions made at FfD3 will directly affect the direction of UN debate over the Post-2015 Development Agenda, as well as the climate change negotiations.”

USCIB is actively working with our members and our global network, including the International Chamber of Commerce, to ensure that the private sector’s voice is heard in Addis Ababa. In mid-May, USCIB members participated in a discussion with the lead U.S. negotiator for FfD3, John Hurley of the Treasury Department, who provided an update on the process and on U.S. priorities. USCIB has reviewed and provided detailed comments on both the first and second drafts of the outcome document. Meyerstein, who serves as co-chair of the Development Subcommittee on the State Department Advisory Committee on International Economic Policy, has also met on several occasions with the co-facilitators of the FfD3 process, the Ambassadors from Norway and Guyana, as part of a delegation of the Business Steering Committee for Financing for Development, chaired by the ICC’s Permanent Representative to the UN, Louise Kantrow.

In addition, USCIB is playing a key role in the Business Steering Committee in helping to organize a Business Forum to be held on July 14, concurrently with the FfD3 Conference. According to Meyerstein, the forum will be a unique platform to demonstrate the value the private sector offers to sustainable development. A key focus will be on the business enabling environment required to attract investment to least developed countries, the role of public-private partnerships and the need for new innovative approaches to financing, such as blended finance, which uses public funds, including Official Development Assistance, to catalyze increased private flows.

“It will provide an opportunity for business participants to interact with senior government officials, business leaders and other experts, and let companies and other stakeholders showcase their initiatives related to development and development finance,” he said.

There is still time for companies to nominate high-level business representatives to speak at the Business Forum and during the intergovernmental roundtables at the FfD3 Conference itself. In addition, high-level representatives will be invited to a special dinner hosted by the government of Ethiopia for business leaders and heads of state.

 

Climate policy embraces a range of approaches

Published on June 3, 2015

Financial Times

Letters

Sir, It is unfortunate that Pilita Clark and Ed Crooks present the call from leading oil and gas firms for the widespread introduction of carbon pricing mechanisms in the context of a supposed transatlantic schism (News, June 1). In reality, the prevailing international business view is somewhat more nuanced than it might at first seem.

The anticipated Paris climate agreement will combine a broad range of national and local approaches to combating climate change in what will be a novel form of “bottom-up” global architecture. Carbon pricing instruments (Letters, June 1) can certainly play an important role in spurring emissions reductions in those countries or regions that choose to use them; but it is important to recognise that they are just one part of the policy mix. While carbon pricing may be the most cost-effective climate solution in some countries, other approaches — such as incentive-based systems or efficiency standards — may be a more viable option elsewhere. What’s more, carbon pricing schemes also need to be carefully designed to promote a global level playing field for commerce and to enable future trade-driven growth.

This leads to an important secondary point: the intervention from leading European energy firms is illustrative of a broader effort on the part of the private sector to engage constructively in the development of climate policy. That’s why leading business networks called last month — at the conclusion of the first-ever Business and Climate Summit — for governments to establish a recognised consultative role for the private sector under a future climate accord. Better harnessing of business know-how would be a significant step forward in the way we go about addressing the shared challenge of climate change — irrespective of the specific policy instruments employed.

John Danilovich
Secretary-General
International Chamber of Commerce
Paris, France

IOE Stresses B20 Recommendations for Skills Development and Inclusive Labor Markets

Published on June 2, 2015

Portrait of mechanics

At the plenary session of the B20 Task force in Paris on June 2, International Organization of Employers President Daniel Funes de Rioja set out the two principal recommendations of the Employment Task Force for facilitating skills development and ensuring flexible and inclusive labor markets.

Funes underscored the need for labor markets that include women and young people – two groups that stand to benefit from a regulatory environment that boosts participation rates.  He also made the case for removing barriers to diverse employment arrangements, such as part-time and flexible-hour contracts, for advancing the education of women in countries where there are deficiencies in this area, and improving child care facilities.

He noted that addressing the skills mismatch was key for keeping pace with rapid technological change and innovation, and in preventing the under-skilled from being left behind.

“I urge governments to involve national employers’ organizations, the IOE’s members around the world, in the development and implementation of G20 National Employment Plans (NEPs),” said Funes. “Employers have expertise and experience in the design of work-readiness programmers to bridge the skills gap and can make a substantial contribution to the NEP exercise.”

USCIB’s global network will continue to monitor progress in the G20 employment work stream. “Only by being accountable will the G20 become the engine for much needed labor market reforms to boost growth and jobs,” Funes concluded.

 

USCIB Calls on WHO to Frame Non-Discriminatory and Pro-Partnership Policy on Non-State Actors

Published on May 26, 2015
U.S. Health and Human Services Secretary Sylvia Burwell addressed the World Health Assembly in Geneva. WHO Director General Margaret Chan is at right.
U.S. Health and Human Services Secretary Sylvia Burwell addressed the World Health Assembly in Geneva. WHO Director General Margaret Chan is at right.

Governments have decided to postpone action on a controversial proposal to broaden anti-business discrimination and limit participation by   non-state actors in the work of the World Health Organization. On the final day of the 68th World Health Assembly, WHO member states opted to continue discussions of the draft Framework for Engagement of Non-State Actors (FENSA) for another year.

“FENSA proved to be one of the most contentious topics on the WHO’s agenda for this nine-day session,” Norine Kennedy, USCIB’s vice president for international engagement, energy and environment, reported after attending the Geneva assembly. “Despite meetings that carried through the weekend and late into last night, many aspects of the issue are still not resolved as the assembly adjourns today.”

U.S. Health and Human Services Secretary Sylvia Burwell was among the ministers and other dignitaries who addressed the World Health Assembly. “This is an important gathering, because as the world witnessed with the Ebola virus this past year, our planet is too small for nations to operate in isolation when it comes to facing major health challenges,” said Secretary Burwell. “Health threats don’t recognize borders, and we must recognize our need for global solutions.”

Earlier this month, in a joint letter to U.S. cabinet officials, USCIB and other U.S. business groups voiced concerns “about proposals on the table that could unjustifiably restrict the WHO’s ability to engage with the private sector in support of its mission.” Kennedy said the impact on business would touch many industries, and create precedents for anti-business bias in other UN forums. USCIB members and staff, including Helen Medina, USCIB’s vice president for product policy and innovation, were on hand during the World Health Assembly to continue dialogue with government representatives on practical ways to inform WHO deliberations with rigorous technical input and implementation from the private sector.

WHO members agreed to establish an intergovernmental working group on FENSA to continue discussions, with the objective of delivering a conclusion at next year’s World Health Assembly. A first meeting of the working group is tentatively scheduled for October.

Kennedy added that business is still concerned about specific provisions in the current draft FENSA text. These include prejudicial language citing the need to exercise “caution” with respect to certain unnamed industry sectors, overly bureaucratic and complex procedures for both non-state actors and WHO secretariat, and limits on public-private partnerships.

“At a time when the UN Post-2015 Development Agenda and Sustainable Development Goals highlight private-sector engagement on global health challenges, we believe it is possible to address potential conflict of interest and other important concerns consistently and transparently, while also strengthening and encouraging private-sector involvement in the WHO’s important work,” said Kennedy.