Business In Society Archives

Employers’ Vision of the ILO Summer 2008

Published on June 1, 2008

From the President’s Desk:

Focusing international labor policy on entrepreneurship and enterprise creation

By Peter M. Robinson

Peter M. Robinson
Peter M. Robinson

Globalization and the integration of international markets have been a tremendous benefit for the countries that have prepared themselves to take advantage of the new opportunities they provide. But for those countries that have failed to adjust or reform, these forces have exposed systemic failures in national governance that have in turn led to considerable social upheaval due to increased competition and changing labor markets.

Since social pressures can present a considerable barrier to maintaining or expanding international integration, a key policy challenge for international business is to develop effective mechanisms that can help countries reform their domestic policies to respond better to new external pressures. One such mechanism, the International Labor Organization (ILO) – the UN agency responsible for international labor and social policy – could play a leading role in this effort, and business is taking the lead to make it more responsive to employers’ needs.

Focusing on Current Needs

Abe Katz At the IOE’s May General Council meeting in Geneva, USCIB President Emeritus Abe Katz officially concluded his two-year term as the IOE’s chairman, passing the baton to Prof. Wiseman Nkhulu of South Africa. Mr. Katz noted the continuing relevance of the ILO to the conduct of international business, particularly at a time when the relationship between trade and labor standards has become an important political issue. USCIB President Peter Robinson and Executive Vice President Ronnie Goldberg also hosted a dinner in honor of Mr. Katz attended by employer members of the ILO Governing Body, business and labor union representatives to the International Labor Conference, and senior U.S. government and ILO officials. Many in attendance worked with Mr. Katz during his years as USCIB’s president (1984-98), when he served on the ILO Governing Body. Toasts were made by numerous participants, including IOE Secretary General Antonio Peñalosa, IOE Executive Vice Chairman Daniel Funes de Rioja, International Trade Union Confederation Secretary General Guy Ryder, and ILO Director General Juan Somavia. All reflected deep respect and admiration felt by colleagues from all sides. USCIB and its members have deeply appreciated Abe’s leadership over the past 24 years.
Abe Katz
At the IOE’s May General Council meeting in Geneva, USCIB President Emeritus Abe Katz officially concluded his two-year term as the IOE’s chairman, passing the baton to Prof. Wiseman Nkhulu of South Africa. Mr. Katz noted the continuing relevance of the ILO to the conduct of international business, particularly at a time when the relationship between trade and labor standards has become an important political issue. USCIB President Peter Robinson and Executive Vice President Ronnie Goldberg also hosted a dinner in honor of Mr. Katz attended by employer members of the ILO Governing Body, business and labor union representatives to the International Labor Conference, and senior U.S. government and ILO officials. Many in attendance worked with Mr. Katz during his years as USCIB’s president (1984-98), when he served on the ILO Governing Body. Toasts were made by numerous participants, including IOE Secretary General Antonio Peñalosa, IOE Executive Vice Chairman Daniel Funes de Rioja, International Trade Union Confederation Secretary General Guy Ryder, and ILO Director General Juan Somavia. All reflected deep respect and admiration felt by colleagues from all sides. USCIB and its members have deeply appreciated Abe’s leadership over the past 24 years.

The main challenge in making the ILO more effective and relevant for the business community is to focus its machinery on developing practical and workable solutions to current social and labor policy challenges. The global business community took a significant step forward in this area when the International Organization of Employers (IOE) – one of USCIB’s key international affiliates – produced an Employers’ Vision of the ILO, a comprehensive business agenda for the ILO.

Developed under the direction of Abe Katz (see box), the outgoing chairman of the IOE and USCIB’s president emeritus, the Employers’ Vision presents a clear agenda for the ILO that promotes entrepreneurship and enterprise creation, the main ways jobs are created and sustained. The vision also calls for increased attention on productivity improvements through education, skills development and training.

