Global Compact International Yearbook Ausgabe 2011

Global Compact 

International Yearbook 

2011

GC International Yearbook 

Foreword 

This publication is kindly supported by: 

ACI 

Adecco Group 

Air France 

AKSA 

Arab African International Bank 

Armacell 

Athens International Airport 

Autostrade per l’Italia 

Bradesco 

Business Keeper 

Camposol 

Carrefour 

Coca-Cola Hellenic 

Coop 

Copeinca 

Danske Bank Group 

Deutsche Bank 

Deutsche Telekom 

EDF Group 

GDF Suez 

Green Delta Insurance 

Hochtief 

Huawei 

Kusch + Co 

ManpowerGroup 

Merck 

Nestlé 

Novo Nordisk 

Otto Group 

PE International 

Puma 

Randstad 

Siemens 

Sonae 

Sopharma 

The TMS Group 

Toshiba 

TÜV Rheinland 

Viyellatex 

Global Logistics Partner: 

Deutsche Post DHL 

H.E. Ban Ki-moon, UN Secretary-General 

“ 

In the eleven years since its launch, the United 

Nations Global Compact has been at the forefront 

of the UN’s effort to make the private sector a critical 

actor in advancing sustainability. The initiative has attained 

global reach, with more than 6,000 participating 

enterprises in more than 135 countries – businesses large 

and small, in both the developed and the developing world, 

across all sectors. 

As we look forward to the Rio+20 UN Conference on 

Sustainable Development, it is clear that a strong contribution 

from business will be essential. Corporate responsibility 

and a strong sense of partnership – with businesses 

devoting skills, leadership, resources and innovation – will 

be indispensable to creating a more sustainable global 

economy and achieving truly sustainable development. 

This third Global Compact International Yearbook once 

again presents a broad range of illuminating stories of 

businesses using the platform provided by the Compact 

to make a difference through their own conduct or in 

partnership with others. These range from innovative 

ways to protect the rights of indigenous minorities to 

new approaches to promote gender equality or the fight 

” 

against deforestation. I commend this Yearbook 

to a wide global audience. 

2 Global Compact International Yearbook 2011 Global Compact International Yearbook 2011 

3

FOREWORD 

ISO 26000 

3 

H.E. Mr. Ban Ki-moon, 

United Nations 

Secretary-General 

172 

How Geopolitic Change Alters 

Social and Environmental 

Standards – The ISO 26000 SR 

Case 

Josef Wieland 

6 

Blueprint for 

Corporate Sustainability 

172 

ISO 26000 

178 

181 

188 

The Power of Voluntarism 

Elmer Lenzen 

Estimations of ISO 26000 SR 

Marie d’Huart (CAP conseil), 

Aiko Bode (TÜV Rheinland), 

Franziska Humbert (Oxfam 

Germany), Philip Jennings (UNI 

Global Union), Anne Gadegaard 

(Novo Nordisk) 

The Long History of Cooperation 

between ISO and the UN 

Interview with 

Sergei A. Ordzhonikidze 

BEST PRACTICE 

Blueprint for 

Corporate 

Sustainability 

6 

10 

14 

18 

22 

24 

Blueprint for Corporate 


Elmer Lenzen 

The CSR Scene Has Matured 

Lord Michael Hastings 

Can CSR Lessen the Impact 

of a Crisis or Lead to a Faster 

Recovery? 

Craig Badings 

The Accountability Web: 

Weaving Corporate 

Accountability with Interactive 

Technologies 

Bill Baue and Marcy Murninghan 

Joining the Dots – How UNGC 

and GRI Are Working Together 

Teresa Fogelberg 

The Human Rights and Business 

Dilemma 

Standards and 

Labels 

28 

34 

38 

41 

RIO+20 

44 

48 

Economy leaders Need 

Sustainability Standards 

Sasha Courville 

Eco-labels: Signed, Sealed… 

Delivered? 

Patrin Watanatada and Mark Lee 

Sample Eco-labels 

WindMade: The First Global 

Consumer Label for Companies 

Using Wind Energy 

Robyn Elizabeth Beaver 

Institutional Challenges for a 

Green Economy 

Adil Najam and Henrik Selin 

Two Decades of UN Earth 

Summits 1992 – 2012 

INSIDE... Middle East and 

North Africa (MENA) 

50 

56 

58 

61 

64 

66 

Will the Arab Spring Free the 

“Orphans of Globalization”? 

Jean-Pierre Lehmann 

The UN Global Compact in the 

MENA Region 

Matthias Stausberg 

The Role of CSR in the Arab 

Economies 

Interview with Habiba Al Marashi 

and Walid Nagi 

Renewable Energy in the Middle 

East and North Africa 

Hans Müller-Steinhagen and 

Franz Trieb 

Wasta: How the Use of 

“Connections” Impacts 

Markus Loewe 

Improving Labor Standards 

Performance in the Middle East 

Craig Moss 

72 

74 

78 

80 

84 

86 

88 

90 

92 

94 

96 

138 

Human Rights 



Nestlé 

Sakhalin Energy 

Labour Standards 


Coop 



ManpowerGroup 

Randstad 

Viyellatex 

Anti-Corruption 


100 

102 

104 

106 

108 

110 

107 

112 

114 

116 

120 

122 

124 

126 

128 

130 

132 

134 

136 

Environment 

Air France 

Armacell 


Camposol 

Carrefour 


Copeinca 

Deutsche Bank 

EDF Group 

Grundfos 

Hochtief 

Huawei 

Otto Group 


Siemens 

Sonae 

Sopharma 

Toshiba 


142 

144 

146 

150 

154 

156 

158 

160 

162 

164 

166 

168 

170 

Development 

ACI 

Adecco Group 

BASF 

Bayer 

Bradesco 

GDF Suez 

Merck 

Novo Nordisk 

The TMS Group 

CSR-Management 

AKSA 

Kusch + Co 

Puma 

Financial Markets 

Arab African International Bank

Agenda 

Blueprint 

Blueprint 

for Corporate 


Global interconnectivity lets consumer markets constantly 

grow together. Modern communication technologies accelerate 

this phenomenon: The brand image as well as the selfperception 

of any company lies in the hands of millions of 

people using social media or their buying power. Businesses 

therefore have to prove they have taken responsibility along 

their entire value chain. Stakeholders across all sectors, regions, 

and segments of society are asking for it – in fact, they are 

demanding it – and they are tolerating misconduct less 

and less. The concept of corporate social responsibility (CSR) 

has, over the last years, significantly developed: from noble 

promises and boilerplate solutions toward a management 

approach and a powerful driver that can build a new, more 

sustainable 21st century economy. To guide us along this road, 

we urgently need a blueprint for corporate sustainability. 


7

Agenda 

Blueprint 

By Dr. Elmer Lenzen 

A couple of years ago CSR topics were only a “nice to have” 

item on many executive floors. It was something dealt with 

after hours. That has changed for good. Corporate sustainability 

today is a “must have.” An Accenture survey recently 

made this point: “CEOs around the world are starting to see 

the shape of a new era of sustainability coming into view. In 

the face of rising global competition, technological change 

and the most serious economic downturn in nearly a century, 

corporate commitment to the principles of sustainability remains 

strong throughout the world: 93 percent of CEOs see 

sustainability as important to their company’s future success.” 

What is interesting regarding this development is that the boom 

of corporate responsibility brings its issues into the spotlight but 

sometimes also into the cross wires. The more CSR is embraced 

by businesses, politicians, and nongovernmental organizations, 

the more it is blamed for society´s failures. Harvard professor 

Michael Porter recently pointed out this significant development 

in the January edition of the Harvard Business Review. 

Moving beyond short-termism 

For Porter the problem lies with the companies themselves. 

They are trapped, as he says, “in an outdated approach to 

value creation.” Porter is referring to the well-known vicious 

circle of short-termism: It cultivates a perception that blocks 

many long-term perspectives. This criticism is not new, but 

nonetheless correct. It is not that short-termism is preventing 

long-term value creation, but rather that it ignores the complexity 

of certain realities and the effect of unseen long-term 

dynamics. Management systems are laid out to manage what 

they can measure. But do they calculate the well-being of the 

community? Do they care about extinction of species, etc.? 

Too often they do not, and we can observe all over the world 

a growing mistrust of corporations and a subsequent loss of 

credibility. “Companies must take the lead in bringing business 

and society back together,” Michael Porter therefore says 

in his article. And he is right. We need an overall framework 

for guiding these efforts. For him the answer is the concept of 

“shared value”: This idea assumes that corporate success and 

responsibility are interdependent. It acknowledges trade-offs 

between profit-orientation and social or environmental goals. 

“I see the ‘creating shared value’ concept as a significant step 

forward,” John Elkington, who originated the term “triple 

bottom line” applauds, “though at one level it’s a rebranding 

by Michael Porter and Mark Kramer of long-standing concepts 

in the field of sustainable business, including Jed Emerson’s 

‘blended value.’” 

Continuous improvement needed 

And where does the United Nations Global Compact stand in 

this discussion? From the perspective of the Global Compact, 

these developments have led to two central findings: First, 

exemplary entrepreneurial commitment can foster and create 

incentives for other companies to accelerate and improve 

their own path to sustainability. Secondly, the recent crises 

and challenges – from the global recession to climate change 

– demonstrate that even outstanding practices require continuous 

improvement to persist in an increasingly complex and 

volatile global economic system. 

Against this background the UN Global Compact took the 

advantage of the third Leaders Summit in June 2010 in New 

York to present a “Blueprint for Corporate Sustainability 

Leadership,” which is a detailed timetable for sustainability 

in the context of the Global Compact Principles and objectives. 

The Blueprint describes 50 concrete fields of action where the 

“ 

Exemplary entrepreneurial 

commitment can foster and create 

incentives for other companies to 

accelerate and improve their own 

path to sustainability. 

Global Compact can help to improve companies’ sustainability 

management – from risk analysis or supply chain management 

to sustainability reporting. “The platform is designed 

to challenge highly engaged companies in the UN Global 

Compact to reach further, to experiment, to innovate, and to 

share learnings – both successes and failures.” 

Reputation, resources, and respect 

Standards like the concept of shared value as well as the Global 

Compact Blueprint are sensitive and sophisticated. They have 

the power, the outreach, and the persuasiveness to be beacons 

for a more sustainable 21st century. To come to a tipping point, 

it will be essential to motivate not only the leaders but also 

the newcomers and novices. CSR is not a unique selling point. 

If it is to be a “license to operate,” a blueprint for corporate 

sustainability has to give – and will give – offers for assistance 

to those who are at the beginning, or to those who have 

not even taken the first step yet. It is a race to the top – the 

frontrunners as well as the entry points must be identified. It 

is the LEAD initiative of the Global Compact that will develop 

a roadmap for CSR leaders in the race. 

And what are the guidelines for beginners? They must be 

attractive and simple. An approach could be the three r’s: 

reputation, resources, and respect. 

First, the janiform relation between reputation and risk. It 

does create value. Reputation is corporate identity as defined 

by others. A good reputation increases sales, attracts the best 

in the class, is a safe harbor for investors, etc. A bad reputation 

on the other hand is an enormous risk. The question is: 

Is sustainability a main topic for reputation and risk management? 

It is. If you doubt it, go and ask BP. 

” 

Second, resources. We live in a physically limited world. Unlimited 

economic growth based on the use of non-renewable 

resources therefore is not possible. It is to the credit of people 

like Stephan Schmidheiny, initiator of the World Business 

Council for Sustainable Development, who coined the concept 

of “eco-efficiency.” They taught us that the smart use of 

resources preserves the means of existence and save a lot of 

money. These are compelling facts. 

Finally, respect. It may sound old-fashioned, but in the words 

of the German moral philosopher Immanuel Kant: “Act only 

according to that maxim whereby you can, at the same time, 

will that it should become a universal law.” Respect does not 

necessarily mean esteem – a respectful attitude will not tolerate 

unscrupulous egoistic behavior. Economic history teaches 

us that companies that act in this manner most of the time 

will outperform those that just want to make a fast buck. 

Dr. Elmer Lenzen is Chair of the 

macondo Media Group and Publisher 

of the Global Compact International 

Yearbook. 


9

Agenda 

Blueprint 

Adam Smith wrote in The Wealth of Nations that –“All for ourselves, and 

nothing for other people, seems…to have been the maxim of mankind.” 

There is no space in this sentence for a moral compass or business ethics. 

With all my heart I hope you disagree: Why do you think corporate 

responsibility is of critical importance today? 

I think what has changed dramatically since those words 

were first written are two fundamental realities. One is the 

media-based interconnectivity in the world. It was so much 

easier in previous centuries and previous generations to disregard 

the complexities, the pain, the sufferings, and even the 

disasters that affect other parts of the world. Nowadays, daily 

media shows us an imperfect world where – no matter of 

how successful we are – we come in contact with those who 

are distressed, impoverished, in need, are losing their jobs, or 

being affected by corruption. We see the downside of mankind 

that you would never be able to see without global media. 

The second thing that has changed is this impact on a new 

generation that is jeopardized by the downsizing of industry, 

and the industrial impact on the climate in particular. These 

The 

CSR scene 

has matured 

In discussion with Lord Michael Hastings 

youth have shown that they are familiar with taking steps 

to protect natural habitats, to conserve wildlife, and to stop 

deforestation because they understand the impact of carbon 

dioxide. Those two combined factors have changed the way 

in which we think about our responsibilities. 

How do you think the corporate sustainability movement has evolved 

in the past 10 years? 

We’ve all become more aware and learned our lessons. 

We are able to see today the impact of different sides of human 

behavior on natural habitats. It is now expected that 

business performance is also about responsible business action 

and not just about revenue generation of shareholder 

returns. The individuals who today have responsibility within 

businesses are fully aware of the costs and must decide what 

the consequence of decisions are compared with sets of decisions. 

They have an opportunity to protect and preserve our 

natural environment and to ensure that people’s ways of 

life are not lost. 

What do you see as the most pressing challenges to bring the movement 

to true scale? 

I think that it is a combination of those who still hold the 

power and pull the strings of business – those are the investors 

and shareholders, the financial houses, and those with government 

responsibility. They all share a common vision for business 

– that it has to build shared value. That is what will drive real 

long-term opportunity, and not so much applying pressure on 

whatever company is in line. Would you get the same results 

without pressure? Would you get the same level of awareness 

and commitment? You wouldn’t. It is by creating shared value. 

Last year, the Global Compact presented its Blueprint for Corporate 

Sustainability Leadership. In your view, what are the characteristics 

of a sustainability leader in 2011? 

The important first characteristic is an intelligent awareness 

of the challenges to the stability of the natural environment, 

and challenging the constructive characteristics of 

communities that are struggling for basic supplies of shelter, 

food, water, etc. I expect business leaders to not just reduce 

their costs and risks but above all to answer a wide array of 

concerns about the way in which their businesses function, 

the way in which social development is affected, and how the 

talents within are affected. 

The second thing that I would expect is that a business leader’s 

attitude toward the next generation has to become passionate. 

Finally, currently successful leaders are expected now to be givers. 

In summary: I want leaders that are highly intelligent, very 

aware, politically astute, understanding of society, interconnected, 

as well as philanthropic and generous. This is a big 

shift in expectations but it is the right thing to do. 

As you just mentioned: Do you see a renaissance of philanthropy? 

I do see that shift. If you want evidence, you can look 

at the website of the organization “Committee Encouraging 

Corporate Philanthropy.” It is the only organization in the 

world that gives you substantial data on corporate giving and 

what differences it makes inside and outside the companies. 

The level of awareness is rising in large companies. But how is the 

situation in small and medium enterprises? What has to be part of a 

blueprint for companies entering the field of CSR? 

It is the responsibility of leaders of any company size to 

ask themselves if they are stakeholders in the community 

where they positioned their business. They have to ensure 

that the community is functioning. If the community isn’t 

working well, if it is criminal, if people are intimidated, if it 

is difficult for people to get to work, if the water isn’t safe, 

etc., then the responsibility of the business is to support local 

organizations in improving prospects. 

This is where you start. Any business can do that. You start 

with the questions: How can your company return investment 

to its stakeholders? What are the organizations that might 

require the business’s attention? What can be done to improve 

the performance of local activists? 

In the wake of the financial crisis, many have talked about the need to 

shift from short-term profit maximization to long-term sustainable value 

creation. What has to change to make this happen on a broad scale? 

There is a need to understand financial behavior and the 

consequences of decision making. There are regulation based 

processes that are necessary to limit profit-taking and to encourage 

responsible investment. There is nothing wrong with 

good investments but irresponsible, high-risk investments are 

not necessarily a good idea. Decisions nowadays are far too 

interconnected and this has to be taken into consideration. 

It has to be part of everybody’s DNA in how they approach 

their work. Do I simply work to get through the day or do 

I see work as part of the contribution of experiences and 

expertise to build a more constructive society? How do I see 

my role in what I’m doing? It is more than the pure function 

of acquiring money and getting the check at the end of the 

week or the month. The thing is to recognize that with the 

money I earn and the tax I pay, I’m also delivering social value 

to those with limited resources and existential value to those 

with no resources. 

Would a correlation between the compensation of the managing directors 

and sustainable performance indicators be a good idea? 

Absolutely. Building sustainability performance criteria 

are critical mechanisms that were previously performed 

by financial values. Now they can be made according to 

environmental values as well as social values. The thing 

is – and this is what the UN Global Compact has to talk 

about – that it should be transparent, published, and accessible 

to outsiders. 

That case also gives us a lesson in corporate governance. In some earlier 

interviews, you called for a radical shakeup of corporate governance. 

What exactly is your opinion? 

The conversation about corporate reporting is about those 

who have governance responsibility for businesses making 

the maximum amount of data and information possible avail- 

10 

Global Compact International Yearbook 2011 


11

Agenda 

Blueprint 

“ 

I want leaders that are highly 

intelligent, politically astute, 

understanding of society, as well 

and generous. 

” 

Blueprint for Corporate 

Sustainability Leadership 

able to the public and showing the easiest way to integrate 

environmental, social, and governance information about 

their company. How can they be held accountable? They have 

to do it through public opinion, shareholders, stakeholders, 

the media, as well as supportive organizations. That’s what 

I mean by inclusive corporate governance: transparency of 

the mechanisms, accountability to the information, and the 

responsibility of the leadership to deliver value. 

In 2010, we saw BP’s share price drop more than 50 percent following 

the Deepwater Horizon oil spill. Looking at the business sector that BP 

is in, what advice would you give the company for rebuilding trust and 

becoming a sustainability leader? 

BP is a very compelling example because it was linked to 

a substantial environmental catastrophe. BP at least has put 

itself to the task of repairing the damage. It dedicated its leaders, 

its resources, and its technical experts to get things right. 

Mistakes and accidents happen in every industrial, business 

or service organization. What is important is how we learn 

from a catastrophe of that extent and act accordingly. 

What are the crucial – and probably uncomfortable – questions the 

CSR community has to answer in the near future? 

That is a very good question. I think the issue should 

shift away from a department of the organization that deals 

with responsibility and business engagement. Instead, there 

should be an expression of how the company as a whole has 

corporate responsibility. It should be its leaders, its board 

members, and its employees who feel the burden and the opportunity 

to handle corporate responsibility. Instead of being 

the function of a department, it should be an inspiration and 

integrated into the bloodstream of the company. To get there, 

we need people leading those departments who have a very 

strong sense of global connectivity and a very strong sense of 

responsibility and values. But I’m confident and I do see that 

the corporate responsibility scene has matured. 

Thank you very much for this interview. 

How shall a company find balance between giving information and 

doing marketing? 

That is a delicate issue because the more a company reveals 

about itself, it is going to provide the best possible gloss 

on how it is doing it. The answer is: It needs to be honest, it 

needs to be transparent, and it needs to be accountable. Two 

of the best examples in my opinion are the work of Unilever 

and Nestlé. As food and drinks production companies, they 

clearly understand the impact they have on the water that 

they extracts from the environment for products. Both have 

committed themselves to the responsibility of a shared value. 

That means in their daily work they focus on how they can 

enable production facilities to recover the water that is used 

rather than let it be lost. Shared value shows how we return 

value beyond the products or the services that we get. 

About: 

Lord Michael Hastings of Scarisbrick is KPMG 

International’s Global Head of Citizenship and Diversity. 

Previously, he was the BBC’s first head of corporate social 

responsibility. In January 2003, Michael Hastings was 

awarded a CBE (Commander of the British Empire) in 

recognition of his services to crime reduction. In July 2005, 

he was awarded the honor of an independent cross bench 

peerage to the House of Lords. 

The Blueprint offers UN Global Compact participants a model 

for achieving higher levels of performance and generating 

enhanced value through the UN Global Compact. It allows 

companies and their stakeholders to assess progress with 

respect to their commitment, strategy and implementation 

and to communicate effectively as they ascend the learning 

and performance curve. 

In the context of the Blueprint, corporate sustainability is defined 

as a company’s delivery of long-term value in financial, social, 

environmental and ethical terms. It thus covers all principles 

and issue areas of the UN Global Compact. The Blueprint is 

grounded in the two core commitments made by participating 

companies. It includes aspects of leadership that are considered 

key to maximizing results with respect to these commitments, 

including active engagement with the UN Global Compact 

locally and globally. 

The Blueprint encompasses three distinct but overlapping and 

synergistic dimensions. They are: 

1| Implementing the Ten Principles into strategies and operations 

2| Taking action in support of broader UN goals and issues 

3| Engaging with the UN Global Compact 

Each dimension contains a number of key components. In addition, 

several cross-cutting components of leadership were identified 

as a crucial overlay to the three dimensions. 


13

Agenda 

Blueprint 

Can Corporate 

Social Responsibility 

Lessen the Impact of 

a Crisis or Lead to a 

Faster Recovery? 

By Craig Badings 

Too often, corporate social responsibility (CSR) is driven by 

social or government pressure, the fear of possible negative 

publicity, or the expectations that the financial markets have 

of listed companies. 

But the market is changing, as more and more companies are 

starting to align their CSR programs with the values they want 

to espouse as an organization as well as with the expectations 

of society as a whole. From a risk-management perspective, 

there is a growing realization that companies are frequently 

judged by: the perception of the market at the time of a crisis 

as to whether they acted responsibly in the lead-up to the crisis; 

their CSR track record; and how they resolved to deal with 

and acquit themselves during and after the crisis. 

Milton Friedman’s famous line “The business of business is 

business…” no longer cuts it. Companies know this, the public 

knows it, and so do NGOs, regulators, and government. It is no 

longer good enough to merely tick the compliance box. Not 

only are companies expected to come up with products that are 

good for the bottom line, they also need to be good for society. 

In a June 2009 interview with Richard Edelman, President and 

CEO of Edelmans, conducted by Rik Kirkland, McKinsey’s Director 

of Publishing, Edelman coined the phrase “mutual social 

responsibility.” He explained it like this: “…people – consumers 

– are willing to pay a bit more for products that are ethically 

sourced or that have a good story. But I think, in response, they 

want to be sure that the companies they’re doing business with 

have the right supply chain, have the right kind of process for 

the environment. So it’s the mutuality of it.” He called it the 

move from an information economy to a collaboration economy. 

Are companies fulfilling this? Are they willingly going beyond 

what is expected? My view is that, with a few exceptions, they 

are not – or certainly not to the extent now expected by 

consumers, governments, institutions, and NGOs. Problems 

arise when companies view CSR as a way to placate pressure 

groups. Too often, these companies end up putting in place 

reactive, short-term CSR programs with little or no long-term 

value to the business, scant alignment with the company’s 

values, and little or no benefit to stakeholders. Often it is these 

companies, in time of a crisis, that are seen for what they are. 

Once their superficial CSR programs are laid bare, the resultant 

community and media backlash leaves them shell-shocked as 

they reel from massive reputational damage. 

