News Stories Archives

Business Promotes OECD Guidelines for Multinationals

Published on June 30, 2017

As the official U.S. affiliate of Business at OECD (BIAC), USCIB praised BIAC on its promotion of the OECD Guidelines for Multinational Enterprises (MNE Guidelines) last week during a high-level conference that it organized in Paris. In a recent statement, BIAC noted that it views the responsible conduct of companies across markets as stipulated by the MNE Guidelines to be an integral part of an open investment environment, while stressing the need for practical and manageable expectations.

USCIB’s Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog praised BIAC’s commitment noting, “USCIB supports the OECD Guidelines and the comprehensive framework of responsible business conduct practices they represent. We welcome BIAC’s strong commitment to promoting the OECD Guidelines and encouraging their implementation.”  

The OECD Guidelines include a unique implementation mechanism in the form of National Contact Points (NCP). “The experience with the NCP system has been mixed,” said Winand Quaedvlieg, chair of the BIAC Committee on Investment and Responsible Business Conduct. “In some cases, it had a clear added value for companies, in other cases it was criticized. It is therefore important to have a common understanding among all stakeholders about the nature of the NCP process as a platform for mediation and problem-solving in good faith, which is different from legal litigation.”

USCIB will continue to support BIAC as it works with the OECD to underline the conditions that must be in place to facilitate the proactive engagement of business in the process.

USCIB and ILO Hold Dialogue on Disabilities in the Workplace

Published on June 23, 2017
USCIB Senior Counsel Ronnie Goldberg facilitates panel at the joint USCIB-ILO-AT&T event on Disability Inclusion in Washington DC

U.S. companies are increasingly sensitive to the importance of enhancing workplace diversity, particularly for people with disabilities. In an effort to promote U.S. company membership in the ILO Global Business and Disability Network (GBDN), USCIB, AT&T and the ILO held an event at the AT&T Forum in Washington DC on June 20 for business leaders, “Promoting disability inclusion globally.”

The GBDN is a network of multinational enterprises, employers’ organizations, business networks and disabled persons’ organizations who share the conviction that people with disabilities have talents and skills that can enhance virtually any business and can be a powerful tool for sharing global best practices and accessing relevant networks around the world. In addition to hosting the event, AT&T was also a featured speaker and has a strong corporate commitment to employing persons with disabilities.

USCIB Senior Counsel Ronnie Goldberg gave opening remarks and facilitated a panel on “Best Practices in the Employment of Persons with Disabilities in the Global South,” which also featured speakers from L’Oreal, Repsol, Accenture and Cisco.

Panelists discussed some of their company initiatives such as Cisco’s Project Life Changer and Accenture’s Tech4Good, which support employees with disabilities through technological and work culture integration. Many of the companies discussed the importance of building an employable skill-set while others, such as Cisco, go even further to alter the recruitment process, placing more emphasis on internships and experience.

“Smart companies have known for some time that there is a robust business case for workplace diversity in general and for hiring people with disabilities in particular,” said Goldberg. “All the data suggests that people with disabilities are productive, reliable and highly motivated employees.  They can also constitute a significant market, and some companies have prospered by developing products and services for people with disabilities, their families and friends.”

Goldberg noted that USCIB members are global enterprises, with employees and customers in every part of the world.  “The network and opportunities for best practice and information sharing provided by the ILO GBDN can be an important resource for MNEs as they devise and implement their human resource, product development, and marketing strategies in diverse communities across the globe,” she said.

The event also featured USCIB members from Deloitte, Boeing and Accenture.

USCIB Hosted Experts Discuss UN Treaty on Business and Human Rights

Published on June 19, 2017

USCIB hosted a webinar on the UN Treaty on Business and Human Rights on June 13, featuring Robert McCorquodale, director of the British Institute of International and Comparative Law and Douglass Cassel, professor of law at Notre Dame Law School. The webinar discussed the treaty background, its current status, and possible next steps in advance of the third session of the Intergovernmental Working Group (IWG) in October 2017.

The treaty process began on June 26, 2014, when the Human Rights Council adopted resolution 26/9 by which it decided “to establish an open-ended intergovernmental working group on transnational corporations and other business enterprises with respect to human rights, whose mandate shall be to elaborate an international legally binding instrument to regulate, in international human rights law, the activities of transnational corporations and other business enterprises.” The first two sessions of the open-ended IWG were to “be dedicated to conducting constructive deliberations on the content, scope, nature and form of the future international instrument.” The first session of the IWG was held in July 2015, and the second session in October 2016. The summary documents from the second session can be found here.