The IOE also calls for international labor standards that are practical and implementable.  Many existing standards set goals so impossibly high that few countries ratify them, and those that do so are unable to enforce them. Similarly, the IOE paper stresses that the ILO must help countries reform labor laws and other regulations that stifle enterprise creation and job growth, and which force operators into the ineffective and constraining informal economy.

International Business Leadership

Changing the ILO will not be easy or painless. A key reason for hope is that the ILO has a tripartite structure that is unique in the UN, meaning that employers and trade unions share voting power with the ILO’s member governments and participate in its oversight and management. USCIB Executive Vice President Ronnie Goldberg was recently re-elected to a second term on the ILO Governing Body.

On a broader level, USCIB relies on the IOE to coordinate international business engagement in the ILO. I was able to see the IOE in action at the annual International Labor Conference in June, when representatives of the IOE’s 145 national affiliates from 138 countries gathered in Geneva to speak on behalf on their business communities. The IOE is poised to build on the considerable achievements of Abe Katz in his term as IOE chairman under the new leadership of Professor Wiseman Nkuhlu, chairman of Pan African Capital Holdings of South Africa.

For more information or to get involved, please contact USCIB’s Adam Greene  (212-703-5056, agreene@uscib.org).

Mr. Robinson’s bio and contact information

More on USCIB’s Labor and Employment Committee

Learn more about the IOE

Other recent postings from Mr. Robinson:

New Financial Challenges on the Horizon (Spring 2008)

Trade Can Save the Climate (Winter 2007-2008)

From E-Commerce to the “Internet Economy” (Autumn 2007)

Business and Human Rights, Revisited (Spring 2007)

WHO Briefing Focuses on Private-Sector Partnerships

Published on May 28, 2008
L-R: IOE President Abraham Katz, Ivan Ivanov (WHO), David Bell (Centers for Disease Control), Jeffrey Gilbert (Pfizer).
L-R: IOE President Abraham Katz, Ivan Ivanov (WHO), David Bell (Centers for Disease Control), Jeffrey Gilbert (Pfizer).

Last month, USCIB hosted a high-level meeting between business representatives, senior staff from the World Health Organization and officials from the International Organization of Employers to discuss workplace and employee health initiatives, and to identify opportunities for collaboration between WHO and business.

The meeting included briefings from companies on their worldwide operations, initiatives for employees and the community within which they operate, and company participation in public-private coalitions to effect broad-based change. The WHO representatives discussed current work on workplace and employee health, including opportunities for private-sector engagement.

Since the WHO work will also be implemented with national governments – focusing on developing countries – discussion included how business can coordinate country programs with WHO national initiatives.

One model partnership is the WHO’s efforts to reduce and eventually eliminate the use of leaded gasoline in developing countrie4s, especially Africa. Major petroleum and auto companies have worked with national governments, the United Nations Environment Program, the World Bank and other bodies to make lead-free gas – along with catalytic converters and more efficient automobiles – available in Africa. The resulting improvements in air quality have directly improved the lives of around a billion people.

Also participating in the meeting were senior representatives from the U.S. Centers for Disease Control, who updated participants on the WHO’s new International Health Regulations. Revised following the SARS epidemic, these regulations constitute the international legal framework for response during such epidemics by governments, the WHO and other stakeholders. Pandemic preparedness and coordination between business, supply chains, government and international organizations were also explored.

The meeting concluded with strong agreement that business is a key stakeholder for the WHO’s work in this field, and that there are many other opportunities where collaborations and partnership could be beneficial. There are concrete actions for follow-up, and a mutual desire to maintain an ongoing dialogue.

More on the International Organization of Employers

More on USCIB’s Health Care Task Force

Event Spotlights Doing Business in Africa

Published on March 25, 2008
L-R: Peter Robinson (USCIB), Michael Klein (World Bank), Alex Cummings (Coca-Cola).
L-R: Peter Robinson (USCIB), Michael Klein (World Bank), Alex Cummings (Coca-Cola).

