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DNV 20. April Corporate Social Responsibility

DNV 20. April Corporate Social Responsibility. Jon Vea Director International Departement NHO, Confederation of Norwegian Business and Industry. Foreign activities in Norwegian companies. 4 of 5 have 50% of sales abroad 1 of 3 invest more abroad than in Norway

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DNV 20. April Corporate Social Responsibility

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  1. DNV 20. AprilCorporate Social Responsibility Jon Vea Director International Departement NHO, Confederation of Norwegian Business and Industry

  2. Foreign activities in Norwegian companies • 4 of 5 have 50% of sales abroad • 1 of 3 invest more abroad than in Norway • 1 of 3 employs more people abroad than in Norway 90 % 80 % 76,3 % 70 % 64,7 % 60 % 55,2 % 50 % 40 % 32,6 % 30,3 % 30 % 20 % 10 % 0 % Share Share of Share of Employees Share Share R&D of total sale abroad Total Sale from Norway of investments abroad abroad (n=40) abroad (n=70) (n=70) (n=48) (n=60)

  3. Aspects of globalisation • Economic • Cultural • Technological • Human

  4. But, globalization is acontroversial process

  5. Source: The Economist

  6. Praha: Fall 2000

  7. Appropriate response? • Ignore? • Persuade? • Halt? • Adjust?

  8. Economic life and social life TIME Era of industrialization

  9. Human Rights International dialogue NHO on Corporate Social Responsibility Business Ethics Anti- Corruption Private sector development National COMPACT - Dialogue Environment HMS

  10. Social responsibility for better business • Investors demand • Conscious Consumers • Employees expect CSR • Media work faster • Remote countries are not as remote any longer • CSR as risk management/ reputation management

  11. Why bother about CSR? • 2 out of 3 citizens expects companies to create social changes • 50% of population pays attention to social responsibilities of companies • All expect increased awareness in the future

  12. Entering dialogue on Human Rights • 1996 developed a policy on Human Rights • Checklist • International best practice • Prince of Wales Reader • Translated and promoted • English and Chinese • Project on concept of corporate social responsibility and its limitations

  13. KOMPAKT - national dialogue • A government initiated consultative body on business, development and human rights • NGOs Academia • Business • Trade Unions • Government • Consensus based working groups • Expectations • Roles • Limits to responsibility

  14. International dialogue • UNICE and EU • Nordic cooperation • Active role in revision of OECD Guidelines for multinationals • Long lasting dialogue and cooperation with Chinese partners (CEMA) • Currently entering a CSR dialogue with Turkey • Participant in UN Global Compact and various international conferences

  15. Corruption as challenge • Illegal • Costly • Vulnerability • Inefficient • Undermines the market • Unjust, the poor as victimes • Risky path for business

  16. ELF • Lochead • Augusta • Santer EU Commission

  17. The NHO contribution? • Survey • Document • Dialogue with med NORAD, government and NGOs (Transparency, Økokrim) • www - information • Close dialogue with members • Seminar(s)

  18. Ukraine Russia Average "unofficial" fee required for “favor” "Unofficial fee": type of license/"favor" $ 288 $ 176 Enterprise registration $ 67 $ 42 Each visit by fire/health inspector $ 250 $ 87 Tax inspector (each regular visit) $ 1,071 $ 894 Each phone line installation $ 26 $ 7 Lease in state space (sq. meter per month) $ 643 $ 123 Each export registration/consignment $ 133 $ 278 Each import registration/consignment 8% 4% Domestic currency loan from bank (preferential terms) 23% 4% Hard currency loan (preferential terms) The “Bribe Fee List”: Unofficial Payments by Enterprises for Licenses and Services

  19. 1

  20. Who is corrupt? Kilde: Transparency International 2000

  21. Who is corrupt? • Receiver or payer? • Petty corruption, gifts and corruption? • Other forms?

  22. A new legal regime • European Council convention (1998) • OECD – convention on bribery against public servants (1997) • UN – resolution on corruption (1996) • WTO – Agreement on transparency and public procurement (1996) • World Bank – anti-corruption policy and guidelines • US Foreign Corrupt Practices Act ( FCPA) (1977) • Norwegian law

  23. Are you familiar with OECD convention on bribery?

  24. Are you familiar with changes in the Norwegian legal system?

  25. Is fighting corruption important?

  26. Are you adressing the challenge systematically?

  27. Guidelines dealing with corruption?

  28. Is NHOs work on corruption useful?

  29. Local leaders as focal point • Local traditions • Remote from policy • Ambigious signals • Policy • Results

  30. Guidelines Sanctions Incentives Conciousness and attitudes Training Culture and control

  31. Fighting corruption: A checklist? • Violating the law? • Violating company policy?? • Increased financial or other risk for the company? • Cui bono? • Who is suffering? • Relationship benefit/harm? • Relative share of bribe to total transaction? • Transparency? • Other means - is there a way out? • Acceptable? (including when you see it in the news?)

  32. Gloabalization - reaping the benefits and reducing harm • Wealth and health • Free trade - fight poverty • More democracy • Rethinking relations between business and politics

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