WSSD Report FINAL! - OGP

CONTRIBUTING TO SUSTAINABLE DEVELOPMENT
Ethics and human rights
Ethics and human rights
Background
The Universal Declaration for Human Rights
(UDHR) was developed more than 50 years ago.
The far-reaching United States Foreign Corrupt
Practices Act (FCPA) was enacted a generation ago.
Important as they are, these milestones have still
not removed the barriers to investment that
exist for many companies. Concerns over
corruption, human rights and labour issues still
inhibit a number of international corporations—including
those in the oil and gas
industry—from making foreign investments.
Arguments about cultural differences or lack of
business sophistication in some developing
nations cannot explain away these obstacles. In
its Global Values Survey, which represented 40
countries and 50 different faith communities,
the Institute for Global Ethics found the five
most important values to be truth, compassion,
responsibility, freedom and reverence for life.
Industry response
No matter where we operate, the oil and gas
industry aims to apply these universal values by
following ethical business practices; by combating
corruption and enforcing ethical trading
policies; by treating all people equitably through
non-discriminatory employment practice and
provision of a living wage; by respecting indigenous
people and local communities and
involving them in decisions that may effect
them; and by working to ensure a fair sharing of
economic benefits.
Some companies in our industry have taken a
sense of direction in ethics and human rights
from the Global Compact, an initiative of the
United Nations Secretary General Kofi Annan.
The Global Compact calls for a closer and
mutually supportive partnership between the
UN and the private sector and puts a more
human face on globalization. It encourages good
practices based on nine universal principles
covering human rights, labour and the environment.
Endorsing companies develop and
implement community projects that demonstrate
their best practices and support of the Global
Compact principles. Many other companies that
have not formally endorsed the Global Compact
have nevertheless incorporated many of its principles
within their own corporate policies and
standards. Other companies have endorsed the
Sullivan Principles, which also contain principles
addressing a range of social responsibility issues.
Ethical trading is another relevant issue, centring
as it does around commodity/raw goods in
which market prices often undergo severe and
rapid fluctuations. This has an impact on both
employees and communities. Ethical trading
draws on core International Labour Organization
(ILO) conventions that include freedom of association,
decent wages, adequate living conditions,
worker representation, security and minimum
health and safety standards.
In remote areas, the rights of indigenous peoples
play an important part in our operations. Our
commercial successes must be sustained in ways
that demonstrate respect for the indigenous
peoples who, after all, were there first. In the
A constructive approach to addressing corruption
An area of particular concern to our industry is the
fight against corruption, as 80 per cent of the world’s
oil and gas reserves are in countries found at the
bottom of Transparency International’s Corruption
Perceptions Index. To help in that fight OGP has set
up an Anti-Corruption Task Force to explore issues
and discuss case studies on topics that include
education and training, standards and codes, due
diligence, verification, joint work with other
organizations, communications and advocacy.
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