Seminar 2 FIDIC 2011 Conference

Transcription

1 Seminar 2 FIDIC 2011 Conference Financial Management and Good Governance UN Global Compact Consequences for our profession Flemming Bligaard Pedersen Monday, 03 October 2011,

2 UN Global Compact Consequences for our profession By Flemming Bligaard Pedersen President and CEO Ramboll

3 Agenda Ramboll The Dubai case The core element Lessons learned Actions taken FIMS procedures affected FIDIC Responsibility of the Industry

4 The Dubai case 21 February Headline in one of the leading Danish newspapers: Ramboll accused of slavery Ramboll accused of involvement in slavery

5 The Dubai case In February 2011, the NGO Danwatch published a report on working conditions for migrant workers in Dubai s construction industry The report documented that two large contractors, Arabtec Construction and Al Habtoor Leighton with whom Ramboll worked on 8 projects in Dubai, kept construction workers under slave like conditions This story found its way to the Danish media 21 February 2011 and the days after, with about 60 articles in newspapers, magazines, television and on the internet

6 The Dubai case The two contractors mentioned took part in construction projects where Ramboll was involved as a consulting engineer for the developer no contractual relationship existed between the contractors and Ramboll Major impact on Ramboll s image in Denmark - consequence of being a global company

7 The core element

8 Ramboll is a participant in the UN Global Compact and embraces the ten principles within: human rights labour rights the environment, and anti-corruption The core element Ramboll became a participant in 2007 as a natural continuation of our fundamentals. We are committed to continuously achieving and showing progress within these areas

9 The core element The allegations against Ramboll state that we by silent complicity support the violation of human rights and are indirectly responsible for the behaviour of these contractors Meaning that Ramboll failed to comply with the 2nd principle of the UN Global Compact: 1. Businesses should support and respect the protection of internationally proclaimed human rights; and 2. make sure that they are not complicit in human rights abuses Through the UN Global Compact, we are obligated to respond to the actions of collaboration partners to whom we are not connected contractually

10 The ten principles: Human Rights Labour The core element 1. Businesses should support and respect the protection of internationally proclaimed human rights; and 2. make sure that they are not complicit in human rights abuses 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4. the elimination of all forms of forced and compulsory labour; 5. the effective abolition of child labour; and 6. the elimination of discrimination in respect of employment and occupation Environment 7. Businesses should support a precautionary approach to environmental challenges; 8. undertake initiatives to promote greater environmental responsibility; and 9. encourage the development and diffusion of environmentally friendly technologies Anti-Corruption 10. Businesses should work against corruption in all its forms, including extortion and bribery

11 Lessons learned

12 Lessons learned In Ramboll, we are strongly against violations of human rights as described in the DanWatch report. Ramboll strives to become a community consultant on a global scale. We know that corruption and violations of human rights occur in all countries with varying intensity. We want to behave ethically and professionally in all our associations. We will promote the principles of the UN Global Compact and seek to implement them when we have the opportunity to influence.

13 Lessons learned However, we must admit that we were not well enough prepared for the consequences of our commitment Focus has been on business integrity and conventional auditing Human rights have not been included in the risk assessment of projects We have not succeeded in making our employees fully aware of what our commitment really means - securing the right business behaviour also in relation to human and labour rights What happens in one market can have major effect on other markets consequence of being a global company

14 Actions taken

15 Actions taken We continuously strive to live up to the UN Global Compact. This is a process which means that we continuously launch initiatives that strengthen our alertness and procedures in accordance with the principles in the UN Global Compact. If, through any of our projects, we encounter problematic circumstances of a professional or business ethical character including matters concerning human rights - it is always our duty to actively making the customer or business partner aware of this. If we find that the actions taken do not live up to our expectations, we have to reconsider the basis for further collaboration with the customer or business partner.

16 The Dubai case has given us reason to entail a more systematic approach in relation to issues concerning human rights We have introduced an Obligation to act policy to guide employees on what they must do and why this is important to do The policy also outlines a policy statement which we proactively must ensure that all customers and suppliers receive The policy statement outlines: Actions taken Ramboll s position on sustainable development and good corporate citizenship Our expectations to our customers and business partners That we will act, make aware, and go into dialogue if we identify matters that are unacceptable

17 Actions taken To make the Obligation to act policy operational, we are adjusting our FIMS quality management procedures and systems to include other aspects under our corporate responsibility concept We are communicating and training employees of the policy s meaning, importance and impact on our business behaviour We are communicating our policy statement to all customers

18 FIMS procedures affected The scope of the FIMS requirements (potential wrongdoing) is in Ramboll expanded to include violation of human rights, labour rights and the environment, and is not limited to bribery, extortion, fraud and collision as previously FIMS Integrity policy Obligation to act policy/code of conduct FIMS tools & manuals Quality management integrity manuals and guidelines Project risk assessment Project integrity screening form Project integrity record file FIMS documentation & approval Audits Management review Questionnaire and reporting of integrity critical customers and partners

19 Responsibility of the Industry

20 Responsibility of the Industry The risk and challenges we face in this area are not specific to Ramboll but generic to our industry Professional consultancies experience increased sustainability requirements from customers and society Focus has been on business integrity, but what about human rights, labour rights and the environment? The increasing globalisation challenges our profession on sustainability do we have the right attitudes and structures in place to act responsibly? We must establish common policies and procedures to ensure sustainable growth within our industry

21 Thank you