Business
needs rules to operate
 |
| Sir Mark Moody-Stuart:
"We all have a role to play" |
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Intervention by Sir
Mark Moody-Stuart on behalf of Business Action for Sustainable Development.
BASD is an initiative of the International Chamber of Commerce, the World
Business Council for Sustainable Development and other business organizations.
Business has come to Johannesburg
with a commitment to work in partnership with other major groups, governments
and agencies to deliver sustainable development. I should like to make a few
general remarks on the elements needed to facilitate the growth of the beneficial
economic activity which is essential if we are to achieve sustainable development.
Perhaps the most important
contributor is sound governance systems at a national and local level in each
and every country. By sound governance we mean institutions whereby all sectors
of society - be they women, indigenous people, youth, small business, civil
society, labour organizations or other actors - feel that their views have been
taken into account and that the outcomes are fair and equitable. This will include
sound governance of business - with the rules and frameworks necessary for markets
to operate fairly and openly in each and every country and with, for example,
appropriate environmental regulation applied impartially to all. But it will
also include such elements as the rule of law, security, human rights, intellectual
property etc. The establishment of this sound national governance is a prime
responsibility of government and it is this prime responsibility which has rightly
been recognized by African governments in NEPAD, an initiative strongly supported
by business. But business recognizes its responsibilities to contribute to this
process, by reporting openly and transparently on our activities, but also working
in consultation with other groups as well as government to ensure that the impact
of these activities on the environment is taken into account and that the
y are
indeed of benefit to society as a whole. The conditions created by this sound
local governance are not only beneficial to the environment and society, but
they are exactly the conditions in which sound economic activity flourishes
and it is to areas where such sound governance is in place or developing that
investment will flow. I hope that through these remarks I have dispelled the
myth put out by others that business in against all regulation - it is just
not true.
We are also committed to
a number of initiatives, in partnership with governments and others, to increase
investment and to grow business in developing and least developed countries.
This includes paying close attention to the growth of the small and medium enterprise
sector which is not by and large represented at the Summit and yet which is
so essential to sound development.
Much is made by our NGO
colleagues for the need for supranational standards or regulation. The essential
international agreements on climate and trade are addressed in other fora, and
we in business strongly support access to developing country products to developed
markets. We believe however that any attempt at one size fits all international
regulation is inappropriate. We do however support the development of international
best practice standards which can inform the development of national legislative
frameworks and against which the activities of international companies may be
judged. There are many current examples of the development of such global standards
by partnerships of stakeholders in various industries. Examples of this approach
are the Global Mining Initiative, the Chemicals Industry Responsible Care programme,
the new Sustainable Agriculture and Rural Development Initiative (SARD), and
the ongoing Marine Stewardship Council activities which have certified some
forty fisheries around the world. The work of the Global Reporting Initiative
- developing sustainability reporting standards which can be used by business
to report in standard ways for core indicators but to develop specific indicators
for different sectors - is essential to the transparency and open reporting
to which business is committed. Support in the Summit Agreement for these partnership
activities would be welcome in addition to a strong Type I outcome. The outputs
can then be used as a basis for developing local governance and legislative
activity, but in national fora where the voices of small business, artisanal
workers and communities can be taken into account to ensure that the outcome
is also appropriate to local conditions. Capacity building partnerships such
as the Click here to send a mail. or the ICMM and World Bank Community Development Tools
for local communities in mining regions are partnerships in this field.
We have appreciated the
opportunity to participate in the discussions on each of the WEHAB areas. I
will therefore only comment briefly on each.
Delivering Water to the
poor is crucial for Sustainable Development. Business as usual will not make
it happen - there is a need to create new partnerships and mobilize private
sector investment. Business is open to this and to work with governments in
creative ways to ensure that water systems serve all sectors of the community.
In Energy, the development
of renewables is important and business is for the development of renewables
as for any other business opportunity. But there is also need for better access
to energy for industrial, commercial and domestic markets, both urban and rural.
For this we need long term targets and better applications of conventional energy.
Solar panels
in rural villages will not be enough. The Africa Energy Fund being
launched today is an effort to address this in Africa.
In Health, while business
can play its part in the development of drugs and in addressing the health issues
of employees around the world, synergy with government activity for the population
at large is critical. In the Accelerating Access Initiative UNAIDS is working
with business and six major pharmaceutical companies to improve access to AIDS
care in the hardest hit regions of the world. Integration with government efforts
is essential.
In Agriculture farms need
better access to markets both locally and internationally. Governments need
to establish enabling policies addressing transport and communications. Simply
lowering tariffs will not be enough.
For Biodiversity the private
sector is aware of the need to work with local communities and others to identify
best practice solutions. The Energy and Biodiversity Initiative is a partnership
between major conservation groups such as the IUCN and leading energy companies
to define policies in relation to reserved areas.
Lest we depress ourselves
that nothing is happening on the ground, may I draw your attention to the Virtual
Exhibition, produced by a partnership between BASD and UNDP which showcases
some 200 sustainable development partnership projects from all around the world
many of which have no direct business involvement. Every half hour or so there
is a live discussion of these projects between those here in the Sandton Centre
and the projects in the field. We have covered more than twenty countries so
far already in these connections. This is giving real access to the summit to
the grass roots in the projects and the process can be viewed live or in archive
by anyone with internet access anywhere. Already more people have visited it
than are here. I hope that ministers and heads of state will take the opportunity
to visit and interact.
Finally, the business community
calls on governments to provide forward looking outputs from WSSD leading to
real implementation through transparent action in partnership with us and other
major groups. We all have a role to play.
BASD
29 August 2002
To
view a webcast of Sir Mark Moody-Stuart's speech click here