USCIB Reinforces Business Commitment to Human Rights at UN Forum

UN GenevaThe United Nations Forum on Business and Human rights was larger than ever this year, drawing over 2,000 registered participants. USCIB attended the forum, which took place from December 1 to 3 in Geneva along with representatives from USCIB’s global network, including the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE).

The global event focused on strengthening multistakeholder dialogue and engagement, discussing national action plans to implement the UN Guiding Principles on Business and Human Rights, exploring access to effective remedy and identifying current and good practice.

USCIB co-organized and co-hosted a business-only side event along with the ICC and IOE and several other global business associations on December 1 with close to 100 business representatives, during which business views were garnered on progress and challenges relating to corporate respect for human rights. Overall business attendance at the event was up from previous years and was estimated to be between 10-20 percent of all attendees.

Attendees agreed that the Forum’s atmosphere improved over previous years and was very conducive to constructive dialogue between the stakeholders. The quality of the dialogue was no doubt influenced by the chair of the Forum, Sudanese businessman Mo Ibrahim, who bucked traditional UN protocol in favor of a more collegial and engaging atmosphere, referring to participants as “brothers and sisters,” rather than relying on the traditional honorifics.

A primary area of interest to business and other stakeholders was governments’ progress in creating National Action Plans (NAPs) to implement the UN Guiding Principles on Business and Human Rights. Countries that have submitted NAPs thus far include the UK, the Netherlands, Italy, Denmark and Spain, while the United States, Colombia, Finland and Switzerland are in the process of developing theirs. The IOE has prepared a synopsis of the completed NAPs.

USCIB will co-host an open consultation about the U.S. NAP along with NYU Stern Center for Business and Human Rights on December 15, which will engage representatives from the United States government on their plans for the U.S. NAP.

Another focus of the discussions was on the question of access to remedy, ranging from the current practices of companies to provide non-judicial, operational grievance mechanisms, and emerging legislative efforts by governments to influence the conduct of their companies operating extraterritorially.

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and governance, spoke at a panel on “Identifying options for international coordination and regulation to overcome challenges in access to remedy,” which involved NGOs as well as a Dutch national prosecutor and a former Canadian Supreme Court justice. The dialogue explored the wide array of existing legal frameworks for addressing issues like corruption as well as the deficiencies in these approaches, which rely on prosecutors and courts from different countries to support one another with legal assistance and sharing of information.

Another aspect of access to remedy that featured prominently at the Forum was the intergovernmental working group to be established in 2015 to explore the creation of a binding international instrument on transnational corporations and human rights. This initiative, spearheaded by Ecuador, was the focus of an IOE side event during the forum, in which IOE Secretary General Brent Wilton called on business to show results with respect to human rights to pre-empt other actors from giving their own take and detracting from the momentum behind the UN Guiding Principles on Business and Human Rights, which the business community actively supports.

“We have to continue to proactively and constructively promote the implementation of the UN Guiding Principles,” said Wilton, reminding participants that existing mechanisms to address human rights should not be undermined.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

New IOE Position Paper Unpacks Thorny Labor Migration Challenges

IOE Position Paper: International Labor Migration
IOE Position Paper: International Labor Migration

Sometimes described as the “unfinished business of globalization,” labor migration raises complex and sensitive political, human rights, economic and social concerns, as well as an array of legal and regulatory challenges. Migration accordingly occupies a prominent place on both national and multilateral policy agendas and in public discourse.

Against this backdrop the International Organization of Employers (IOE) has created a policy working group on international labor migration, chaired by USCIB’s senior counsel Ronnie Goldberg, charged with establishing the IOE position in the debate and with providing guidance to members and companies.

This policy working group recently issued a position paper which focuses on several aspects of international labor migration of immediate and practical concern to business.

“Labor migration, particularly the movement of highly skilled personnel and intra-company transfers, are key issues for USCIB companies,” said Goldberg. “Through IOE, we have s seat at the table and an opportunity to make our case in the many international bodies discussing this issue.”

In developed countries competition is increasing to recruit skilled immigrants to meet shortages in key industries. Employers are working with governments and other social partners to identify where skills shortages exist and proposing measures to rectify the situation.