Globally, governments are expanding compliance regulations 

across numerous industries – a clear signal to some that 

business has not come to the CSR table. Instead of taking 

collective action to help solve complex problems with the 

cooperation and support of government and NGOs, business 

– in the main – has done as little as legally possible. The GFC, 

greenwashing, and a growing scrap-heap of corporate catastrophes 

are testimony to this. Not surprisingly, in December 

2009, when CSR managers were interviewed for a McKinsey 

Global Survey on valuing CSR, they were unsure of the value 

of their environmental, social, and governance activities. In 

fact, more than half reported that they did not know what 

effect these programs had on value creation at all. 

Who’s to blame? A large proportion of the blame must lie at 

the feet of the boards and the management of those companies 

satisfied to pay lip service to paper-thin CSR initiatives. What 

does this have to do with crisis communications? I say everything. 

CSR in the truest sense is about conducting a thorough 

risk-analysis and aligning programs with company values 

that best mitigate those risks in as collaborative a manner as 

possible with a variety of stakeholders. Yet still, there are tens 


15

Agenda 

Blueprint 

of thousands of companies that view their CSR initiatives as 

short-term “insurance policies” to appease their staff and to 

fob off the communities within which they operate. 

In the 1990s there were many companies attacked for discriminatory 

and unfair labor practices and people became aware of not 

buying “blood” – or conflict – diamonds. Nowadays, consumers 

are concerned about the metals sourced for their computers, 

where and how a company sources its raw materials, and the 

content of the food they purchase. We have moved rapidly 

into the era of the ethical consumer, a wave which will swamp 

those businesses that still think that the business of business 

is business. There are many who will disagree. Their view is 

that we will continue to do business the way we have always 

done it and that their customers do not really care. In years 

to come, it is likely that history will judge them as corporate 

dinosaurs who went under because they were unable to adjust 

to the demands of the broader society in which they operated. 

Today, greater calls for transparency have moved corporate 

governance to center stage – doing what is right is a reputational 

imperative and CSR initiatives form the center of this. 

The Reputation Institute, represented in Australia by AMR 

Interactive, has been studying the dynamics of reputation 

for more than 14 years. After years of research, they have 

defined the key attributes that drive a company and a sector’s 

reputation as: 

1| products and services 

2| governance 

3| citizenship 

These are followed in order by innovation, workplace, leadership, 

and finally, performance. Taking product out of the 

equation for now, the measurements for governance are 

openness and transparency, ethical behavior, and fair conduct 

in all aspects of business. Citizenship measures things like 

environmental responsibility, support for good causes, and 

whether the company has a positive influence on society. 

Companies that embrace these principles and get it right are 

on track to building a strong reputation shield in the event 

of future crises. 

Importantly, the findings of the Reputation Institute over the 

years corroborate that a well-regarded company is more likely 

to be trusted, liked, admired, and esteemed than others. All 

of these qualities are strong mitigating factors during a crisis, 

likely to afford the company, for a while at least, the benefit of 

the doubt when a crisis hits. In 2006 the survey Safeguarding 

ReputationTM was conducted in 11 markets by global public 

relations firm Weber Shandwick with KRC Research. They found 

that a substantial majority of the global business executives (79 

percent) surveyed believe that companies with strong corporate 

responsibility track records recover their reputations faster 

post-crisis than those with weaker records. Recent research 

conducted by Ipsos MORI in the United Kingdom showed that 

companies participating in Business in the Community’s (BITC’s) 

Corporate Responsibility Index (CRI) annually from 2002 to 2009 

outperformed their FTSE350 peers on total shareholder return 

(TSR) by an average of 10 percentage points in seven out of the 

eight years. Tellingly, the TSR of these companies did not fall 

as far as their competitors and recovered more quickly in 2009. 

Stakeholders and the general public are quicker to judge and 

slower to forgive than ever before. The benefit of the doubt is 

becoming harder for companies to overcome: Doing what is 

right is the new reputational imperative. Unfortunately, many 

companies adopt CSR as a result of being the subject of public 

scrutiny and criticism, perpetuating the view of consumers, 

NGOs, and government that businesses are only in it for themselves. 

In a Harvard Business Review paper entitled “Strategy 

and Society: The link between competitive advantage and CSR,” 

authors Michael Porter and Mark Kramer say that “proponents 

of CSR have used for arguments to make their case: moral 

obligation, sustainability, license to operate and reputation.” 

I often ask myself how so many companies can be surprised by 

public responses to issues they have not seriously considered 

and – worse still – did not believe were part of their business 

responsibility. One only need look at the food industry regarding 

issues around salt, sugar, obesity, and links to diabetes, heart 

disease, and the like. Or one can look at heavy manufacturing, 

industrial companies, and car manufacturers and their battle 

to come to terms with sustainability, emissions, and the like. 

Risk managers and communications or crisis managers should 

not only combine efforts to counsel their organization/s on 

how to avoid a crisis in the first place, but also examine what 

they should be doing to lessen the impact of a crisis when it 

hits. This is critical for good reputational risk management. 

A company’s impact on society changes over time as social 

standards evolve, science changes, and new risks and evidence 

of risks emerge. The good crisis manager monitors these and 

incorporates them into the company’s risk profile. In doing so, 

he or she should work with the CSR team and executives to 

address and minimize the potential for conflict and to lessen 

the capacity of these issues to flare. 

It is the crisis managers’ responsibility to think hard about 

what will be next – will it be food manufacturers, the alcohol 

industry, the fast food industry, energy producers, or the 

mobile phone industry? Their job is to prepare the company 

for all eventualities. A good starting point is to begin building 

the company’s reputation shield by aligning its values 

with an integrated and meaningful CSR campaign, which, in 

turn, aligns with the company’s business objectives. Why is it 

that so many companies in high-impact areas such as heavy 

manufacturing, chemicals, petroleum, and mining, to mention 

a few, are the ones that more often than not display the 

most advanced CSR programs? Some may say these sectors 

have changed as a result of the constant pressure, government 

regulation, and strong media focus. This may be so. The fact 

is that many of these companies are leading the way – their 

CSR programs are now an integral part of the values of the 

company and the way they do business. 

Dow Chemical is probably the quintessential example of 

how a company can shift its reputation over time. It was one 

of the biggest movers in the 2009 Global Reputation Pulse 

survey. Why is this so relevant? Because it was the company 

that inherited Union Carbide after the Bhopal gas disaster in 

India in which an estimated 25,000 people died. Despite being 

punished for years by stakeholders far and wide, over time 

Dow Chemical shifted its reputation from that of a chemical 

company to a company that embraces a reputation platform 

focused on building a truly sustainable future. But is it enough 

to act as an effective reputation shield at the moment a crisis 

hits and in those critical days and months immediately after 

a crisis? Hypothetically, if company A’s CSR program relates to 

the issues that communities, customers, and employees care 

about most – while company B’s CSR program is characterized 

by tentative, short-term initiatives – it is likely that, while 

company A will not avoid intense scrutiny, its audiences will 

be more forgiving than those of company B. It will have more 

third-party endorsers and it will have a strong set of internal 

ambassadors. More importantly, as post-crisis scrutiny inevitably 

grows, the elements of what company A did in the lead-up to 

the crisis, its relationships with stakeholders, and its modus 

operandi will help lessen the desire to find fault, and thus 

lessen the impact of the crisis and hasten post-crisis recovery. 

However, not even the best CSR program will stop activist 

groups targeting the most visible company in a sector if that 

target serves to heighten public or government awareness on 

key issues. Nestlé, for example, has become a major target 

in the global debate about access to fresh water, despite the 

fact they consume only 0.0008% of the world’s fresh water, 

have arguably one of the world’s leading water sustainability 

campaigns, and conduct groundbreaking work with farmers 

who supply them on their sustainable water practices. The 

companies that lead the way in any reputational institute rankings 

are the ones that understand they have to go well-beyond 

compliance. They know they need to own a space in which they 

proactively create their CSR programs with their stakeholders 

by being open and transparent and by constantly shifting the 

goalposts to stay ahead of societal issues and concerns. 

If CSR is to truly act as a reputational shield in a crisis, its intentions 

have to be honorable and aligned with the values of 

the business and its stakeholders. Effective CSR programs can 

be far more than a cost to the business or merely a charitable 

handout. The right strategic and issues-led CSR initiatives 

generate business opportunities, promote innovation, and 

ultimately deliver the business a competitive reputational 

advantage while at the same time benefitting stakeholders. 

Importantly, during a time of crisis, it helps form a potent 

reputational shield and will underpin a more rapid recovery 

post crisis. 

Craig Badings is a Director at Cannings 

Corporate Communications. 


17

Agenda 

Blueprint 

By Bill Baue and Dr. Marcy Murninghan 

The Accountability Web: 

Weaving Corporate 

Accountability with 

Interactive Technologies 

It is guerilla warfare out there for companies that are not 

careful. Last year, Greenpeace “punked” Nestlé over palm oil 

sourcing with a YouTube video and Facebook campaign. In 

April 2011, The Yes Men punked GE over tax payments with a 

fake press release, and coal companies over “clean coal” with 

a hoax website. These are just a few high-profile examples of 

activist campaigns seeking to hold companies accountable 

through social media and other web-based tools. On the flip 

side, companies such as Shell, Patagonia, Timberland, Natura, 

SAP, and Guardian News & Media use social media to proactively 

engage stakeholders, which enhances their corporate 

sustainability and corporate social responsibility (CSR) work 

in innovative ways. 

Using Web 2.0 tools for corporate accountability makes inherent 

sense, as they share a common thread: Both are rooted in 

interaction and thrive on engagement. We call this intersection 

The Accountability Web, the title of the report we wrote 

last year during a research fellowship for the CSR Initiative at 

the Harvard Kennedy School. In it, we identified the dynamic 

nature of accountability, which “establishes a dialogic relationship” 

between actors on all sides of the equation, according 

to academic Andreas Schedler. 

While Tim Berners-Lee included interactivity into his 1989 

conception of the World Wide Web, it remained latent for the 

medium’s first decade – it was not until the late 1990s that 

interactive Web 2.0 applications began emerging in earnest. 

Likewise, corporate accountability has lagged in its interactive 

potential, with most early-stage accountability taking the 

form of one-way campaigns, with companies and stakeholders 

talking at each other more than with each other. 

From Accountability 1.0 to Accountability 2.0 

Borrowing from computer terminology, we dubbed this dynamic 

Accountability 1.0, which creates self-reinforcing feedback loops 

of antagonism, confrontation, and mistrust between companies 

and stakeholders. At about the same time the web went interactive, 

so too did accountability with the advent of multistakeholder 

initiatives such as the Global Reporting Initiative and 

Forest Stewardship Council – ushering in Accountability 2.0. 

Characterized by two-way communication and cooperation, 

Accountability 2.0 allows actors in the accountability ecosystem 

to continue disagreeing over substantive issues while engaging 

in respectful dialog toward the goal of mutual understanding 

and compromise leading to solutions. This progression also 

shifts from the unidirectional Accountability 1.0 practice 

of one group seeking to hold the other accountable, to the 

multidirectional Accountability 2.0 practice of groups being 

accountable vis-à-vis each other – otherwise known as 

mutual accountability, a core concept in civil society and the 

field of sustainable development institutionalized in the Paris 

Declaration on Aid Effectiveness. 

These notions align with thought leadership that emerged in 

2011. For example, in a January/February 2011 Harvard Business 

Review cover article, Michael Porter and Mark Kramer 

advocate for “creating shared value” that benefits business and 

society – an outcome that requires communication between 

companies, governments, civil society, and other stakeholders 

to identify mutual priorities. The next month, HBR published 

“Capitalism for the Long Term,” in which Dominic Barton of 

McKinsey argued for “fighting the tyranny of short-termism” by 

“serving stakeholders” as a means of “enriching shareholders” 

over the long term. Here again: Serving stakeholders requires 

engaging them on equal terms. 

In his February 2011 book, The Age of Responsibility, Wayne 

Visser describes a progression from “paternalistic” CSR 1.0 

to “collaborative” CSR 2.0 built on principles of “connectedness,” 

“responsiveness,” and “circularity” – all elements of 

stakeholder engagement. And Umair Haque’s January 2011 

book, The New Capitalist Manifesto, similarly advocates “responsiveness” 

that moves “from value propositions to value 

conversations.” Says Haque: “Imagine an economy powered 

by organizations whose stakeholders are all associating, deliberating, 

and participating in public spaces.” In other words, 

interacting in the Accountability Web. 

Weaving the Accountability Web 

Reeling from the mid-1990s Brent Spar and Saro-Wiwa controversies, 

Shell moved more proactively into risk-avoidance by 

ramping up its stakeholder engagement (among other tactics). 

In 1998, the company became one of the first to experiment 

with leveraging the interactivity of the web to engage with 

stakeholders through its TellShell portal. In 2007, Shell rebranded 

this effort ShellDialogues with a dedicated website 


19

Agenda 

Blueprint 

that shifted from 24/7 accessibility to hosting periodic webchats, 

or hour-long text-based interaction on specific topics with 

Shell experts engaging with stakeholders in real-time. For 

example, ShellDialogues hosted an online debate on May 4, 

2011, entitled “Shell’s Latest Scenarios: Energy Planning in a 

Volatile World,” with a transcript of the proceedings compiled 

and released after the event. 

US-based Patagonia and Timberland and Brazil-based Natura 

all host dedicated websites for ongoing stakeholder engagement. 

In 2008, Patagonia launched The Footprint Chronicles, 

a map-based platform that traces product impacts throughout 

the supply chain and seeks stakeholder input to help solve 

problems. In 2009, Timberland migrated its Voices of Challenge 

initiative (which began engaging stakeholders in its 2005 CSR 

report) to the web, extending the company’s existing dialog 

mechanisms (including in-person meetings and conference 

calls) to allow stakeholders to give feedback 24/7. That same 

year, Natura launched its NaturaConecta Web 2.0 platform, 

expanding its reach from 300 stakeholders in face-to-face 

meetings to over 8,000 virtual stakeholders. Natura and 

Timberland exemplify what we call “blended engagement,” 

mixing in-person with online interaction. 

SAP has integrated engagement at the core of its Sustainability 

Report, a move that has garnered recognition, including a 2011 

Ceres-ACCA award. For example, SAP created an interactive 

materiality matrix that crowdsources views on stakeholder 

priorities, such as water use – which some stakeholders feel 

should rank higher in the “Potential Impact on SAP business” 

scale, according to comments in a sidebar widget. SAP also 

programs interactivity into its Greenhouse Gas Footprint 

tool, which enables report visitors to parse the data by year, 

region, and scope – among other variables – to examine 

in detail how the company decoupled emissions (which fell 

6 percent) from revenue (which experienced double-digit 

growth) in 2010. 

Guardian News and Media encourages stakeholder participation 

on its web-based Sustainability Report, as well as on every post 

in its Sustainability Blog, which the media company frames as 

an extension of its sustainability report. Going a step further, 

the report’s assurance provider, Two Tomorrows, provides 

“rolling” assurance of all comments, verifying the accuracy of 

data posted – and sometimes questioning information. This 

can lead to real-time online discussion on issues of accuracy 

and perception between assurer, client, and stakeholders, 

which Guardian Sustainability Head Jo Confino views as 

healthy dialog because it transpires in full view. 

The Guardian also hosts online discussions on sustainability 

issues, such as employee engagement and sustainability reporting, 

where a panel of experts field questions and stimulate 

debate over a two-hour period. Similar sustainability-focused 

online discussions occur regularly on Twitter, such as the 

#CSRchat hosted bi-weekly by Fenton; #RSEchat hosted weekly 

by Paula Puterman; or the #HBRchat hosted weekly by the 

Harvard Business Review. Outlets for longer-form discussions 

(unbound from Twitter’s 140-character limit) allowing dialog 

to unfold more organically are cropping up, too. One example: 

the monthly Sustainability Chat on OpenEyeWorld (OEW), an 

online platform for sustainability expert engagement. 

OEW is among a handful of emerging online platforms – such 

as 2degrees and customized LinkedIn Groups – that host dialog 

among thought leaders, practitioners, and stakeholders across 

the sustainability spectrum, from companies and CSR experts 

to investors and NGOs. Another is Stakeware, a cloud-based 

dashboard of tools for managing stakeholder engagement built 

on a Salesforce.com backbone. Stakeware uses Salesforce’s 

Facebook-like Chatter function to power discussions. Other 

similar initiatives will continue to appear as the use of social 

media and digital interaction becomes more widely adopted. 

While still experiencing growing pains, these gathering places 

can eventually get beyond information exchange and help 

cultivate “communities of practice” that deepen understanding 

of complex issues, help to improve performance, and 

collaboratively design sustainability solutions. 

User-generated integrated reporting 

In The Accountability Web, we extolled the promise of keyword 

tagging for interacting with data as well as facilitating 

comparison and analysis of sustainability reports and other 

CSR-related content. This goal has yet to be achieved, although 

there are steps in that direction. 

For example, XBRL (or eXtensible Business Reporting Language) 

– a tagging language that the US Securities and Exchange 

Commission mandated in 2009 for financial reporting – can 

be used to navigate sustainability. The World Intellectual 

Capital Initiative (WICI) and the Impact Reporting and Investment 

Standards (IRIS) have created XBRL taxonomies that 

cover sustainability information, though neither displays 

the breadth of issues and indicators addressed by corporate 

sustainability reporting. 

In 2006, the Global Reporting Initiative (GRI) released a beta 

taxonomy of XBRL tags for GRI indicators created in partnership 

with PricewaterhouseCoopers. Given the lag that usually occurs 

between innovation and adaptation, there was little corporate 

uptake of it prior to a later release of XBRL 2.1 standards. As 

such, the 2006 GRI taxonomy is “no longer valid or available,” 

according to Asthildur Rutten-Hjaltadottir, Senior Manager of 

Report Services Programs at GRI. Lisa French, GRI’s Director 

of the Sustainability Reporting Framework, adds: “We’re currently 

in discussions with a potential project partner to update 

the G3 taxonomy and create a new taxonomy for G3.1,” the 

updated guidelines released in spring 2011. This comes as Ethical 

Performance exerted pressure with the headline, “XBRL: 

It’s up to GRI to show progress or explain failure.” 

The creation of a current, robust XBRL taxonomy covering 

environmental, social, and corporate governance (ESG) factors 

exists alongside efforts to integrate sustainability and 

financial data. The latter is the mission of the International 

Integrated Reporting Committee (IIRC), formed in 2010 on the 

momentum of the One Report book by Bob Eccles of Harvard 

Business School and Mike Krzus of Grant Thornton. In addition 

to hosting regional roundtables, this June IIRC distributed its 

draft Discussion Paper for public comment, and later this Fall 

will launch its two-phase, two-year Pilot Program for companies 

to road test the integrated reporting framework. IIRC also will 

encourage the G20 at its Paris meeting in November to endorse 

the idea and practice of integrated reporting. 

Complementing this effort, AccountAbility is launching a research 

project covering the “missing links” in integrated reporting, such 

as the ability of users to generate their own integrated reports 

as well as merging sustainability and financial data through tagging. 

Importantly, user-generated reports can customize the mix 

of environmental, social, governance, economic, and financial 

data according to user priorities and preferences. 

Company-generated integrated reports carry value on a number 

of fronts, perhaps first and foremost in transforming the 

approach of corporate culture from its traditionally exclusive 

focus on the financial bottom line toward considering material 

tagging impacts. However, the change agenda is rarely driven 

solely by the private sector; indeed, most often, it is external 

regulation and stakeholder pressure that prompts progress 

on sustainability. Viewed through this lens, user-generated 

integrated reporting may come to carry as much importance 

as company-generated integrated reports for advancing the 

alchemizing of sustainability and financial considerations 

into a new alloy. 

Gaming for good 

The Accountability Web has a lighter side, too. Game-based 

technologies can serve as powerful tools for advancing sustainability 

and civic engagement, while enabling us to become 

game creators, too. In fact, a growing number of digital game 

developers are finding ways of connecting game genres and 

mechanics to serious policy issues, creating outcomes that both 

educate and engage. Some examples of simulation and gaming 

technologies that are used for sustainability purposes include: 

• The AMD Foundation’s Changing the Game education initiative, 

with its Activate! platform, launched in June 2010. Activate! 

helps teens 13 to 15 move from “players” to “producers” by 

designing and programming video games with social content in 

areas such as energy and the environment. AMD – along with 

other tech firms such as Mozilla Labs and Microsoft – supports 

independent game development, well-suited to the widespread 

use of smartphones, iPads, and other mobile devices. 

• MIT, the Sustainability Institute, and others collaborated to 

create the Climate Bathtub Simulator, an online tool that 

demonstrates the dynamic interaction between carbon emissions 

and carbon absorption/sequestration by allowing users 

to control the filling and draining of a bathtub as a simplified 

visual image. 

• Chevron uses game technology in Energyville, which it developed 

in conjunction with the Economist Group and Ecogamer. 

org. Energyville allows users to choose energy options while 

they build a virtual city. Players also learn about the challenge 

of matching energy needs to the realities of politics and other 

environmental, social, financial, and security concerns. 

• In May 2010, Allianz launched it CEO2 game, developed collaboratively 

with the WWF, which puts users in the shoes 

of corporate executives navigating climate-related decisions 

toward a low-carbon economy. 

• And last fall, IBM, also in partnership with Ecogamer.org, 

launched IBM CityOne, a free online environmental game. 

Fast Company called the problems addressed in IBM CityOne 

“scarily real” because they range among energy, water, banking, 

and retail. 

Interactive games and simulations might similarly be used 

to enhance corporate accountability, building scenarios, and 

enabling multiple stakeholders to sort through complex issues 

and test solutions. 


21

Agenda 

Blueprint 

The future of the Accountability Web 

Circling back to where we started, the outcome of the Greenpeace-Nestlé 

controversy exemplifies the potential of the Accountability 

Web to scale up positive change. In response to 

the Greenpeace campaign, Nestlé strengthened its palm oil 

sourcing policy to include best practices such as free, prior, 

informed consent (FPIC) of indigenous and local communities. 

Indeed, FPIC (which the International Finance Corporation 

recently institutionalized in its updated Sustainability 

Framework, and Talisman commissioned a report on FPIC by 

Foley Hoag LLP endorsed by the World Resources Institute) 

strengthens the web of accountability between stakeholders 

and companies. 

Joining the Dots 

How UNGC and GRI Are Working 

Together for a Sustainable Future 

By Teresa Fogelberg 

What does the future hold? In our view, this dynamic negotiation 

for social license to operate will weave its way into 

the digital realm, as previously marginalized communities 

gain increasing interconnectivity – for example through 

cell phones and other handheld devices that enable wider 

participation and representation. In the end, the Accountability 

Web illustrates the power of interactive technologies 

to support the dialogic nature of mutual accountability, 

spinning a virtuous cycle spiraling toward a more just and 

sustainable world. 

The trend toward transparency on corporate non-financial 

performance is gaining momentum and there are a number 

of frameworks, systems, and principles that help companies 

disclose information. A key requirement for making 

sustainability disclosure standard practice for companies 

and other organizations worldwide is harmonization 

between these guidance sources. 

In line with this, the Global Reporting Initiative (GRI) 

and the UN Global Compact (UNGC) have been working 

together to align advice and help organizations through 

the reporting process. 

GRI provides a comprehensive framework for producing 

sustainability reports. The GRI Sustainability Reporting 

Guidelines enable all organizations worldwide to assess 

their sustainability performance and disclose the results 

in a similar way to financial reporting. GRI’s vision is a 

sustainable global economy where companies’ disclosure 

of their sustainability performance is standard practice. 

As both UNGC and GRI are based on the concept of encouraging 

continuous improvement, there is significant 

alignment in approaches to quality and scope of sustainability 

reporting. In 2007, the two organizations published 

a linkage document to help companies navigate the two 

systems and their crossovers. The publication “Making the 

Connection: The GRI Guidelines and the UNGC Communication 

on Progress” includes a table outlining crossovers 

between UNGC’s Communication on Progress and GRI’s 

G3 Sustainability Reporting Guidelines. 

UNGC and GRI signed an agreement in May 2010 to align their 

work in advancing corporate responsibility and transparency. 