What are the lessons for African governments, and for global companies, in the latest edition of the World Bank’s benchmark “Doing Business” reports? This was the focus of a high-level World Bank briefing on March 12 at the University Club in New York, co-sponsored by USCIB and Coca-Cola Africa. The event attracted top African diplomats resident in New York, along with business representatives and others from the policy community.

The annual Doing Business report examines which countries make it easiest – and which hardest – to start and run a business. It compares ten indicators of business regulations across 178 countries, analyzing government regulations that enhance or restrain business activity, and it ranks countries on their overall ease of doing business.

USCIB hosted the launch of the 2008 Doing Business report in September of last year at an event featuring World Bank President Robert Zoellick.

The March 12 session featuredl Michael Kein, vice president for financial and private sector development at the International Finance Corporation, the World Bank’s private sector arm, who led an overview of the Bank’s criteria for ranking countries and the factors for success among the African countries that ranked highly in the latest report.

According to Mr. Klein, business conditions have improved in some parts of Africa. In 2006-2007, 28 countries in North and Sub-Saharan Africa implemented reforms that made it easier to start and run a business. Egypt, Ghana, and Kenya were among the top ten reformers worldwide in the Doing Business 2008 report, and they also made the most significant advances in the aggregate ease of doing business rankings among countries in Africa. Overall, Mauritius topped the rankings in Africa on the ease of doing business and placed 27th in the global rankings.

Peter M. Robinson, president of USCIB, also spoke at the event, as did Alexander B. Cummings, president and chief operating officer of the Africa Group at the Coca-Cola Company. Mr. Robinson offered the assistance of USCIB and its global network – especially the International Organization of Employers (IOE), which has a strong African network – in the development and promotion of future Doing Business reports. An IOE delegation met in February with Mr. Zoellick and other top World Bank representatives to discuss this and other cooperative measures.

USCIB will continue its efforts to promote awareness of the Doing Business report by co-sponsoring a high-level seminar and dinner in June, at the New York Stock Exchange, at which the top ten reforming countries will be recognized. Additional information on the Doing Business report is available at www.doingbusiness.org.

Conference Examines the Often Unseen Face of Forced Labor

Published on March 7, 2008

Seeking to build greater awareness of the thorny problem of forced labor, stakeholders from business, government, NGOs and major international organizations gathered at a February 20 conference in Atlanta to explore how the private sector should address this complex issue in company operations and supply chains.

Coca-Cola CEO Neville Isdell told conference-goers: “No single business, nor all businesses together, can eliminate the evil of forced labor.”
Coca-Cola CEO Neville Isdell told conference-goers: “No single business, nor all businesses together, can eliminate the evil of forced labor.”

The event, entitled “Engaging Business: Addressing Forced Labor,“ was held at the headquarters of the Coca-Cola Company.  It was sponsored by USCIB, the U.S. Chamber of Commerce and the International Organization of Employers, part of USCIB’s global network, in cooperation with the International Labor Organization.

While child labor is relatively easy to identify, forced labor can be a more complex issue, especially in an era of lengthy supply chains.  “It is rare to find workers under lock and key, or physically forced to work under threat of violence,” according to an ILO briefing paper prepared for the conference.  “But there are a range of more subtle forms of constraint – such as inducing workers into severe indebtedness, confiscating identity documents of migrant workers, or deliberate non-payment of wages – which can be considered as forced labor practices under national laws or international standards.”

Forced labor is the subject of widely ratified ILO core conventions and is one of the principles of the ILO’s 1998 Declaration on Fundamental Principles and Rights at Work.  And while many codes of conduct at the company, industry and global levels reference forced labor, it has only recently gained attention in the business community as an issue that requires priority attention.

The meeting, which drew some 80 participants, drew on the experience and knowledge of a cross-section of multinational business and employer association participants in helping to formulate a global strategy for employers that can be used to identify forced labor, to provide means for its elimination and to give guidance on its remediation.  Participants reviewed a series of company case studies highlighting innovative solutions to eliminate forced labor.

