Economist Report: Human Rights are a Matter for Businesses

4981_image002With the support of the International Chamber of Commerce, the International Organization of Employers and other business organizations, the Economist Intelligence Unit published a report on the intersection of global business and the protection of human rights. “The Road from Principles to Practice: Today’s Challenges for Business in Respecting Human Rights” evaluates the state of play in business and human rights since the adoption of the United Nations Guiding Principles on Business and Human Rights in 2011.

The report shows that 83 percent of executives surveyed from a wide variety of sectors believe that human rights are a matter for businesses, not just for governments. 71 percent also said that their company’s responsibility to respect human rights goes beyond “obedience to local laws.”

While this response suggests corporate attitudes are evolving quickly, only 22 percent say they have a publicly available human rights policy in some form, and 44 percent say that human rights are an issue on which CEOs take the lead. The most common barriers to progress, according to the respondents, are lack of understanding of their company’s responsibilities and lack of training and education for employees.

The report also shows that companies do not see a business case – focused on immediate costs and benefits – for human rights, but rather see respecting human rights as helpful in building good relationships with local communities, protecting the company brand and reputation, and serving ethical considerations.

The study also draws on in-depth interviews conducted with Ed Potter, director of global workplace rights at The Coca-Cola Company and chair of USCIB’s Labor and Employment Committee; John Ruggie, former UN Secretary-General’s special representative on business and human rights; Bob Collymore, CEO of Safaricom and other experts from civil society, human rights and business organizations.

 

IOE: EU Development Should Support the Private Sector

L-R: Phil O’Reilly (BIAC), Frederick Muia (IOE) and Ronnie Goldberg (USCIB)
L-R: Phil O’Reilly (BIAC), Frederick Muia (IOE) and Ronnie Goldberg (USCIB)

A high-level delegation from the International Organization of Employers (IOE) participated in an EU workshop in Brussels prior to an EU Development Policy Forum. This workshop is the second the IOE has attended in the past six months in efforts to inform EU policy discussions with business perspectives and recommendations.

Ronnie Goldberg, USCIB’s senior counsel and IOE vice president for North America, shared the opening session with Klaus Rudischhauser, deputy director general for international cooperation development.  She underscored the IOE’s strong commitment to building partnerships with the European Commission in light of many shared goals.

Acknowledging that EU support lifts millions of people out of poverty and contributes to a solid foundation on which private enterprises could be created and developed, Goldberg thanked the hosts for creating the space for deeper private-sector engagement, adding, “The IOE places great importance on building partnerships with the European Commission for the joint promotion of an enabling environment for growth and sustainable development.”

She reiterated the IOE’s key inputs to consultations on the post-2015 Development Goals over the past two years, which could equally frame EU-private sector dialogue. These included putting sustainability at the core of the agenda; ensuring that growth was inclusive to boost productive employment. Open and accountable institutions also had to be enabled.

Goldberg added that it is essential that EU commission funding support investment in infrastructure projects, such as road, rail, electricity, renewable energies and ICT; the protection and enforcement of property rights and the rule of law; effective financial services, particularly for SMEs; improvements in education and training for the delivery of work-ready young people, as well as more open markets and regional integration.

Business and Disability

disability_sign_low_resCompetitive businesses increasingly recognize the value and importance of diverse workforces, and particularly the value to be had in employing persons with disabilities.  We are pleased to provide information on two resources available to our members seeking more information on this subject.

USCIB is proud to serve on the Steering Committee of the ILO Global Business and Disability Network, comprised of multinational enterprises, employer’s organizations, business networks and disability organizations around the world who share the conviction that people with disabilities add value to workplaces.

This ILO initiative has gathered over 50 multinational enterprises and employer’s organizations and business networks from a diverse range of sectors.

The ILO Global Business and Disability Network supports its members in their disability work and facilitates business-to-business dialogue around disability issues by:

  • Sharing knowledge and identifying good practices;
  • Developing joint products and services; and
  • Strengthening employers’ organizations and business networks through capacity building

For more information about the Network, visit www.businessanddisability.org

The second resource, offered by the Employment and Disability Institute in ILR School at Cornell University, is a free, online one-hour short course entitled Make the Strategic Case for Disability in the Workplace.  This ideo-based course features examples from well-known U.S. based companies that have made progress in including people with disabilities in their workplaces.

Find out more or register by going to:  http://info.ecornell.com/make-the-strategic-case-for-disability-in-the-workplace

Disney’s Rubbo to Chair USCIB’s Corporate Responsibility Committee

Laura Chapman Rubbo (Disney)
Laura Chapman Rubbo (Disney)

USICB is pleased to announce the appointment of Laura Chapman Rubbo of The Walt Disney Company as the new chair of its Corporate Responsibility Committee. Rubbo has served as co-vice chair of the committee since 2013.

Rubbo, a director in Disney’s international labor standards department, brings 20 years of experience in corporate social responsibility, international labor standards, and business and human rights.