As part of this agreement, GRI is working to develop guidance 

regarding the Global Compact’s Ten Principles and is striving 

to align its next iteration of its Sustainability Reporting Guidelines, 

“G4,” with UNGC issue areas. UNGC will adopt the GRI 

Guidelines as the recommended reporting framework for the 

UN Global Compact signatories. 

Ernst Ligteringen, GRI’s Chief Executive, explained the importance 

of the partnership when it was announced: “The agreed 

collaboration, combining the expertise and efforts of GRI and 

the UN Global Compact, will allow us to significantly extend 

our outreach and support an increasing number of companies 

and stakeholders around the world which seek to improve 

their sustainability performance.” 

GRI is working toward its mission to make sustainability reporting 

standard practice, and as such is now developing the 

next generation of Sustainability Reporting Guidelines, G4. 

The Guidelines need to be fit for purpose, and should align 

with other frameworks, initiatives, and principles, including 

those of the UNGC’s. 

are now 60 training partners in more than 40 countries – that 

have been approved by GRI to train people in sustainability 

reporting. There are also UNGC Local Networks in many countries. 

Many companies in OECD and developing countries are 

both signatories to the Global Compact as well as GRI reporters. 

Because of this, it makes sense for these local representatives 

of GRI and UNGC to work together: Both organizations will 

partner at the country level. Seven countries have been selected 

in which GRI and UNGC will join forces and develop activities 

that are relevant to the local agenda. 

The ongoing partnership between GRI and UNGC will ensure 

that harmonization is successful, both globally and locally, 

thereby helping to make disclosure of environmental, social, 

and governance factors a mainstream practice. 

Bill Baue is Senior Research 

Fellow with AccountAbility. 

Dr. Marcy Murninghan 

is co-founder of the The 

Murninghan Post. 

In the publication, Georg Kell, Executive Director United 

Nations Global Compact, notes: “Companies participating 

in both initiatives have long stressed the understanding 

that the GRI is a practical expression of the Global 

Compact.” 

GRI now has local representation, called Focal Points, in five 

countries – Australia, Brazil, China, India, and the United 

States – to increase the number and quality of reports and to 

provide local input into global developments. GRI works with 

independent Certified Training Partners worldwide – there 

Teresa Fogelberg is Deputy Chief 

Executive, Global Reporting Initiative. 

22 Global Compact International Yearbook 2011 


23

Agenda 

Blueprint 

The Human Rights 

and Business 

Dilemma 

Global Compact participants have committed to support and 

respect human rights and to avoid complicity in human rights 

abuses. However, human rights remains one of the most challenging 

areas of corporate sustainability. Human rights have 

traditionally been the concern of states, and international 

human rights law has generally been addressed to them only. 

As more companies come to realize their legal, moral, and / 

or commercial need to address human rights issues within 

their own operations and activities, they are confronted with 

a number of challenges. Businesses will have to come to grips 

with the human rights framework and assess how their activities 

may relate to it. Moreover, companies are often uncertain 

how to avoid complicity in human rights abuses and where, 

in practical terms, the boundaries of their human rights 

responsibility lie. Through the Human Rights and Business 

Dilemmas Forum, the UN Global Compact, Maplecroft, and 

the GE Foundation are working together to find solutions to 

dilemmas businesses may be facing when operating in, distributing 

to, and / or sourcing from environments that may 

present higher risks to human rights. 

Whatever one’s stance in the ongoing business and human 

rights debate, it is clear that there is a keen demand for tools 

and guidance to help companies in their implementation 

efforts. The Global Compact hopes to bring more clarity to 

this debate by highlighting the relevance of human rights for 

business, demonstrating the business case for human rights, 

emphasizing practical solutions, and pointing to useful tools 

and guidance materials. 

Our goal is to show that advancing human rights is not just 

about managing risks and meeting standards and expectations; 

it is also about realizing new opportunities. The objectives of 

the UN Global Compact include the integration of the Ten 

Principles by businesses everywhere, inducing action and 

partnerships in support of UN goals to realize more sustainable 

and inclusive markets around the globe. 

The UN Global Compact has made the corporate responsibility 

to respect and the commitment to support human rights a 

key priority. This is manifest in the first two UNGC Principles, 

according to which businesses should support and respect 

internationally proclaimed human rights and should ensure 

that they are not complicit in human rights abuses. Where 

these two principles are not upheld, full implementation of 

other corporate sustainability principles will be challenging 

at best, and in some cases may prove impossible. 

The Principles may be “motherhood and apple pie,” but their 

implementation is challenging. There is a great need for prac- 

tical guidance for business, and resources that situate these 

challenges in specific scenarios are in short supply. Many 

companies are simply not sure how they can most effectively 

address the dilemmas that arise when seeking to be competitive 

in higher risk environments while respecting human rights, 

particularly where the challenges are beyond direct control in 

lower tiers of supply chains or relate to practices of independent 

business partners. 

Businesses are faced with a range of challenges when trying 

to live up to their responsibility to respect human rights, 

particularly in environments that present higher risks for 

human rights abuse and for business complicity in human 

rights abuse. Many real-world situations have no straightforward 

solutions that will satisfy all stakeholders. This creates 

a dilemma for responsible businesses. In order to address 

these situations, the UN Global Compact, Maplecroft, and 

the GE Foundation have partnered to help businesses find 

practical solutions through the Human Rights and Business 

Dilemmas Forum. 

Human rights and business in the new growth 

environment 

Emerging economies are environments presenting opportunities 

for significant growth. There are thus often attractive 

investment opportunities. At the same time, however, some 

emerging economies are among those countries that present 

higher risk environments for human rights. Even companies 

with the best reputations are at higher risk when operating 

in economies where threats against human rights are most 

severe and loom large in complex international operations 

and extensive international supply chains. 

The dilemma for responsible business is how to respect and 

support human rights in complex social, political, and economic 

contexts – particularly where human rights are being 

violated systematically. Dilemmas occur, for example, when: 

• responsible company involvement carries the risk of negative 

or unforeseen consequences for the workers or local 

communities concerned; 

• a responsible and intuitive upstream solution in an operating 

context may carry reputational risk in downstream consumer 

markets; 

• the full satisfaction of all stakeholder expectations is impractical 

given the commercial, political, and legal realities 

faced by the companies and their technical competence; 

• questions arise as to the extent to which company responsibility 

extends through different tiers of the supply chain, or 

with respect to government partners or local distributors; 

• it is beyond the remit of companies to address some of the 

root causes of the human rights violations in question, such 

as resource security, poverty, and lack of education. 

For example, companies may not be familiar with the business 

environment and social conditions in all economies 

where they have operations. Moreover, companies may not 

be able to fully control extensive and complex supply chains, 

thereby putting them at risk of complicity in human rights 

abuses, such as child labor, forced labor, and other labor 

standards violations. 

Additionally, in some instances, the respective country’s security 

situation may be volatile and put the company at risk of 

complicity in actions of security forces such as extrajudicial 

killings and torture. Further, the company may have to mitigate 

the risk of conflict minerals in its supply chain. 

Moreover, the company may be faced with legal or social 

environments that facilitate human rights abuses. Some domestic 

laws in emerging economies are in direct conflict with 

international human rights. For example, domestic laws may 

restrict freedom of speech, freedom of religion, or the right to 

privacy, or discriminate against certain groups. 

The Human Rights and Business Dilemmas Forum – A 

tool to operationalize human rights 

The Human Rights and Business Dilemmas Forum is designed 

to help companies and other stakeholders understand and 

share real-world dilemmas, particularly in emerging economies. 

It is a multistakeholder online platform for multinational 

corporations with operations, supply chains, and distribution 

networks in regions that may present higher levels of risk of 

human rights abuse and business implication in the abuse. 

Over the last year, we have identified a range of themes and 

real-world dilemmas and analyzed the array of approaches 

to them taken by different companies across different sectors. 

We explore unilateral approaches of leading companies, as 

well as path-breaking multistakeholder initiatives. 

The goal of the Human Rights and Business Dilemmas Forum 

is to enhance the collective understanding of the UNGC 

Ten Principles and the UN “Protect, Respect and Remedy” 

framework and their application in key regions of the “real 

world.” Ultimately, it will provide a vehicle for exploring 

and finding solutions on how businesses can meaningfully 

implement these frameworks and do better to meet stakeholder 

expectations. 

The Human Rights and Business Dilemmas Forum helps 

businesses to demystify human rights and illustrate their 

everyday relevance in business practice. It aims to serve as a 

tool for businesses to assess human rights risks they may be 

facing in a range of environments and business sectors and 

to explore suggested due diligence mechanisms as part of the 

operationalization of human rights in conformity with the 

human rights and business framework. 


25

Agenda 

Blueprint 

The human rights and business framework 

The Human Rights and Business Dilemmas Forum has been 

developed in alignment with Principles 1 and 2 of the UN Global 

Compact and the UN “Protect, Respect and Remedy” framework. 

The Forum aims to enhance the collective understanding of 

how the Principles and framework can be understood and 

implemented in practical terms. A set of Guiding Principles on 

business and human rights elaborates the UN “Protect, Respect 

and Remedy” framework. The Principles provide guidance on 

the duty of the state to protect against human rights abuses by 

third parties including business; on the corporate responsibility 

to respect human rights; and on the provision of greater access 

to effective remedies for victims of human rights violations. 

UNGC Principle 1: Respecting and supporting human 

rights 

The responsibility to respect human rights means not to infringe 

human rights. Operating context as well as company 

activities and relationships can pose risks that the company 

might negatively impact human rights, but they also present 

opportunities to support or promote the enjoyment of human 

rights while also advancing one’s business. 

Supporting human rights involves making a positive contribution 

by promoting or advancing human rights. Socially responsible 

organizations will typically have a broader capability and often 

desire to support the promotion of human rights, especially 

in ways that link strategically to their core business activities. 

UNGC Principle 2: Complicity 

Businesses shall not be implicated in human rights abuses 

that another company, government, individual, group, etc., is 

causing. Complicity is generally made up of two elements: 1) an 

act or omission (failure to act) by a company – or individual 

representing a company – that “helps” (facilitates, legitimizes, 

assists, encourages, etc.) another, in some way, to carry out a 

human rights abuse; 2) the knowledge by the company that 

its act or omission could provide such help. Allegations of 

complicity are not confined to situations in which a company 

could be held legally liable for its involvement in the human 

rights abuse committed by another. The media, civil society 

organizations, trade unions, and others may allege complicity 

in a far broader range of circumstances. Accusations of 

complicity can arise in a number of contexts: 

• Direct complicity – when a company provides goods or services 

that it knows will be used to carry out the abuse. 

• Beneficial complicity – when a company benefits from human 

rights abuses, even if it did not positively assist or cause them. 

• Silent complicity – when the company is silent or inactive in 

the face of systematic or continuous human rights abuse. 

Features of the Human Rights and Business Dilemmas 

Forum 

The Forum offers the opportunity for businesses to assess human 

rights risks and adopt suggested solutions for tackling 

a dilemma. It provides in-depth dilemma analysis on a wide 

range of topics and real-world case studies as well as all necessary 

background materials. In addition, users are offered an 

interactive platform to share, explore, and discuss dilemmas, 

case studies, and best practices with business professionals, 

human rights experts, and other relevant stakeholders. 

In-depth analysis of dilemma themes 

The themes cover real-world dilemmas that businesses encounter 

when operating in, sourcing from, or distributing 

to markets that may present higher risks of business being 

implicated in human rights abuses. 

Current dilemma themes 

include: 

Child Labor 

Forced Labor 

Freedom of Association 

Migrant Workers 

Housing 

Human Trafficking 

Living Wage 

Working Hours 

Security Forces 

Corruption 

Product Misuse 

Stabilization Clauses 

Freedom of Religion 

Ethnic Minorities 

Freedom of Speech 

Gender Equality 

HIV/AIDS 

Privacy 

Forthcoming themes include: 

Indigenous Peoples 

Health and Safety 

Access to Water 

Community Relocation 

Conflict Minerals 

Working with State-owned 

Enterprises 

All dilemma themes – which are prepared by Maplecroft human 

rights analysts in collaboration with the UNGC Office, the 

Office of the United Nations High Commissioner for Human 

Rights, and the GE Foundation – include the following sections: 

• What is the dilemma: nature and scope of the dilemma 

• Common dilemma scenarios: prevalence of the dilemma in business 

sectors, operations, and supply chains 

• Examples of emerging economy scenarios: examples of the dilemma 

in the Next 11 and BRICs countries 

• Risks to business: this includes legal, reputational, financial, 

operational, and other risks that companies may face when 

they do not have adequate mechanisms in place to address 

the dilemma 

• Suggestions to business: suggestions as to how business can 

adequately deal with the dilemma 

• Background to the dilemma: users are provided with information 

on which human rights are implicated as well as necessary 

definitions 

Case studies 

Each dilemma is illustrated by good-practice case studies. Case 

studies have been developed in close collaboration with a 

range of multinational companies and relevant government, 

intergovernmental, and civil society stakeholders. We also 

draw on public domain sources, including the UN Global 

Compact’s own Communications on Progress. 

The case studies explore specific dilemmas and challenges 

faced by each organization, good practice actions they have 

taken to resolve them, and the results of such action. We 

reference challenges as well as achievements. Featured organizations 

include: The Responsible Cotton Network, HP, 

Chiquita, Adidas-Salomon, the Open Net Initiative, Timberland, 

Standard Chartered, Cisco Systems, the Nike Foundation, De 

Beers, Gap, the International Cocoa Initiative, Manpower, and 

Talisman Energy. 

Resources 

The Human Rights and Business Dilemmas Forum also sets 

forth an extensive range of materials, providing the background 

to each dilemma issue. Each dilemma is complemented by 

a list of general and specific resources. This includes the relevant 

international legal and regulatory framework as well as 

standards and further guidance materials, particularly from 

the UN and the International Labour Organization as well as 

relevant international organizations and NGOs. 

Interactive forum 

An interactive forum provides an opportunity for users to share, 

explore, and discuss a wide range of dilemmas, case studies, 

and good practice with business professionals, human rights 

experts, and other relevant stakeholders. The suggestions for 

responsible business are designed to stimulate commentary 

and further insight into the applications of the UNGC Principles 

and the operationalization of the UN’s “Protect, Respect and 

Remedy” policy framework by business. Users are invited to 

comment on the approaches taken and to provide their own 

viewpoint on what works and what does not. 

Human rights and business – A collaborative effort 

The Human Rights and Business Dilemmas Forum provides 

businesses with a comprehensive overview of the different 

implications of dilemmas that businesses may face when operating 

in, sourcing from, and distributing to environments 

that may present higher risks of business being implicated in 

human rights abuse. It is a unique and important tool for businesses 

and other stakeholders to assess those risks and explore 

solutions for complying with the corporate responsibility to 

respect human rights as prescribed in the UNGC Principles 

and the UN “Protect, Respect and Remedy” framework. 

The role of the private sector in the protection and promotion 

of human rights is crucial to the enjoyment of human rights 

for everyone worldwide. Respecting human rights adds value 

to the business, but on the flipside, businesses face immense 

legal, reputational, operational, and financial risks when they 

fail to fulfill their responsibility to respect human rights. In 

the media age of the 21st century, allegations of corporate human 

rights abuses are quickly distributed worldwide through 

news services, blogs, and social networking sites. 

With the Human Rights and Business Dilemmas Forum, the 

UNGC, Maplecroft, and the GE Foundation have made it their 

mission to inform businesses of the practical implications of 

their responsibility to respect human rights. The Forum brings 

together businesses and their stakeholders to engage in constructive 

dialog to explore solutions as part of the joint and 

collaborative undertaking of all organs in society to efficiently 

protect human rights and guarantee their enjoyment for all. 


27

Agenda 

Standards and Labels 

Economy leaders 

need sustainability 

standards 


29

Agenda 


By Dr. Sasha Courville 

United Nations Secretary-General Ban Ki-moon recently spoke 

of a tectonic political shift of wealth and power from the North 

toward the new global players in the South. The implications 

of this shift are starting to be felt within the field of Corporate 

Social Responsibility (CSR), as evidenced in the strong engagement 

of developing and emerging economies in the ISO 

26000 standard-setting process. However, this is an emerging 

trend with a number of dynamics that have yet to fully play 

themselves out. Given the critical importance of the world’s 

fastest-growing economies to meaningfully incorporate the 

universally agreed Principles embedded in the United Nations 

Global Compact into their developmental pathways, how the 

various initiatives operating within the field of CSR respond 

to this changing geo-political landscape will determine their 

future and that of our global society and our planet. 

Sustainability Standards Systems – such as the Forest Stewardship 

Council (FSC), the Roundtable on Sustainable Biofuels, 

or Social Accountability International with its SA 8000 

standard – represent the practical, hands-on dimension of 

the CSR landscape. With consensus-based voluntary standards 

defined through global multistakeholder processes, and with 

enterprise compliance assessed through independent thirdparty 

certification, these market-based tools provide clear 

pathways for producers to improve sustainability practices. 

They also provide reliable benchmarks for supply chain buyers 

and consumers to make informed purchasing decisions and 

signal to institutional investors and lenders that good social 

and environmental practices are being upheld. Sustainability 

standards now cover over 10 percent of global production in 

key commodities and sectors such as wild-capture fisheries, tea, 

coffee, and bananas. With an increasingly visible presence in 

global markets, the demonstration effect of pioneering initiatives 

– such as the Marine Stewardship Council, Fairtrade, UTZ 

Certified, and the Rainforest Alliance / Sustainable Agriculture 

Network – provides solid ground to expand the application 

of sustainability standards into new commodities and sectors, 

from soy, palm oil, sugarcane, and other food and biomass 

crops into cattle, tourism, and electronic waste, among others. 

Business champions are increasingly recognizing the value 

that these tools can play in supply chain management and 

in ensuring long-term access to supply and are making major 

commitments that will affect entire sectors and value chains. 

This particular tool within the field of CSR is at a critical point 

of inflection where it has the potential to make a significant 

contribution to transforming global markets. Sustainability 

standards are market-based mechanisms. Whether they will 

reach their full potential as important CSR tools to transform 

markets toward labor and human rights and ecological sustainability 

will depend on how future market leaders engage 

with them and use them to accomplish their own sustainable 

development and competitiveness objectives. As power drivers 

behind global markets start to shift, demonstrating value 

and building support among emerging economy leaders will 

be a critical requirement for any CSR tool, including sustainability 

standards. 

While the shift in power and wealth toward new global players 

in the South – as outlined by Ban Ki-moon – is indeed 

fundamentally changing the CSR landscape, it is important 

to note that this is current and dynamic, with the implications 

yet to be fully understood or even determined. The 

preferences of an increasing number of actors are shaping 

how social and environmental considerations are expressed 

in global markets. Initial introductions of CSR in emerging 

economies have largely been shaped by supply chain pressure 

to address human rights, labor, and environmental issues. For 

example, with 60 percent of Wal-Mart’s suppliers in China, 

its continued focus on sustainable supply chains will have 

a significant effect on how Chinese businesses and regional 

“ 

” 

Mission Statement ISEAL Alliance 

governments adopt sustainability tools, including standards. 

Global brands such as Tetra-Pak and Nespresso have created 

strong demand for sustainably certified pulp and paper and 

coffee respectively, leading to significant investments in certified 

operations in Brazil and other countries. Such pressures 

will continue to influence key emerging economy markets for 

many years to come. The power dynamics – and therefore the 

social and environmental values that are expressed in shaping 

such markets – will vary commodity by commodity and 

sector by sector. This will depend on whether such markets 

are characterized by North-South trade, regional trade, or 

domestic interests overlaid with growing global, regional, and 

national pressures to address critical social and environmental 

hotspots. The case of soy is an interesting illustration. China is 

now the world’s largest importer of soybeans by far, with up 

to 55 - 60 percent of total world trade. Argentina and Brazil 

have emerged as the world’s largest exporters of soybean 

meal and oil. Stakeholders from each of these countries are 

powerful players in often highly contested discussions to 

define sustainability standards for soy production and trade. 

A new factor that will increasingly shape the future of sustainability 

standards is the burgeoning appetite for sustainable 

products and services in the domestic markets of emerging 

economies. Consider the case of Indian tea consumption. A 

2010 study in India by Solidaridad and Partners in Change 

found that 40 percent of consumers surveyed would be willing 

to pay 10 percent more for purchasing sustainable tea or 

coffee. As domestic tea consumption in India dwarfs export 

production – representing 22 percent of global tea consumption 

and 80 percent of Indian production – and given that 

the national market leaders (Tetley owned by Tata and Unilever) 

are experienced sustainability standards users, there is a 

To create a world where 

ecological sustainability and social 

justice are the normal conditions 

of business. 

tremendous opportunity for domestic market-led sustainable 

development that could improve the livelihoods of hundreds 

of thousands of workers and their families. Likewise in Brazil, 

a public prosecutor campaign to drive consumer awareness 

and supply chain pressure toward carne legal, or beef produced 

in accordance with national legislation, has been supported 

and even amplified by efforts of environmental NGOs 

and consumer groups pushing for compliance with stronger 

sustainability performance standards. Given that the expansion 

of the cattle industry in Brazil to meet largely domestic 

demand is a major cause of the deforestation of the Amazon, 

such awareness-raising campaigns are critical first signs of 

an increasing appetite for sustainable domestic consumption. 

Whether existing global standards, which have been highly 

successful in North American and European consumer markets, 

can meet such nascent and expressed demands – and exactly 


31

Agenda 


what kinds of adjustments or adaptations to the model are 

needed – are new and open questions. 

About ISEAL 

Emerging economy leaders need sustainability standards. 

They provide a clear and effective way to access increasingly 

mainstream international markets. They can also provide 

tools to address growing domestic demand for socially and 

environmentally responsible products and services. Yet, while 

they are currently standards takers, they will increasingly 

become standards makers, thus changing the future of how 

sustainability standards evolve. 

As emerging economies strengthen their engagement with 

standards systems, a number of changes will take place in the 

sustainability standards landscape. First, the commodities and 

sectors addressed by standards systems are likely to evolve to 

become more relevant to emerging economy markets. While 

strong growth is expected in the traditional sectors of tea, 

coffee, and timber – as these become important not only for 

export markets but also increasingly domestic markets – new 

standards will evolve that will focus on their priority markets, 

as is already happening with soy, cattle, and sugarcane in Brazil. 

One could expect strong emerging economy engagement in 

the development of sustainability standards for the oil and 

gas sector, water stewardship, and low-carbon standards across 

manufacturing activities, among others. 

Second, new types of players will participate in driving the 

future direction of this CSR tool. While the sustainability 

standards movement has historically been led by partnerships 

between business champions and NGO leaders, new actors 

will become involved as these tools gain ground in emerging 

economies. Financial sector representatives in emerging 

economies such as Brazil, Mexico, and South Africa are among 

those exposed to the greatest social and environmental risk in 

their portfolios. It is no surprise that they are already among 

the most engaged with sustainability standards. The use of 

sustainability standards as key lending, investment, and trade 

finance tools will only continue to grow, to be led by emerging 

economy financial institutions. In addition, the relationship 

between sustainability standards and governments is set to 

evolve, especially as China strengthens its engagement with 

sustainability standards. While governments around the world 

are demonstrating increasing interest in using private voluntary 

sustainability standards to achieve their own policy objectives 

– as evidenced in sustainable public procurement and timber 

or biofuels regulatory frameworks – China’s engagement will 

likely set new parameters for how governments engage with 

what have historically been CSR tools developed by industry 

and civil society, largely without government participation. 