Prior to October’s third session, the Ecuadorian chair of the IWG has been tasked with drafting proposed elements for a treaty, and these points will be presented to the states in advance of the October meeting.  The webinar discussed three possible outcomes for the treaty: a relatively modest treaty with reporting and due diligence requirements to establish a level playing field, with an international monitoring system for the states’ obligations; a “maximalist treaty” with international courts, international legal requirements for business, due diligence reporting, and other requirements, as argued for by some human rights groups; or no treaty at all resulting from this process.

If USCIB members would like to access a recording of the webinar, please contact Elizabeth Kim (ekim@uscib.org).

SDG Business Forum Will Report on Private Sector Achievements

Published on June 16, 2017

Following the success of last year’s inaugural forum, the second annual SDG Business Forum will take place at the United Nations on July 18, 2017 during the ministerial segment of the High-Level Political Forum (HLPF) on Sustainable Development. Co-hosted by the International Chamber of Commerce (ICC), the UN Department of Economic and Social Affairs (UN-DESA), and the UN Global Compact, and organized in collaboration with the Global Business Alliance (GBA) for 2030 – including USCIB, the SDG Business Forum will convene leaders from business and government, together with the heads of UN agencies, key international organizations, and civil society groups to delve into the role business will play in delivering the 2030 Agenda.

Featuring a showcase review of business engagement on the 7 goals in focus at this year’s HLPF, as well as individual sessions examining investment, partnerships, and monitoring, this event will foster robust dialogue between governments and the private sector on critical issues and the way forward. The Forum will report on significant achievements and commitments undertaken by business and gauge private sector efforts to catalyze sustainable growth and development during this critical implementation phase. Ranging from SMEs to multinational corporations, the global business community is committed to contribute to the success of the 2030 Agenda and the realization of a long-lasting, prosperous future for all.

For more information and registration please visit: http://www.sdgbusinessforum.com/

USCIB Emphasizes Government Role in Labor Migration Policy at ILC

Published on June 16, 2017
USCIB Vice President for Corporate Responsibility and Labor Affairs gives remarks during the International Labor Conference in Geneva, Switzerland

USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog was among approximately 6,000 delegates who attended the 106th session of the International Labor Conference (ILC) in Geneva, Switzerland (June 5-16). The ILC touched upon pressing global issues such as the application of labor standards, peace and stability, women in the workplace, immigration and climate change. Herzog attended the ILC as a member of the U.S. Employers Delegation, headed by Ed Potter, USCIB senior counsel and U.S. employer spokesperson to the International Labor Organization (ILO) Governing Body.

Herzog gave remarks at the Committee for Labor Migration, emphasizing the important role the ILO has to play in ensuring that labor migration policies are grounded in sound facts in order to assist governments in devising and implementing policies in ways that work for both employers and workers.

“Labor migration is a necessary and important phenomenon,” said Herzog in her remarks. “It can help fulfill personal aspirations, balance labor supply and demand, spark innovation, and develop and transfer skills.  But for workers to be able to move of their own volition, where and when their labor is needed and valued, and with their rights protected, governments must have clear, transparent and efficient migration policies.”

Potter Gives Statement on Climate Change at ILO Conference

Published on June 13, 2017

USCIB Senior Counsel Ed Potter is currently attending the International Labor Organization (ILO) International Labor Conference (ILC) in Geneva, Switzerland (June 5-16) as a U.S. employer delegate. The ILC is discussing pressing global issues such as women at work, application of labor standards, peace and stability, migration and climate change.

Potter delivered the following statement on June 12 during the 2017 Plenary Statement on the Director General’s report on behalf of business regarding climate change and the Paris Agreement:

 

2017 Plenary Statement on the Director General’s Report

Adopted in 2015, the Paris Agreement on climate change is now the globally recognized framework for international climate action and represents a reset of the global approach to climate change.  Anything adopted by the ILO on climate change prior to 2015 should be reevaluated in light of the Paris Agreement.   The Paris Agreement is historic because it envisions self-determined actions and pledges by all countries, according to their priorities and resources.  Importantly, it eliminated the binary Kyoto annexes which divided 193 countries into 2 arbitrary categories.

