Given the extremely positive reaction to the Export Promotion and International Finance Section's introduction to corporate social responsibility (CSR) in February, the Section hosted two more, equally successful CSR series events. A number of industry and government representatives from organizations that are dedicated to CSR practices offered insight on issues such as sustainability, standards, business accountability, and monitoring mechanisms. The latter two CSR series took place in April and May.
In April, Rachel Kyte,
Director of the Environment & Social Development Department at the International
Finance Corporation (IFC), enlightened WIIT members on the IFC's approach
to sustainable development. The IFC, which is the private sector arm of the
World Bank, has demonstrated its commitment to socially responsible investment
and business decisions. Ms. Kyte explained how the institution is using its
unique position and resources as the largest multilateral source of project
finance to the developing world to respond to global challenges such as poverty,
corruption, and the preservation of natural resources. Zouera Youssoufou
from the IFC's Gender Entrepreneurship Markets (GEM) spoke about this
recent program. GEM is an initiative to institutionalize an awareness of gender
issues in IFC operations and to better leverage the untapped potential of
women in emerging markets.
Ms. Kyte and Mr. Youssoufou highlighted how sustainability is integrated into decision-making throughout IFC's investment cycle. They also emphasized that the organization is leading by example through its new environmental and social standards, and by promoting the business case for corporate social responsibility among its financial sector clients.
In May, an event that focused on standards in the supply chain completed the three part CSR series. Baxter Healthcare Corporation hosted the event, a particularly appropriate role as Baxter is one of the companies named on the 2006 Global 100 Most Sustainable Corporations in the World. The list identifies those companies that have displayed a strong ability to identify and effectively manage environmental, social and governance factors that may enhance or hinder their businesses. Lisa Keltner, Baxter's Senior Marketing Communications Manager, discussed the company's experiences with sustainability.
At the May CSR event,
Alysia Wilson, Sr. Trade Policy Advisor and Good Governance team leader
at the International Organization for Standardization (ISO), discussed
the organization's development of social responsibility standards ISO 26000.
ISO is the world's leading developer of standards related to products and
services, and includes membership of 156 national standards bodies from countries
around the world. ISO 26000 will guide the assessment of those factors that
the ISO considers integral to social responsibility: governance, anti-corruption
and business practices, human rights, labor, community involvement, consumer
issues and the environment. Ms. Wilson explained that the standard will not
be for certification or conformity assessment, but will serve as a guide for
any organization that is committed to developing socially responsible practices.
She discussed the status of the ISO 26000's development and the unique structure
of the working group. And as alternate representative for the U.S. government
group, Ms. Wilson discussed reactions to the development of ISO 26000 by governments,
industry, and civil society.
Sarah Cook, Good Governance Country Program Manager at the U.S. Department of Commerce, provided an overview of DOC's Good Governance Program. Sarah explained that a Latin American program, which emphasizes transparency, business ethics, and private sector accountability, currently operates in six countries in the region - El Salvador, Guatemala, Honduras, Nicaragua, Panama, and Paraguay. In each of the latter three countries, the private sector, working in consultation with the Department, has formed a powerful coalition of businesses through the creation of Ethics Pacts. Ms. Cook discussed some of the tools and resources that the U.S. DOC provides, such as the Manual on Business Ethics and Responsible Business Practices, which has recently been translated from English into Spanish. She also highlighted the a three-week training program in corporate responsibility and business ethics for 12 individuals from Latin American . The training was held July 16-August 5 in Washington, D.C. with company site visits in Atlanta, GA. US DOC's Good Governance Country Program works with the trainees and private and public sector partners in program countries on a continuing basis to promote transparency in the business environment and business ethics, according to Ms. Cook. For more information, see http://www.trade.gov/goodgovernance/.
The final presentation
in the May CSR event, "Doing Business in Today's Global Climate: CSR
and the Supply Chain," included a review of the many legal arguments
favoring and opposing CSR. Michael Levine, a partner at the law firm Epstein,
Becker & Green, P.C., and the chair of the firm's CSR practice, went
further to discuss global and industry-specific CSR standards (also known
as "codes of conduct") and related monitoring efforts, and an analysis
of legal risks and challenges faced by corporations as they implement and
publish information about their CSR programs.