Third, a central principle of credible sustainability standards 

as outlined in ISEAL’s Standards Code is the importance of 

sustainability standards being both globally applicable but 

The ISEAL Alliance is the global association for 

sustainability standards. ISEAL members are global 

leaders in the delivery of sustainable value chains and 

have pioneered the design and application of standards 

to link sustainable production and consumption across 

international trade. ISEAL members cover social and 

environmental sustainability issues – from labor rights and 

sustainable livelihoods to water stewardship, greenhouse 

gas emissions, and biodiversity conservation, and are 

active across a diverse range of sectors, from forestry, 

fisheries, agriculture, and aquaculture to textiles, biofuels, 

and beyond. ISEAL brings these initiatives together in 

a learning community to strengthen the credibility and 

effectiveness of the sustainability standards movement 

as a whole. ISEAL develops consensus-based Codes of 

Good Practice that provide clear road maps for standards 

systems in designing credible and effective sustainability 

standards on issues such as standard-setting, impact 

assessment, and assurance. These Codes also help 

standards systems users from governments, businesses, 

research institutes, and NGOs to better understand what 

makes for a credible and effective sustainability standards 

system. 

locally appropriate. Where sustainability standards have the 

potential to influence and affect stakeholders in other countries, 

they need to be conceived of as global standards at the 

outset to avoid creating unfair barriers to trade and ensure 

that all affected stakeholders are able to participate in the 

standard-setting process, thereby addressing their needs and 

perspectives. Pioneering sustainability standards have created 

important mechanisms to bridge this international-national 

divide. In the case of the Forest Stewardship Council, this includes 

balanced governance structures that ensure Northern 

and Southern representation across social, environmental, 

and economic stakeholder categories, and a guided process 

to develop national standards based on the overarching FSC 

Principles and Criteria. For the Sustainable Agriculture Network 

linked to the Rainforest Alliance Label, national guidelines are 

developed by a local workgroup to interpret how the standards 

criteria apply for local conditions or a specific crop. However, 

as the universe of stakeholders engaged in developing and 

implementing sustainability standards expands further, evolution 

of this model is likely necessary to ensure that emerging 

economy leaders feel that such standards meet their own 

needs and values as well as meet the needs of international 

clients and stakeholders. The alternative is a whole host of 

competing national sustainability standards that create new 

barriers to trade, exacerbate stakeholder confusion, and waste 

resources on reinventing the wheel instead of on achieving 

tangible sustainable development results. 

As part of a collective strategy to scale up the environmental 

and developmental impacts of the sustainability standards 

movement, the ISEAL Alliance will support and strengthen 

existing networks of national sustainability standards leaders 

in emerging economies and, with partners, build capacity on 

best practices in the design and use of credible and effective 

international sustainability standards to meet national needs 

as well as international stakeholder demands. ISEAL will also 

support emerging economy leaders in engaging in global normsetting 

so that both sustainability standards and the global 

rules that define them are co-owned by emerging economies 

and reflect their values and expectations. 

Dr. Sasha Courville is Executive Director 

of the ISEAL Alliance. 


33

Agenda 


Eco-labels: 

Signed, Sealed… 

Delivered? 

By Patrin Watanatada and Mark Lee 

Today’s supply chains span the globe. While a century ago we 

might have known where, how, and who produced the things 

we consume, today we rely on what we are told. And how can 

we be sure that what we are told can be trusted? 

Enter the eco-label: the independently verified, on-pack label 

that tells the consumer how a product was produced (think 

Fairtrade or organic) or how it might be consumed (think 

nutritional labels or Energy Star) in a more sustainable way. 

It is a powerful idea that combines sustainability standardssetting 

and branding, underpinned by the credibility of an 

independent body. 

In the 33 years since the world’s first eco-label appeared 

(Germany’s Blue Angel), these labels have proliferated. The 

Ecolabel Index currently lists 377 schemes in 211 countries 

and 25 industry sectors. A number of trends indicate it is time 

to take a closer look: 

Civil society continues to pressure business to take responsibility for 

supply chain performance. Since supplier factory labor conditions 

burst onto the public agenda in the 1990s, it is now firmly 

established that we expect global companies to know the 

“where” and “how” of raw materials and production. 

Bold sustainability commitments by brands require credible ways to 

evaluate performance in value chains. From Unilever’s commitment 

to source 100 percent of its agricultural raw materials 

sustainably by 2020 to Pepsico UK’s commitment to reduce 

carbon and water emissions from key growers by 50 percent 

by 2015, many businesses have set big value chain goals and 

need credible ways to demonstrate delivery. 

Some eco-labels are losing trust. Even respected schemes have been 

questioned – for example, the Marine Stewardship Council 

has been accused of certifying fisheries with diminishing 

stocks. 

Regulators are monitoring “greenwashing” claims. The US Federal 

Trade Commission (FTC) and the UK’s Defra have completed 

major reviews of their green marketing guidelines. 

Eco-labels are moving into developing countries. Eco-labels have 

been primarily a developed-country phenomenon, but the 

Ecolabel Index includes dozens of labels used in developing 

countries. Is there an opportunity for developing countries 

to leapfrog? 

Eco-labels themselves are taking stock. ISEAL Alliance – the global 

alliance for environmental and social standards systems – is 

completing a major strategic review. Last year WWF reviewed 

its multistakeholder initiatives and concluded that operational 

improvements were required and more evidence of impact 

needed. 

What are eco-labels trying to do? 

It is important to consider the three distinct functions of 

eco-labels: 

1| Performance: Drive or confirm improvements in social and 

environmental impacts through voluntary standards. 

2| Trust: Create assurance that these improvements have taken 

place or will take place. 

3| Demand: Drive purchasing decisions and behavior change 

by communicating sustainability performance at the point 

of purchase and, more broadly, changing social norms and 

expectations associated with a product category. 

Is it realistic to expect eco-labels to achieve such varied goals? 

Which eco-labels are doing this best and what can we learn 

from their success and acceptance? And what alternatives exist? 

Successes… 

Successes credited to eco-labels include the following: 

Creating a common language and framework for sustainability. Ecolabels 

simplify and create consensus around what is important. 

Providing opportunities for collaboration. Partnering with an independent 

scheme can be a way of “outsourcing” the work of 

supplier capacity-building or monitoring to a better equipped 

organization. 

Providing a credible platform for claims. Schemes backed by government 

standards, multistakeholder initiatives, or NGOs have 

greater credibility than business claims. 

Raising consumer awareness and expectations. Consider coffee: All 

of the big roasters and the major coffee retailers worldwide 

now offer some form of certified, sustainably sourced coffee, 

as consumers and stakeholders expect it. 

NOTE 

For simplicity, we are using the term “eco-label” to mean 

any independently verified label intended to communicate 

social and / or environmental attributes to consumers. 

The focus of this piece is explicitly on B2C rather than 

B2B voluntary standards such as the ISO standards, food 

safety standards, etc. 


35

Agenda 


Improving performance. WWF’s 2010 review of multistakeholder 

initiatives concluded that “MSIs can have positive economic, 

environmental and social impacts.” The US Environmental 

Protection Agency stated in their annual report that the Energy 

Star label contributed to saving the equivalent of 31 million 

vehicles’ worth of greenhouse gas emissions and $17 billion 

in utility bills in 2009. 

…and Challenges 

Alongside these successes, challenges exist, and questions are 

being asked: 

What impact are eco-labels really having? Many eco-labels have 

found it challenging to demonstrate positive impact. Indeed, 

the 2010 Global Ecolabel Monitor found that only one-third 

of the eco-labels that responded to their survey regularly 

monitor their impacts. In addition, improvements may be 

concentrated among reasonably strong performers, and it is 

difficult to ensure rewards are equitably distributed across 

the value chain. 

Are the standards behind labels the right ones? Setting standards 

for sustainability will never be straightforward. Too often the 

most important drivers of performance are set aside for indicators 

that are easier to measure or appeal to a broader group 

of stakeholders. While justified, it limits ultimate progress. 

Are eco-labels using the right amounts and kinds of data? The information 

needed to drive, verify, or communicate performance 

can be very different. For example, the data that a designer 

needs to design a lower-impact shoe differs from what the 

consumer uses to make a purchasing decision. 

Can “branding sustainability” lead to undesirable consequences 

for marketers? Many independent eco-labels are powerful 

brands in their own right, competing with each other but 

also with the host brand. In a fiercely competitive market, 

some businesses are finding it difficult to invest in marketing 

eco-labels that are used by competitors, or that distract 

from the brand story. 

Can “branding sustainability” lead to undesirable consequences for 

sustainability? By calling out a specific product as “sustainable,” 

labels might distract consumers from a more sustainable but 

uncertified choice – for example, if shoppers chose Froot Loops 

cereal over oatmeal because of the presence of the “Smart 

Choices” label, this may result in potentially less desirable 

individual choices and lead consumers to think about single 

issues rather than the system. 

Alternatives: What’s next? 

In supplementation or replacement of the “traditional” ecolabel, 

businesses have been making use of alternative ways 

of improving performance, creating trust, and influencing 

demand for more sustainable products. A few include: 

In-house standards – such as Starbucks C.A.F.E. Practices or HP 

Eco Highlights. 

Industry standards – such as the UL Environment manufacturing 

standards or the Sustainability Consortium’s various 

working groups. 

New sourcing models, partnerships with NGOs, and in-house expertise 

– for example, Walmart is increasing purchases from small 

farmers, while Unilever has a team of in-house agronomists. 

Linking sustainability performance to place of origin instead of a label 

– for example, some Alaskan fisheries have considered forgoing 

Maine Stewardship Council certification, in part under the 

assumption that buyers already know that fish sourced from 

Alaska is sustainable. 

Mobile technologies that connect the dots across the value chain – Good- 

Guide puts sustainability data in consumer’s hands at the point 

of purchase via mobile devices, while social networking tools 

such as Twitter and Yelp! play a role in facilitating word-of-mouth. 

Tastemakers, celebrities, and the media – Vogue caused sales of 

Timberland’s Earthkeeper boots for women to spike, while 

British celebrity chef Hugh Fearnley-Whittingstall did the 

same for non-endangered fish in UK supermarkets the week 

after his new sustainable fishing program aired. 

Other marketing tactics – from green claims, to branded product 

lines such as Nike Considered or Philips Green; to choice-editing, 

such as Tesco’s and Sainsbury’s phase-out of incandescent 

bulbs – ahead of legislation requiring them to do so – in 

the United Kingdom. 

The power of trusted global brands – Think Marks & Spencer or 

Patagonia, whose corporate brands and bold sustainability 

commitments serve as “guarantees” of good sustainability 

performance for many stakeholders. 

a poor spur for individual behavior change. Businesses must 

make, and already are making, use of other tools. 

As seven billion of us – and counting – bump up against 

the limits of the planet’s natural resources and we seek to accelerate 

more sustainable modes of production and consumption, 

we need to step back and consider what eco-labels were 

designed to achieve in the first place, consider objectively the 

limitations of the eco-label as a tool, and ask how it can be 

complemented by other ways of creating trust and influencing 

behavior change across global supply chains. 

Neither consumers nor producers can be expected to “do the 

right thing” unless they know what that is, and eco-labels are 

to be commended for focusing on this need – as are the global 

companies that are pushing to make effective use of them. 

Patrin Watanatada and Mark Lee both work for SustainAbility. 

Mark is Executive Director, Patrin is exploring eco-labels and 

emerging alternatives over the course of 2011 in a research 

project, Signed, Sealed…Delivered? The authors would like to 

thank the following for input as this article was drafted: Oliver 

Adria, Mohammed Al-Shawaf, Coleman Bigelow, Jennifer 

Biringer, Stephanie Daniels, Jim Goddard, Chuck Goncalves, 

Beth Jensen, Emma Keller, Geoff Kendall, Karin Kreider, Thomas 

Lingard, Heather Mak, Michelle Morton, Ian Olson, Ben 

Packard, Michael Sadowski, Don Seville, Burçu Tunce. 

Eco-labels – Where next? 

While fully recognizing that eco-labels from Energy Star to 

Fairtrade have done a great deal in raising awareness, changing 

what we expect of certain product categories, and creating a 

common language and framework around sustainability – 

and are perceived as more credible than claims made directly 

by business – the eco-label model has inherent limitations. 

The past decade or two has demonstrated that auditing against 

a standard is not as effective as we need it to be in improving 

on-the-ground conditions, while on-pack labels are too often 

Patrin Watanatada 

Mark Lee 


37

Agenda 


Sample 

Eco-labels: 

organic industry. OCIA provides certification services to 

thousands of organic farmers, processors and handlers 

in North, Central and South America, Asia, and Europe. 

There is approximately 500,000 acres of OCIA Certified 

Organic Agricultural Land in the United States and over 

1.4 million acres of certified organic farm land worldwide. 

Electric Devices 

EU Energy Label 

Tourism 

The Green Key 

Food 

FairTrade 

The Fairtrade Mark certifies that international Fairtrade 

standards have been met. It offers a positive way to buy 

products in solidarity with those who produced them. Buying 

Fairtrade products helps producers struggling to improve 

their lives. The label is now available on thousands of 

products in around 50 countries. The Fairtrade Certification 

Mark is a product label primarily intended for use on product 

packaging. It is licensed by FLO and the national Fairtrade 

Labelling Initiatives (LI). With appropriate written permission, 

the Mark can also be used on wholesale packaging or for 

promotional use. 

Ecocert 

Ecocert is an inspection and certification body established 

in France in 1991 by agronomists aware of the need to 

develop environmentally friendly agriculture and of the 

importance of offering some form of recognition to those 

committed to this method of production. Consistent with its 

commitment to organic farming, Ecocert has opted to put 

its technical expertise to use in supporting the environment, 

developing its own specifications for the inspection and 

certification of products, systems and services. By defining 

strict requirements that meet consumer expectations, 

Ecocert Group encourages economic stakeholders to adopt 

responsible practices. 

Organic Crop Improvement Association 

The Organic Crop Improvement Association (OCIA International) 

is a nonprofit, member-owned, organic certification 

organization and an accredited world leader in the certified 

UTZ certified 

UTZ CERTIFIED is a sustainability program that focuses on 

training farmers to increase production, improve quality and 

reduce costs. You could call it self-help. Enabling producers 

to stand on their own feet, to grow and become more 

successful. The results is a better price for a better product. 

Farmers manage their farms professionally, protecting 

the environment and caring for their workers. They take 

pride in their business and enjoy an improved quality of 

life for themselves and their families. Coffee buyers and 

brands on the other hand, are assured of a constant, high 

quality coffee supply. 

Marine Stewardship Council (MSC) 

The MSC runs an ambitious program, working with 

partners to transform the world’s seafood markets and 

promote sustainable fishing practices. The credible MSCstandards 

for sustainable fishing and seafood traceability 

seek to increase the availability of certified sustainable 

seafood and the blue eco-label makes it easy to identify 

these products. 

“Dolphin Safe” Tuna Label 

The Earth Island’s unique International Dolphin Safe 

Monitoring Program maintains staff members in different 

countries, who regularly inspect tuna in canneries, at 

dockside, and aboard fishing vessels in order to insure 

consumers that the tuna they buy is truly “dolphin safe“. 

The programm maintains agreements with more than 

300 tuna companies worldwide, including all major tuna 

processors. These agreements pledge tuna companies 

to abide by the Earth Island international “Dolphin Safe” 

tuna standards of no encirclement of dolphins or other 

marine mammals during an entire fishing trip, no accidental 

deaths or serious injuries of any dolphins, and no use of 

drift gill nets. 

Light bulbs, cars and most electrical appliances carry the 

EU Energy Label. The energy efficiency of the product is 

rated in energy levels ranging from A to G on the outside 

label. ‘A’ stands for the most energy efficient and ‘G’ for 

the least energy efficient. Apart from the clear color-coded 

classification there is also other information on the energy 

label. For example, the energy label for lightbulbs often 

shows its ‘lumen’, an indication of perceived power of 

light, and ‘Watt’, the consumption of joules of energy per 

second. Recently, also the qualification A+ and A++ were 

introduced for refrigerated appliances. 

Energy Star 

The “Energy Star” is a voluntary appliance specific label, 

identifying to consumers appliances that meet certain 

standards regarding energy efficiency. Energy Star products 

cover a wide range of products, from simple scanners to 

complete desktop home computer systems. It is a joint 

program of the U.S. Environmental Protection Agency 

and the U.S. Department of Energy helping consumers to 

save money and protect the environment through energy 

efficient products and practices. The Energy Star was 

created as a United States Grovernment Program, but 

it is also used in Australia, Canada, Japan, New Zealand, 

Taiwan and the European Union. 

Flowers 

Flower Label Program 

The Flower Label Program (FLP) is a joint initiative of 

human rights organizations, labour unions, churches, flower 

producers and flower retailers. The program ensures a 

humane, environmentally-friendly and economically viable 

flower production. It bases on the International Code of 

Conduct for the Production of Cutflowers, Foliage and 

Potplants. The compliance with this standard is guaranteed 

by the Flower Label. 

The Green Key is a programme of FEE (Foundation for 

Environmental Education) and was created to raise the 

awareness of owners and managers of tourism and leisure 

establishments on the necessity and possibilities of running 

a responsible business. Organisations awarded the Green 

Key meet technical management criteria and criteria on 

communication. Onsite checks are performed regularly on 

all Green Key owners. In each country a national steering 

group with representation from authorities, NGO’s and 

business associations ensures the credibility. 

Wood/Paper 

Forest Stewardship Council (FSC) 

FSC is an independent, non-governmental, notfor-profit 

organization established to promote the 

responsible management of the world’s forests. FSC 

certification provides a credible link between responsible 

production and consumption of forest products, 

enabling consumers and businesses to make purchasing 

decisions that benefit people and the environment 

as well as providing ongoing business value. FSC is 

nationally represented in more than 50 countries around 

the world. 

Cosmetics 

NaTrue 

The NATRUE-Label is an international standard with 

the objective to strengthen consumer’s trust in Natural 

Cosmetics. It defines a high standard and the very strict 

criteria of the Label ensure that all certified products 

adhere to it. The NATRUE-Label has three certifiation 

levels: natural, natural with organic portion and organic 

cosmetics. 

38 


Global Compact International Yearbook 2011 39

Agenda 


Textile 

Global Organic Textile Standard (GOTS) 

The GOTS is recognized as the leading processing standard 

for textiles made from organic fibres worldwide. It defines 

high level environmental criteria along the entire supply 

chain of organic textiles and requires compliance with 

social criteria as well. The International Working Group on 

GOTS is comprised of four reputed member organisations, 

namely OTA (USA), IVN (Germany), Soil Association (UK) 

and JOCA (Japan). Together with further international 

stakeholder organizations and experts, their respective 

expertise lies in organic farming and environmentally and 

socially responsible textile processing. 

Fair Wear Foundation 

The mission of the Fair Wear Foundation (FWF) is to improve 

labour conditions in the garment industry. It is an international 

verification initiative dedicated to enhancing workers’ lives 

all over the world. The FWF works closely with a growing 

number of companies that produce clothing and other 

sewn products and that take responsibility for their supply 

chain. FWF keeps track of the improvements made by the 

companies it works with. Through sharing expertise, social 

dialogue and strengthening industrial relations, it increases 

the effectiveness of the efforts made by companies. 

Rug 

GoodWeave 

GoodWeave is the new name for the certification program 

and organization formerly known as RugMark. The 

GoodWeave label, publicly introduced in September 2009, 

gives the assurance that carpets with this label are only 

made by adult artisans – not children. 

STEP 

Label STEP is committed to improving the working 

and living conditions of carpet weavers, fights abusive 

child labour and promotes environmentally friendly 

production methods. To achieve these goals Label STEP 

is systematically monitoring the production sites of its 

licensees and their suppliers, and takes measures to 

ensure fair conditions. It operates at the local level in all 

major carpet-producing countries. The label was founded 

by the development organisations Berne Declaration, Bread 

for All, Caritas Switzerland, Swiss Catholic Lenten Fund 

and Swissaid together with IGOT (Swiss Association for 

Clean Oriental Carpet Trade). 

Consumer Goods 

The First Global 

Consumer Label 

for Companies 

Using Wind Energy 

By Robyn Elizabeth Beavers 

In 2010 Vestas decided to embark upon a challenging journey: 

to build a global partnership and create an organization that 

would produce the world’s first consumer label for wind 

energy. WindMade was created to drive the global adoption 

of wind energy by convincing the world’s largest consumer 

brands to put a renewable energy label on their products. This 

label would inform consumers about the source of energy used 

to make the product, thereby empowering them to consciously 

choose products originating from a clean source of energy. 

Made-by 

Blue Angel 

MADE-BY is a European not-for-profit organisation with a 

mission to make sustainable fashion common practice and 

improve environmental and social conditions in the fashion 

industry. To achieve this MADE-BY works with fashion brands 

of varying sizes and scope, and supports them in developing 

sustainable strategies to improve conditions across their 

entire supply chain. MADE-BY has also developed a range of 

tools and processes which enable brands to be transparent 

to their stakeholders about their sustainability progress. 

The Blue Angel is the first and oldest environment-related 

label for products and services in the world. It considers 

itself as a market-conform instrument of environmental 

policy designed to distinguish the positive environmental 

features of products and services on a voluntary basis. 

The Blue Angel helps to speed up the structural change of 

the economy towards a sustainable development. Today, 

about 11,500 products and services in circa 90 product 

categories carry the Blue Angel eco-label. 

Source: Self descriptions of the current organizations 

40 



41

Agenda 


Vestas pioneered the wind industry more than 30 years ago 

and has installed more than 43,000 turbines across six continents. 

This experience contributed to the firm’s belief that 

creating a global movement for wind energy was necessary 

to catalyze their industry beyond traditional market drivers. 

Furthermore, Vestas saw it as their responsibility – as the 

committed creator of the wind energy industry – to drive 

the creation of this movement. 

In order to turn WindMade into a reality, Vestas facilitated 

the collaboration between global corporations, NGOs, and 

the strategic policy initiative United Nations Global Compact, 

to create a new model designed to overcome the flaws of the 

current dependence of the renewable energy sector on policy 

and traditional governmental and public sector models. The 

Founding Partners of WindMade joined the effort because 

they believe the initiative can catalyze a global demand for 

renewable energy, which is something that will benefit the 

environment beyond current initiatives. The active role taken 

by the Global Wind Energy Council – as the administrative 

host of the WindMade organization – demonstrates how the 

entire wind industry is behind WindMade. Overall, WindMade 

is tangible proof that a combination of strategic business development, 

cross-sector collaboration, global marketing efforts, 

and philanthropy can help foster growth in global industries. 

Building the case: Research points to the need for 

transparency 

In conjunction with developing the WindMade initiative 

and establishing the organization, Vestas collected extensive 

market data from consumers and companies to understand 

if there truly was a need for a global wind energy label. Two 

reports were commissioned, the Global Wind Study and the 

Global Corporate Wind Energy report. 

As part of the rigorous analysis preceding the actual concept 

development, Vestas surveyed more than 25,000 respondents 

across 20 markets in a Global Wind Study conducted by 

Gallup to investigate consumer interest and sentiment for 

the WindMade label. 

The survey base proved a strong interest: 93 percent responded 

positively to “renewable energy as a good solution to mitigate 

climate change,” and “79 percent would be willing to pay more 

for WindMade products.” Vestas will continue to monitor 

global consumer interest for wind power and WindMade to 

ensure that future decisions are based on the same level of 

rigor as in the first phase of the project. 

Vestas also pioneered the creation of the Global Corporate Renewable 

and Wind Energy Index to report on the largest global 

consumer brands’ procurement of wind and other renewable 

energy sources. Developed in cooperation with Bloomberg – 

the official data provider of WindMade – the ranking will be 

released mid-2011 and is the first-ever global mapping that 

shows how much of the electricity used by the world’s largest 

corporations comes from renewable energy, incl. the specific 

source. It is published together with a whitepaper outlining 

the major trends and developments of corporate investments 

in wind power. The surveyed companies are selected from the 

Bloomberg 500 Index (global companies ranked by market 

capitalization) as well as the MSCI World Index (an index of 

approximately 1,660 companies from 24 countries). The report 

shows that a significant gap still exists between corporations’ 

promises to procure renewable energy and their current levels 

of consumption of electricity generated from clean energy 

sources. The data is compelling and Vestas saw a benefit in 

providing this transparency to consumers to catalyze the demand 

for products made from wind energy at the retail shelf. 

