Executive Summary: Working Group on Private Sector

Coordinators

Antoine Mach (Covalence) & Sébastien Ziegler (Mandat International)

Assistance

Karine Dube & Cristina Cariello (Mandat International)

The Working Group focused on the role of the private sector in economic, social, cultural and environmental issues. It confronted good critics and good practices, generally avoiding both systematic denigration and easy public relations. Some participants expressed strong opposition towards closer relationships with the private sector, citing cases of irresponsibility and lack of transparency. Others insisted on the importance of monitoring the activities of multinational enterprises, and of the private sector in general, in line with influencing governmental regulation, while showing interest for the practical outcome of partnerships.

The Working Group on the Private Sector brought together panellists and delegates from civil society organizations, United Nations agencies, trade unions, academia, banks, consultants and multinational companies.

Representatives from the private sector presented activities related to “Corporate Social Responsibility”, such as creating partnerships with NGOs, local communities or UN agencies, in the fields of health, nutrition, education or economic development. Representatives from civil society organizations expressed diverse opinions in regards to such initiatives: on the one hand, there was a strong interest in the practical value of partnerships, and on the other hand, civil society actors identified important concerns and sources of fear of close cooperation with the private sector (e.g. green washing, double standards, lobbying, cooptation). Speakers and delegates have also mentioned situations of corporate social irresponsibility.

In summary, the Working Group on the Private Sector demonstrated a real interest in both targeted public pressure campaigns, such as Clean Clothes Campaigns, and in sound partnership initiatives with private companies, such as the Global Suppliers Programmes presented by Lorraine Ruffing (UNCTAD).

There seemed to be a consensus among civil society participants about the fact that private companies can have a good impact and a bad impact. The question is then when is it good, when is it bad, and what should we do? It has been stressed that civil society organizations should play a stronger role in the process of assessing corporate social responsibility, notably for ethical consumerism, shareholders activism, Socially Responsible Investing, selective public purchase policies and other incentive mechanisms.

Conclusions and recommendations

For the purpose of clarity, the Working Group made a distinction between the Public Sector, Civil Society (taken as non-profit) and the Private Sector (as profit).

Here are some of the most important themes that have been addressed in the sessions of the Working Group on the Private Sector, and which could serve as a basis for recommendations:

1. Civil society organizations should play an active role in monitoring the operations of private companies.
2. Information regarding private companies should be more widely accessible to civil society organizations.
3. Civil society organizations should influence the definition of criteria and the assessment of corporate behaviours.
4. Decentralization of the assessment process of corporations should be ensured. Civil society organizations and national bodies have a critical role to play in this matter.
5. Direct relations between civil society organizations and the private sector should not be detrimental to the regulatory role of governments and the public sector.
6. Civil society organizations should increase their influence over the public and private companies by maximizing communication from all sides such as the media, education, academia, campaign heroes, strategic alliances and networks.
7. Civil society organizations should require that the private sector respects cultural diversity in its approach to development.
8. Civil society organizations should pressure northern and southern governments to reinforce their social and environmental criteria in the fields of foreign direct investments, public purchase policies, and other economic relations.

Individual sessions in this working group

1. Private sector and development
2. Private sector and the environment
3. Private sector and health: access to medicines
4. Private sector and labour standards
5. Ethical investments
6. Private sector - civil society: where is the border? What are the common interests and divergences? What are the main problems?
7. Private sector and human rights
8. Wrap-up Session

See also

• Labelling, certification and the implementation of Human Rights: Interests and limits of ethical sourcing, fair trade, labelling of NGOs and other mechanisms
• Private Sector, Food, Health and Development

Presenters

• Michel Celi Vegas, Centre d'échanges et coopération pour l'Amérique latine; Lorraine Ruffing, UNCTAD; Martin Epp, Helvetas, Bruno Gurtner, Swiss Coalition of Development Organizations; Ram Etwareea, Le Temps.
• Jean-Paul Jeanreynaud, WWF International; Claire Cocault, United Nations Environment Program; Pierre Hauselman PI Environmental Consulting; Jeff McNeely, International Union for the Conservation of Nature.
• Winnie Mpanju-Shumbusho, World Health Organization; Penny Grewal, Novartis; Roy Widdus, Initiative on Public-Private Partnerships for Health; Clive Ondari, World Health Organization; Bernard Pecoul, Médecins Sans Frontières.
• Jorge-Daniel Taillant, Centro de Derechos Humanos Y Medio Ambiente; Salil Tripathi, Amnesty International; Gilles Carbonnier, International Committee of the Red Cross and Red Crescent; Peter Damary, Foodfirst International Information and Action Network; Antoine Mach, Covalence.
• Dominic Peccoud, International Labour Organization; Lara Cataldi, Déclaration de Berne; Yvonne O'Callaghan, International Confederation of Free Trade Unions; Jem Bendell, United Nations Research Institute for Social Development.
• Alfredo Sfeir-Younis, World Bank; Piet Sprengers, Dutch Association of Investors for Sustainable Development, representing the Global Reporting Initiative; Edouard Dommen, ACTARES Swiss Shareholders for a Sustainable Economy; Patrick Odier, Lombard Odier Darier Hentsch Bank;
• Tony Hill, UN Non governmental Liaison Service, Bettina Ferdman, Philias, Peter Utting, United Nations Research Institute for Social Development.
• Nada Dugas, Procter and Gamble; Niels Christiansen, Nestlé; Derek Yach, World Health Organization; Patti Rundall, IBFAN International Baby Food Action Network; Marie Ganier-Raymond, FIAN Foodfirst International Information and Action Network; Dr. Daniel Warner, Graduate Institute of International Studies, Geneva;
• Philippe Lévy, Transparency Switzerland; Robert Jourdain and Heinrich Bieler, Société Général de Surveillance; prof. Michelle Bergadaà, University of Geneva.