L-R: Ronnie Goldberg (USCIB) and Donna Chung (Sandler, Travis & Rosenberg).
L-R: Ronnie Goldberg (USCIB) and Donna Chung (Sandler, Travis & Rosenberg).

The need for collaboration was a key theme of the full-day session. “No single business, nor all businesses together, can eliminate the evil of forced labor,” Neville Isdell, Coca-Cola’s chairman and CEO, told conference-goers. “It requires the coming together of the triumvirate of governments, civil society and business.”

Mark Lagon, director of the State Department office charged with combating human trafficking, spoke at the event, urging companies to exert leadership on the issue.

“Our message must be unambiguous and clear: both the public and private sector have zero tolerance for forced labor of any kind,” said Mr. Lagon.  “The unprecedented movement of labor and capital in chains of production of exportable goods promises many advances.  But without rule of law and good corporate citizenship, it also could lead to modern day slavery.”

Participating executives agreed, and said they appreciated the threats posed by forced labor.  “Companies in industries ranging from clothing to food processing to electronics are suffering reputational and business damage from allegations related to forced labor, human trafficking and child labor,” said Ed Potter, director of global workplace rights with Coca-Cola. “Our goal as a company is to continue to build our reputation as a recognized workplace human rights leader that can materially impact the sustainability of local communities where we do business.”

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

The Coca-Cola Company’s website

ILO website

Employers Pledge Closer Action With World Bank

Published on March 7, 2008
L-R: IOE President Abraham Katz, World Bank President Robert Zoellick and IOE Secretary General Antonio Peñalosa.
L-R: IOE President Abraham Katz, World Bank President Robert Zoellick and IOE Secretary General Antonio Peñalosa.

Top representatives of global employers met with World Bank President Robert Zoellick and other bank officials on February 15 in Washington, D.C. to voice support for the bank’s annual “Doing Business” reports, which assess and rank countries based on how easy they make it to run a business, and to explore areas for future cooperation.

The delegation from the International Organization of Employers (IOE), part of USCIB’s global network and the voice of business in the International Labor Organization, was led  by IOE President Abraham Katz, who also serves as president emeritus of USCIB.  It included Antonio Peñalosa, secretary general of the IOE, Ashraf Tabani, president of the Employers’ Federation of Pakistan, and Ronnie Goldberg, executive vice president of USCIB, among others.

The meeting aimed at outlining the IOE’s views on – and support for – the Doing Business report, discussing how the World Bank should integrate and present employment and labor issues in future reports, and exploring areas for immediate as well as future cooperation between the IOE and the World Bank.  Joining Mr. Zoellick from the World Bank’s side were Michael Klein, vice president for financial and private sector development, and Simeon Djankov, who leads the team developing the Doing Business reports, along with several team members.

Mr. Katz expressed the IOE’s strong support for the Doing Business reports and highlighted their importance as a tool for labor market reforms and structural adjustment. He stressed the interest of national employers’ organizations in the report as a means of promoting reform in their own countries.  IOE delegation members also provided detailed comments on the relationship between the report’s labor indicators and pertinent ILO conventions.

On future areas of cooperation between the IOE and the World Bank, consideration was given to increasing IFC work with national employers’ organizations in the collection of data for yearly Doing Business reports.  Building on the success of last September’s launch of the 2008 report at a USCIB forum in New York, participants discussed organizing regional launches with IOE members in major regional hubs.

Areas identified for possible for future collaboration included vocational training and skills development, occupational safety and health, the informal economy, sustainable enterprise, youth employment, SME development, productivity and women’s entrepreneurship.  Participants also discussed holding annual top-level meetings between the IOE and the World Bank.

