The HSE Conference for Offshore Contractors was arranged by Mintra, the Federation of Norwegian Industries, and Offshore Media Group, in Stavanger, March 3-4, 2009.  Kristian Rudsta Andersen, from the United Nations Development Programme (UNDP), was one of the presenters, and his presentation generated a healthy and important debate on corporate social responsibility.  In an interview with Mintra, Rudsta Andersen tells about his commitment to corporate social responsibility.

UNDP and Global Compact
UNDP is represented in 166 countries.  The organisation is based on project work and, at any given time, there are thousands of people associated with UNDP, in various capacities.  UNDP’s ultimate goal is to help people in all countries to live the life they value:  Sustainable Development is the key word.

In order to generate sustainable growth, a society needs a democratic system of government, adequate prospects for education and access to medical care, and a well-functioning government.  An important cornerstone is commerce, without companies there are no jobs and no profits to form the foundation for future growth.  This is where Global Compact comes in:  in a globalised world, companies must often take responsibility themselves; to ensure that their employees and the communities in which they operate are well cared for.

Global Compact was launched in 1999 and implemented in 2000.

“Global Compact was one of Kofi Annan’s initiatives,” tells Rudsta Andersen. “Today, it is a widely accepted framework for corporate social responsibility.  It is a standard that is easy to explain and can be applied ubiquitously, since it is an initiative with the weight of the192 member countries of the United Nations behind it.”

Global Compact is built on 10 basic principles:
Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and
2. make sure they are not complicit in human rights abuses. 
Labour
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. eliminate discrimination in respect of employment and occupation.

Environment
7. Business 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.

Transparency and Anti-corruption
10. Businesses should work against corruption in all its forms, including extortion and bribery.

Global Compact does not require perfection, but that participating companies and organisations must be aware of their weaknesses in these aspects and work to improve themselves.

“It is important that those participating in Global Compact develop and monitor progress plans,” tells Rudsta Andersen.

Companies and organisations that have signed an agreement with UNDP, must submit an annual report describing their status and improvements.  It is up to each individual programme participant to define their challenges.  It does not cost anything to participate in Global Compact, but it means that companies or organisations must set aside time to follow up the programme.

“It is important to be open and honest,” tells Rudsta Andersen.  “Global Compact is a voluntary programme; the object is not to monitor, but to assist companies and organisations.”

Collaboration between Participants
Participants in the programme can work together with other actors facing the same challenges.  Among other things, a network has been established for Nordic companies and organisations.

“Global Compact Nordic Network holds regular meetings,” tells Rudsta Andersen, “where the participants discuss relevant challenges, for example, how to quantify improvements in corporate social responsibility.”

The Corporate World Has an Important Role
It is challenging for companies and organisations that operate in countries where corruption is accepted.

“UNDP wants sustainable development, and in that context, the corporate world has an important role,” tells Rudsta Andersen.



Andersen points out that turning a blind eye is not a good solution when it comes to corporate social responsibility.

“Is it better for society that a Norwegian company gives into corruption in a country where corruption is accepted, instead of not doing business in the country at all?  In the long run, won't the presence of Norwegian companies represent a more positive contribution?  These are common questions with regard to corporate social responsibility,” tells Rudsta Andersen.

If a company or organisation compromises its ethical values and principles, they will constantly be confronted with situations where individual employees are faced with difficult decisions.

Market Trends
The ability of a company or organisation to live up to its principles for corporate social responsibility does not depend on its area of business.

“We can find both positive and negative examples in most industries,” tells Rudsta Andersen, “which indicates that all actors have the opportunity to work constructively with corporate social responsibility.  You can’t blame a particular industry for preventing you from being socially responsible.  Everyone can take an active role.”

Corporate Social Responsibility Is Better than Financial Aid
Rudsta Andersen points out that corporate social responsibility is more than providing financial aid and adhering to rules and regulations.

“We want companies and organisations to consider corporate social responsibility as an investment, and hope that many companies will reconsider the financial aid they provide as pure philanthropy.  We are all responsible for contributing to global development.  That's why we need companies that dare to invest in projects in developing countries, which can lead to positive growth in the long term, both in terms of profits and strengthening the local community:  you contribute to developing industry and commerce, as well as infrastructure in the respective country.  In many instances, it is better than simply providing financial aid,” says Rudsta Andersen.

Rudsta Andersen points out that daring to gamble on these kinds of projects entails a financial risk, and it is just this willingness to accept a certain risk that he is calling for. 

Various Levels of Involvement in the Nordic Countries
There are huge differences in the level of involvement in corporate social responsibility in the Nordic countries.  Denmark is the country that is furthest ahead in this area, which is again reflected in media coverage. 

“In Denmark, news reports and articles on corporate social responsibility are more frequent,” tells Rudsta Andersen, “and this is reflected in the level of participation in the UNDP programme.”

As of March 3, 2009, Denmark has 122 members (companies or organisations) participating in UNDP’s Global Compact.  Sweden comes in second, with 64 members, Finland has 15, and Norway has 30 members.

Media Coverage Is Positive
Corporate Social Responsibility (CSR) is about how companies should interact with society.

“Companies must take into consideration the interests of all stakeholders,” tells Rudsta Andersen.  “It's important to have a comprehensive understanding of operations, and not focus purely on short-term gains for the company and its customers.”
In Norway, we are experiencing great interest in corporate social responsibility from the media.

“The media is contributing to positive developments,” tells Rudsta Andersen.  “At the same time, there can often be greater focus on work-related accidents in foreign countries, than here at home in Norway, for example, which can lead to a somewhat oversimplified perspective.” 

Rudsta Andersen concludes by emphasising the word RESPONSIBILITY in corporate social responsibility.  We are all RESPONSIBLE.

More information:
http://www.unglobalcompact.org/
http://gcnordic.net/

CSR-network on Linkedin: http://www.linkedin.com/groups?home=&gid=78254&trk=anet_ug_hm&goback=%2Eanb_78254_*2

Article by: Chul Christian Aamodt