Role of Business in Society: Trends in Germany and its Implications. German Club, Makati City July 20, 2017
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1 Role of Business in Society: Trends in Germany and its Implications German Club, Makati City July 20, 2017
2 Agenda 1. Globalization has changed the world 2. Pressure on german businesses Public, legal & economic pressure 3. What are human rights in the business context? 4. How to deal with these issues as a business?
3 Globalization has changed the world 17
4 Globalization has changed the world Climate Change, poverty reduction and human rights have become global issues 1999 UN Global Compact 2011 UN Guiding Principles for 2015 Agenda 2030: Sustainable Development Goals (SDGs) 2017 Chancelor Merkel as President of G20 Protectionism and obstacles to trade will be to the detriment of everybody We should find ways for more rules based trade But we must not forget the social dimension: more people should profit from growth and humane labour conditions should be part of this 17
5 Corporate Responsibility UN Guiding Principles on (2011) 1. PROTECT: State duty to protect 2. RESPECT: Corporate responsibility to respect 3. REMEDY: Access to remedy 6
6 German businesses what are their pressures? 6
7 Public pressure Ø 80% say companies should contribute to solutions Ø Fair trade has multiplied tenfold in the last 10 years Ø Campaigning by NGOs Ø Hey Lidl, mach dich fit für fair (Oxfam) Ø Detox-Kampagne von Greenpeace Ø Kampagne für saubere Kleidung (Clean Clothes Campaign) Ø Media are reporting about labour conditions in sourcing countries 17
8 Legal pressure Ø EU: as of 2017 compulsory reporting for big corporations on labour standards and human rights in their supply chain Ø National Action Plan Human Rights-Due-Diligence in 50% of big and SME companies by 2020 Ø UK: Modern Slavery Act Ø F: Loi de Vigilance Ø NL: Gesetz gegen Kinderarbeit Ø EU: Transparency on conflict minerals as off
9 Economic pressure Ø Prevention of reputational damage Ø Request for risk transparency and risk management by banks and other finance institutions Ø Reporting requests by business clients Ø Mounting consumer pressure creating modern brands Ø Sustainable businesses find more loyalty amongst their staff Ø Recruiting millenials is a lot easier for responsible companies 17
10 How german companies see human rights Will human rights be a major strategic issue for globally operating companies in the upcoming years? Nein 12% Ja 88% 17
11 Which human rights are most relevant for businesses? 7 1. Freedom of association: right to join and form trade unions 2. Prohibition of discrimination in employment and occupation 3. Right to equal remuneration and adequate pay 4. Protection of privacy and integrity of the individual 5. Right to life, freedom, security and health 6. Right to collective bargaining 7. Prohibition of child labour 8. Right to a fair trial 9. Freedom of expression and information 10. Right to education 11. Right to rest, leisure and limitation of working hours 12. Right to social security 13. Right to have access to clean water and adequate food 14. Freedom of religion 15. Right to own property and protection of land use rights 16. Protection of the rights of indigenous communities
12 12 How to deal with these issues
13 What is required? ØEngage with your clients to understand requirements ØIdentify potential or actual risks, mitigate and manage these risks ØBe transparent about risks and efforts to mitigate them ØComply with ILO and human rights standards ØMake human rights compliance a business case 10
14 Thank you!
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