The WindMade certification program 

WindMade’s success rests on the development of a technical 

standard, the WindMade “rule book,” which outlines a credible 

FACTS AND FIGURES 

WindMade is a global initiative dedicated to increasing 

corporate investments in wind power by educating 

consumers about corporations’ use of wind energy and 

raising the demand for products that are made from 

this clean and renewable energy source. WindMade 

draws attention to the fact that we cannot continue to 

consume products that are made from energy sources 

that cause so much harm to the environment. The label 

is a step forward in the process toward raising consumer 

awareness and displaying the importance of sustainable 

renewable energy. The participating companies will 

decide whether the whole corporation or specific physical 

locations and / or products are to be certified. The final 

standard is developed by a Technical Committee of 

renewable energy and label verification experts and 

will be subject to a public consultation beginning in the 

spring of 2011. WindMade will be managed through 

an independent NGO that Vestas – as the lead sponsor 

for WindMade – will fund for the first three years of 

operation. The WindMade Founding Partners are: LEGO, 

Vestas, Global Wind Energy Council, the UN Global 

Compact, WWF, and PwC, with Bloomberg as the official 

data provider. The WindMade Technical Committee 

is composed of representatives from the following 

organizations: Climate Friendly, LEGO, Vestas, WWF, the 

American Wind Energy Association, and Gold Power. 

The WindMade Sounding Board, serving as external 

commentators to the Technical Committee, is composed 

of representatives from organizations such as Walmart, 

Ikea, Microsoft, BetterPlace, the US EPA, Eneco, AGL, and 

the Center for Resource Solutions. The Final Sounding 

Board lists will be posted on the WindMade.org website. 

and pragmatic certification program. The WindMade Technical 

Committee consists of global experts from the renewable 

energy and sustainability industries who are committing to 

developing the standard through a process of transparency 

and consensus. The committee has progressed in record time 

to produce a first draft for the Standard for Companies and 

Organizations, which will be ready for public consultation 

on June 15, 2011. 

WindMade is an example of how companies can pursue visionary 

and novel business development to increase profitability 

while at the same time making a tangible positive impact on 

some of the critical challenges mankind is facing. In a context 

where the wind power industry holds far more potential than 

is currently realized, a true industry leader committed to 

progress is not afraid of questioning existing business models 

and pushing the boundaries for growth. 

From a business perspective, Vestas’ investment in Wind- 

Made is an effort to pave the way for an emerging customer 

segment, consisting of environmentally conscious consumer 

brand companies. WindMade will improve the business case 

for these global brands by providing more transparency to 

consumers. In a market place that is currently muddled with 

environmental claims, WindMade aspires to help consumers 

choose brands that choose wind. In summary, WindMade will 

serve as a platform for companies to drive competitive advantage 

while at the same time making the world a better place. 

The journey ahead for WindMade 

The focus is now on ramping up the WindMade organization 

while ensuring that the consumer label is implemented with 

rigor. Following the announcement in Davos, Vestas was 

contacted by numerous wind energy stakeholders, including 

noteworthy global consumer brands, indicating a strong interest 

in WindMade. The WindMade organization will now focus on 

building partnerships with these brands. The goal is to deliver 

the first WindMade products to the world before the end of 

2011, less than a year after its official announcement by the 

Founding Partners at the World Economic Forum in Davos. 

Robyn Elizabeth Beavers, 

Group Marketing and Customer Insight, 

Vestas Wind Systems 


43

Agenda 

Rio + 20 

Sometimes referred to as Rio+20 – as it is being held 20 years 

after the 1992 Rio Earth Summit – the United Nations Conference 

on Sustainable Development (UNCSD) will build on a 

wide range of past political and organizational achievements, 

but also, more importantly, seek to accelerate progress where 

a long line of earlier efforts have come up well short. When 

the United Nations General Assembly adopted Resolution 

A/RES/64/236 to organize Rio+20, governments identified two 

main themes for this landmark event: First, “a green economy 

within the context of sustainable development and poverty 

eradication”; and second, “an institutional framework for 

sustainable development.” Both themes are, of course, extremely 

important. But even more important is what lies at 

the conjunction of the two themes. 

In late 2010, the Boston University Frederick S. Pardee Center 

for the Study of the Longer-Range Future convened a Task 

Force of experts from academia, government, and civil society 

to explore exactly what lies at the intellectual and practical 

intersection of Rio+20’s two themes. 1 As the co-conveners of 

this Task Foce, we present some of the main insights derived 

from this Task Force; in particular, we present five+1 suggestions 

for thinking constructively about some key issues for the 

realization of a green economy. 

Five+1 suggestions 

direction of change, and implementing measured and pragmatic 

shifts that can begin moving the system in a desired 

direction. Evaluating the progress of such measures and 

carefully adding to them to bring about the necessary shifts 

is an important component of this process. One example of 

this would be to break the deadlock that often arises when 

we search for a single “perfect” solution by the adoption of 

a “portfolio approach” that uses a combination of initiatives 

to raise a variety of resources, including monetary resources, 

knowledge resources, capacity development, public support, 

and awareness-raising for global action on forests. 

Another example of the benefits of radical incrementalism 

concerns the much-stalled debates on creating a new international 

environmental organization modeled at least in part 

on the World Trade Organization. The debate has not only 

remained inconclusive but takes attention away from discussions 

concerning reform of the United Nations Environment 

Programme (UNEP) – including strengthening its funding arrangements 

and consolidating various treaty secretariats – for 

which there is a great need and much international agreement. 

The idea that Rio+20 should lead to a stronger UNEP is broadly 

accepted and should not be held hostage to the debate about 

the designs of a super-organization for the environment. The 

advantages of a radical incrementalism approach should not 

be lost in the debate on institutional reform. 

Institutional 

Challenges for a 

Green Economy 

One. Think boldly and move incrementally. Discussions of 

institutional reform have sometimes been reduced to the 

equivalent of rearranging the deck chairs on the Titanic. Any 

institutional reform process must begin with recognition of 

the urgency for action. It must also include a commitment 

to the proposition that fundamental shifts in political and 

economic practices are needed to avoid significantly accelerated 

ecological damage, with disastrous consequences for societies 

all over the world. The enormity of the challenge calls for 

ambitious thinking, but it should not paralyze action just 

because large changes are difficult to achieve quickly. 

There is a need for “radical incrementalism” – recognizing 

and strengthening those elements within the existing institutional 

architecture that do work, identifying the strategic 

Two. Take economic policy seriously. The proposition that the 

world needs to move toward a green economy implies that 

the current economic system is not working adequately, at 

least not for the environment and future generations. Change 

is required in economic policy institutions as much as in 

environmental ones. A transition to a green economy needs 

to involve fundamental changes to both macroeconomic and 

microeconomic conditions and institutions. Business as usual 

with respect to economic policy is not a viable alternative to 

meet sustainable development challenges. 

The most obvious case for a green economy shift is in macroeconomic 

policy instruments relating to structures and principles 

for international trade and finance. For example, the role of trade 

in resources – especially in energy-related resources, includ- 

What if the world could actualize its finest visions of a “green economy”? 

What sorts of institutions would we need to manage it? What sorts of 

institutional innovations will lead us to such a destination? Those are 

some of the questions that should be at the forefront of our thinking as 

we think about what Rio+20 can, and should, achieve. 

By Prof. Dr. Adil Najam and Prof. Dr. Henrik Selin 

1 

Task force members were: Tom Bigg (International Institute for Environment and Development), Elizabeth DeSombre (Wellesley College), Mark Halle 

(International Institute for Sustainable Development), J. P. (Hans) Hoogeveen (Dutch Ministry of Agriculture, Nature and Food Quality), Saleemul Huq 

(International Center for Climate Change and Development), Bernice Lee (Chatham House, the Royal Institute for International Affairs), David Levy (University 

of Massachusetts at Boston), Ricardo Meléndez-Ortiz (International Center for Trade and Sustainable Development), Adil Najam (Boston University), Henrik Selin 

(Boston University), Stacy D. VanDeveer (University of New Hampshire), Patrick Verkooijen (World Bank), and Paul Wapner (American University). The opinions 

expressed in this text are those of the authors building on the Task Force’s work. These opinions may not necessarily be shared by all Task Force members. See 

H. Selin and A. Najam (eds.) 2011, “Beyond Rio+20: Governance for a Green Economy,” Pardee Center Task Force Report, Boston University: The Frederick S. 

Pardee Center for the Study of the Longer-Range Future, March. 


45

Agenda 

Rio + 20 

ing its security implications – is central to a green economy. 

Any shift in this area will require carefully crafted incentives 

to align international markets toward environmental and 

resource goals. At the microeconomic level, the institutional 

challenge is to create individual incentives (including negative 

ones) to realign consumption and production decisions that 

have significant environmental and economic ramifications. 

A central challenge is not only to think creatively about economic 

policy, but to engage international economic institutions. While 

the necessity of such engagement is now understood by environmental 

as well as economic decision-makers, the incentives for 

such engagement do not yet exist. Rio+20 creates an opportunity 

to bring environmental and economic institutions together on a 

common platform where world leaders – to whom both sets of 

institutions are ultimately responsible – can lay out a program 

for collaboration. Rio+20 should at least begin the realignment 

of institutional incentives to facilitate the achievement of a goal 

already agreed on but not yet achieved: making environmental 

considerations central to global economic decision-making. 

Three. Recognize what is working and what is not working. There 

is no need to reinvent the wheel. There are already a number 

of public and private sector initiatives and partnerships that 

seek to promote a transition to a green economy world. At the 

same time, current organizations, policies, and practices must 

be subject to critical evaluation and changed if they stand in 

the way of the realization of a green economy. Furthermore, 

activities and regulations across organizations, states, and issue 

areas must be coordinated. Policy goals should be formulated 

clearly and followed by monitoring and reporting (related to 

discussions about targets and timetables). There should also 

be actual consequences for failing to meet agreed-upon goals 

and targets. 

The desire to create new institutions without first thinking 

about what will happen to old ones – and to simply assume 

that the problems that have plagued institutions in the past will 

somehow disappear in the future – remains as prevalent as 

it is misguided. Rio+20 delegates are well-advised to resist this 

temptation. For example, the period right before and right after 

the 1992 Rio Earth Summit was extremely productive in the 

negotiation of new structures. There are a variety of instruments 

available for a range of pressing issues, including a variety of 

financial mechanisms (although many have few or no resources). 

The challenge is no longer of creating new instruments, but of 

making the existing ones effective and functional. 

A fruitful discourse for Rio+20 would be to meaningfully 

enhance the efficacy of the main elements of the system of 

international environmental governance as it now exists. For 

example, there is a need to (a) focus on strengthening the 

UNEP – especially in terms of giving it financial stability, 

authority, and dependability – so that it can effectively deal 

with its growing responsibilities; (b) return to the original 

design mandate of the Commission on Sustainable Development 

and make it a review mechanism for progress toward 

sustainable development; and (c) accelerate the process of 

rationalization of multilateral environmental agreements 

through consolidation and better linkages. 

Four. Make implementation the focus. The time around the 1972 

Stockholm Conference and the 1992 Rio Earth Summit saw 

a frenzy of international institution-building that produced a 

rich edifice of instruments central to creating and managing 

a green economy. The system remains focused on negotiation, 

but a functional green economy will require that societies 

shift their attention much more toward implementation. 

Rio+20 provides an opportunity to accelerate this transition. 

There has been growing restlessness among industrialized and 

developing countries alike – although for different reasons – 

to make implementation a more central focus, and the UNCSD 

can become the marker that signifies this shift in attention. 

Enhanced implementation involves better incorporating 

public, private, and civil society actors who are closer to 

implementation, including at the domestic levels. This will 

require multilevel governance from major intergovernmental 

forums down to town halls and households. The subsidiarity 

principle should guide policy and management efforts; each 

issue should be dealt with at the most appropriate level. At 

each level, accountability issues are crucial to ensure change 

and implementation. This includes thinking carefully about 

what kind of monitoring and evaluation mechanisms are 

needed and how they may be established. To this end, a host 

of scientific, economic, and political information needs to be 

generated and shared in an open and transparent manner. 

Five. The state remains central but non-state actors have to be better 

accommodated. A focus on green economic issues highlights the 

importance of markets and consumers, but governments will 

remain central. There is a tendency (often by those outside of 

governments) to downplay the importance of the state. There 

is also a tendency (often among those within governments) 

to push responsibility for action and change onto non-state 

institutions. Both tendencies should be rejected. It is not so 

much a question of state responsibility being “replaced” or 

“taken over” by other actors, but rather state responsibility 

evolving to (a) enable more and better action by non-state 

actors and (b) work in concert with non-state institutions. 

Rio+20 should develop new and expanded ways of making 

the engagement with citizen and market groups deeper and 

more directly related to implementation. 

However, just as the state has to learn how to create a space 

where markets and citizens can spur institutional innovation, 

it also has to retain and assert its role as rule-setter and enforcer. 

This is already evident in the area of climate change and the 

creation of carbon markets – markets that can neither operate 

nor be created independent of state action – and will become 

increasingly important in the management and greening of 

natural resource supply chains. As these market instruments 

may become defined more and more by national security 

concerns, the importance of the state will increase – not 

diminish – in the evolving institutional needs of the planet. 

At the same time, the state itself has changed over time, and 

certainly the structure of states that make up the international 

system has. No single bloc of countries or region holds all the 

answers. But certainly compared to 1972 and 2002, the North 

today is a little less “North” and the South a little less “South” 

than they used to be. As global power balances shift, as corporations 

as well as citizens and their consumption become more 

global and more central to the global enterprise, international 

politics and policy is forced to confront new realities about 

“North-South” differences. Neither is ready to wither away, but 

both have evolved – as have the relations of both to the many 

non-state actors critical to the realization of a green economy. 

Five+1. Put equity at the center. Finally – overarching and 

incorporating all of the first five ideas – equity has to be a 

central goal. A green economy and its institutions must have 

as their core focus the well-being of people – of all people, 

everywhere – across present and future generations. That 

essential idea puts the notion of equity – intra- as well as 

inter-generational equity – at the center of the green economy 

enterprise. It also brings to the fore the centrality of consumption 

questions, not only between nations but within societies. It 

would be folly to forget that a green economy demands not 

just “green consumers” but “green citizens.” 

The proximate goal in the creation of a green economy is the 

notion of making the economy more ecologically efficient – meeting 

economic needs without compromising ecological integrity. 

But the ultimate goal is to do so in a way that the needs of all 

people – today and in the future – can be met. That, after all, 

is the central premise of sustainable development. Therefore, a 

deep commitment to issues of fairness and social justice is central 

to the green economy transformation. It is not just fitting, 

but necessary, that Rio+20 be a forum that helps ensure that 

the desire for ecological efficiency complements, and does not 

displace, the commitment to intra- and inter-generational equity. 

Time for action 

Both the number of people who still live in abject poverty 

and the rapid increase in the number of people who engage 

in high-consumption lifestyles raise crucial challenges for 

change. Rio+20 delegates should seek to craft a global new 

deal for sustainable development; a deal that could finally 

help bridge the North-South divide by tackling poverty, overconsumption, 

environmental degradation, social justice, and 

greenness of the economy as well as sustainable livelihoods. 

Versions of many green economy ideas have been debated 

for decades, and will continue to be debated, as they should 

be. It has been said many times before, but it will hopefully 

inspire action this time: More aggressive policy change for 

sustainable development and implementation are needed. 

Dr. Adil Najam is the 

Frederick S. Pardee 

Professor of Global Public 

Policy at Boston University 

and Director of the Pardee 

Center. 

Dr. Henrik Selin is 

Associate Professor of 

International Relations at 

Boston University. 


47

Agenda 

Rio + 20 

Two Decades of 

UN Earth Summits 

2012 

1992 

Rio de Janeiro 

The United Nations Conference on Environment and 

Development (UNCED) was a milestone in international 

environmental policy when it took place in Rio de Janeiro 

in 1992. The main incentive for this conference was the 

Brundtland Report that had been published by the World 

Commission on Environment and Development (WCED) in 

1987. For the first time, this report dealt with the guiding 

principle of “sustainable development” as well as conditions 

for lasting and practicable development that would be 

environmentally compatible up to the year 2000 and beyond. 

The report therefore had a strong influence on the global 

discussion of environmental and development policy. The 

1992 UNCED, attended by some 10,000 delegates from 

over 170 countries, served as a declaration that the need 

for action cited in the report merited implementation in 

binding international treaties. Dubbed the Earth Summit, the 

conference produced five important outcome documents: 

these included the “Rio Declaration on Environment and 

Development,” with 27 principles that the countries 

would adhere to in order to protect the environment 

and sustainable development in policy, business, and 

science. A Climate Change Convention was also developed 

that contained an agreement to reduce greenhouse gas 

emissions enough to prevent a dangerous disturbance in 

the global climate. Additionally a Convention on Biological 

Diversity was developed in order to protect biological 

diversity. It was geared towards maintaining the diversity 

of species and the sustainable use of natural resources. 

The Forest Principles were more non-binding, a declaration 

of intent that set out guidelines for the “Management, 

Conservation, and Sustainable Development of All Types 

of Forests.” Concrete goals in this area fell through amid 

resistance from some of the developing countries. Also 

founded during the conference was an Intergovernmental 

Negotiating Committee to combat desertification (INCD) 

and to prepare an appropriate Convention. This convention 

entered into force in 1996 and since then has been ratified 

by over 110 countries. Of special importance, however, 

is Agenda 21, which was adopted in Rio and includes 

suggestions for sustainable development activity. It contains 

an action plan for development and environmental policy 

that is primarily an appeal to governments to develop and 

implement appropriate strategies and plans at the national 

level. As an advanced draft of the Agenda 21 states, “The 

only way to assure ourselves of a safer, more prosperous 

future is to deal with environment and development issues 

together in a balanced manner. We must fulfill basic human 

needs, improve living standards for all and better protect 

and manage ecosystems.” 

Johannesburg 

Ten years later, it was time to work out concrete goals 

and measures on the path to sustainable development. 

Some 20,000 delegates from government, business, 

NGOs and local authorities came together to do so at 

the World Summit on Sustainable Development in the 

South African city of Johannesburg in 2002. More than 

anything, the results of the conference did not live up to 

the expectations held by many NGOs. Organizations such 

as Germanwatch nevertheless considered it a success 

2002 

that at least any steps backward from the world summit 

in Rio in 1992 had been prevented, and that in some areas 

there had even been unexpected advances. The WSSD 

in Johannesburg ended with a political declaration, the 

Johannesburg Declaration on Sustainable Development, 

in which the attending heads of state and government 

leaders committed to developing national strategies on 

sustainability. The industrialized countries also entered 

into an agreement to support the developing countries in 

drafting appropriate strategies. In addition, they adopted 

a 65-page Johannesburg Plan of Implementation. The 

main result of the world summit in 2002, however, was 

the assignment and inclusion of concrete goals into the 

action plan, particularly the Millennium Goals. For example, 

one of the most important resolutions was to reduce the 

number of people living in absolute poverty with incomes 

of less than one dollar a day by 500 million by 2015. All 

children worldwide should also receive a primary school 

education by 2015, and the proportion of people without 

access to basic sanitation should be halved by that time. 

What’s more, the decline in biological diversity was to be 

markedly reduced by the year 2010. But there was another 

step remaining: no target indicators could be created for 

the expansion of renewable energies, because the global 

disparities in this area were too large. 

Rio de Janeiro 

Sustainable development should now get a new boost from 

the United Nations Conference on Sustainable Development 

(UNCSD), which will take place back in Rio de Janeiro on 

June 4-6, 2012. The political commitment to sustainability 

should be secured once again. In addition, attendees are 

expected to take stock of the advances made up to this 

point and to identify the remaining gaps in the commitment 

to sustainability. The conference will concentrate on two 

main areas. One of these is the topic of the “green economy” 

in the context of sustainable development and poverty 

eradication. The United Nations Environmental Program 

(UNEP) defines the term “green economy” as an economy 

that “results in improved human well-being and social 

equity, while significantly reducing environmental risks and 

ecological scarcities.” The subject has already generated 

debate between poor and rich countries during a preparatory 

meeting in New York. According to the UN minutes of the 

meeting, representatives from developing and threshold 

countries feared that “greener” production structures 

would stifle their economic growth. The second focus of 

the conference is the topic of an “institutional framework 

for sustainable development.” This includes developing and 

strengthening the formal and informal bodies, organizations, 

networks, and arrangements that are a part of sustainable 

political decision-making and implementation measures. 

An effective institutional framework is essential to the 

implementation of sustainable development at all levels. 

The UN has decided that the results of the conference will 

be codified in a “Synthesis Report.” 

Compilation: Judith Bomholt 

48 



Inside ... 

Agenda 

Inside MENA 

middle East / 

north africa 

Will the Arab Spring 

Free the “Orphans of 

Globalization”? 


51

Agenda 

Inside MENA 

By Prof. Dr. Jean-Pierre Lehmann 

The period from the late 19th to the late 20th century was 

humiliating for most of the non-Western world. The only 

exception was Japan. India, China, Indonesia, Indochina and 

the rest of Southeast Asia, in addition to Latin America, Africa, 

and the Middle East, were all subjected to various degrees of 

Western political, economic, and cultural imperialism. 

Though no “globalization humiliation index” has ever been 

compiled – and the experiences of men and women in all these 

regions were humiliating – arguably the Arabs have suffered 

the greatest humiliation. This arose in part simply because of 

proximity. The Arabs are the neighbors and cousins of the Europeans 

within the greater Mediterranean civilization. During 

much of history, the Arabs were the more advanced, the more 

knowledgeable, the more successful, and the richer of the two. 

This rapport changed radically in the 19th century. Not only 

did Europeans prove to be much stronger economically and 

militarily, but there was also a prevailing view that the European 

scientific mind would leave the “primitive” Arabs 

far behind. In 1883 and 1884 there was a famous debate 

between the theologian and scientist Jamal al-Din al-Afghani 

and the French orientalist and philosopher Ernest Renan. 

Renan’s main thesis was that the conditions in which Islam 

had evolved and the nature of Arab society rendered it incompatible 

with the spirit of modern science. Europe would 

thrive, the Arabs would decline. Al-Afghani, who sought to 

join Islam and science, refuted Renan and expressed a vision 

of an Arab renaissance. 

The renaissance never happened. In the first half of the 20th 

century, following the collapse of the Ottoman Empire, the 

entire region of Middle East North Africa (MENA) came under 

Western imperial tutelage. Adding yet another significant 

humiliation, the West imposed upon the region the state of 

Israel in 1948. In the ensuing decades, repressive Western 

imperialism was replaced by indigenously derived repressive 

totalitarianism. The Arabs have not been free for centuries and 

certainly not in the last 50 years. The Arab states may have 

gained independence, but the Arab people did not gain liberty. 

For much of the 20th century, the condition of the Arab region 

did not differ much from what was then referred to as the 

“Third World.” With the exception of India, virtually all the 

countries of the Third World were ruled by despots, and virtually 

all the countries of the Third World were poor, backward, 

and corrupt. This was generally held, axiomatically, as the 

natural existential state of Third World countries. 

The first minor tremors of transformation occurred in the 

1970s with the emergence of what were referred to as the 

Asian NIEs (newly industrialized economies): Hong Kong, Korea, 

Singapore, and Taiwan. They represented the first – and 

still quite rare – cases of economies graduating from third 

to first world. 

After the rise of the “Four Dragons” (as they were also called), 

things began happening quickly. In 1978, two years after the 

death of Mao Zedong, the Chinese leadership under Deng 

Xiaoping undertook arguably the most radical program of 

economic reform a country has ever seen: Having rejected 

globalization for over a century and a half, the Chinese 

embraced globalization in the late 1970s and have done so 

in the ensuing decades. In 1989 the Berlin Wall collapsed 

and the Soviet empire imploded two years later. At the start 

of the 1990s India, Pakistan, Bangladesh, Indonesia, South 

Africa, Brazil, Mexico, Argentina, Chile, among many other 

erstwhile Third World countries, embarked on globalizationoriented 

reforms, thereby boosting trade, inward foreign 

investments, transfers of technology, and the acquisition of 

global knowledge. 

