Operating in Conflict and Disaster Areas

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Operating in Conflict and Disaster Areas

• March 16th
• Ambassador Elisabeth Dahlin

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We are not asking corporations to do something
different from their normal business we are
asking them to do this normal business
differently.
UNSG Kofi Annan
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Corporate Social Responsibility - CSR

• One concept many definitions...
• Minimize the negative and maximize the positive
  effects of companies activities
• Not philanthropy core activities

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Introduction to Corporate Social Responsibility

• Globalization
• Increased trade and investment in developing
  countries
• Greater opportunities increasing demands - focus
  on the social and environmental effects of
  companies activities
• Demands from consumers, employees, investors,
  shareholders, business partners, media,
  non-governmental organizations, trade unions
• race to the bottom vs. race to the top

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Four Main Areas

• of CSR recognized by the UN and the OECD

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Human Rights
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Environment
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Labour Standards
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Anti -Corruption
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Universal Instruments

• Public policy
• OECDs Guidelines for Multinational Enterprises
• The Principles of the UN Global Compact

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ResponsesEU processes National Law policy
(France, GBR, Belgium etc)

• A jungle of private initiatives.
• Amnesty Business group, ICC Business in Society,
  ISO 26 000, Global Reporting Initiative,
  Transparency International, WEF on Corruption,
  WBCSD,
• Multistakeholder
• Yes, but how?

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Introduction 2 universal tools for Operating in
Conflict Areas

• OECD Risk Awareness Tool for Multinational
  Enterprises in Weak Governance Zones
• UN Global Compact Business Guide for Impact
  Assessment and Risk Management

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The various stages of company development

• 1. Charity and Sponsoring
• 2. Defensive CSR Protection of the trademark
• 3. Offensive CSR- recognised as a world leader in
  this area
• 4. An actor for development and poverty
  alleviation - make a contribution where
  governments fail to do so
• 5. Global problem-solvers - together with other
  actors -new solutions to acute global problems.

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How is it done?

• Top management Importance of leadership
• Identifying relevant responsibility issues
• - Risk Analysis Sector/location
• Identifying company's stakeholders
• -Who has an influence and who is influenced
• Operationalization of values and ethical policy
  at all levels of the company
• Transparency, measurability and external reports
• From World Economic Forum

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The OECD Risk Awareness Tool for Multinational
Enterprises

• Helps governments that are unwilling or unable to
  assume their responsibilities
• Addresses risks and ethical dilemmas in weak
  governance zones

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Background

• Aim Durable exit from poverty
• Process follow up of the OECD Guidelines
• Basis input from business, trade unions and
  civil society

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The Risk Awareness Tool

• Obeying the law and observing international
  instruments
• Heightened managerial care
• Political activities
• Knowing clients and business partners
• Speaking out about wrongdoing
• Business roles in weak governance societies a
  broadened view of self interest

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How it can be used

• Does not create new obligations on companies
• NCP and interested parties can use it as a
  complementary source of information

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The UN Global Compact

• The Business Guide addresses the following
  topics
• Human Rights
• International Humanitarian Law
• Labour
• Environment
• Transparency

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Other tools from UN GC
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Role of the Private Sector in Zones of Conflict

• Rule of Law necessary foundation for businesses
  and society to flourish
• Private sector and other parts of society can
  contribute to positive development
• Dynamic forum for Policy Dialogue between
  stakeholders
• Case studies and relevant examples in online
  database

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The Guide A new type of risk assessment and
management tool

• Bolsters the business case for sustainability in
  difficult environments
• Practical Guide for companies
• Focus on asking the right questions on Human
  Rights, International Humanitarian Law, Core
  Labours Standards and Environment

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Environmental Impact Assessment and Management

• Meeting the Global Compcat Commitments?
• Identifuing the Contexts and Potential Risks?
• Managing Company Operations in weak zones?
• Implications for Companys Environmental
  Operations?

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Environmental Risks Management a few examples

• Risk spreading eg storage management
• Prevention eg integral part of planning
• Mitigation eg contingency planning
• Dialogue Awareness and Preparedness, together
  with local stakeholders to reduce risks, improve
  effectiveness of responses to emergencies

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Business UNusual

• Business not as a problem but part of the
  solution to global problems
• Fulfilling the Millennium Goals
• Infusing Private Sector management and thinking
• New innovative solutions

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Thank you for your attention

• www.ud.se/ga