1. CSR - Better tools for globalisation - why industry needs better tools for globalisation Presentation 1 November by Henriette Søltoft Director International Trade and Market Policy DI

2. The Three Issues at hand TRADE DEVELOP- MENT CSR

3. When governments fail... ”CSR is a pragmatic response to government failure” Georg Kell, UN Global Compact

4. Trade and development The African countries have the same income level now as they did 40 years ago. Korea and Thailand had the same level of income in 1960 as the African countries.

5. The Drivers of CSR Political Pressure in home country -> Forces companies to focus on CSR Pressure from Clients - Code of Conducts Market pressure leads to longer supply chains and outsourcing -> more exposure to bad governance ALL THESE FACTORS LEAD TO INCREASED COMMERCIAL RISKS!

6. CSR as a risk minizing strategy Companies have to learn to deal with ethics -> this means new areas of controlCompanies have to learn to deal with ethics -> this means new areas of control Accounting Evironmental accounting and certification Occupational health and safety Human rights Corruption Time/ maturity

7. Ethics in the age of globalisation Ethics is a general term for what is often described as the "science of morality". In philosophy, ethical behavior is that which is "good".Ethics is a general term for what is often described as the "science of morality". In philosophy, ethical behavior is that which is "good". What is good and moral is totally different in different countries and cultures. Therefore Danish standards and values cannot be used by international corporations.What is good and moral is totally different in different countries and cultures. Therefore Danish standards and values cannot be used by international corporations. We need global standards - not national!We need global standards - not national!

8. Where are we? Defining goals Defining indicators Implementing control systems Monitoring and evaluation In Human Rigths we are only here!!

9. Conclusions - 1 Companies need tools for CSRCompanies need tools for CSR These tools will strengthen the link between trade and development - some countries risk loosing business because of government failureThese tools will strengthen the link between trade and development - some countries risk loosing business because of government failure CSR is only an ad hoc solution to what is in essence government failureCSR is only an ad hoc solution to what is in essence government failure

10. Conclusions - 2 We don't need CSR clauses in trade agreements - this will for sure break the link between trade and developmentWe don't need CSR clauses in trade agreements - this will for sure break the link between trade and development We don't need national standards or legislation for CSR. CSR is international, volutary and market driven.We don't need national standards or legislation for CSR. CSR is international, volutary and market driven.

11. DI Publications The company as citizen of the worldThe company as citizen of the world Business and Human RightsBusiness and Human Rights Avoid corruptionAvoid corruption Guide to Global CompactGuide to Global Compact HRCAHRCA Code of ConductCode of Conduct Dealing with HIV/AIDSDealing with HIV/AIDS