“USCIB has played a critical role in helping Disney understand and respond to evolving expectations of global business in the corporate responsibility and human rights arena,” Rubbo said. “We are honored to take a more active role in contributing to the corporate responsibility conversation with USCIB, its members, international institutions and the broader stakeholder community.”

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, welcomed Rubbo’s leadership. “We are thrilled to have Laura take the helm of the Corporate Responsibility Committee,” he said. “Her years of experience in the CSR space and tremendous energy will help strengthen our committee’s work promoting the business perspective on corporate responsibility.”

Rubbo was part of the United States delegation to the International Labor Organization’s 2014 International Labor Conference, and she is a frequent speaker at CSR-related events.

The next meeting of USCIB’s Corporate Responsibility Committee takes place on April 15 in Washington, D.C. Please contact Rachel Spence (rspence@uscib.org) for more information or to register.

USCIB Adds Its Voice to White House Forum on Human Trafficking

Secretary of State John Kerry speaks at the White House Forum on Combating Human Trafficking in Supply Chains at the Eisenhower Executive Office Building in Washington, D.C., on January 29, 2015. (State Department photo)
Secretary of State John Kerry speaks at the White House Forum on Combating Human Trafficking in Supply Chains at the Eisenhower Executive Office Building in Washington, D.C., on January 29, 2015. (State Department photo)

Marking the end of National Slavery and Human Trafficking Prevention Month, USCIB staff and members took part in a January 29 White House forum on combating human trafficking in supply chains, to address the pernicious incidences of labor trafficking around the world. The Obama administration committed to an agenda to combat human trafficking in 2012, and USCIB supports the administration’s stance and agrees that forceful labor recruitment has no place in business.

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, attended the forum along with other representatives from the private sector, nongovernmental organizations and the U.S. government to discuss how all stakeholders can work together to eliminate trafficking in federal contracts and in private-sector supply chains.

Meyerstein noted that Secretary of State John Kerry “spoke eloquently on the moral imperative on all of us to work towards ensuring that no human being could ever own another person’s freedom.”

USCIB member representatives – including Bob Mitchell, global manager for supply chain responsibility at Hewlett-Packard and Wesley Wilson, senior director of responsible sourcing at Wal-Mart – spoke on a panel addressing “Private Sector Strategies to Combat Human Trafficking in Supply Chains.” The panelists shared their companies’ best practices for combating human trafficking, which included directly employing and paying all workers, working with foreign governments to prevent labor trafficking and implementing fair and transparent labor standards.

When asked what more could be done by the U.S. government to reinforce and amplify the work they are doing, both Mitchell and Wilson encouraged the U.S. government to engage bilaterally with other countries to impress upon them how seriously the U.S. government and U.S. businesses take the issue and to develop the prevention and enforcement capacities in other jurisdictions to complement private sector efforts.

Secretary Kerry also delivered remarks at the forum and presented the 2015 Presidential Award for Extraordinary Efforts to Combat Human Trafficking to the Coalition of Immokalee Workers’ Fair Food Program.

Last week the Federal Acquisition Regulatory Council, the body responsible for overseeing U.S. government procurement, published updates about new safeguards designed to strengthen protections against trafficking in federal contracts. These new rules, modeled on successful private sector practices, prohibit federal contractors from charging employees recruitment fees or using misleading or fraudulent recruitment practices, require contractors and subcontractors performing work valued at over $500,000 outside the United States to develop and maintain a compliance plan, and to certify that, to the best of their knowledge, neither they nor any of their subcontractors has engaged in trafficking-related activities.

USCIB has been active in the corporate responsibility space, having recently co-hosted a dialogue on responsible business conduct as part of President Obama’s plan to implement the UN’s Guiding Principles on Business and Human Rights, and will continue to work with the federal government and other stakeholders to eliminate human trafficking in supply chains.

More on the White House website.

What Skills do Corporate Directors Need?

Good governance starts and is driven from the top. It is therefore essential that companies have an effective board. The responsibilities of the board are diverse and require a balanced team of directors with the right skills sets. As the OECD Corporate Governance Principles are being updated, and as they apply to a wider variety of ownership structures including majority-controlled and state-owned firms across the world, expectations of directors and their skills is likely to increase as well. To meet these expectations, the Business and Industry Advisory Committee to the OECD will organize a roundtable on director skills for effective corporate governance to encourage an exchange on how to obtain and continually enhance the optimal mix of director skills.

The roundtable will take place at the OECD headquarters in Paris on February 17 and will bring together key business experts from OECD and non-OECD countries for a discussion with OECD member countries and the OECD corporate governance secretariat. It will take place back-to-back with the consultation on the OECD Corporate Governance on February 19. BIAC’s most recent comments on the Principles are available on the BIAC website.

IOE Perspective on ILO World Employment and Social Outlook

4946_image002As the global economy contends with several diverging forces – including strong growth in the United States, falling energy prices, and continued struggles in Europe – policy makers and global institutions are seeking to make sense of conflicting signals.

