The spread of corporate social responsibility around the world is raising the prospect that individual countries can gain a competitive advantage. Governments are starting to take notice.
Highly prized
Alcan, the aluminium and packaging conglomerate, is initiating an annual award to recognise outstanding contributions from the not-for-profit sector in the field of sustainability. Announced in association with the World Economic Forum, the $1m prize will be managed by the UK-based International Business Leaders Forum.
The adjudication panel will also have the discretion to award Alcan Bursaries on the basis of merit, to organisations selected as finalists by the judges. The bursaries aim to build capacity by allowing a senior member of the recipient organisation to attend the University of Cambridge Programme for Industry and earn a post-graduate certificate in cross sector partnership. Contact Karen Atwell, Alcan, on 00 1 604 647 2996 (http://www.alcanprizeforsustainability.com)
Cutting corruption
Ninety-five countries have signed the UN Convention against Corruption over a threeday signing conference in Mexico from December 9-11. The convention will enter into force once 30 governments have ratified it. Signatories to the convention are called to adopt a series of measures, including codes of conduct and disciplinary measure for public servants, and transparency and recruitment based on merit. They are to adopt laws to criminalise acts of corruption and outlaw bribery, embezzlement of public money and the laundering of proceeds of corruption. Signatory countries must also outlaw acts in support of corruption or in obstructing justice in corruption investigations. New governments that take over from corrupt leaders can recover national assets and wealth plundered. Contact Ellen McGuffie, UNODC, on 00 1 917 327 4179 (http://www.unodc.org)
Dust under the rug
Nations that do not address corporate responsibility issues expose businesses to potential costs such as those associated with corruption and poor health and safety performance, according to a new index ranking countries on competitiveness and corporate responsibility. The Responsible Competitiveness Index 2003, launched on December 9 at the Global Compact Learning Forum conference by AccountAbility and the Copenhagen Centre, is designed to allow governments, companies and civil society groups to compare the competitiveness of various countries with regard to both economic and social factors.
Scandinavian and Northern European countries put in the strongest performance, with Finland the clear front-runner. While the USA is middle ranked alongside Japan and other former Asian tigers, China and Russia are placed on a par with embattled economies such as Nigeria and Indonesia. Contact Mirahv Joseph, AccountAbility, on 020 7549 0400 (http://www.accountability.org.uk)
Ericsson and disaster relief
Ericsson is partnering with the International Federation of the Red Cross and Red Crescent Societies to launch the Ericsson response humanitarian assistance programme for the northern region of Latin America, it announced on January 5. The project features mobile network containers that can be easily deployed to provide an emergency telecommunications network, aiding response efforts in a disaster. It includes a simulation exercise to help develop procedures in disaster situations. Contact James Borup, Ericsson, 00 46 719 0952 (http://www.ericsson.com)
Voir, c’est croire!
French companies in the UK are being encouraged to get more involved in voluntary activities in their local communities to celebrate the centenary of the Entente Cordiale, a friendship pact between Britain and France dating from 1904. British companies will be expected to reciprocate on French soil as part of the international initiative, jointly organised by the French Chamber of Commerce in the UK, Business in the Community, and Arts and Business. A series of Seeing is Believing events are planned as part of the year long initiative, both in France and the UK, and community projects will be piloted in both countries. Contact Vicki Arnold, BITC, on 020 7566 8767 (http://www.bitc.org.uk)
Eastward Ho!
The China Business Council for Sustainable Development is the latest member to join the global umbrella body, WBCSD. The China BCSD, which represents national and foreign companies, is the first organisation of its kind in the country. The new organisation counts Sinopec, BASF, Shell, BP and Lafarge among its members. Its stated priorities for 2004 include:
raising awareness and building capacity on sustainable development in management schools and public administration institutions;
promoting higher environmental standards and eco-efficiency within Chinese industry;
co-operating with Chinese authorities on policy developments.
A conciliation deal reached between the European Union’s Council of Ministers and the European Parliament will allow for social and environmental issues to be considered when awarding public procurement contracts. The two parties have agreed to take such issues into account in the following circumstances:
when they are expressly mentioned in the contract documents or the tender choice;
when they are connected with the subject matter;
when they do not give the contracting authority an unrestricted freedom of choice;
when they comply with all the fundamental principles of community law.
Gap, The Royal Bank of Scotland and Siemens are among the new signatories to the UN’s Global Compact, which now has around 1,000 member companies. The UN’s flagship programme was recently launched in France and Egypt. Contact Gavin Power, Global Compact, on 00 1 212 963 4681 (http://www.unglobalcompact.org)
Bank of America has pledged to lend and invest $750bn in community economic development over the next ten years, in addition to $1.5bn in philanthropic grants. Contact Eloise Hale, Bank of America, on 00 1 704 387 0013(http://www.bankofamerica.com)
COMMENT:
The spread of corporate social responsibility around the world is raising the prospect that individual countries can gain a competitive advantage. Governments are starting to take notice.
There was a time when news of business engagement on issues of social concern was limited to the Anglo-American fastness. And even US and UK-based multinational companies would find their overseas colleagues saying ‘it’s a different culture here’. Now, spurred in part by worries about environmental sustainability and the costs of corruption, more and more countries are getting in on the act.
This raises some interesting questions. Will some countries gain an advantage by embracing CSR more wholeheartedly than others? If you have a critical mass of responsible companies, will your economy be more competitive and sustainable in the long term? That’s what AccountAbility is asking through its new index. The logic is impeccable – if CSR is good for a company long term, it must be good for a country when added up across all firms.
If so, governments should understand the contributory factors, monitor indicators of performance, and address the things that inhibit or enhance it. The Responsible Competitiveness Index compiles a basket of some 30 indicators, such as corruption, investment in human capital, tax payments and civic engagement.
Indeed one can argue that a virtuous circle of improvement can operate. When nations tackle these issues – clamping down on bribery for example – they can create the conditions for more responsible firms to succeed, working in clusters. Individual companies can see how their own efforts fit into the bigger picture. Vietnam and Cambodia are two examples of countries trying to use responsible business practices to maintain their share of world trade in clothing and footwear even after protective trade agreements with America lapse.
Of course this is the Index’s first outing and it’s not yet a practical management tool. Issues remain about relative importance or weighting to put on the individual elements. Sceptics remain to be convinced, just as the business case in individual companies is still argued over. But governments are starting to take this approach seriously, at least as a conceptual framework. And at time when achievement of the eight UN Millennium Development Goals by 2015 is looking increasingly unlikely, anything that helps make the case for a partnership approach must be helpful.
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