The results have been amazing in many respects. The dynamic 

emerging economies have witnessed very high growth, which 

in turn has led to massive reductions of poverty. The share of 

global GDP of the three major emerging economies – China, 

India, and Brazil – has doubled during the period of 2000 to 

2010. Turkey, following a profound financial crisis in 2001, 

has bounced back and achieved impressive growth rates. It 

no longer sees economic benefits in joining the debt-ridden, 

sclerotic European Union. Brazil, by combining economic 

growth with social development policies, has seen a reduction 

in inequality and a significant increase in literacy. China 

has supplanted both the United States and the EU as Brazil’s 

biggest trading partner. 

There is a mood of optimistic buoyancy in much of the developing 

world. Until the Jasmine Revolutions in Tunisia and Egypt, 

this optimistic buoyancy was nowhere at all to be found in 

the Arab world. Now it is quite to the contrary! 

What about the Arabs? 

The Lebanese journalist Saad Mehio succinctly and incisively 

described the Arab condition at the dawn of the new global 

era: “After the Cold War ended in 1989, and while the rest of 

the world was gearing up to join the march of globalisation, 

the Middle East looked like a bombed out city. More political 

oppression, more intellectual and cultural stagnation, more 

economic and social despair – and an ideological void that only 

the fundamentalists were able or were permitted to fill, under 

the demagogic banner of protecting identity and character.” 

Another Lebanese author, Fouad Ajami, who coined the term 

“the orphans of globalization,” commented: “[T]here is a danger 

worse than subjugation in this new era of capitalism – irrelevance!” 

Apart from oil, the Middle East was of no particular 

interest and had nothing special to offer. 

When the global financial crisis broke out in 2008, it was 

recognized that global governance had to extend from the 

closed establishment club of former major powers, the G8, to 

embrace new actors, through the creation of the G20. While 

four new Asian members joined (China, India, Indonesia, and 

Korea), three Latin American nations (Argentine, Brazil, and 

Mexico), one African (South Africa), as well as Turkey, from 

MENA there was only one invitee (Saudi Arabia), and that was 

for obvious reasons – oil. The leader of the Arab world, Egypt, 

with its 85 million inhabitants (expected to reach 100 million 

by 2025) was shunned. Apart from oil, the Arabs were not seen 

as having anything to contribute to the global discourse or 

the globalization agenda. 

There is certainly nothing in their DNA that condemns Arabs 

to being perpetually “orphans of globalization.” Indeed, the 

greatest Arab, the prophet Mohammed, was one of the world’s 

foremost globalizers. For many centuries, Arab merchants 

and warriors were the primary agents of globalization across 

the Eurasian continent. Arab centers of learning – notably 

in Córdoba in al-Andalus under the Caliphates, especially in 

its apogee from the 10th to 12th centuries – were among 

the greatest sources of wisdom and science the world has 

ever seen. 

There are many successful Arab global citizens living abroad, 

yet the Arab region as such – encompassing the 22 members 

of the Arab League – has stagnated. If one takes two of 

the areas in which the Arab world historically excelled and 

led – commerce and learning – the Arab region lags behind 

much of the world. Leaving aside oil, the Arab region’s share 

of world trade is negligible and there are hardly any areas 

where it is competitive in global markets. As to learning, the 

fact can be cited that no Arab university has ever appeared in 

the internationally recognized Shanghai Jiao Tung University 

rankings of the world’s top 500 universities. 

In 2002 the first UNDP Arab Human Development Report was 

published. It was compiled entirely by Arab intellectuals. It 

will for sure be seen as a document of considerable historical 

importance. The question addressed was why the Arab region 

was lagging. Three main answers in the form of “deficits” were 

given. The Arab region, the authors of the report concluded, 

suffers from a freedom deficit, a knowledge deficit, and a 

woman-empowerment deficit. On the knowledge front, the 

report noted that investment in R & D in the Arab region 

corresponded to less than one-seventh of the world average. 

An additional deficit that has to be noted is that of regional 

integration. As the world globalized, many of its regions simultaneously 

regionalized. This has been especially true of East 

Asia, including the Association of South East Asian Nations 

(ASEAN) – comprising Brunei, Cambodia, Indonesia, Laos, 

Malaysia, Myanmar, the Philippines, Singapore, Thailand, and 

Vietnam – along with the major northeast Asian economies, 

China, Hong Kong, Taiwan, South Korea, and Japan. 

By contrast there is very little movement of any kind – except 

now for refugees – between the member states of the Arab 

League. Intraregional trade barriers are high in goods and 

services, transport connections are cumbersome and limited, 

citizens of one Arab League country often need visas to travel 

to another Arab League country, and there are hardly any 

university student exchanges to speak of. Part of the reason 

for the regionalization deficit lies in a trust deficit: Arabs willingly 

admit they do not trust each other, in good part because 

they do not know each other. 

While much of the developing world boomed and underwent 

profound social, economic, and political transformations, the 

Arab world stagnated. Its economic, social, and intellectual 

climate could best be described as amorphous. This was not 

so much due to the prevailing dictatorships but the nature of 

the dictatorships. East Asia was – and to some extent still is 

(e.g., Vietnam and China) – dominated by dictatorships, yet 

these have been for the most part (North Korea stands out as 

a flagrant exception) dynamic economic growth- and social 

development-oriented dictatorships. The main purpose of the 

Arab dictatorships appears to have been simply to keep the 

lid on and preserve the elite’s existing privileges. 

The main victims of this amorphous state of globalization’s 

orphanages have been the region’s youth. The Arab region 

counts the highest proportion of youth – 60 percent of the 

populations of the Arab League member states are less than 

25 years old – along with the highest proportion of youth 

unemployment. Remittances have been a major source of 

revenue for many Arab countries. Though due to the low and 

uncompetitive levels of education that prevail in the region, 

few expatriate Arab workers – with the notable exception 

of the Lebanese – can aspire to more than just menial jobs 


53

Agenda 

Inside MENA 

abroad. While more Chinese, Indians, Brazilians, and Turks 

can feel proud of their roots and nationalities, for Arab youth 

the sense of humiliation has persisted. 

The Jasmine Revolutions – Scenarios 

Turkey: Turkey has emerged as a successful and dynamic actor 

in the last decade of the global era; it has undergone profound 

transformation, and through the Justice and Democracy Party 

(AKP) has demonstrated the possibility of blending modern 

democracy with Islam. 

It was a humiliated Arab youth – the Tunisian Mohammed 

Bouazizi from the desolate village of Sidi Bouzid – who, in 

immolating himself, sparked a revolution that engulfed his 

country, spread to Egypt, and has gripped the entire Arab 

world. It is the first revolution to happen in the Arab world 

for some time, certainly one led by youth, and it is the first in 

which the spirit of revolution was spread through such social 

media instruments as Facebook and Twitter. 

Though Tunisia was where the revolution was born, the Arab 

Spring has become more associated with Egypt, no doubt in 

good part because of the much more extensive press coverage, 

also because it is a much bigger country – Tunisia’s 

population is 10 million versus Egypt’s 85 million. Also, the 

Egyptian dictator, Hosni Mubarak, was a more familiar name 

than his Tunisian counterpart, Zine el Abidine Ben Ali. Tahrir 

Square in Cairo, where much of the revolutionary action 

occurred, has acquired as much fame as Tiananmen Square, 

albeit for totally different reasons and with diametrically 

opposed outcomes. 

The youthful fervor of the Jasmine Revolutions has spread 

to the entire region to varying degrees and in varying forms. 

The outcomes remain uncertain, though it is reasonable to 

expect that even if the repressive regimes, for example Syria, 

win a battle, ultimately it will prove pyrrhic. The march of a 

new 21st century Arab history seems now to be unstoppable. 

Even the crustier states, notably Saudi Arabia, will ultimately 

have to adapt to the winds of change. The seething youth may 

be bought off for a while, but not permanently. 

But where will all this lead? The Arab world is undoubtedly 

on the march, but the destination remains unknown. As 

things stand in mid-2011 – some four months following 

the Jasmine Revolution – six possible scenarios emerge: the 

Poland scenario, the Turkey scenario, the Iran scenario, the 

Philippines scenario, the Chile scenario, and the Yugoslavia 

scenario. 

Poland: The eruption of the Jasmine Revolution was described 

as the Arab region’s “Gdansk moment,” referring to the 

strike at the Polish shipyard in 1980 that set in motion the 

movements that ultimately culminated in the collapse of 

communism in Europe. The scenario plays out whereby the 

dictatorship is overthrown and the nation, through twists and 

turns, eventually becomes a quite prosperous society with a 

reasonably robust democracy. (Of course, Poland’s prize was 

EU membership, which is not an option for the Arab states.) 

Iran: This is the scenario most often touted by the established 

Arab regimes and one harbored by Western political leaders. 

This was the main reason why they supported the tyrants and 

only reluctantly backed the revolutions. This is the scenario 

where the Islamic fundamentalists take over. 

The Philippines: This is a rarely mentioned scenario, yet it is 

quite relevant. There are revolutions that give rise to great 

expectations but turn into human catastrophes – notably 

the Bolshevik Revolution – while there are others, such as 

the uprisings in the Central and Eastern European states 

against the Soviet Union, that lead to enhanced prosperity 

and democracy. In the case of the Philippines, the dictator 

Ferdinand Marcos was overthrown in 1986 by a revolution 

known as “People’s Power.” Yet 25 years later, while the 

country may be more democratic, it is just as economically 

and socially stagnant and just as corrupt as the country was 

under Marcos. As the French saying goes, “plus ça change, 

plus c’est la même chose” (the more things change, the more 

they are the same). 

Chile: The attempt by democratically elected Salvador Allende 

to transform Chilean society was brutally repressed by General 

Augusto Pinochet, which led to 16 years (1974–1990) of 

brutal military dictatorship. In the face of probable mayhem 

for some time and social unrest due to unmet expectations, 

the army may be tempted, as it often is, to put things in order. 

Soldiers who do so rarely return to the barracks quickly or 

peacefully. 

Yugoslavia: Yugoslavia as a country imploded as its distinct 

ethnic and religious components sought in some cases hegemony, 

in others independence. Yugoslavia no longer exists, 

the breakup has been terribly painful and costly in human 

terms, and it may not be over yet. The Yugoslav scenario may 

apply to some of the more ethnically diverse Arab states, as 

is the case in Iraq and possibly Syria. 

Clearly no single scenario will apply to the entire region. 

Whatever happens in a particular country will also, of course, 

have its own distinctive characteristics. The scenarios imply 

directions the nations may take, and not that they will produce 

replicas. There will be a mixture of scenarios in respect 

to different nations. While the region was under dictatorship, 

it had a certain homogeneity. The Jasmine Revolution 

already has exploded this perspective and no doubt different 

trends will intensify and accelerate in the weeks, months, 

and years ahead. 

The globalization of Tahrir Square? 

As the Arab Spring “blossomed,” the Chinese government was 

so worried that there were virtually no reports in the media 

and the word “jasmine,” among many others, was eradicated 

from the Internet. There is widespread discontent among youth 

throughout the world. A growing number of unemployed (or 

even employed) American youth see dim prospects and believe 

that their standards of living will be well below those of their 

parents. In Europe, youth unemployment is generally twice 

the national average – estimated at as much as 45 percent in 

Spain. The recent occupation of the Puerta del Sol in Madrid 

was likened to “Spain’s Tahrir Square.” 

While globalization has resulted in quite massive reductions 

in poverty, it has also resulted in growing inequality. Only 

three decades since Maoism, China’s Gini coefficient (which 

measures inequalities in revenue) is comparable to that of the 

United States. Even emerging middle class and well-educated 

youth in China see their chances of ever owning their own 

homes in cities such as Shanghai as being next to nil as real 

estate prices have soared and the market has been cornered 

by speculators. 

Many countries, notably India, flatter themselves with having 

a huge advantage through their so-called youth dividends. 

Invariably this is cited as a great competitive advantage, especially 

vis-à-vis China, where the population will rapidly age 

due to the one-child policy adopted in 1978. Having a large 

youth population can only be an advantage, however, if they 

are properly educated, employed, and motivated. There can 

be no hope for a country if its youth has no hope. 

Tahrir Square: The spirit of revolution was spread through 

such social media instruments as Facebook and Twitter. 

In neighboring Pakistan, in Afghanistan, and in many other 

countries in South and Central Asia, the youth bulge is booming, 

but the prospects are grim. The same applies to sub-Saharan 

Africa, whose population is expected to double between 2000 

and 2050. 

The world is at the moment a pretty tawdry place. Burning in 

the breasts of many – especially the youth – is a very strong 

sense of injustice and inequity. The gap between the winners 

and the losers is widening. The perception though is that the 

winners do not win because of their talent, but because of 

their connections and because of corruption. 

Corruption and the impunity from which the elites are seen 

to be benefiting is growing like a cancer in society. Growth 

may be high in many countries, but it is perceived as not 

being inclusive: The world is increasingly unfair, and more 

visibly so. It also appears to be in an ethical swamp with no 

apparent moral compass. 

While the Arab region has lagged miserably in the process 

of globalization in the last two decades, paradoxically it may 

provide inspiration and guidance to the world in the turning 

point of a new phase of globalization that the world may be 

witnessing in the second decade of the 21st century. It seems 

that there are two routes that lie ahead: One is that of global 


55

Agenda 

Inside MENA 

uprisings driven by youth, leading to constant turbulence; the 

other is a more inclusive, equitable, ethical, and sustainable 

globalization. As Kofi Annan warned: “If we cannot make 

globalization work for all, in the end it will work for none.” 

The private sector has a vital role to play. One of the outcomes 

of early 21st century globalization is that business has emerged 

as the most powerful social force. This is new and prevails 

to varying degrees virtually everywhere in the globalized 

market-driven interconnected world. 

The UN Global Compact in 

the MENA Region 

Power imposes responsibility. With the globalization of markets, 

the proliferation of communication and information 

technologies and social media, and the deep systemic failures 

of the current state of capitalism that were revealed in the great 

financial crisis, there are ample reasons for business leaders 

to assume responsible leadership. In fact, as the Indian entrepreneur 

and thought leader Ravi Chaudhry has argued in his 

book, current global conditions require exceptional leadership 

(Quest for Exceptional Leadership: From Mirage to Reality). 

The Ten Principles set out by the Global Compact must be 

deemed as the minimum standards for business behavior. 

Efforts must be exerted beyond that to create an environment 

that is geared to maximizing real wealth and welfare. The role 

of finance must be curbed. To sustain a global market economy, 

real business leaders must be on top and finance on tap, not 

the other way around, as is currently the case. There needs to 

be more vision, and especially business leaders must escape 

from the myopic short-termism that has caused so much havoc. 

The Arab Spring and the Jasmine Revolution have also been 

called the Arab Awakening. The Arab world may indeed be 

waking from the deep slumber that resulted in its exclusion 

from globalization. The Arab Awakening, however, with the 

powerful symbol of youth in Tahrir Square, might also serve 

as an awakening to the broader global community – and 

especially the elites – that there is an urgent need to make 

globalization more inclusive to provide hope for the next 

generations. The alternatives are frightening. Enlightened 

self-interest calls for a better world. 

Dr. Jean-Pierre Lehmann is Professor of 

International Political Economy, IMD, 

Lausanne, and Founding Director of 

The Evian Group. 

By Matthias Stausberg 

For a few years after the Global Compact’s launch in 2000, 

the Middle East and North Africa (MENA) remained uncharted 

territory for the initiative. This changed in 2003, 

when the first efforts were undertaken to promote the 

Global Compact in Egypt. A high-level launch took place 

in Cairo in February 2004, resulting in the participation 

of more than 50 companies, including many of Egypt’s 

leading corporations. The Egyptian network, which was 

initially coordinated by the UN Development Programme 

(UNDP) and later by the Egyptian Corporate Responsibility 

Center, grew quickly and now includes 62 organizations. 

Following the first steps in Egypt, the International Labour 

Organization, with financial support from the Italian government, 

began promoting the Global Compact in Tunisia 

and Morocco, leading to launches in both countries in 

2005 and 2006, respectively. Small networks have emerged 

since then, and now there are 23 participants in Morocco 

and 31 in Tunisia. 

While the Global Compact was making progress in North 

Africa, outreach in the Gulf States did not take place until 

2006, when the Global Compact was introduced to the 

Emirates Environmental Group (EEG) under the leadership 

of Habiba Al-Marashi, who has since been appointed to the 

Global Compact Board. The EEG and the associated Arabia 

CSR Network quickly emerged as the Global Compact’s key 

allies in the region, leading to the creation of the regional 

network for companies from the countries in the Gulf 

Cooperation Council in 2008. Participants in this network 

now include 61 companies and other organizations from 

Bahrain, Kuwait, Qatar, Saudi Arabia, the UAE, and, most 

recently, Oman. 

As in many countries, much of the initial effort to promote 

the Global Compact and its Principles in the MENA region 

was spearheaded by UNDP country offices. This continues 

to be the case in Lebanon, Jordan, and Syria. After Egypt and 

the Gulf States, Syria now has the region’s third-largest network 

with 46 active participants. In Jordan and Lebanon, the 

emerging networks include 33 and 9 participants, respectively. 

In Israel, Maala – Business for Social Responsibility, the country’s 

leading CSR organization, has supported early outreach 

efforts and also coordinates the activities of the emerging 

network. So far, 24 Israeli companies have joined the Global 

Compact, and the network is well integrated into the Global 

Compact’s regional work. Network representatives also participated 

in the first regional meeting for MENA networks 

held in Cairo in April 2010. 

Overall, the Global Compact has been making steady progress 

in the MENA region, often in adverse political and socioeconomic 

environments. The fact that seven Iraqi companies have 

joined the initiative since 2009 speaks perhaps to the appeal 

of the Global Compact as a universal organizing framework. 

Challenges remain, of course. In a familiar pattern, small and 

medium-size enterprises – by far the majority of all businesses 

in the MENA region – struggle with continuous implementation 

of the Global Compact Principles, and also with annual 

reporting. Some networks have been lacking the structure 

and resources needed to be of tangible, lasting value to their 

participants. And of course, Global Compact participation has 

not yet reached the numbers needed to effect real and lasting 

change on a broad scale. 

It remains to be seen what impact the upheavals and reform 

movements in the Arab world will have on the Global Compact’s 

work in advancing greater corporate sustainability in 

the region. So far, the signals have been mixed, once again 

underscoring that the region’s countries are all too often and 

all too easily treated as one monolithic political, social, and 

cultural space. In Tunisia, the Global Compact’s leading proponent 

and network focal point, Mohamed Ennaceur, has joined 

the new transitional cabinet as Minister of Social Affairs – a 

move that could certainly bode well for the advancement of 

corporate responsibility and the Global Compact in the country. 

In Egypt, however, the business community remains cautious, 

especially since many of its leaders have been subjected to 

reprisals and prosecution amid allegations of corruption and 

fraud in connection with the former political leadership. Generally, 

however, there appears to be a widespread consensus 

among many Arab businesses that reform will help improve 

the investment climate, put an end to years, if not decades, 

of bureaucracy, and help connect the Arab markets and Arab 

businesses to the global market in ways not imaginable just 

a few years ago. 

Matthias Stausberg is Head of 

Public Affairs & Media Relations and 

Spokesperson of the UN Global Compact 

56 Global Compact International Yearbook 2011 


Agenda 

Inside MENA 

Habiba Al Marashi 

Walid Nagi 

Responsible Business Is 

the Key – The Role of CSR 

in the Arab Economies 

A lot has been written during the last months about the so-called Jasmine Revolution, the 

end of some corrupt political systems, and the embarking of the Middle East and North 

Africa (MENA) toward democracy and social reforms. Topics like human rights, transparency, 

as well as youth unemployment and new technologies for production of energy are 

dominant in the media coverage about the region. In this interview, Habiba Al Marashi, 

Chair of the Emirates Environmental Group (EEG) and Board Member of the UN Global 

Compact, and Walid Nagi, Manager CSR and Corporate Communications at the Al-Mansour 

Holding and UNGC Regional Networks Manager MENA and Europe, talk about the drastic 

social changes, the examples companies can provide, and the importance of the business 

sector for sustainable development in the MENA region. 

In the last months, calls for democracy in the Arab world surprised experts 

all over the world. It began with the demonstrations against high 

youth unemployment and rising food prices, but soon it transformed 

into the biggest democratic movement in recent Arab history. How have 

you experienced the last few months? 

Walid Nagi: As I was in the United States at the time, I cannot 

really comment on that. Like everyone else, I was watching 

the news on television. But from talking to several people, the 

feeling has been so positive during and after what has happened 

in Egypt. During the 18 days, although it was chaotic and no one 

knew what was going on, everyone had a sense of solidarity and 

people were acting together to achieve a common goal, which 

made everyone closer and made the population even stronger. 

Which future role should the economy play to support the change? 

Walid Nagi: In the future, it is all about the economy, it is 

all about the private sector acting responsibly and making more 

investments in Egypt. It is about creating employment that 

will create social equality. Without the economy, everything 

will collapse. It is time now to get into creative projects that 

will employ people and help them earn their living. It is time 

for the multinational corporations and the local businesses to 

trust people and to act responsibly in order to achieve growth. 

Successful companies traditionally combine economic success with a 

strong commitment to corporate responsibility and environmental 

campaigns in the region. Is this a blueprint for other Arab and North 

African companies? And how has the “green consciousness” of consumers 

changed over the years? 

Habiba Al Marashi: The “green consciousness” of Arab 

consumers has improved greatly over the years, but more work 

still needs to be done to shift the whole region into thinking 

about sustainability, equality, and the environment as a way of 

life, and not only as a business venture to increase competitive 

edge. Today a large number of companies are practicing CSR or 

have environmental policies in place, which is a huge improvement 

compared to 10 years ago. However, not every company 

recognizes the work and advantages of being involved with the 

UN Global Compact, and EEG is actively communicating the 

benefits with a number of its members and through its large 

network. By utilizing our outreach capacities, we can reach 

and inform a wide number of stakeholders, which in turn 

can keep improving the environmental awareness of society. 

Walid Nagi: Mansour Group has always assumed the responsibility 

of being the leader in the field of development, even 

if done on a small scale. Mansour Group has been, and still is, 

one of the biggest advocates of the cause in Egypt, expanding to 

the Middle East and even to Europe whenever the opportunity 

is there. Lots of SMEs have even joined the Global Compact 

to follow Mansour, and we always took it upon ourselves to 

be mentors and supporters in that area. Mansour is the main 

supporter of the Global Business Initiative on Human Rights in 

the MENA region, the representative of the Global Compact in 

Egypt, and also the main supporter of the Egyptian Corporate 

Responsibility, the AUC Gerhart Center, among others. 

Since 2008, the Arabia CSR Awards recognize corporate engagement 

in the region. Can you describe the results of the contest over the last 

few years? 

Habiba Al Marashi: The Arabia CSR Award was established 

in 2008 to honor organizations that demonstrate a clear and 

effective CSR strategy. The award series has grown in stature 

and status over the years. Companies that apply to the awards 

process gain many advantages and feedback, even if they are not 

“crowned” as the overall winners. The awards have resulted in 

many companies improving their accountability, using resources 

more efficiently, increasing the standards of their workplaces, 

and improving trust and social dialog. In addition to being considered 

in the running for the prestigious award, the Arabia CSR 

Network has set a benchmark standard for companies to meet 

and go beyond. This benchmarking has actively contributed 

toward improving business excellence in the region. 

Today the UN Global Compact is well integrated in the whole MENA 

region. Its Local Networks have a high and well-known reputation for 

their work. Which role can the UN Global Compact play in the future 

development of your countries and the national CSR community 

specifically? 

