From poverty to power - Oxfam-Québec

FROM POVERTY TO POWERUN Global Compact, while others are independent, such as theEthical Trading Initiative.The more effective initiatives are those that involve a range ofstakeholders, independent forms of monitoring, and verificationof corporations’ claims and performance, and in addition areclearly linked to international standards such as the conventionsof the International Labour Organization or UN human rightslaw. For example, a number of large firms have joined theBusiness Leaders Initiative on Human Rights chaired by theformer UN Human Rights Commissioner Mary Robinson, to pilotthe implementation of UN human rights law (including ILOconventions) across their organisations, and have involvedhuman rights NGOs in their implementation.Corporate responsibility initiatives are more effective when theyare driven by a company’s board and CEO – not just by thecorporate social responsibility department – and when they leadto changes in the core business model rather than remaining an‘ethical add-on’. So, for example, retailers need to take intoaccount the impact that ordering rapid turnaround times onlarge volumes of clothing or other goods has on hours andworking conditions at the end of the supply chain, while drugscompanies need to adopt different pricing strategies for rich andpoor countries as a standard, rather than an occasionalconcession to public or government pressure.Voluntary initiatives play an important role in encouragingbusinesses to engage properly in corporate responsibility.For example, the UN Global Compact has been extraordinarilysuccessful in encouraging large numbers of businesses indeveloping countries to embrace CSR, as a first step on the wayto lifting standards. The voluntary nature of this has been critical,as has the UN convening role.Voluntary initiatives can also end up influencing legal frameworks,for example when leading companies lobby governments to passrules that require laggard companies to report, thereby preventingthem from gaining an unfair competitive advantage. In the UK,the Ethical Trading Initiative successfully lobbied the governmentto introduce controls on so-called ‘gang masters’ organisingmigrant labour in British farms and packing houses, and toenforce minimum labour standards.350