Business in society Making a positive and responsible contribution A ...

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Moreover, many more companies have international activities directly or indirectly throughpurchasing and contracting. Company principles must be sufficiently flexible to reflect the diversity offirms as well as that of their suppliers and business partners. A one-size-fits-all approach isincompatible with the great diversity that exists within business, although some examples mentionedbelow provide a useful checklist of possible areas to cover. The great variety of individual companyprinciples and other voluntary initiatives attests to this diversity and should be encouraged.Companies that do not have formal business principles often have unwritten values that guidetheir operations, and may have internal policies, monitoring, appraisal and reporting procedures.Often, business principles themselves are supplemented by internal guidelines and procedures onspecific issues, such as environmental management, safety and occupational health, or ethics andintegrity. In the final analysis, it is the behaviour of the company that counts.Basic principlesICC believes that, whether formal or implied, business principles should reflect the valuesexpressed in the ICC Business Charter for Sustainable Development, in the ICC Rules of Conducton Extortion and Bribery in International Business Transactions and in various ICC marketingand advertising codes.The value of external codesWhile acknowledging that external observers may play a positive role in discussions aboutgood business practice, ICC is concerned by the widening scope of codes of conduct atintergovernmental level purporting to improve the “corporate social responsibility” of enterprises,particularly those trading or investing outside their home countries. ICC urges governments toreject demands to impose codes on companies. The international activities of companies havedemonstrably contributed to the positive aspects of globalization — a process driven by thespread of technology and the rapid development of communications and transportation.Through their international activities, companies often make an important contribution toimproving living and working conditions in developing countries. By investing in productionfacilities and purchasing goods and services from local firms, they help to create jobs, developskills and know-how, act as a vehicle for the transfer of technology and improve productivityand competitiveness, thereby strengthening the economy in the countries where they operate.
A basis for actionThe primacy of individual company principlesFor individual companies, by far the most important considerations are whether to make theirvoluntary business principles explicit, what these should be and how to ensure that they areacted upon. Legal implications of individual company principles should also be considered, sinceempty promises or claims could expose the company to liability. The principles themselves, andassociated arrangements, are likely to be attuned to the needs and circumstances of theparticular company: its history, its culture, geographical location, size, sector, and so on. Indevising them, there will be much to learn from the good practice of other companies and fromguidelines developed by business associations, whether national or international.A framework for business principlesCodes, and various resolutions and declarations by governmental organizations, can serve asuseful benchmarks for large companies, as well as small and medium-sized enterprises (SMEs),in the development of their own individual formal principles and business conduct. SMEs makean essential contribution to improving economic and social conditions where they operate — forinstance through the provision of employment and training. Companies must therefore be giveneffective freedom of choice to subscribe to such codes.
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