Walid Nagi: The Global Compact is the universal corporate 

social responsibility platform, hence it has a major role 

to play in the MENA region. 

Habiba Al Marashi: The Compact can still play a significant 

role in the future development of the MENA countries. CSR is 

becoming more widespread, but the level of participation and 

commitment from companies can still be improved. The Local 

Network groups can have a significant impact on companies 

by becoming the focal point for company representatives to 

share experiences and learn from each other. As Local Networks 

go from strength to strength, opportunities are created 

throughout the MENA region that will contribute to advancing 

the Global Compact Principles, which are helping to manage 

the consequences of rapid expansion and business activities. 

Nearly all countries in the MENA region are classified as “extreme risk” 

countries for workers, according to a study by British CSR consultancy 

Maplecroft. What kind of human- and labor-rights preparation do 

you recommend to international companies when they become active 

in your region? 

Habiba Al Marashi: Companies that are looking to expand 

their business in the MENA region, or that already have, cannot 

be excused for having weak human rights departments 

because some countries are labeled as being “at risk.” 

Issues related to labor and human rights have changed over the 

years due to changes in regulations, changes in global markets, 

and other factors. Competitive pressures have also affected the 

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Inside MENA 

“ 

CSR is becoming more 

widespread, but the level of 

participation and commitment 

from companies can still be 

improved. 

” 

Habiba Al Marashi 

potential for company survival, which may sometimes lead 

to shortcuts in some business areas such as human resources 

and / or human rights. The recommendations I would make to 

companies beginning their ventures in the MENA region would 

be, firstly, to get involved with the UN Global Compact due 

to the information and advice that will be available to them. 

They must also see proper and timely preparation and regional 

research as an investment for their company and not just as a 

cost. Companies should take time to investigate the local laws 

on labor and use management to develop clear goals and objectives 

to enable them to meet these laws and go beyond the 

base-level expectations. Implementation of strong CSR strategies 

would also help them to become competitive in this region. 

Walid Nagi: I would recommend that companies join the 

Human Rights Working Group when they become members of 

the Global Compact so they can learn the basics about implementation. 

I would also recommend the same when it comes 

to labor rights, as these are the main assets for any business. 

Protestors in North Africa and the Arabian Peninsula identified the 

so-called Wasta regime as an obstacle to development. Observers from 

the Western world often believe that Wasta is no more than a local 

forum for corruption, which may be wrong: In fact, Wasta forms part 

of traditional daily culture, and some experts do not have a completely 

negative opinion about it. Can you comment on this phenomenon and 

classify it with the 10th Principle of the Global Compact? 

Habiba Al Marashi: Wasta is defined as “an Arabic word 

that loosely translates into ‘clout’ or ‘who you know.’ It refers 

to using one’s connections and / or influence to get things 

done, including government transactions such as the quick 

renewal of a passport, waiving of traffic fines, and getting 

hired for or promoted in a job.” By using the influence to 

perform a service, the “wasta” acquires prestige and honor. 

However, more importantly, the person receiving the favor 

incurs a debt of gratitude, which may have to be repaid in 

unspecified ways at some point in the future. In the past, wasta 

was considered as a means of managing relations between 

tribes and families. 

Wasta can be equated to corruption. However, this concept 

is fast diminishing from the United Arab Emirates (UAE) society. 

It can be considered as one of the main causes for the 

downfalls of the governments in Egypt and Tunisia. In the 

UAE, specifically, the concept of wasta is frowned upon and 

the government has abolished it completely! With a strong 

education base and transparency, we can ensure this act is 

completely eliminated. 

Let us talk about environment issues: For a long time, your region – as 

in other parts of the world – has been strongly dependent on fossil fuels, 

especially oil. But now it seems that new technologies and the use of 

renewable energy have been brought to public and political attention. 

Which role can clean technologies play in the future of both the Arabian 

Peninsula and North Africa? 

Habiba Al Marashi: Clean technologies and renewable 

fuels will most definitely have a role in the future of the Arab 

Peninsula and North Africa. The region needs to invest in 

these technologies now even though we still have reserves of 

fossil fuels. This is important, partly for environmental reasons 

but also for economic reasons. Due to the complexity of 

socioeconomics and the environment, if the region does not 

become a leader in this new type of energy production and 

begin to move away from oil and gas, we will be left behind 

in the energy sector, which will have many economic and 

environmental consequences and repercussions. 

Thank you very much for this interview. 

Renewable 

Energy in the 

Middle East and 

North Africa 

By Prof. Dr. Dr. Hans Müller-Steinhagen and Dr. Franz Trieb 

Until very recently, the countries of the Middle East and North 

Africa (MENA) region had not indicated any serious interests 

in the use of renewable energies, as these technologies were 

considered insufficient, irrelevant, and expensive. Countries 

with oil or gas became rich by exploiting their fossil fuel 

reserves, while the other countries claimed to be too poor to 

be able to afford wind or solar power. This picture changed 

dramatically in 2008 when the price of a barrel of oil climbed 

to $140. Suddenly, poor countries noticed they were, in fact, 

too poor to continue with business as usual, and the oil and 

gas countries noticed they were burning money by providing 

their own energy in conventional ways. As a consequence, 

countries like the United Arab Emirates founded the Masdar 

initiative for the promotion of renewable energy, and Morocco 

started a national program for wind, photovoltaic, and 

concentrating solar thermal power plants on a large scale. 

However, as in the MENA region, the main question is how 

to finance such a transition. 

The technical options and potential for renewable energy in 

the MENA region are outstanding. In addition, all technologies 

needed for the generation and transfer of power are state of the 

art, including export over long distances to Europe. From 1 sq 

km of desert land, up to 250 million kWh of solar electricity 

can be harvested per year using, for example, linear Fresnel 

concentrating solar thermal collector systems installed at the 

best sites in the region. Not only the geographic distribution of 

renewable energy, but also the time pattern of energy availability 

differs from one resource to the other. Power plants utilizing 

wind and photovoltaic power, river-runoff hydropower, and 

wave and tidal power deliver electricity with highly fluctuating 

time patterns. With growing shares of renewable electricity 

in the energy mix, there is a growing challenge of integrating 

this type of fluctuating power into the supply system, as power 

must always be delivered right on demand. Other renewable 

sources are more easily stored, like biomass, geothermal power, 

hydropower from dams, and concentrating solar thermal power. 


61

Agenda 

Inside MENA 

A reasonable strategy for sustainability in the power sector 

is, therefore, to establish a well-balanced mix of renewable 

energy sources in order to deliver power on demand at any 

time with as little fluctuation as possible. Within a reasonable 

range of capacities, pump storage and distribution of 

electricity within the grid can help to further balance power 

supply. In that case, the consumption of stored fossil fuels 

can be reduced to a point where they are used exclusively 

for backup reserves and balancing power, while the bulk of 

electricity will be generated by renewable sources. 

Such a strategy may lead to energy sustainability in the MENA 

region, but at present the rapidly expanding consumer base 

in the region is using almost exclusively oil and gas for power 

generation. Looking into the medium- and long-term future, 

this must change significantly in favor of major shares being 

generating from renewable energy – not only for environmental 

reasons but also for socio-economic and political 

reasons. A business-as-usual strategy based on fossil fuels 

would lead to sharply increased competition and potentially 

serious conflicts between the countries north and south of 

the Mediterranean. Alternatively, the scenario outlined in 

the graphic creates excellent business opportunities for the 

MENA power sector: The realization of electricity exports 

from the MENA region to Europe alone has been estimated 

to involve an investment of €400–600 billion up until 2050. 

If supply of the local electricity demand is also included, the 

total investment by that time in the EU-MENA power sector 

will amount to several thousand billion euros. 

Seawater desalination is increasingly becoming an important 

energy topic in the MENA region. Already today there is a 

critical scarcity of potable water, with groundwater levels 

decreasing in some regions by up to 6 meters every year 

due to overexploitation. Seawater desalination is a very 

energy-intensive option that only makes sense if a sustainable 

source of energy is used. Solar energy correlates very 

well with the demand for seawater desalination, as it is the 

major cause of water scarcity and, thus, an elegant way to 

solve the problem. 

Sustainable electricity supply scenario for the MENA region 

4500 

4000 

Desalination 

Source: Authors 

Selected activities 

Mediterranean Solar Plan (MSP) 

The Mediterranean Solar Plan was initiated under the scope of 

the “Barcelona Process: Union for the Mediterranean (UfM).” It 

was launched in July 2008 as one of the strategic processes for 

sustainable development to address the foreseeable increase 

of energy demand in the Euro-Mediterranean region and the 

need to reduce greenhouse gas emissions. Its main objective 

is to develop an installed capacity of 20 GW of renewable 

power on the south shore of the Mediterranean, as well as 

the necessary infrastructures for an electricity interconnection 

with Europe. 

DESERTEC 

The DESERTEC concept is based on the use of desert areas to 

harvest renewable energy like solar and wind power where 

it is most abundantly available. In order to accelerate the 

construction of the required facilities and infrastructure, the 

Desertec Foundation (DF) and its industrial initiative, Dii GmbH, 

both established in 2009, are working on the development of 

appropriate policy frameworks that will allow for international 

trade with clean power and provide suitable investment incentives 

in the MENA region. The long-term goal is to provide a 

considerable share of the power generation from renewable 

sources in the MENA region and about 100 GW of solar energy 

exports from the MENA region to Europe by 2050. 

MedGrid 

Whereas Dii GmbH is focusing on the entire value-adding 

chain of power generation, transmission, and power markets 

and working on a long-term roll-out plan to be implemented 

by 2050, the French MedGrid industry initiative is concentrating 

on establishing power transmission infrastructure and 

framework conditions in the Mediterranean region by 2020 

within the framework of the Mediterranean Solar Plan (MSP). 

The industry initiatives Dii GmbH and MedGrid plan to work 

in close cooperation with each other. 

European initiatives 

In its renewable energy directive from 2010, the European 

Commission established concrete goals of renewable energy 

shares in Europe to be implemented by 2020 and lists the 

different renewable energy technologies that are candidates 

for European supply. A recent communication from Catherine 

Ashton, the High Representative of the European Commission 

for Foreign Affairs, proposed “a partnership for democracy 

and shared prosperity with the Southern Mediterranean” to 

the European Parliament, the Council, and the Committee, in 

which she proposes to establish in the long-run an “EU-South 

Mediterranean Energy Community.” 

National MENA initiatives 

Egypt and Morocco have already initiated renewable energy 

development processes in the form of wind parks, although 

on a very modest scale compared to the activities in this sector 

in Europe. The United Arab Emirates has founded the 

company Masdar for the deployment of sustainable forms of 

energy. Under the supervision of the Moroccan Agency for 

Solar Energy, Morocco has started to develop power plants 

with a projected capacity of 2,000 MW deriving from wind, 

photovoltaic, and solar thermal power. 

Electricity [TWh/y] 

3500 

3000 

2500 

2000 

1500 

1000 

Export Solar 

Photovoltaics 

Wind 

Geothermal 

Hydropower 

Biomass 

CSP Plants 

500 

Oil / Gas 

Coal 

0 

2000 

2010 2020 2030 2040 2050 

Year 

Prof. Dr. Dr. Hans Müller- 

Steinhagen is Rector at 

Technische Universität 

Dresden. 

Dr. Franz Trieb is Project 

Manager at the German 

Aerospace Center (DLR). 


63

Agenda 

Inside MENA 

Wasta: How the Use of 

“Connections” Impacts 

on Private Sector 

Development in Arab 

Countries and Why 

By Dr. Markus Loewe 

The literal translation of the Arabic word wasta is “connection,” 

but it is often employed for favoritism, that is, the use 

of personal relations for preferential treatment. Favoritism is 

a form of corruption when someone uses her / his position to 

distribute the resources of someone else (e.g., the employer 

or the state) to a friend or relative. 

Favoritism is relatively common in several Arab countries as 

it is in other world regions. People use wasta to get jobs, loans, 

scholarships, or admission to university, to earn better marks 

at school, to avoid fines and penalties, to obtain an individual 

tax reduction, a business license, or a production permit, or 

to go through administrative procedures faster than normal. 

This, however, has profound negative effects on the social, 

political, and economic development of the Arab countries. 

First, it intensifies socio-economic disparities. People who 

are already disadvantaged with regards to income, assets, 

education, and living conditions and less integrated into society 

tend to have less wasta to persons who might do them 

a useful favor. As a result, they have fewer opportunities for 

gaining access to good jobs and services and thus improving 

their living conditions. 

Second, favoritism can create or perpetuate dependencies. 

Where formal rules are undermined by frequent preferential 

treatments of well-connected persons, people conclude that 

all government services are individual rewards rather than 

something that citizens have a right to. This attitude can 

strengthen authoritarian regimes that are based on patronclient 

relations: The rulers grant favors to their clientele and 

receive loyalty in return. 

Third, favoritism affects the investment climate and thereby 

economic development at large. Some researchers have postulated 

that favoritism may have positive effects on investment 

and growth because it creates trust between business people 

and policymakers, facilitates the flow of information, and 

thereby reduces transaction costs. As a result, it encourages 

investment. This line of argumentation is plausible, in fact, 

with regards to business people who have good connections: 

They trust the state if somebody in the public administration 

takes care of their concern. Other business people, however, 

may be penalized for their lack of connections. 

Favoritism thus leads to unfairness and inefficiency in statebusiness 

relations and distorts competition. For example, when 

licenses are granted on the basis of personal preference, the 

costs and risks of applying for it may be too high for those who 

have no personal connections in the public sector. Moreover, 

wasta can help to get valuable (sometimes even confidential) 

information on profitable business activities, tenders, tax 

exemptions, etc., thereby providing exclusive business opportunities. 

Likewise, well-connected people can sometimes 

even influence the formulation of laws and regulations in a 

way that they benefit from it or even so that their competitors 

are excluded from some market. Finally, the widespread use 

of wasta makes business people invest time and money that 

they could otherwise use for productive purposes to improve 

their wasta in order to obtain preferential treatment. 

The perception of wasta among people in Arab countries is 

ambiguous. Some refuse to use their wasta. Others employ 

it even though they are aware of the fact that favoritism has 

negative effects on development and discriminates against 

people with less wasta. Other people again argue that there is 

no alternative to the use of wasta in order to get what one needs. 

Four factors contribute to the persistent importance of wasta 

in different kinds of interactions. First, many people feel helpless 

if they have to go through lengthy, costly, burdensome 

administrative procedures: They use their wasta just because 

they are afraid that they might be unable to reach their goals 

otherwise. Second, nobody has an incentive to refrain from the 

use of wasta as long as most other people use it. Third, tribalism 

makes people identify with their family, neighborhood, 

clan, or tribe rather than society or the state at large and to 

see themselves as parts of a group rather than individuals. It 

thus makes people feel obliged (and be expected by others) to 

support their relatives and friends. Fourth, all Arab countries 

were ruled until recently – and most of them still are – by 

authoritarian regimes in a neo-patrimonial manner: Their 

rulers present themselves as caring patriarchs and distribute 

material benefits to citizens (free health services, housing, 

subsidized energy) in order to create legitimacy and to stabilize 

their rule. Their most loyal constituencies are rewarded 

with influential positions in the state apparatus and other 

privileges (e.g., import monopolies). Entire political systems 

are thus built on a hierarchy of clientelistic relations: Everybody 

in them is dependent on the benefits granted by her / his 

superior and therefore owe loyalty to that person. Wiping out 

the use of wasta would be completely against the interest of 

political leaders because their power depends entirely on the 

exchange of favors against loyalty. 

As a matter of fact, the prevalence of wasta is highest in the 

Arab world in the countries that are coined by tribalism and 

gaps in modern nation-building on the one side, and red-tape, 

opacity, and slow and costly administrative procedures on the 

other side: for example, Yemen, Lebanon, Libya, Mauritania, 

Algeria, and Jordan. At the same time, the use of wasta is less 

dominant where administrative procedures have been streamlined 

by merit-based modes of civil service recruitment and 

different forms of e-government (Qatar, United Arab Emirates, 

Oman, etc.) and where citizens have developed a stronger 

identification with their nation (Tunisia, Egypt). 

Of course, it is mainly the task of governments to rule out 

favoritism. Political leaders should make it a priority issue to 

raise citizens’ awareness of the consequences of the widespread 

use of wasta, to strengthen the rules that prohibit favoritism, 

and to promote the shift of people’s identification from primordial 

entities to nation states. 

At the same time, however, the private sector can also play a 

role in the fight against wasta. Business associations and professional 

unions should assume responsibility for heightening 

awareness among their members about the negative impacts 

of wasta. And foreign companies in particular should consider 

building coalitions for change, that is, alliances of private 

firms that abide by a code of conduct that bans both the use 

of wasta and bribes in all kinds of interactions with the state. 

Dr. Markus Loewe works for the German 

Development Institute, Bonn. 


65

Agenda 

Inside MENA 

Improving Labor Standards 

Performance in the 

Middle East 

By Craig Moss 

The historic sweep of 2011’s “Arab Spring” has made the time 

ripe for driving improvement in working conditions in the 

Middle East. Business owners and managers saw the power 

of the people to force change. 

Following the start of the revolution, there were a series of 

national labor strikes in Egypt as well as in Jordan. The workers 

were emboldened by the new feeling of possibility – by 

the sense that change was possible. 

Labor standards and working conditions in the Middle East 

exhibit many of the same basic problems that occur globally. 

If we look at workers’ demands from the recent strikes in 

Egypt and Jordan, we will see issues that clearly violate the 

International Labour Organization’s core labor conventions 

– unfortunately, that will surprise no one. The demands 

of workers involved in the strikes focused on having their 

wages properly and fairly calculated, receiving at least the 

legal minimum wage, and not being forced to work overtime. 

Labor rights in the Middle East are complicated by the presence 

of a large number of migrant workers in the region. There are 

some exceptions, like Egypt, where there is a large domestic 

workforce. But the migrant workforce and the use of agencies 

to supply contracted labor too often leads to forced labor. The 

revolution and the labor strikes created a receptive audience. 

There are benefits of initiating a dialog between workers and 

managers: An Egyptian company we worked with in April of 

2010 followed our advice. They established a social performance 

team in their company, which included freely elected 

worker representatives, whose purpose was to improve worker 

communication and labor standards in the company. The day 

before one of the national strikes, the worker representatives 

went to management and told them that they had surveyed 

the workers and decided not to join the national strike. Management 

was surprised, but very grateful. They asked “why?” 

The worker representatives explained that since the team 

had been formed, the workers had seen improvements and 

saw that management was making a sincere effort to create 

communication channels. Management estimated that they 

would have lost over $2 million had their workers joined the 

national strikes. 

These are the kind of stories that build momentum. There 

is a long, long way to go, but stories like this show that the 

journey has begun. The time is ripe in the Middle East. The 

key is to share the successes and build momentum. 

Businesses in the Middle East are starting to recognize that 

the pursuit of economic growth through employment creation 

and income generation should be balanced with protection of 

the basic rights of workers. For any business, the workforce 

is a valuable asset, and a sound worker-manager relationship 

is a key ingredient to the sustainability of the enterprise. But 

having management realize the need for change is only the 

beginning. Actually driving change and making improvements 

is the goal. Easy to say. Hard to do. 

Companies in Egypt and the Middle East need a practical way 

to get started. We found they are eager to learn what tangible 

steps they can take to start to develop and implement systems 

to improve working conditions. 

SAI’s Social Fingerprint® program provides a process-based 

approach to measure and improve system development and 

implementation. Social Fingerprint evaluates a company’s 

labor standards performance in nine categories. It creates a 

way to help companies measure where they are now and it 

provides practical steps to help them improve. For Egypt and 

the Middle East, we focused on three of the nine processes as 

the fundamental building blocks: 

• Management System – policies and procedures based on the 

chosen labor code 

• Internal Social Performance Team – a multi-departmental team 

that includes worker representation 

• Worker Involvement and Communication – the two-way communication 

channel in the company between workers and 

managers 

It is essential for companies to understand that developing 

and implementing management systems are necessary for 

continual improvement in the labor standards performance of 

their companies and their supply chains. Over the past decade 

it has become clear, and widely accepted, that management 

systems are the key to improving labor standards performance. 

Change is a constant in any company. It is the underlying management 

systems that create a framework for sustainability in 

the ever-changing business environment. A company is always 

balancing risk and control. It is the policies and procedures of 

the management system that provide continuity. 

At the broadest level, a management system begins with 

policies and procedures – documents. But more important, 

it is also made up of trained people with specific functional 

responsibilities. Think of a management system in terms of 

its development and its implementation. The policies are the 

rules. They tell everyone what is allowed and what is not allowed. 

Procedures are the “how to” guide to following the rules. 

But companies are made up of people – people organized 

into groups, people that follow established behavioral patterns 

at work. It is hard to get people to change. In every culture, 

in every language, there is a saying about how hard it can be 

to get people to change their behavior. We suggest breaking 

each person’s performance into three fundamental components 

– attitudes, skills, and knowledge. At every level in a 

company – managers, supervisors, workers – it is best to 

think about labor standards performance in terms of attitude, 

skills, and knowledge. 

But who at the company is going to think about improving 

labor standards performance? How will they involve workers 

from all levels and functions in the company? 

A company needs to build a team that takes responsibility for 

labor standards performance. We call this the Internal Social 

Performance Team. It is a multi-departmental team that includes 

freely elected worker representatives. The team becomes 

the champion for projects designed to improve labor standards 

performance. Being on the team is not a full-time job, but 

the team members must know how to speak the language of 

labor standards and communicate it effectively to all workers. 

The worker reps become a communication channel from the 

workers to management and from management to the workers. 

Their involvement and this communication channel will 

enhance what already exists in the company. 

Involving workers and creating a dialog between workers and 

management can help avoid a lot of problems. Conflict in the 

workplace leads to unreliability. It may be extreme things like 

work slowdowns or strikes. But it may also lead to more subtle 

things that drive workers to leave the first chance they have 

to get a new job. But in addition to creating a release valve 

to minimize problems, there are real positive benefits from 

involving workers in the operations of a company. Workers 

offer a valuable perspective on production processes. Improving 

labor standards performance and worker involvement 

has been shown to lead to greater productivity and quality, 

higher worker retention rates, fewer accidents, and reduced 

absenteeism. 

Every time a worker leaves, it costs money in recruitment, training, 

lower productivity, and a loss of corporate know-how. 

Craig Moss is Director of Corporate 

Programs & Training at Social 

Accountability International (SAI). 


67

142 

ACI 

Best 

Practice 

144 

100 

164 

170 

102 

104 

Adecco Group 

Air France 

AKSA 


Armacell 


84 


146 

BASF 

Human Rights 



Nestlé 




Coop 



ManpowerGroup 

Randstad 

Viyellatex 

72 

84 

Environment 

Air France 

Armacell 


Camposol 

Carrefour 


Copeinca 

Deutsche Bank 

EDF Group 

Grundfos 

Hochtief 

Huawei 

Otto Group 


Siemens 

Sonae 

Sopharma 

Toshiba 




100 

138 

Development 

ACI 

Adecco Group 

BASF 

Bayer 

Bradesco 

GDF Suez 

Merck 

Novo Nordisk 

The TMS Group 


AKSA 

Kusch + Co 

Puma 


142 

164 

170 


150 

154 

138 

106 

108 

110 

86 

107 

72 

112 

74 

88 

114 

156 

90 

116 

120 

122 

166 

92 

158 

78 

160 

124 

126 

168 

94 

80 

Bayer 

Bradesco 


Camposol 

Carrefour 


Coop 

Copeinca 


Deutsche Bank 



EDF Group 

GDF Suez 


Grundfos 

Hochtief 

Huawei 

Kusch + Co 

ManpowerGroup 

Merck 

Nestlé 

Novo Nordisk 

Otto Group 


Puma 

Randstad 


128 

Siemens 

130 

Sonae 

132 

Sopharma 

162 

The TMS Group 

134 

Toshiba 

136 


96 

Viyellatex 

Solely responsible for the editorial contributions under the heading "Best Practice" are the companies and their authors themselves. 