Staff contact: Ronnie Goldberg

More on USCIB’s Labor and Employment Committee

New OECD Report Will Help Fight Transnational Bribery

scalesToday, the Organization for Economic Cooperation and Development launched its Foreign Bribery Report in Paris. The report presents an analysis of foreign bribery cases that have been concluded since 1999, and it is intended to help combat transnational corruption.

The launch event included an opening address by OECD Secretary General Angel Gurría, an address by French Minister of Justice Christiane Taubira, and a panel discussion with experts, including, GE Senior Vice President, Secretary and General Counsel Brackett B. Denniston, U.S. Department of Justice Assistant Attorney General Leslie R. Caldwell, chair of Transparency International José Carlos Ugaz, and Siemens Chief Compliance Officer Klaus Moosmayer, who is also the chair of the Business and Industry Advisory Committee (BIAC) Task Force on Anti-Corruption/Bribery.

Shaun Donnelly, vice president of investment and financial services at USCIB, as well as Kimberley Claman, senior vice president of international government affairs at Citi, represented USCIB at this event. They were joined by Hanni Rosenbaum, senior policy director at BIAC, who leads their anti-bribery effort.

The report provides an analysis of 427 foreign bribery cases that have been concluded since the entry into force of the OECD Anti-Bribery Convention in 1999. Key findings include that 53 percent of cases involved corporate management or CEOs, one in three cases were instigated by self-reporting (versus only two percent of cases by whistleblowers), 57 percent of cases involved bribes to obtain public procurement contracts, a staggering 75 percent of cases involved payments through intermediaries, and 69 percent of cases were settled with sanctions.

The various speakers all noted the groundbreaking importance of the report, however also emphasized that understanding the problem is only part of the solution. Addressing this point, the report concludes with Next Steps, including a list of ideas for future work, such as annual updates, a public database, further study of SOEs, or additional study of the demand side of bribery, a point Secretary General Gurria also noted in his comments.

This OECD report presents an important step forward in the OECD’s anti-bribery work surrounding the Convention.

Staff contacts: Shaun Donnelly and Eva Hampl

Public Consultation on the OECD Corporate Governance Principles

The OECD Corporate Governance Principles are intended to assist governments and regulators in their efforts to evaluate and improve the legal, regulatory and institutional framework for corporate governance and provide guidance for stock exchanges, investors, corporations and others to foster good corporate governance. The objective of the OECD Principles is to contribute to economic efficiency, sustainable growth and financial stability.

The principles are currently being reviewed to ensure their continuing relevance and usefulness, and to take into account recent developments in the corporate sector and capital markets. After detailed discussion on the revised draft at the October OECD corporate governance meeting, on which the Business and Industry Advisory Committee (BIAC) to the OECD submitted comments, the OECD is currently inviting public comments on the latest draft text. Based on the outcome of the public consultation, a revised draft will be discussed at the next OECD Committee meeting in February 2015. BIAC will continue to contribute all along the process, both during the public consultation and in the discussions at committee level.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

Business Engagement in UN Climate Negotiations

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Overview:

The United States Council for International Business (USCIB) will be representing American business interests at the 2014 United Nations Climate Change Conference, host to the 20th session of the Conference of the Parties (COP20) of the UN Framework Convention on Climate Change (UNFCC), in Lima, Peru, from December 1-12, 2014.

As governments in Lima begin work on a long-term UN climate change framework in the lead-up to a final climate agreement in Paris next year, U.S. business sees an opportunity to design international climate cooperation that works with markets to deploy investment and innovation, and to encourage companies in all sectors to integrate climate mitigation and adaptation into their activities and supply value chains.

USCIB President and CEO Peter Robinson and Norine Kennedy, vice president for strategic international engagement, energy and the environment, will be in Peru for the COP20 meetings. USCIB is the American affiliate of the International Chamber of Commerce (ICC), and is actively supporting ICC’s presence in Lima throughout COP20.

USCIB is also a member of the Major Economies Business Forum on Energy Security and Climate Change (BizMEF), which comprises national and regional business organizations representing millions of companies all over the world. BizMEF members have participated in and shared views and meetings of the UNFCCC since COP15 in Copenhagen in 2009.