We are concerned by language in the Director General’s Report that seems to over-simplify the challenge ahead, portraying a straightforward “green” vs. “dirty” choice of technologies, industries, products and jobs.  We do not live in a binary “green” job “brown” job world, and similarly we do not have “green” versus “brown” energy or technology.  The reality is more complex, and there are many other stakeholders involved – notably consumers.  The fact is that all industry sectors will need to transition to cleaner and more efficient operations and energy sources.  The scale of transformation required to meet Paris commitments cannot be met without business finding ways to respond to growing populations seeking reliable affordable energy sources to run businesses, schools, hospitals, etc.  Whether the discussion is on ICT and smart grids, or new ways to sequester carbon that could extend the use of fossil fuels while reducing their greenhouse gas emissions, or zero emissions transport, a fuller and more multi-dimensional picture of enterprises is needed.  It is not about the coal miner versus the solar panel installer – it is much more complex.

Transitions will be felt in the business community in the form of opportunities for new industries or products across a wider array of sectors than those normally referred to as “green” through supply and value chains and arising from regulations, costs or innovations that result in more disruptive change or harm to competitiveness.  Without growth and productive employment, there is less room for the successful protection of the environment and the promotion of decent work.  As enterprises are the primary source of job creation, a business-friendly environment remains an essential priority.   Sustainable jobs and sustainable businesses go hand in hand.

The Paris Agreement calls not just on governments but other societal partners, including the business community to act.  The business community has shown strong and continuous commitment to support the Paris Agreement and its implementation.  Delivering the Paris commitments depends on the full engagement of business and employers.  In fact, after my country’s recent withdrawal from the Paris Agreement, nearly 1000 large companies and investors joined a “We Are Still In” movement, representing 120 million Americans and 40 percent of the US economy at the state and municipal level.  Local attitudes are important and matter.

As highlighted in the Director General’s Report, over the past two years. the UNFCCC has launched its work on “Just Transition”.  Yet until last month, the UNFCCC did not adequately or directly involve business and employers on these topics – while the ILO has been consulted throughout, as has the ITUC.  It is only in the last 2 months that business or employer views have been communicated to the UNFCCC via a joint submission by the IOE and ICC, and by IOE and ICC participation in the May 9 Bonn meeting on the UN Framework Convention on Climate Change.   The Roundtable highlighted the need for enhanced involvement of employers and the need for direct consultation with them in the future on just transition and other employment related matters.  Tripartism is a cornerstone of this Organization and should apply both inside and outside the ILO.

Much of the Director General’s report focuses on the labor market churn that will occur as a result of the transition from “dirty” to “green” jobs.  The strong impression the reader gets from his Report is that climate change requires a dedicated, special program by the ILO.  Our view is that structural change and job impact of climate change is not at all dissimilar from other ongoing structural change resulting from technological change.  Ask any expert about the future of work and you will hear about a world dominated by artificial intelligence, 3D printing, an on-demand economy, and five generations in a virtual workplace where almost any worker can perform almost any work from anywhere they choose. The ILO approach to climate change needs to be knitted together and treated holistically with other ILO structural change initiatives and the future of work.

Thank you, Mr. President.

 

OECD Week Addresses Global Challenges with Business Input

Published on June 12, 2017

 

Peter M. Robinson at OECD Week in Paris

USCIB President and CEO Peter Robinson was in Paris last week for OECD Week, which tackled issues such as international tax rules, globalization challenges and anti-trade rhetoric. Addressing Ministers of Finance and Foreign Affairs at the OECD Ministerial Council Meeting on June 7, Business at OECD (BIAC) Chair Phil O’Reilly called on governments to address the challenges of strengthening growth and boosting economic participation, emphasizing that “ultimately societies can only support economic openness, when it is accompanied by appropriate domestic policies to prepare people for change, with better skills and more opportunities for economic participation.” O’Reilly drew upon principles highlighted in the recently released Business at OECD 2017 Statement to Ministers, which contains the core business recommendations to strengthen open economies and inclusive societies. This paper is a call to action for OECD governments to implement a comprehensive competitiveness agenda, and also better engage with the public, especially regarding the opportunities that come with trade and investment.