IOE website

More on USCIB’s Labor and Employment Committee

 

Employers Cement Relationship With World Bank

Published on March 7, 2008
L-R: IOE President Abraham Katz, World Bank President Robert Zoellick and IOE Secretary General Antonio Peñalosa.
L-R: IOE President Abraham Katz, World Bank President Robert Zoellick and IOE Secretary General Antonio Peñalosa.

Top representatives of global employers met with World Bank President Robert Zoellick and other bank officials on February 15 in Washington, D.C. to voice support for the bank’s annual “Doing Business” reports, which assess and rank countries based on how easy they make it to run a business, and to explore areas for future cooperation.

The delegation from the International Organization of Employers (IOE), part of USCIB’s global network and the voice of business in the International Labor Organization, was led  by IOE President Abraham Katz, who also serves as president emeritus of USCIB.  It included Antonio Peñalosa, secretary general of the IOE, Ashraf Tabani, president of the Employers’ Federation of Pakistan, and Ronnie Goldberg, executive vice president of USCIB, among others.

The meeting aimed at outlining the IOE’s views on – and support for – the Doing Business report, discussing how the World Bank should integrate and present employment and labor issues in future reports, and exploring areas for immediate as well as future cooperation between the IOE and the World Bank.  Joining Mr. Zoellick from the World Bank’s side were Michael Klein, vice president for financial and private sector development, and Simeon Djankov, who leads the team developing the Doing Business reports, along with several team members.

Mr. Katz expressed the IOE’s strong support for the Doing Business reports and highlighted their importance as a tool for labor market reforms and structural adjustment. He stressed the interest of national employers’ organizations in the report as a means of promoting reform in their own countries.  IOE delegation members also provided detailed comments on the relationship between the report’s labor indicators and pertinent ILO conventions.

On future areas of cooperation between the IOE and the World Bank, consideration was given to increasing IFC work with national employers’ organizations in the collection of data for yearly Doing Business reports.  Building on the success of last September’s launch of the 2008 report 2007 at a USCIB forum in New York, participants discussed organizing regional launches with IOE members in major regional hubs.

Areas identified for possible for future collaboration included vocational training and skills development, occupational safety and health, the informal economy, sustainable enterprise, youth employment, SME development, productivity and women’s entrepreneurship.  Participants also discussed holding annual top-level meetings between the IOE and the World Bank.

Staff contact: Ariel Meyerstein

IOE website

More on USCIB’s Labor and Employment Committee

 

Mexico Event Spotlights Self-Regulation in Advertising

Published on November 21, 2007
L-R: At the forum, David Mallen of the National Advertising Review Council discusses U.S. industry initiatives on marketing to children, joined by moderator Eduardo Cervantes of Coca-Cola Mexico and Arthur Pober of the European Advertising Standards Alliance
L-R: At the forum, David Mallen of the National Advertising Review Council discusses U.S. industry initiatives on marketing to children, joined by moderator Eduardo Cervantes of Coca-Cola Mexico and Arthur Pober of the European Advertising Standards Alliance

As rapidly developing technology – and seismic shifts in the media world – transform marketing and advertising, self-regulation has never been more important.  Highlighting this point, the International Chamber of Commerce’s Mexican affiliate, in coordination with the Mexican Council for Self-regulation and Advertising Ethics and USCIB, organized a forum on self-regulation in advertising on November 15 in Mexico City.

Self-regulation in the marketing and advertising industries demonstrates recognition by advertisers, agencies and the media that advertising should comply with a set of ethical rules.  The event in Mexico included discussion of new practices in commercial communication and how self-regulatory instruments can be used for the benefit of all stakeholders.

Speakers represented a range of different viewpoints, including consumers, business and regulators.  They discussed self-regulation in the context of globalization and social responsibility, as well as from a legal point of view.  They also addressed the timely issues of self-regulation of electronic media and advertising to children.

On the same day, millions of advertising professionals gained access to the Spanish-language edition of the Consolidated ICC Code on Advertising and Marketing Communication Practice.  Launched in English in September 2006, the ICC Consolidated Code is the global standard used by the marketing and advertising industry and self regulatory bodies.

