Modern Business in Modern Society - Corporate social responsibility/Decent work

Check against delivery

 

Your Majesties, Excellencies, ladies and gentlemen,

 

Our bilateral relations are excellent by any standards. We come together in partnership – and not least in friendship.

We enjoy close cooperation in NATO, the OSCE and other multilateral institutions. We are also partners in Europe through the European Economic Area and the EEA and Norway Grants.

The scope of our political contacts, cultural cooperation and economic relations is, moreover, expanding. This offers a host of new possibilities to be explored to our mutual benefit.

The EEA and Norway Grants, notably, offer us a historic opportunity to strengthen our bilateral cooperation. New agreements on continued support to the 12 most recent EU member states for the period 2009–2014 were signed in July this year.

Yesterday I had the honour (in the presence of our King), to sign the Memorandum of Understanding with Slovakia for the EEA and Norway Grants 2009–2014, together with Prime Minister Radičová.

These grants are part of Norway's contribution to reducing social and economic disparities in Europe: a total of EUR 1.7 billion for the period 2009-2014. Slovakia will receive EUR 80 million of this – representing a unique opportunity for us to develop our cooperation.

Some programme areas for Slovakia are: climate change and renewable energy, environmental protection and management, green industry innovation, civil society, and finally, a Global fund for Decent Work, especially relevant for today’s seminar – and a novelty in our cooperation programme.

The political signal this fund sends is clear. Norway attaches great importance to the principles of decent work and equal opportunities for all. In a situation of rising unemployment, with all the personal costs this entails for many of our fellow citizens, we must stay focused on labour market challenges.

Cooperation in this area will provide ample opportunities for new and extended partnerships between Slovak and Norwegian social partners. It will pave the way for closer cooperation between employers’ organisations, trade unions and public authorities in efforts to promote equitable and sustainable economic and social development.

I believe that decent working conditions and respect for workers’ rights are vital to develop a society that is equitable. They are also vital to develop a harmonious and productive workforce that is able to ensure the welfare of all citizens.

With this in view, the Norwegian Government launched in 2008 a seven-point strategy for promoting decent work globally. This is probably the first strategy of this kind ever to be implemented by a government, and it reflects our political dedication on this area. Our aim is to strengthen and coordinate our efforts to promote decent working conditions abroad, and to complement other efforts we make in this field.

This leads me to the main topic of today’s seminar – corporate social responsibility.

I believe that the main objective of this seminar should be twofold: to establish new contact points between our countries and to explore ways to coordinate our efforts to push the international corporate social responsibility agenda further ahead.

The basis of the Norwegian policy on corporate social responsibility is the Government’s white paper “Corporate social responsibility in a global economy”, approved by the Norwegian parliament early last year, which was the culmination of a broad process involving social partners.

The political goal of the white paper is three-fold.

 

1. First, to raise awareness about social responsibility in both the private and the public sectors. It clarifies our expectations of the private sector, and it discusses the respective roles and responsibilities of the authorities, the private sector and other actors. 
2. Second, the white paper is also designed to boost Norwegian companies’ motivation and ability to exercise social responsibility. Our approach is to strengthen guidance and advisory measures, and increase openness, dialogue and exchange of experience between the authorities and the private sector.  
3. And third, the Government also intends to play an active role in international processes to further develop the global framework on corporate social responsibility.

The ethical basis for the Norwegian policy on corporate social responsibility is the inviolability of human dignity. Just as politics is not an end in itself, but a means of promoting social change for the benefit of people and the environment, a company’s profits and activities are not goals that can be viewed in isolation. Economic activities require an ethical foundation that puts people, the environment and broader social considerations on centre stage.

On a more practical level we see various strategic approaches to corporate social responsibility in the private sector. Some companies emphasise philanthropy and risk management, for instance through reputation management. The aim is obviously to stay out of trouble. Others, however, advocate a more proactive approach, integrating corporate social responsibility into their core business concepts and strategies.

This latter approach is where we want to see our companies.

Particular focus is needed on supply chains and the choice of providers of goods and services.

Social responsibility in the supply chain is a rapidly developing field, which is attracting growing attention and becoming more and more important – due to the increasing globalisation of corporate activity. Outsourcing and major changes in the international division of labour happens at an accelerating pace. This means that more factor inputs in the public and private sectors, as well as finished goods on the market, come from countries where the authorities do not provide adequate control of working conditions and protection of workers’ rights.

At present it is not realistic to expect imported goods or semi-finished products from all countries to have been produced without any risk of direct or indirect involvement in violations of internationally recognised norms and rules. Thus, it seems most reasonable to set as a minimum standard that a company’s responsibility covers the sphere it can influence directly as a purchaser and seller, through contracts or in other ways.

Another area that merits our attention is public procurement. I believe that the public sector should take the lead by purchasing goods that have been manufactured in accordance with the highest ethical and environmental standards. This way the public sector can build confidence in its procurement processes and use its resources efficiently.

In Norway, an Action Plan for Environmental and Social Responsibility in Public Procurement has been implemented with this in mind, with particular emphasis on guidance, capacity-building and practical advice.

Corporate social responsibility does not necessarily involve a conflict of interests. On the contrary, efforts in this area can create a community of interest that brings together companies, employees, the authorities and other actors. In other words, exercising corporate social responsibility can provide a win-win situation.

In conclusion: Pursuing a long-term, credible policy on corporate social responsibility can be far more beneficial to companies than cutting corners. By maintaining responsible relations with employees, consumers and the local community, respecting human rights and promoting sustainable development, companies can in fact increase their long-term competitiveness and strengthen their position.

I believe that companies no longer have any excuse for not paying attention to human rights, safeguarding the environment or respecting core standards of decent work – to mention some key dimensions. The issue at stake is not whether companies have a responsibility or not. It is how they best can implement good practices, and how far the responsibility of a company should extend.

Having said this, I would like to stress that we are not talking about a one-size-fits-all approach. The Slovak Republic, Norway or any other country must find its own way. So we should acknowledge our differences, but at the same time we should agree on certain key principles regarding corporate social responsibility that should apply in all countries.

Against this backdrop, I hope you will find this seminar fruitful and stimulating.

Thank you for your attention.