Ladies and Gentlemen!

The word is smaller than it has ever been. Each one of us is in different ways connected to people from far away places. So many of the average objects we buy come from other countries, that we hardly think about it. The increasing ease of movement of goods, services, capital, people and information across national borders has created a huge global market place.

The merits of a global market place are obvious and widely appreciated. Globalisation offers opportunities and a wide range of new possibilities for those who can participate in this market place.

But as the world’s population becomes more and more closely linked - as we become closer to one another – increasing attention is being devoted to the social dimension of globalisation.

The need to build and strengthen the social dimension of globalisation is seen more and more as an integral element of supporting the globalisation process itself.

Our Government is committed to the internationally agreed targets to combating poverty, to promoting basic health care, the universal right to education, the human rights and core labour standards and sustainable economic development.

The great challenge before us is how to turn these goals into realities. The present seminar will focus on certain aspects of the social dimension of globalisation, namely sustainability through the market, labour standards, and corporate social responsibility.

This seminar is organised by the Government’s globalisation project. The project represents an effort to systematise what is known about this conglomerate of processes and events that are loosely referred to as globalisation. It represents our effort to choose a path of action in a situation of swift change, where predictions about tomorrow are difficult. It represents an effort to take on a not easily definable responsibility, knowing that if the questions asked are too simple, they lead to answers that are of little help in forming policy.

So, what can be done, internationally and in Norway, to encourage positive aspects of globalisation, and to reduce its negative sides?

We also need to reflect upon the instruments at our disposal, and the forces that work to improve social conditions globally. And finally, we need to be realistic about where Norwegian contributions are likely to make a difference. We need to focus our international work in these areas.

Those of us present here today may disagree about the effects and challenges of globalisation. Where do we gain, where do we run the risk of loosing out, and which policy choices do we have to make? And we may find different answers. But I think we all recognise that we are talking about complex matters. Our intention and hope is that your interventions and reactions will provide us with some guidance to these complex issues.

Whereas circumstances change swiftly, major concerns remain more constant. One such major concern is labour standards. The International Labour Organisation, having a constituency of workers, employers and 175 governments, grew out of the First World War. When it was established in 1919, a major motive was to establish long-lasting peace worldwide through improving the social conditions of the working class. The close connection between human rights, social and economic progress was again demonstrated when the ILO received the Nobel Peace price in 1969, the year of its 50 ^th> anniversary.

As you know, less than two weeks ago, the World Trade Organisation’s minister meeting in Qatar ended by endorsing a ministerial declaration. The declaration provided us with a mandate to a broad and balanced work programme for further negotiations on the rules based trading systems. From a Norwegian perspective, the negotiations in Doha were a success. As far as labour standards are concerned, however, we were willing to support a stronger formulation in the Ministerial Declaration. The agreed wording gives the WTO only a limited role in the international work to promote labour standards in the upcoming work programme.

Two years ago the ILO adopted " Decent Work" as its objective. The ILO has now launched a World commission on the social dimension of globalisation, to take up the challenge of promoting decent employment and income internationally. Norway hopes that the efforts towards more substantial social commitments can be strengthened through such a Commission. It is a great pleasure to have Mr. Gerry Rodgers, director of the ILO’s Policy Integration Department, as our first speaker today. Likewise we have commissioned Mr Jon Erik Dølvik, Research Director at Fafo, to work on a study of labour standards, including the ILO’s work, for the globalisation project. He will present some of the preliminary findings of this work to us here today.

However the social dimension of globalisation is indeed not only the responsibility of governments and international institutions. Companies have themselves in fact taken a lead in the concern for social development. Well–managed businesses recognise that they are not just economic actors. They have a wider role to play in promoting sustainable development and increasing their social responsibility. One of the leading international partners in this field is the World Business Council for Sustainable Development, that was set up in Geneva after the Rio conference in 1992. With its 150 international member companies, of which 7 are Norwegian, the Council works to promote sustainable development through their practice. The Business Council, by Mr. Koben Christianson, has prepared a brief called Sustainability through the market, commissioned by the Globalisation project. We are honoured to have Mr. Björn Stigson, President of the World Business Council for Sustainable Development with us here to present this report. One of the Norwegian members of the Business Council is the Insurance Company Storebrand, which has presented interesting ideas and practises concerning socially responsible investment methods. We are indeed looking forward to hear the views of the CEO of Storebrand, Mr Idar Kreutzer.

Two years ago, the Norwegian Consultative Body for Human Rights and Norwegian Economic Involvement Abroad, known as KOMpakt, was formed. KOMpakt is co-ordinated and chaired by the Ministry of Foreign Affairs. Its main purpose is to enhance a common understanding among the relevant Norwegian constituencies in the areas where business and ethics meet . KOMpakt Members include representatives from a wide range of sectors, business and trade organisations, trade unions, non-governmental human rights organisations, research institutions and ministries. KOMpakt has prepared the ground for the Globalisation project in the field of corporate social responsibility, through producing 5 reports on the private sector and human rights that will be drawn upon in our further work.

My interest in corporate social responsibility predates my present engagement. As you all probably know, I was employed by ABB before I was appointed State Secretary in the Ministry of Foreign Affairs. For our topic here today, I find it valuable to share with you some of my experiences from a corporation with a global character.

ABB with its 160.000 employees all over the world is a major player in the global economy. In this corporation, Norway and Norwegians had the responsibility for the global oil and gas market. For a company where technology development is so important, it was clear that the Norwegian market was too small. In order to invest in development of new technology and new products we needed access to the global marked. The company also organised its global business in local entities, setting the slogan: "Act global, be local." If you would like to sell from Norway to Brazil you make use of the local organisation in Brazil. This way you benefit from the knowledge of the local business culture – and hopefully avoid misunderstandings.

However it is also important for a global company to make sure that business is conducted - all over the world - in a way that follows international rules and regulations. ABB has Mission and Values, Codes for Business Ethics and they also formulated ABB’s Social Policy. And they are not alone – all of the major global players have formulated similar policies.

These documents are important with regard to social responsibility, but they are not necessarily enough. As part of the ABB sustainability report, the social impacts arising from ABB’s activities at sites in seven countries – on employees and their families, on the local community and on society at large – were studied. External social scientists have supported the case study teams with objective expertise. The findings from these studies will be used to improve the management of social performance throughout ABB.

Why is a company like ABB doing this? Because they want to be better than the others are? Yes, of course. However, many of the others have similar policies. The fact is that ABB – and all the others - can not afford not to relate to ethics and social questions. In today’s world, everything shows. And mistakes that show all over the world ruins the reputation – a reputation it may take millions of both dollars and hours to regain.

Today, we have also invited representatives of major Norwegian companies, Statoil and Norsk Hydro, as well as our shipping industry to lay out their concepts, thoughts and practises on the social aspects of globalisation. I am happy that we also have representatives of our main organisation from business and labour, as well as a number of other non-governmental organisations here today, seeing to that we do not understand everything too soon.

Before closing, I would like to re-emphasise that it is no coincidence that one of the globalisation project’s seminars has the Social dimension of Globalisation as its central theme. It is indeed a major challenge ahead to promote the social dimension of globalisation. We are seeking ideas about how to meet this challenge, and how to co-operate to see changes – where they matter – on the ground. I hope we can enter into a constructive dialogue today.