John Manfredi, chair of the ICC Commission on Marketing and Advertising and co-author of the ICC Consolidated Code, attended the event.  He applauded the efforts of ICC Mexico and others in raising awareness of the ICC Code and self-regulation and encouraged more to follow.  “Ensuring self-regulation serves everyone’s interest depends on industry, consumers and regulators being well-informed on how it works, and apprised of the resources available to them,” he said.

Mr. Manfredi also praised the efforts of other ICC national committees who have translated the ICC Code and hosted similar educational activities to promote its use and implementation.  In addition to the English version, the Consolidated ICC Code on Advertising and Marketing Communication Practice is currently available in French, Russian, Serbian, Swedish and Turkish, with more translations expected in the near future.

More on USCIB’s Committee on Marketing and Advertising

Access the ICC Code and its translations online (ICC website)

Frequently asked questions about the ICC Code

World Bank President Unveils Latest Doing Business Report at USCIB Forum

Published on September 27, 2007

High Praise for World Bank’s Latest “Doing Business” Report

World Bank President Robert Zoellick
World Bank President Robert Zoellick

World Bank President Robert Zoellick unveiled the results of the bank’s latest annual study of business conditions and regulation worldwide at a USCIB forum in New York on September 26.  Business representatives were quick to praise the bank’s efforts to spur private-sector development.

The World Bank’s annual “Doing Business” report, begun five years ago, “has become the central benchmark for business regulatory practices all over the world,” stated Mr. Zoellick.

The report measures the time and the costs involved with setting up, running and closing a business in 178 countries around the world.  Mr. Zoellick said its comparative approach served as a spur to more effective business regulation.

“Governments don’t want to lag in rankings with countries they have to compete with for investment, or for exports,” he stated.  “And the potential for cross-country learning expands enormously.”

According to “Doing Business 2008,” countries in Eastern Europe and the former Soviet Union were among the leaders in improving the conditions for business.  Large emerging markets like China and India also made major progress, according to the bank’s “Doing Business 2008” Report.

The World Bank’s International Finance Corporation (IFC), the private-sector arm which prepares the report, ranks countries based on ten indicators of business regulation measuring the time and cost it takes to start and run a business, including rules governing trade, taxation and business closure.  Countries at all levels of development can gain by undertaking measurable regulatory reforms, it said.

“The report finds that equity returns are highest in countries that are reforming the most,” stated Michael Klein, the IFC’s vice president for financial and private sector development, who presented the report’s finding in detail.  “Investors are looking for upside potential, and they find it in countries that are reforming, regardless of their starting point.”

Business representatives at the event, hosted by JPMorgan Chase, praised the Doing Business report as a much-needed spur to investment, economic development and job creation.

Abraham Katz, president of the International Organization of Employers (IOE), congratulated the World Bank “for creating a reform movement that has already begun to increase development and improve people’s lives.”   The reports, he said, “identify the areas where reform is needed and, most importantly, provide the incentives for governments to act.”  The IOE, part of USCIB’s global network, issued a statement praising the latest Doing Business report.

Large emerging markets are reforming fast, noted Mr. Klein.  China, Egypt, India, Indonesia, Turkey and Vietnam all improved their rankings significantly in the latest report.  Overall, Singapore was ranked as the easiest economy in which to do business, followed by New Zealand, the United States, Hong Kong and Denmark.  Eight of the top 25 countries in the latest ranking came from outside the OECD   The country that dropped the farthest: Venezuela, which went from number 144 to number 172, out of 178 economies surveyed.

“These reports target the root causes of slow growth in many countries, and they have had a measurable impact in promoting specific reform measures at the national level,” stated USCIB Chairman William G. Parrett, senior partner with Deloitte Touche Tohmatsu.