One signal on worldwide employment levels comes from the International Labor Organization’s annual “World Employment and Social Outlook – Trends 2015” report, which covers data on employment trends and challenges. According to the report, the global employment gap continues to widen, along with income inequality.

The International Organization of Employers (IOE) believes the report paints an overly pessimistic scenario of worsening global unemployment levels, continuing inequality and falling wage shares.

USCIB’s global network, including the IOE and the Business and Industry Advisory Committee to the OECD, has engaged with the B20/G20 process on global labor and employment issues.

“Regarding employment and economic growth, the challenges faced by individual countries are subject to wide variations,” the IOE said in a statement. “Generalizations are unhelpful and tend to mask growth divergences across economies, which may engender misleading policy responses that treat cyclical dimensions rather than addressing longstanding and structural rigidities.”

The IOE also noted it is important “to diminish the progress made thus far in terms of income inequalities,” and that “perceptions of rising inequality should not be confused with the reality.”

The statement concluded with a call to action:

“Much more can nonetheless be achieved in terms of addressing the challenges linked to employment, inequalities and economic growth. A more ambitious effort needs to be made on skills mismatch through better tailored education and skills training. This would address global inequalities more efficiently and create an enabling environment for sustainable enterprises to foster job creation.”

IOE Leaders Among Worlds Top 50 Most Influential African Women

Three leaders of the International Organization of Employers (IOE) member federations in Africa, Miriem Bensaleh, president of CGEM (Morocco), Ouided Bouchamoui, president of UTICA (Tunisia) and Jacqueline Mugo, executive director of the Federation of Kenya Employers feature in the list of the Top 50 Most Influential African Women in the World, published by leading African publication Jeune Afrique this week.

Noting the growing number of influential women on the continent, Jeune Afrique honors the qualities of the IOE member laureates, including their expertise, tireless dedication, strength of conviction and determination. Also highlighted is the respect these women command as they undertake their mission to foster an enabling environment for business and entrepreneurship.

“Promoting women’s empowerment is a key area of the IOE’s work and we are very proud to have Bensalah, Bouchamoui and Mugo in key roles in our member organizations in their countries,” said IOE Secretary General Brent Wilton as he extended his congratulations to the three business leaders. “We are also privileged to have Jacqueline Mugo on the IOE Management Board, as well as leading, in her role as secretary general, the IOE’s 42 African members that make up Business Africa.”

OECD Takes New Approach to Measuring Development Assistance

4927_image002Business cares about how finance for development is measured. The OECD (Organization for Economic Cooperate and Development) Development Assistance Committee (DAC) recently agreed to modernize its development finance measurement framework to ensure that it is credible and practicable in today’s global context.

This decision and the actions taken at the DAC’s 2014 High Level Meeting on December 15 and 16 in Paris will enable OECD members to make an important contribution to future monitoring of the financing framework underpinning the United Nations’ forthcoming Sustainable Development Goals.

“Today the world’s leading donors have made a commendable step towards using aid more efficiently and effectively while at the same time catalyzing more private investment into developing countries”, said Thomas de Man, chair of the BIAC (Business and Industry Advisory Committee to the OECD) Development Task Force, at the High Level Meeting of the DAC. “This is a crucial element of the Post-2015 development agenda”, he added.

To date, private-sector instruments such as credit guarantees have not been properly captured in official development statistics. Now new methodologies will be adopted to reveal the budgetary effort involved in using these instruments.

“While many businesses can welcome the modernization of the development finance statistical frameworks, reaching agreement on the details will now be of critical importance”, said de Man. 

The DAC improves global access to reliable statistics on different types of financing into developing countries. This work sheds light on the full range of financial options available to these countries and helps them to plan their development strategies.

In October 2014, BIAC submitted a paper to the DAC presenting private sector views on the mobilization of development finance. It emphasizes the creation of enabling environments for private investment, efficient use of donors’ development finance, and means to incentivize the use of credit guarantees that result in positive impacts on countries’ development. 

USCIB, NYU Host Dialogue About U.S. Plan on Responsible Business Conduct

Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

In September, President Obama said the administration would develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with the United Nations Guiding Principles on Business and Human Rights.

As part of the consultative process leading up to the development of the action plan, U.S. officials will attend a series of open dialogues hosted by independent organizations where stakeholders can provide input on the NAP process and content.

USCIB and New York University’s Stern School of Business hosted the first event in this series on December 15 on the NYU campus.

Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

U.S. government representatives from the Department of Labor, Department of State and the U.S. Mission to the United Nations came together at the open dialogue to gather input from the private sector and other stakeholders that promote respect for human rights internationally.

“There is in fact a huge new appreciation for the role of the private sector and business generally,” said Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council. “And what business can do, together with communities and civil society, to contribute to development and human rights.”

The dialogue began with a plenary session, where Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, moderated a panel with representatives from the State and Labor Departments on the development of the U.S. National Action Plan. The plenary was followed by small workshop discussions on a range of topics related to responsible business conduct.

The NAP will aim to unify government efforts in promoting best practices in the areas of human rights, labor rights, corruption and transparency abroad, with clear and predictable guidelines.

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.