View photos from the BizMEF Lima Business Dialogue (Flickr)

What is COP20 About…?

Commitments and Transparency

checklistThe post-2020 climate agreement to be signed in Paris must provide a clear framework for international cooperative action, committing all large economies to the measurement, monitoring and reporting of pledged activities to control and reduce greenhouse gas emissions, such as those announced by China and the U.S. recently. For such national pledges to work in the Paris timeframe, Lima needs to reach agreement on credible measuring, reporting and verification for all national commitments to ensure transparency and assess progress going forward.

Financing and Investment

tree cartoonThe UN’s Green Climate Fund, designed to finance the international community’s efforts to combat climate change, is on track to reach its initial $10 billion capitalization target. But going from $10 billion to the $100 billion or more needed to advance climate change objectives depends on the mobilization of private investment and innovation. Lima must set the stage for a 2015 Paris agreement with measures that foster business investment as well as government aid aimed at reducing greenhouse gas emissions and adjusting to climate impacts.

Business Engagement

eiffel tower cartoonWith so much riding on economy-wide transformational change that will rely on the private sector, the Paris agreement must move to anchor the role of business in the UN climate negotiations. Given the wide impact that a UN agreement will have on markets, regulations and national competitiveness, an agreed structure is needed to provide business expertise and support to the process. This will be the focus of a special side event to be held on the middle Sunday in Lima.

Press Coverage

USCIB President and CEO Peter Robinson is quoted in this Financial Times article:

“We want to find an opportunity where we are more inside the tent than on the sidelines,” said Peter Robinson chief executive of the US Council for International Business. He added businesses should be “co-parties” in the talks, not mere observers. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.”

Information and Resources

USCIB has signed on to several letters and policy recommendations relevant to COP20, including:

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

Global Business Urges Take the Emotion Out of the ISDS Debate

The Financial Times has published a letter from Winand Quaedvlieg, chair of the Committee on International Investment at the Business and Industry Advisory Committee (BIAC) to the OECD, expressing concern about the emotionally charged debate over investor-state dispute settlement in international trade agreements.

This issue has attracted attention from activists and politicians in Europe and elsewhere in the context of the Transatlantic Trade and Investment Partnership (TTIP) talks and other negotiations. USCIB President and CEO Peter Robinson touched on the backlash against ISDS in a recent column.

The BIAC letter is reproduced below, and can also be read on the Financial Times website.

Sir, The international business community is extremely concerned about the negative tone, and the lack of balance, in the debate on investment protection and investor-state dispute settlement (ISDS). Investment protection is indispensable in any investment regime or agreement. And ISDS is a necessary element of investment protection, not only in agreements with developing countries but in every agreement. It is an integral part of the system.

ISDS was created 50 years ago as an instrument to enforce the rule of law: to protect foreign investors against frequent arbitrary behavior of host states and to guarantee them a fair process. Host states have much more power than foreign companies and there is always a risk of biased national courts. But now some in the public debate are turning the issue upside down. Investment protection is framed as a demonic instrument for evil companies to bar innocent states from promoting the public good. This is a caricature. The populist argument against ISDS is totally out of proportion.

According to UNCTAD, the world stock of foreign direct investment is close to $26tn. ISDS has existed for 50 years, during which there have been 568 documented cases. Of these, 274 have been decided upon: 43 per cent were decided in favor of the government, 26 per cent were settled and 31 per cent, about 85 cases, were decided in favor of the company. Only a very few of these led to public debate.

A trade diplomat of a large emerging economy recently said: “If you compare the advantages of the total stock of FDI in my country with the number of ISDS cases we lost, it was a very good bargain.” Seen in this light, ISDS does not justify the current highly emotional debate. This does not mean that the existing system should not be discussed. In the current debate, a number of issues have been raised: transparency of procedures, the compatibility of investment protection and governments’ ability to regulate, introducing an appeal mechanism, a new code of conduct for arbitrators, early discharge of frivolous claims, improvement of timing and enforcement, or alternative dispute resolution. It is the role of governments and organizations such as the OECD and UNCTAD to help de-escalate the discussion and make it rational and fact-based. Business is prepared to participate actively in the debate.