In the area of employment regulation, business representatives at the USCIB event observed that the reports measure regulatory flexibility, and do not call for wholesale deregulation, as some critics have claimed.  The report’s indicators on employment are fully consistent with the International Labor Organization’s fundamental labor principles and rights, they said.

Mr. Katz emphasized the importance of simplicity and stability in national regulations.  “When I talk to business people, they stress the need for one-stop shopping to get the answers to their questions and to get action on their requests, for licenses and other matters that enable them to do business,” he said.  “They stress the importance of stability of regulations. They frequently say they could adapt to almost any regime as long as they know that the rules of the game have a certain permanence. Underlying everything is a legal system in which the right to private property is enshrined.”

Mr. Katz said employers around the world would welcome opportunities to contribute to future Doing Business reports.

Other speakers at the event included Tim Ryan, vice chairman of JPMorgan Chase’s financial institutions group, and Elizabeth Dibble, principal deputy assistant secretary of state for international finance and development, who moderated a discussion with the numerous business and government representatives in attendance.

IOE press release: Employers worldwide welcome World Bank efforts to support growth and development at the 2008 Doing Business launch (September 26, 2007)

IOE President Katz’s remarks at the forum

World Bank “Doing Business” report website

IOE website

Business Demonstrates Leadership on CSR at Global Compact Leaders Summit

Published on July 23, 2007
UN Secretary General Ban Ki-Moon
UN Secretary General Ban Ki-Moon

With over 1,000 participants from government, business, labor, and civil society, the Global Compact Leaders Summit, held July 5-6 in Geneva, was heralded by UN Secretary General Ban Ki-Moon as the largest single gathering ever held to address corporate responsibility. The UN Global Compact, launched seven years ago by Mr. Ban’s predecessor, Kofi Annan, is a voluntary pact to promote corporate practices in support of key UN goals.

Mr. Ban, who opened and closed the summit, acknowledged the positive role of business. “You have made it abundantly clear that market leadership and sustainability leadership go hand-in-hand,” he said. “This will help us build the supportive measures needed to create more sustainable markets, and it will ultimately help improve the lives of many people around the world.”

The Geneva summit – attended by USCIB President Peter M. Robinson, several USCIB members and representatives from our global business network – afforded companies, either publicly or through the publications distributed at the meeting, to illustrate specific, “on-the-ground” projects in which they had participated with a variety of UN agencies.

One of the most important presentations came from USCIB Trustee Neville Isdell, chairman and CEO of Coca-Cola, who in the opening plenary appealed to business to “Speak Up, Step Up and Scale Up” its leadership in conservation and sustainability. Mr. Isdell pointed specifically to Coca-Cola’s programs for water conservation, as well as its participation in tsunami relief with the UN Development Program and the UN Fund for International Partnerships.

Several leading CEOs spoke in plenary sessions.
Several leading CEOs spoke in plenary sessions.

Mr. Isdell defended the Global Compact’s voluntary nature. “Governments can enforce accountability, but they cannot engender responsibility,” he stated. “Responsibility is a choice, and the Global Compact allows business people to make that choice.”

Among the other leading global CEOs making plenary presentations were Carl-Henric Svandberg of LM Ericsson, Anne Lauvergeon of Areva, B. Muthuraman of Tata Steel and Ntombifuthi Mtoba of Deloitte South Africa.

Participating civil society leaders included Irene Khan, secretary general of Amnesty International, and Jeremy Hobbs, executive director of Oxfam International. While supportive of voluntary corporate responsibility initiatives, both called forcefully for greater accountability and compliance programs to measure company performance.

Abraham Katz, chairman of the International Organization of Employers and president emeritus of USCIB, also addressed the Global Compact summit, citing the important role of small and medium-sized enterprises in furthering sustainability at the local level. He highlighted the importance of support for open trade policies and offered IOE help in this regard.

The summit concluded with the adoption of a “Geneva Declaration,” which pledged joint action in support of the Global Compact’s goals by business broadly, by adherents to the Global Compact and by national governments.

