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WORLDAWARE BUSINESS GROUP – SPRING SERIES 2001
[ 23rd of May 2001 ]
[ 15th May 2001 ]
[ 14th June 2001 ]

A fuller version of these write-ups is available on application to Worldaware

Meeting on 23 May 2001 at the Royal Commonwealth Society

The Group met with representatives from the Export Credits Guarantee Department to discuss policy developments resulting from the departmental review of ECGD which took place in 1999-2000, and the subsequent production of ECGD’s ‘Business Principles’ which was the current guiding document.

Initial presentations covered the review, and the Department’s current operating policies, which were now more open and fully reflected the Government’s wider foreign policy principles on issues such as sustainable development and human rights. The conversation then ranged widely. Among the topics raised were:

• The extent to which, using the recent World Commission on Dams report as an example, ECGD were now able to review all the rights and risks in controversial projects; and the extent to which in future such projects would be bound to involve greater openness and wider participation.
  
• The extent to which project viability was fully tested.
  
• The extent to which the UK’s exposure was concentrated in certain countries.
  
• The potential for further significant policy evolution in ECGD’s business principles.
  
• The extent to which credit offered for specific projects was "controllable", with concern being expressed that too many funds were still being lost in corrupt practices.
  
• The extent to which the poor credit risk of the poorest countries was working against the opportunity for trade and investment to assist development.
  
• The importance of business investment and performance in reducing conflict and thereby preventing involuntary and economic migration from poor countries, and the need for this to be taken into account in ECGD decisions.
  
• The revised composition of the ECGD’s Advisory Council.

The Group concluded the second meeting in the series by thanking the ECGD officials most warmly for their contribution and for the opportunity to learn how policy was evolving on this important subject.

Meeting on 15 May 2001 at the Foreign & Commonwealth Office

The Group met with FCO representatives from the Economic Policy Department, the Global Citizenship Unit and the Environment Policy Department and with DFID officials from the Conflict and Humanitarian Department to discuss developments in the promotion of ‘Global Citizenship’ by the Government, and the evolving relationship between business, government and civil society to assist sustainable development in developing countries.

After initial presentations, the conversation covered a number of central issues, and offered a useful platform for sharing of ideas. Among the topics aired were:

• The extent to which codes, compacts and standards in the sphere of corporate citizenship could be universally, sectorally or bi-laterally agreed, and whether the attempts being made in various international fora were likely to lead to real and substantial improvements in the contribution that business makes to sustainable development in developing countries.
  
• Human rights and labour standards, their importance, and the complexities underlying corporate responses.
  
• Child slave labour, and the difficulties of framing positive responses without damaging further the situations of the child and the family.
  
• The importance of sharing and learning from experiences of others, for instance through the Worldaware Business Awards scheme.
  
• The context of the Corporate Social Responsibility movement, and its real purpose and impact.
  
• The limits to business contribution to development.
  
• The role of business in conflict prevention
  
• The role of Government in assisting business, especially SMEs.
  
• The value of the ‘know-how’ fund in capacity building.
  
• The need to incorporate corporate and global citizenship principles into mainstream MBA courses
  
• The initial plans for the next World Forum on Sustainable Development to be held in Johannesburg in September 2002, including the role of business at the Forum

The Group concluded the first meeting in the series by thanking the FCO for hosting the event, and for providing the opportunity to learn and share thinking on this important subject.

Meeting on 14 June 2001 at DTI Conference Centre, 1 Victoria Street

The Group met with representatives from DFID and Trade Partners UK to discuss developments resulting from the publication in December 2000 of the Government’s White Paper "Eliminating World Poverty: Making Globalisation Work for the Poor"; and in particular the role of DFID’s new Private Sector Policy Department (PSPD) and the work that Trade Partners is doing to support British investment in poorer countries.

After initial presentations, the conversation covered a number of core issues, drawing out better understanding if not always finding all the solutions. Areas covered included:

• The confusion caused by nomenclature, especially over the choice of different ‘labels’ for concepts that, at the least, were overlapping. These included ‘socially responsible business’, global corporate citizenship’ and the wider term ‘corporate social responsibility’.
  
• The development of local financial frameworks, including a rules-based financial sector, as a pre-requisite for significant investment.
  
• The need for a fully ‘joined up’ approach by government.
  
• The importance of transparency as a means of risk reduction.
  
• The potential of ethnic communities in this country to be a channel for advice, know-how and even capital flows to developing countries.
  
• The role of government departments and agencies as brokers to assist in finding suitable partnerships with NGOs.
  
• The need always to consider the impact of policy and business activity from the perspective of the local community.
  
• The relevance of ‘triple bottom line’ reporting by companies, with more encouragement to improve standards of reporting.
  
• The recognition that policy in other areas, especially subsidies, had a major impact on the extent to which development policies were successful.

The Group concluded the last in this series of meetings by thanking the guest speakers from DFID and Trade Partners UK very warmly for their contribution, and for the opportunity of sharing thoughts on the closer involvement of business in development. Thanks were also expressed for the hospitality of Trade Partners UK.

It was agreed that the series had been very instructive and useful; and the Group felt that it should be repeated in due course.