In a similar statement, Business at OECD Secretary General Bernhard Welschke encouraged governments to better address an increasing anti-trade rhetoric in OECD countries, highlighting that “both business and trade unions have a responsibility to communicate in a fair, balanced, and responsible manner.” Also speaking at the session on International Trade and Investment for the Benefit for All, Business at OECD (BIAC) Vice Chair and USCIB Board member Charles R. Johnston (Citi) encouraged governments to counteract on protectionist action in the form of growing non-tariff barriers, and pointed to areas where new OECD work would help better inform this debate. Business also emphasized that governments should fully use the OECD Investment Restrictiveness Index and implement the Policy Framework for Investment.

On international tax policy, Business at OECD (BIAC) was present at the official signing ceremony for the Multilateral Convention to Implement Tax Treaty Related Measures (MLI) to Prevent Base Erosion and Profit Shifting (BEPS), which took place at the OECD Ministerial Council Meeting. The MLI opens the door to changes in the tax treaty process, and to a number of key international tax rules, that are significant. Concurrently, USCIB and the OECD were holding their 12th annual international tax conference in Washington DC, which brought together over 300 tax policy experts.

Rigg Herzog Attends 2017 International Labor Conference

Published on June 9, 2017
Secretary General Guy Ryder at 2017 ILC

USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog is among approximately 7,000 delegates currently attending the 106th session of the International Labor Conference (ILC) in Geneva (taking place June 5-16). The ILC will touch upon pressing global issues such as women at work, application of labor standards, peace and stability, migration and climate change. Rigg Herzog is attending the ILC as a member of the U.S. Employers Delegation, headed by Ed Potter, USCIB senior counsel and U.S. employer spokesperson to the International Labor Organization (ILO) Governing Body.

Rigg Herzog will be participating in the Committee for Labor Migration, while Potter will participate in the Committee for Fundamental Principles and Rights at Work, which is a follow-up to the ILO’s Social Justice Declaration. Adopted in 2008 by the representatives of governments, employers and workers from all ILO member States, the Social Justice Declaration expresses the contemporary vision of the ILO’s mandate in the era of globalization.

This year’s conference also includes a Committee on Employment and Decent Work for the Transition to Peace, as well as the Committee on the Application of Standards.

Upcoming Event: USCIB to Sponsor Reframing Human Rights Symposium

Published on June 9, 2017

USCIB is sponsoring the second annual Reframing Human Rights Symposium, “Shared Value through Global Corporate Citizenship” by Skytop Strategies on June 28-29, hosted by Bard College. This two-day program will assess the connection between human rights, human capital development and operational opportunity for resiliency and return on investment. Several USCIB members will be featured speakers, including representatives from Chevron, Intel, Marriott International, Pirelli, Dell, Bechtel, AT&T and GE. The full agenda is available here.

USCIB members will receive a 25% discount on the registration fee. If you would like to attend, please contact Joshua Galow (jgalow@skytopstrategies.com).

USCIB Members Contribute to Better Business Bureau Forum

Published on June 9, 2017
Panel on Leading the Way: Corporate Responsibility Trends and Engagement Strategies. L-R: Eric Gertler (New York Daily News), Jennifer Ryan Crozier (IBM), Timothy J. McClimon (American Express), Kathryn Wylde (Partnership for New York City)

USCIB and its members participated in the Better Business Bureau of Metropolitan New York, which hosted its annual Forum on Corporate Responsibility, Navigating Engagement: Strategies to Inspire Action and Build Impact on June 6. USCIB participated in the forum, which was a half-day event with speakers on topics ranging from current trends in corporate responsibility, the value of nonfinancial information to investors and the UN Sustainable Development Goals.

Representatives from member companies American Express and IBM spoke about corporate responsibility trends and strategies for engagement. Timothy J. McClimon, senior vice president, corporate social responsibility at American Express emphasized employees as key stakeholders in corporate responsibility and the need to for enhanced engagement with the community.

Jennifer Ryan Crozier, vice president, IBM Corporate Citizenship, discussed IBM’s Corporate Service Corps, where IBM teams work on social impact projects globally, while developing leadership and community skills. Crozier also emphasized the importance of connecting day-to-day work with its final social impact. Other member speakers also included representatives from Ernst & Young, and member Verizon served as a Forum sponsor.