Winand Quaedvlieg

Chair of the Committee on International Investment, Business and Industry Advisory Committee to the OECD (BIAC)

Staff contacts: Shaun Donnelly and Eva Hampl

More on USCIB’s Trade and Investment Committee

US ILO Launch Initiative to Improve Labor Rights in Myanmar

 Myanmar_TowerThe government of Myanmar has made significant strides toward reform that have created opportunities for foreign investment. As Myanmar’s reform efforts continue, the White House recently announced a multilateral initiative to improve labor rights in Myanmar which will set a strong foundation for sustainable growth and development. The U.S., Myanmar, Japan, Denmark and the International Labor Organization (ILO) launched the “Initiative to Promote Fundamental Labor Rights and Practices in Myanmar” on November 14 to help Myanmar modernize its labor code, improve compliance with international labor standards and foster dialogue between government, business and labor.

As explained by a United States Trade Representative Fact Sheet, “this innovative engagement is designed to use a multilateral, multi-stakeholder approach to strengthen labor reform, enforcement, transparency, and domestic stakeholder consultations. The Initiative is based on two pillars

Labor Reform: The Initiative will support development by the government and stakeholders, in cooperation with the ILO and partner governments, of a multi-year labor reform plan. Burma has already undertaken some significant labor law reforms, but the labor reform plan should solidify those reforms, help Burma comply with international standards, and lay out a plan to build the capacity of the government to implement these reforms.

Stakeholder Consultative Mechanism: The Initiative expects to bring stakeholders into the discussion on labor reforms and build the foundations for good industrial relations and civil society consultations in Burma. Specifically, the Initiative envisions the establishment of a stakeholder consultative mechanism that is expected to foster both tripartite engagement (i.e., engagement by the government, employers, and workers), and civil society consultation at the domestic level as well as build relations among international stakeholders from business, labor and civil society that are engaged in Burma.

USCIB has stepped up its advocacy for business in Myanmar, particularly on issues related to investment and responsible business practices. A number of USCIB members currently have operations tied to Myanmar, and many wish to do business in the country. USCIB has played a key role in the multi-stakeholder discussions hosted by the U.S. government and the International Labor Organization and several of its members plan on engaging in the process going forward.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

ILO Governing Body Tackles Differences Over Labor Standards

On November 20, during the 322nd session of the ILO Governing Body (GB), agreement was reached on a way to address the ongoing dispute over whether Convention 87 contains a right to strike. Following months of intensive consultations and outreach by the Employers’ Group, its “package approach gained traction during the course of the two week session.

The GB decided to convene a three-day tripartite meeting in February 2015 on the controversial Convention 87 and its relationship with the right to strike, as well as the modalities and practices of strike action at national level.

The February meeting will bring together the three constituencies of the ILO, tasked to produce a report on which the March 2015 session will base a decision on the need for a request to be made to the International Court of Justice for an advisory opinion on the interpretation of a right to strike in Convention 87.

Speaking for the group, employers’ vice chairperson, Jørgen Rønnest said that, even though all parties made important concessions, the decision was “welcomed by the Employers for being constructive, practical and forward-looking.”

“We anticipate making further positive steps next February and March towards an ILO standards supervisory system that is fit for purpose well into the future,” Rønnest said

Read the IOE Report on the 322nd Session of the ILO Governing Body

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

USCIB to Host Dialogue on US Action Plan on Responsible Business Conduct

hands_and_huddleFollowing the September announcement by President Obama to develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with United Nations Guiding Principles on Business and Human Rights, USCIB and the NYU Stern Center for Human Rights will co-host an open dialogue on the U.S. NAP on December 15 at the campus of NYU Stern.

White House media release: Announcement of Opportunity to Provide Input into the U.S. National Action Plan on Responsible Business Conduct.

As the White House develops the National Action Plan, U.S. officials will attend a series of events hosted by independent organizations where stakeholders will be able to provide input on the National Action Plan process and content. Officials will outline current U.S. initiatives and plans to develop an effective national action plan in line with international standards. The New York consultation is the first in this series. U.S. officials also will participate in similar events in California, Oklahoma and Washington, DC throughout 2015.

