Tal
Peking 14 april 2008
Ewa Björling, Handelsminister

Tal av Ewa Björling vid invigningen av svensk-kinesisk hemsida om företagens sociala ansvar

Dear Minister Chen Deming, Honoured guests, Ladies and Gentlemen,

As the Swedish minister in charge of Corporate Social Responsibility - also well known as CSR - I am very honoured to take part in the implementation of the Memorandum of Understanding on CSR between Sweden and China, signed during the state visit of President Hu Jintao to Sweden last year.

The commitment from both our governments for a more profound dialogue on Corporate Social Responsibility is manifested in the Memorandum of Understanding. It encompasses dialogue and sharing experiences on best practices in companies, working conditions and work safety, consumers' rights and consumers' protection, the contribution of business to better environmental protection, energy saving and decreased pollution of water and air. Another item of particular importance is to combat corruption.

Globalisation is here to stay - and is moving more quickly and in fact many argue that progress will never be as slow as it is today. More and more countries take advantage of the opportunities and benefits inherent in globalisation.

Sweden and China share a belief in free trade and global integration. In Sweden, development and wealth originated from and still depend upon international economic exchange.

Macroeconomic stability, social inclusion, environmental protection and corporate responsibility are not conflicting objectives. On the contrary, the objectives towards responsible competitiveness and a harmonious society are mutually reinforcing.

For Sweden, promotion of corporate social responsibility is an important link between two cornerstones of Swedish policy: an open trade policy and a foreign and development policy that strongly emphasise the importance of human rights and sustainable global development.

The Swedish Government is a firm believer in free trade and sees many opportunities in enhanced economic integration.

This is true not only for large corporations but perhaps even more so for small and medium-sized companies that have a large potential to engage in international trade. I know that the same is true of China where there are many SMEs that have not yet engaged in international trade - indeed the majority of businesses globally are SMEs - and they are an enormous potential for increased trade.

Globalisation offers new opportunities for trade and investment across borders. For governments and companies, there are also many new challenges. The map of how business is conducted has been redrawn - many companies all over the world have learned the hard lesson of not acting in a responsible way.

Some argue that corporate social responsibility has made slow progress. Others fear that it will be used as a non-tariff barrier, closing off export opportunities under the pretext of social and environmental conditions. The very term 'corporate' may suggest that CSR is relevant only to large multinationals, not to small and medium-sized enterprises.

But CSR is not a tool for protectionism or something that is relevant only to big multinationals. On the contrary, I see responsible business practices as a complementary tool for open and free trade, international investments, economic growth and sustainable development.

We must make sure that demands for CSR do not squeeze out small producers or serve as a non-tariff barrier, excluding developing countries from global markets.

One way to prevent CSR from being used as a tool for protectionism is to act in accordance with internationally negotiated and universally accepted norms, such as the Principles of the UN Global Compact and the OECD Guidelines for Multinational Enterprises.

The strength and legitimacy of these two instruments derive from internationally accepted UN declarations; the Universal Declaration of Human Rights and the ILO Core Conventions.

There is a clear business case for behaving responsibly and setting good examples. Supply chain management is a crucial issue for businesses large or small. More and more, consumers as well as business partners and share holders are requesting a well managed supply chain.

I believe that CSR is a decisive part of a development that will help reverse the trend of scepticism towards globalisation, free trade and investment.

CSR is also about competitiveness, for countries as well as for companies. This has been clearly indicated in the Responsible Competitiveness Index, in which 108 countries and their companies have been analysed. Last year, 2007, Sweden was rated as the most competitive country - based on the responsible competitiveness of its industry. I am proud that our enterprises have taken the lead.

Many companies thus see the implementation of business codes and practices not as short-term costs, but as long-term investments. Failing to act responsibly makes it harder to attract and maintain skilled staff and sell goods and services.

In a few days here in Beijing, on the 25th of April, the China WTO Tribune supervised by MOFCOM and the leading international body in this field, AccountAbility, will launch the first Chinese report on responsible competitiveness, discussing China's performance in the 108-country Responsible Competitiveness Index, and the potential for China to enhance its international competitiveness through responsible business practices and supporting public policies.

We all know about the harmful effects of corruption. It distorts competition, makes it more difficult to develop trade relations and deters investments. Therefore, it is particularly important that companies comply with the tenth principle of the UN Global Compact, which states that companies should work against corruption in all its forms, including extortion and bribery.

I believe that together, we can develop this area through a fruitful dialogue between our respective business communities on such matters as how to develop their integrity instruments and thereby contribute to the fight against corruption. One important tool in this respect is the anticorruption portal, which can be found on our joint website.

CSR is by definition a voluntary undertaking, and rightly so. It should be business-owned and business-driven, but do governments have a role to play in this important process? The answer is; yes, I believe they do.

Successful CSR policies depend on an enabling environment where governments have a crucial role to play.

Apart from providing the necessary legal framework and making sure that laws and universal instruments are adhered to, I think that governments can facilitate these processes and that we can stimulate forums for dialogue and exchange of experiences on good practices.

One example of how governments and business can collaborate is the CEO Water Mandate. It originated as an initiative by the Swedish Government, together with the UN Global Compact, on how business operators could contribute to find sustainable solutions to the global water challenge. Large and small businesses responded and formed the CEO Water Mandate. Today, this initiative is run by business operators themselves. I am glad that the Mandate has been translated into Chinese and the report is available here.

As a growing supplier of the world's merchandise exports, a massive consumer market and an important global investor, China has a major role to play in shaping globalisation.

An increasing number of Swedish enterprises are establishing business relationships in China, and there is growing demand for dialogue on ways how to implement responsible business practices. A clear sign of this is the good cooperation between Swedish businesses and MOFCOM and other Chinese entities in this field.

The Swedish business community in China pursues an ambitious implementation of CSR practices here and is an important partner in our bilateral cooperation.

I highly welcome the commitment by the Chinese government and business community to work more closely with the UN and other actors on corporate social responsibility issues.

I understand that China had the single largest business delegation attending the Global Compact Leaders Summit in Geneva last summer. China is also playing a major role in the process of developing the new ISO 26 000 standard on social responsibility.

The dialogue between our countries on Corporate Social Responsibility during the last 5 years has created an important forum for an exchange of experiences and dialogue on different aspects of CSR.

Today we are gathered here in Beijing for a historic moment: the inauguration of the joint Sino-Swedish website for CSR Cooperation, as well as the kick-off of the very first training programme on CSR within the framework of the MOU.

Through the website, companies will be able to access information free of charge on internationally recognised tools for implementing CSR, as well as on best practices from Chinese and Swedish companies.

The training programme is an ambitious joint effort in increasing CSR awareness. The first part will take place this week, and will encompass a wide range of CSR-related themes as well as close co-operation with companies here in China and in Sweden. I wish all the participants a fruitful week and hope that this will be a first step in enhancing the dialogue on CSR between our governments, but more importantly, between companies and business organisations.

I see the joint Sino-Swedish website as a good example of assisting our business operators with the 'how-to' aspect of CSR. As the MOFCOM website attracts the most daily visitors of all government websites in China, I am convinced that our new joint website will soon become one of the most visited as well.

I am honoured to be able to press the 'start' button, together with my minister colleague, Mr Chen Deming.