ICC Secretary General Guy Sebban and IOE Secretary General Antonio Peñalosa serve on the Global Compact Board, a multi-stakeholder body comprised of 20 representatives from business, labor, civil society and the UN.

ICC paper

In preparation for the summit, the International Chamber of Commerce (ICC) unveiled a new policy statement on “The Role of the United Nations in Promoting Corporate Responsibility.” In its paper, ICC said the role of the UN should be to promote corporate responsibility broadly, including through the creation of new initiatives – local, regional and global – and to support their growth and development.

ICC defines corporate responsibility as a voluntary commitment by business to manage its activities in a responsible way. The UN can best support these commitments by acknowledging the value of having a broad range of initiatives available to tackle different issues and try new approaches, the statement said.

Noting that companies and organizations elect to engage with or support a diverse array of corporate responsibility initiatives, ICC said it was essential for the UN to work with as many different initiatives and programs as possible to ensure the broadest engagement with the private sector.

ICC also called on the UN to improve the governance of the Global Compact, in order to increase its transparency and its accountability within the UN system. In particular, ICC called on the UN to give the Global Compact Board oversight responsibilities as opposed to its current advisory role.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

UN Global Compact website

ICC website

USCIB Welcomes Bipartisan Trade Policy Accord

Published on May 14, 2007

3699_image002New York, N.Y., May 14, 2007 – The United States Council for International Business (USCIB), which represents hundreds of America’s top global companies, welcomed the agreement between the White House and Congress on a new trade policy “template,” which it said should clear the way toward approval of pending U.S. free trade pacts and renewal of the president’s trade negotiating authority.

USCIB, the U.S. affiliate of the International Organization of Employers, which represents business in the International Labor Organization, said it was especially pleased that negotiators had forged a compromise approach to incorporating international labor principles into U.S. trade agreements that recognizes the role of the ILO to help its member countries advance labor conditions.

USCIB President Peter M. Robinson applauded the efforts of U.S. Trade Representative Susan Schwab and Rep. Charles Rangel, chairman of the House Ways and Means Committee, to conclude the deal.

“Ambassador Schwab and Chairman Rangel have worked tirelessly to forge a bilateral consensus on trade policy, paving the way for further trade liberalization that will benefit business, workers, consumers and farmers,” stated Mr. Robinson.  He noted that, at last December’s USCIB annual award dinner, Congressman Rangel had underscored his strong interest in promoting a forward-looking trade agenda.  “The Chairman delivered, and we are most appreciative.”

Mr. Robinson said the way was now clear to gain approval of the free trade agreements currently before the Congress.  “Hopefully, Congress will approve these FTAs and extend the president’s trade promotion authority,” he stated.  “Extension of trade authority is urgently needed to generate movement in the Doha Round, which is a high priority for U.S. business.”

Mr. Robinson said he was gratified that the agreement’s labor provisions prominently feature the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, which was developed at the initiative of the International Organization of Employers’ members, including USCIB.  The ILO’s tripartite structure encompasses representation from governments, employers and trade unions, so the ILO declaration’s principles have the support of all three groups in the U.S. and internationally.  It is therefore appropriate to reaffirm them in U.S. trade agreements as objectives that all countries should recognize and strive to realize in their national laws.

USCIB said it recognized that the negotiations on transforming the agreement, presently in the form of a joint “concept paper,” into legislation would require continued bipartisan cooperation between the Executive Branch and Congress.  It also recognizes that concerns may persist in the business community on non-labor issues covered by the agreement, particularly on intellectual property.  “We are confident that, at the end of the day, the same sense of bipartisanship that led to this agreement will carry forward in the drafting of actual legislation,” stated Mr. Robinson.

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the exclusive American affiliate of three key global business groups – the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD –  USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.

Contact:

Jonathan Huneke, USCIB

Tel: +1 212 703 5043 or +1 917 420 0039 (mobile)

E-mail: jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

More on USCIB’s Labor and Employment Committee