The event will open with a plenary session and continue with small-group workshop discussions on a range of topics related to responsible business conduct. An agenda will follow. More about the National Action Plan can be found in the White House’s fact sheet and on the Business and Human Rights Resource Center website.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

Business Fully Engaged at 2nd International Nutrition Conference

ICN2_BannerThe Second International Conference on Nutrition (ICN2) wrapped up on Friday, ending an inter-governmental conference aimed at addressing the twin global threats of malnutrition and obesity as governments pledged to align national policies with nutrition objectives.

USCIB attended the conference, organized by the United Nations Food and Agriculture Organization and World Health Organization at the FAO headquarters in Rome from November 19 to 21, as part of a private sector delegation of over 90 people from more than 20 countries. USCIB and member companies were on the ground in Rome to make the case for the positive role the private sector plays in nutrition and agriculture.

USCIB, along with the International Agri-Food Network, developed a list of key private sector messages that were delivered during the ICN2 plenary:

Private Sector Key Messages

Nutrition & ICN2 meeting 19-21 November 2014

Addressing Nutrition Globally

  • Furthering nutritional goals depends on agricultural production and access, particularly to address the needs of women, children and the most vulnerable.
  • Good nutrition promotes broad-based, diverse diets and provides consumer choice.
  • Innovation, research, and education are essential to accelerating nutritional improvements.

Taking Action

  • The private sector is necessary to increase the scope of financial and human resources in order to tackle nutritional challenges on a large scale.
  • Expanding trade raises the standard of living in developing countries and improves the performance of national economies, which are necessary for combating global hunger.
  • Empowering women is crucial for improving nutrition, so governments should promote policies that help women become farmers, traders and entrepreneurs.

Private Sector Engagement is Essential

  • At ICN2, the private sector delegation included 90 private sector representatives from 24 countries.
  • The private sector appreciates the support of member-states in encouraging the participation of non-state actors in ICN2 and encourages future plans to engage them in action plans.
  • The private sector is committed to public-private partnerships that support public health strategies.
The Second International Conference on Nutrition took place at the FAO headquarters in Rome from November 19 to 21
The Second International Conference on Nutrition took place at the FAO headquarters in Rome from November 19 to 21

“The private sector is an important ally in fighting hunger and malnutrition, therefore the FAO is committed to strengthening its partnership with private sector,” said FAO Director General Jose Graziano da Silva. “There is a need for improved nutrition and coordination across sectors. This needs to be done in dialogue with non-state actors including the private sector.”

On November 18, Helen Medina, USCIB’s senior director for product policy and innovation, chaired a side-meeting with government officials – Kevin Concannon, undersecretary for food, nutrition and consumer services at the U.S. Department of Agriculture; Ambassador Peter McGovern, Canada’s ambassador to Italy; and Lois Brown, Canadian Parliamentary Secretary to the Minister of International Cooperation.

“The meeting was friendly,” Medina said. “The private sector shared its main messages while government officials reiterated how pleased they were to see a big private sector delegation at ICN2.”

Throughout the conference Medina and other private sector representatives engaged with delegates to promote business’s positive role in the nutrition space. Many governments supported business’s engagement in the dialogue.

During the plenary, discussion was intense over how the agriculture and food systems should address obesity. Speakers stressed the importance of reducing salt, sugar and fat in people’s diets, as well as reducing processed foods. Malnutrition received less attention.

The conference ended with participants agreeing that there is a clear need for a whole of government approach to nutrition. In particular, ICN2 has underscored that it is crucial to have policy coherence the health and agriculture agencies to deliver action on the nutritional challenges of each nation. Thus far, there has been a no coordinated approach on nutrition.

Looking ahead, there will be a push to include more nutritional targets in the UN’s Post-2015 Development Agenda and in the Sustainable Development Goals. USCIB will continue to work with the International Agri-Food Network to ensure that its members can engage with the FAO and relevant UN agencies as the ICN2 recommendations move forward.

Improving nutrition is a collective business (FAO)

Staff contacts: Helen Medina

More on USCIB’s Food and Agriculture Working Group

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