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CSR - Better tools for globalisation - why industry needs better tools for globalisation

CSR - Better tools for globalisation - why industry needs better tools for globalisation. Presentation 1 November by Henriette Søltoft Director International Trade and Market Policy DI. The Three Issues at hand. TRADE. CSR. DEVELOP- MENT. When governments fail.

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CSR - Better tools for globalisation - why industry needs better tools for globalisation

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  1. CSR - Better tools for globalisation- why industry needs better tools for globalisation Presentation 1 November by Henriette Søltoft Director International Trade and Market Policy DI

  2. The Three Issues at hand TRADE CSR DEVELOP- MENT

  3. When governments fail... ”CSR is a pragmatic response to government failure” Georg Kell, UN Global Compact

  4. Trade and development The African countries have the same income level now as they did 40 years ago. Korea and Thailand had the same level of income in 1960 as the African countries.

  5. The Drivers of CSR Political Pressure in home country -> Forces companies to focus on CSR Pressure from Clients - Code of Conducts Market pressure leads to longer supply chains and outsourcing -> more exposure to bad governance ALL THESE FACTORS LEAD TO INCREASED COMMERCIAL RISKS!

  6. CSR as a risk minizing strategy • Companies have to learn to deal with ethics -> this means new areas of control Accounting Occupational health and safety Corruption Time/ maturity Evironmental accounting and certification Human rights

  7. Ethics in the age of globalisation • Ethics is a general term for what is often described as the "science of morality". In philosophy, ethical behavior is that which is "good". • What is good and moral is totally different in different countries and cultures. Therefore Danish standards and values cannot be used by international corporations. • We need global standards - not national!

  8. Where are we? In Human Rigths we are only here!! Defining goals Monitoring and evaluation Defining indicators Implementing control systems

  9. Conclusions - 1 • Companies need tools for CSR • These tools will strengthen the link between trade and development - some countries risk loosing business because of government failure • CSR is only an ad hoc solution to what is in essence government failure

  10. Conclusions - 2 • We don't need CSR clauses in trade agreements - this will for sure break the link between trade and development • We don't need national standards or legislation for CSR. CSR is international, volutary and market driven.

  11. DI Publications • The company as citizen of the world • Business and Human Rights • Avoid corruption • Guide to Global Compact • HRCA • Code of Conduct • Dealing with HIV/AIDS

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