69

Best Practice 

Human Rights 

72 

74 

78 

80 



Nestlé 



84 

86 

88 

90 

92 

94 

96 


Coop 



ManpowerGroup 

Randstad 

Viyellatex 

Human Rights 

Labour 

Principle 1: Businesses should support and respect the 

protection of internationally proclaimed human rights; and 

Principle 2: make sure that they are not complicit in 

human rights abuses. 

Principle 3: Businesses should uphold the freedom of association 

and the effective recognition of the right to collective bargaining; 

Principle 4: the elimination of all forms of forced and compulsory 

labour; 

Principle 5: the effective abolition of child 

labour; and 

Principle 6: the elimination of discrimination in 

respect of employment and occupation. 


71

Best Practice 

Human Rights 


Investing in a 

Sustainable 

Future 

in Economics and Finance (University 

of Salerno, Italy), also show that, for 

individuals, insufficient financial literacy 

correlates with large debt and a 

lack of savings. We are convinced that 

a long-term approach is necessary if we 

want to ensure the financial well-being 

of future generations. 

Understanding children’s 

knowledge of money 

By Charlotte Bengt Petersen 

In 2007, in order to meet this global 

challenge, the Danske Bank Group began 

developing the Financial Literacy 

Programme. The Programme contains 

initiatives for children and young people 

that teach them about personal finance 

in ways that are specially adapted to 

their age groups. 

The importance of access to education and learning is 

underscored in the global human rights that form the 

foundation for the Principles of the UN Global Compact. 

Education is a key factor in strengthening an individual’s 

capabilities and wherewithal, and financial literacy is 

an essential component in that regard. At the Danske 

Bank Group, we also believe that financial education and 

ethical guidelines are the path to personal prosperity and 

sustainable growth in the future. That is why in 2007 we 

developed our Financial Literacy Programme, which consists 

of a number of learning activities for children and young 

adults from the ages of 5 to 27. 

An increasing number of international 

studies show a need for a better understanding 

of personal finance among 

children and young people around the 

world. It is obvious that financial services 

companies like ours focus on the 

challenges of financial understanding 

because we provide financial products, 

knowledge, and advice to both businesses 

and private individuals. We believe 

that better-informed consumers help to 

promote transparency and responsibility 

among financial services providers. 

The Financial Literacy Programme is 

therefore well-integrated in our business, 

demonstrating that our overall 

purpose is to create value and growth 

in a responsible manner. 

In a society where an increasing number 

of young people take on debt and do so 

early in life, the challenges are clear. 

Such debt can follow them long into 

adulthood and deprive them of important 

opportunities later in life. Studies, 

such as one from the Center for Studies 

The Programme is based on a number of 

surveys conducted in collaboration with 

the YouGov Zapera research institute in 

Ireland, Northern Ireland, and the Nordic 

countries where we operate. These surveys 

asked parents about their children’s 

interest in money, their knowledge about 

it, and use of it, among other things. 

The results show that children become 

interested in money before the age of 

six but also that many in the older age 

groups lack basic knowledge and have 

difficulty defining monetary interest, for 

example. That is worrisome, considering 

that the ability to manage one’s finances 

is crucial for personal prosperity and 

freedom of action. Other conclusions 

are that financial knowledge and habits 

are passed down from generation to generation, 

and that the effort to improve 

financial understanding should begin 

as early as possible. 

Financial literacy for children and 

young people 

Thus far, the Danske Bank Group’s Financial 

Literacy Programme consists of 

five initiatives that have all been prepared 

in collaboration with a team of 

experts, including child psychologists, 

math teachers, and education researchers. 

The experts contributed their special 

understanding of the individual age 

groups’ learning abilities and approaches 

to financial knowledge. Together with 

the studies from YouGov Zapera, the 

expert panel has provided invaluable 

knowledge in the development phase 

of each initiative. 

For the youngest children, the Moneyville 

game involves earning your own money 

by completing small tasks in the town 

of Moneyville and saving money for the 

things you want to buy. For slightly older 

children who can read and write, there 

are more complicated tasks. For students 

aged 10 to 15, there is a website called 

Control Your Money, where groups of 

users must complete financial missions, 

for example, arranging a class trip. This 

requires that users can manage income 

and expenses and create a budget. And for 

teachers who offer instruction in financial 

literacy, there is a website containing 

teaching materials and suggestions. 

For young adults aged 18 to 27, the Mind 

Your Money website is based on a number 

of major life events that require financial 

decisions and understanding, for 

example beginning a course of higher 

education. It is especially important 

for this age group that the material is 

honest, relevant, and transparent, so we 

also use social media to draw attention 

to the subject and create a dialog. 

All the initiatives are offered online so 

that distribution is easy and many people, 

both customers and non-customers, have 

access to the learning universes, which 

exist in several languages. The initiatives 

for children and young people under the 

age of 18 are not branded because the 

material is not meant as marketing but 

solely for the education of this age group. 

Global knowledge-sharing 

As a logical extension of our effort to 

promote financial literacy among children 

and young people, we have made 

a commitment to share our experience 

internationally. We hope that, together 

with organizations such as Aflatoun 

and ChildFinance, we can contribute 

to a global development that will give 

all children financial knowledge and 

capabilities and will help in attaining 

the Millennium Development Goals. 

Financial Literacy Programme 

• Moneyville: An online learning game 

for children aged five to nine 

• Control Your Money: An online universe 

of exercises for young people aged 

10 to 15 that can be used in school 

• Teaching Financial Literacy: A set of 

guidelines and suggestions for schoolteachers 

who want to offer instruction 

in financial literacy 

• Mind Your Money: An advisory website 

for young adults aged 18 to 27 that is 

based on relevant life situations 

• Facebook page for Mind Your Money: 

Online access to advice and knowledgesharing 

about personal finance for 

young people on Facebook 

Further information: 

www.danskebank.com/responsibility 


73

Best Practice 

Human Rights 


Making a Global 

Contribution to Education 

through Partnership 

By Ralf Dürrwang 

As one of the largest logistics companies in the world and an adherent to the UN Global 

Compact, Deutsche Post DHL is well-aware of its solemn responsibilities toward society, 

including the respect for human rights. It understands that “Businesses should support 

and respect the protection of internationally proclaimed human rights” (Principle 1 UNGC). 

Deutsche Post DHL considers these societal responsibilities not as a burden, but as guiding 

tenets that can offer opportunities while advancing its business. 

Education, for instance – so crucial for 

socioeconomic progress, yet out of reach 

for so many children around the world 

– is an area where Deutsche Post DHL 

can help make a lasting investment in 

the future. This is why the company recently 

teamed up with the international 

not-for-profit organization Teach For All. 

The aim of this global partnership is to 

improve access to education as well as 

the quality of education and educational 

systems throughout the world. 

Through its GoTeach program, education 

is firmly established as one of the three 

central pillars of Deutsche Post DHL’s 

corporate responsibility commitment, 

along with disaster management (GoHelp) 

and environmental protection (GoGreen). 

Deutsche Post DHL launched its GoTeach 

program in 2009. The experience and 

success of the partnership with Teach 

First Deutschland led Deutsche Post DHL 

to expand its commitment to education 

globally by partnering with Teach For 

All starting in 2010. 

“We believe that commitment to better 

education and greater educational equality 

is paying off,” says Frank Appel, CEO 

of Deutsche Post DHL. “As the leading 

logistics service provider and one of 

the largest global employers, we need 

well-qualified and motivated employees 

from all areas of society. That’s also why 

education, alongside the environment 

and disaster management, is one of the 

main focuses of our social engagement.” 

Teach For All 

Teach For All is a global network of national 

organizations working to expand 

educational opportunities in their countries 

by recruiting their nations’ most 

promising talent to join the effort. These 

organizations seek to inspire outstanding 

university graduates from a range of 

disciplines to make a bold commitment 

and spend two years teaching in schools 

located in areas of high need. 

The organizations that comprise the Teach 

For All network train these graduates to 

make an immediate impact on student 

learning during their two-year commitments. 

They also position “alumni” of the 

program to continue exerting a positive 

influence on education after the two years 

as they pursue their careers across a variety 

of professional sectors. The national 

organizations that are partners of Teach 

For All are all independent, locally run, 

and locally funded non-profits. 

Teach For All helps multiply their effectiveness 

by providing direct support 

services as well as fostering a powerful 

network. Through this global support 

network, Teach For All helps its 

members save time, reduce the learning 

curve, access additional resources, and 

collaborate. The end result is greater 

scale, stronger student achievement, 

more effective alumni leadership, and 

sustainable organizational strength in 

each member country. 


75

Best Practice 

Human Rights 


More power through partnering 

In partnering with Teach For All, 

Deutsche Post DHL aims to help the association 

to grow its global network and 

boost its impact further. Along with its 

financial support, the two partners will 

identify various collaborative activities. 

Deutsche Post DHL will also actively 

contribute to the development of the new 

teachers, supporting them to improve 

the future prospects of disadvantaged 

students. In addition, Deutsche Post 

DHL will offer various joint activities 

and volunteering opportunities to its 

employees worldwide to give them the 

opportunity to personally contribute to 

better education. Whether by mentoring 

Teach For All teachers, providing support 

for schools through school-supply 

drives, or asking colleagues to participate 

in various volunteering activities, 

Deutsche Post DHL is following through 

on its commitment of contributing to 

educational success. 

“Teach For All and Deutsche Post DHL 

both share the same basic principle 

of assuming global responsibility for 

future generations and implementing 

this regionally,” remarks Appel. The 

initial focus of the joint activities is on 

the expansion of the existing national 

Teach For All organizations in Argentina, 

Chile, Peru, and India. As the largest 

global corporate partner of Teach For 

All, Deutsche Post DHL will also support 

the development of new Teach For All 

organizations in Spain and Brazil, and 

more locations will be added in coming 

years. “Together with Deutsche Post DHL, 

we anticipate growing the size of our 

network from 18 national organizations 

today to more than 30 by 2013,” says 

Wendy Kopp, CEO and Co-founder of 

Teach For All. 

Program pedigree 

Launched in 2007, Teach For All has a 

strong lineage. It is the result of a shared 

initiative by two well-respected pioneers 

in the field: Teach For America, founded 

in the United States in 1990; and Teach 

First, launched in the United Kingdom in 

2002. Together, in response to demand 

from entrepreneurs around the world 

seeking to start Teach For America and 

Teach First-like enterprises in their own 

countries, they founded Teach for All, 

which was inaugurated at the Clinton 

Global Initiative annual meeting in September 

2007. 

Both the Teach For America and Teach 

First programs have demonstrated a significant 

impact on student performance 

and educational reform in their countries. 

These improvements have led to changes 

that enhance students’ opportunities for 

success, particularly for those in more 

disadvantaged socioeconomic environments. 

As a global network, Teach For 

All enables organizations around the 

world pursuing the same mission to 

learn from each other and to have an 

impact on education in their countries 

in a more effective and efficient way. 

“By partnering with Teach For All, we 

support a movement that aims at improving 

educational inequality,” explains 

Ralf Dürrwang, Vice President 

of GoTeach. “By working together with 

ambitious social entrepreneurs at both 

the international and national levels, I 

am convinced that DPDHL will be part 

of a global success story.” 

Global impact 

The Teach for All partner organizations 

around the world currently 

being supported by the partnership 

include the following: 

Case in point: Teach For India 

In addition to supporting the global 

Teach For All network, Deutsche Post 

DHL has launched country-level partnerships 

with several national Teach For 

All organizations, including Teach For 

India. Deutsche Post DHL launched the 

country-level partnership with Teach For 

India in September 2010, and is providing 

financial and other forms of support. 

The partnership includes various joint 

activities at Teach For India schools to improve 

the quality of education and help 

students to unlock their full potential. 

One of the particular challenges in India 

is that a teaching career is not considered 

very prestigious, which means that 

promising young professionals who join 

the effort may do so against their family’s 

wishes. Nevertheless, in 2010, Teach For 

India received applications from 3,800 

candidates who competed for 87 teaching 

fellowships. 

In terms of Deutsche Post DHL’s contribution 

in India, according to Anke 

Jahn, Program Manager for Deutsche 

Post DHL’s partnership with Teach For 

All, it is especially important that not 

just national management but also operational 

staff get involved in the program, 

too. “In India, our DHL drivers can say 

so much to these children,” says Jahn. 

“They have credibility, and can be something 

to aspire to for underprivileged 

youth. We want to turn the energy of 

our employees into action.” 

GoTeach – Providing the 

opportunity to learn 

Deutsche Post DHL is committed to 

contributing to the improvement of 

educational standards across the globe 

and to a sustainable improvement 

in access to and quality of education 

through its GoTeach program. Started 

in 2009 through the launch of Teach 

First Deutschland, GoTeach endeavors 

to develop and support initiatives that 

foster education and help young people 

to expand their personal development 

and skills. The GoTeach program also 

provides opportunities for Deutsche Post 

DHL employees to volunteer in educational 

projects and to become actively 

involved in contributing to the objective 

of improving educational quality and 

access. 

Teach First Deutschland is a non-profit 

organization committed to promoting 

equity in education in Germany. The 

initiative recruits outstanding university 

graduates to spend two years working 

at schools in areas of great need. 

Deutsche Post DHL supports Teach First 

Deutschland financially, in its communications 

work, and with the program’s 

expansion within Germany’s federal 

states. Core elements of the partnership 

are the “Camp4us” summer camps, 

volunteering by employees, and training 

and recruiting for the Teach First Fellows. 

For Deutsche Post DHL families whose 

incomes are not enough to afford higher 

levels of schooling, GoTeach now provides 

additional support for their children. 

The newly established scholarship 

program UPstairs gives children of 

employees the opportunity to pursue 

higher levels of education that would 

otherwise be financially out of reach. 

UPstairs scholarship holders receive a 

monthly stipend. Financial assistance 

is just one aspect of the program, however. 

It also offers individual services 

to each child, such as mentoring by a 

company employee, an internship at a 

Deutsche Post DHL branch, as well as 

further learning opportunities, such as IT 

or language courses. In addition, GoTeach 

has entered into a partnership with SOS 

Children’s Villages to improve access 

to education for children and young 

people in the communities where SOS 

Children’s Villages programs are active. 

It aims to support local programs and 

educational infrastructure of SOS Children’s 

Villages, and foster employability 

through empowerment and needs-based 

individual support. 

Finally, alongside these global programs, 

many divisions, subsidiaries, and country 

organizations within Deutsche Post DHL 

actively promote equality in education. 

These programs and projects are diverse 

and aligned with the educational needs 

in that particular area. Some examples 

include collaborating with universities, 

supporting a mentoring program in 

Kenya, and helping spruce up library 

facilities for schools in Nepal. In Germany, 

the Deutsche Post Brings School 

to Life program helps students of all ages 

to improve their reading, writing, and 

media skills. 


77

Best Practice 

Human Rights 

Nestlé 

Partnership between 

Nestlé and the Danish 

Institute for Human Rights 

By Christian Frutiger and Allan Lerberg Jørgensen 

In 2010, Nestlé entered into a two-year partnership with the Danish Institute for 

Human Rights (DIHR). The purpose of this collaboration is to ensure that the company’s 

responsibility to respect human rights is understood and implemented within Nestlé’s global 

operations, and that the learning from this work can encourage other companies to follow. 

The Nestlé-DIHR partnership coincides 

with the culmination of the mandate 

of the UN Special Representative for 

Business and Human Rights (SRSG). 

Part of the Nestlé-DIHR collaboration 

is about making the SRSG principles 

on human rights due diligence operational 

and practical wherever Nestlé 

operates. 

“The work with the Danish Institute for 

Human Rights will help us accelerate our 

journey to become one of the leading 

companies in the international business 

and human rights field,” says Jean-Marc 

Duvoisin, Nestlé’s Global Head of Human 

Resources. 

“There is still a lot that the human rights 

community and the business community 

have to learn from each other. We have 

a responsibility to work together to accomplish 

the goals that we share,” says 

DIHR Deputy Director Charlotte Flindt 

Pedersen. 

Corporate human rights gap analysis 

The collaboration between Nestlé and 

DIHR began in 2008, when DIHR carried 

out a comprehensive human rights gap 

analysis of all corporate policies, procedures, 

and systems across eight function 

areas in Nestlé: Human Resources; 

Health and Safety; Environment; Security; 

Products and Marketing; Research 

and Development; and Supply Chain. 

This work fed into the new human 

rights and labor section of the Nestlé 

Corporate Business Principles (NCBP), 

and also led to the introduction in 2010 

of the Nestlé Transparency Policy and 

the Nestlé Employee Relations Policy. In 

June 2010 the company also formally 

recognized the human right to water, 

even before its official recognition by 

the UN General Assembly and the Human 

Rights Council. 

Margaret Jungk, Director of DIHR’s Human 

Rights and Business Department, 

notes that “for DIHR this a unique opportunity 

to influence human rights 

implementation in a company that 

touches the lives of millions of people, 

including workers, consumers, and rural 

communities, and at the same time we 

can help develop approaches that can 

later benefit the wider human rights 

and business field.” 

Human rights impact assessment in 

Nestlé operations 

In 2010 and 2011 the corporate-level human 

rights gap analysis was followed up 

with two comprehensive human rights 

impact assessments by DIHR of Nestlé’s 

operations in Colombia and Nigeria. 

These included consultations with trade 

unions, authorities, NGOs, and farmers in 

order to analyze the company’s impacts 

at a local level. 

Together with the corporate-level gap 

analysis, the concrete assessment of potential 

impacts on the ground provided 

the company with a 360 degree perspective 

on current and future human rights 

and labor challenges. 

The impact-assessment process used by 

DIHR and Nestlé is based on two indicator 

tools developed by DIHR. The first 

tool uses a number of Human Rights 

Impact Scenarios (HRIS) to develop a 

risk-based mapping of potential human 

rights impacts. Subsequently, the 

Human Rights Compliance Assessment 

tool (HRCA) is used as a benchmark for 

reviewing the company’s prevention 

and management of potential human 

rights impacts. 

The use of specific indicators has proved 

to be effective to better understand human 

rights issues and engage stakeholders 

in a meaningful way. The DIHR 

involved Nestlé’s internal issue owners 

directly in the assessment and in the 

development of action plans. This approach 

has helped Nestlé to ensure that 

the learning gathered throughout this 

partnership stays with those who actually 

manage human rights challenges in 

their daily operations. This knowledge 

base will continue to inform the way 

Nestlé addresses human rights in the 

years to come. 

“This is the most constructive and professional 

public-private partnership I have 

seen in a long time,” says Janet Voûte, 

Nestlé Vice President Public Affairs. 

Next steps 

Several more of such impact assessments 

are being planned for 2011 and 2012. 

In parallel to this, human rights are 

being integrated into Nestlé’s Enterprise 

Risk Management system, and in 

2011 a human rights and labor training 

program will be provided for employees 

in high-risk countries. Finally, 

Nestlé’s CARE external audit program 

will be completely reviewed by Nestlé 

and the DIHR in order to ensure coverage 

of the entire NCBP human rights 

spectrum. 

About 

Nestlé is the world’s leading 

Nutrition, Health, and Wellness 

company, with 450 factories all 

over the world – half of them 

in developing countries. The 

mandatory Nestlé Corporate 

Business Principles (NCBP) – 

endorsed by the Chairman and 

CEO – guide the behavior of the 

company’s more than 280,000 

employees. A revised version of 

the NCBP was developed in 2010 

and the Human Rights Policy 

Section (chapter 4) was further 

expanded. Nestlé recognizes 

the “corporate responsibility to 

respect human rights,” as outlined 

in the UN Framework for Business 

and Human Rights of John Ruggie, 

UN Special Representative on 

Business and Human Rights. 

NCBP compliance is monitored 

through external audits under 

the Nestlé CARE program and 

internally by the Group Audit 

function. 

The Danish Institute for Human 

Rights is an independent National 

Human Rights Institution 

modeled in accordance with 

the UN Paris Principles. 

Established in 1987 by an act 

of Danish Parliament, DIHR’s 

mandate encompasses 

research, education, and 

implementation of human rights 

programs in Denmark as well as 

internationally. With 120 full-time 

staff, DIHR is operational in more 

than 30 countries. In 1999 DIHR 

became one of the first human 

rights organizations in the world 

to establish a human rights and 

business program and has since 

worked with leading multinational 

companies in a variety of industry 

sectors. 


79

Best Practice 

Human Rights 


Corporate sustainability – 

The way forward 

Since its inception in 1994, Sakhalin Energy has based its activities on a strategy of 

sustainable development. It allows the company to achieve business goals while taking into 

consideration the potential environmental and social impacts on its employees and on local 

communities. It is fair to say that such an approach means no operational or technological 

decision is made without adequate environmental, health, and social assessments of the 

potential impact of the Sakhalin-2 Project. 

Sakhalin Indigenous 

Minorities Development 

Partners: Company, 

Sakhalin Government, 

and Regional Council 

of authorized IP 

representatives 

FPIC (free prior and 

informed consent) 

Now SIMDP case has been 

included into the Stakeholder 

Engagement Handbook 

issued by the IFC and the 

Plan is recommended by the 

parliamentary hearings of 

the RF Council of Federation 

as an example for RF 

regions. 

http://www.simdp.ru/eng.php 

What to Do in 

Emergency Situations 

Partners: 

Company, Sakhalin 

Emercom, Sakhalin 

Ministry of Education 

This complex educutional 

programme is targeted 

on schoolchildren and 

has been working for 

more than five years. 

http://www.senyaspasatel.ru/ 

Korsakov Sustainable 

Development 

Partnership Council 

Partners: 

Company, Korsakov 

Administration, Public 

Initiated by the Company 

in one of the most critical 

and opposition communities 

on the Island. Now the 

partnership uniting public, 

business and authorities 

contributes a lot into local 

sustainable development 

and is moving to a new 

level with UNDP expertise. 

http://www.korsakovsovet.ru/ 

eng.php 

Sakhalin Salmon 

Initiative 

Partners: 

Company, Wild 

Salmon Center NGO 

Salmon is one of the 

symbols of Sakhalin and 

has a great impotence for 

life and culture of 

Sakhaliners, including 

indigenous peoples. The 

Initiative brings together 

international expertise 

and Russian experience. 

http://sakhsalmoninitiative.org/ 

Road Safety 

Partnership 

Partners: 

Company, Sakhalin 

Government, 

Traffic Inspectorate, 

Public 

The first partnership of 

such kind established on 

the territory of Russian 

Federation with support 

of Global Road Safety 

Partnership. Later this 

successful example was 

replicated in other regions. 

By Natalia Gonchar and Marina Ee 

Sakhalin Energy has adopted the highest 

international standards and takes a 

proactive approach in implementing 

business and human rights in its corporate 

management system and practices 

as well as in managing and gauging 

environmental, health, safety, and social 

impacts. External verifications, including 

lenders’ audits (Sakhalin Energy has 

secured a multibillion-dollar project 

financing from a group of international 

credit organizations), have been held 

regularly and, in the majority of cases, 

they demonstrated that the company has 

met the adopted standards. In November 

2009, Sakhalin Energy reached a new 

level of social responsibility and transparency 

by deciding to start participating in 

the UN Global Compact. The company 

committed to consistently advance the 

Global Compact’s Ten Principles covering 

the areas of human rights, labor, 

the environment, and anti-corruption. 

For Sakhalin Energy, these principles 

are not new. In many years of working 

on the Sakhalin-2 Project, the company 

has been guided by its General Business 

Principles, many of which reflect the 

Principles of the Global Compact. The 

core values of Sakhalin Energy, such as 

integrity, transparency, and respect for 

people, are the basis for all company 

activities. 

Sakhalin Energy is implementing Global Compact 

Principles via strong governance, policies, 

strategies, management systems, standards, 

and operations: 

• Policies, management systems (MS), and 

standards cover each Global Compact 

Principle and include a Sustainable 

Development Policy; code of conduct; 

health, safety, and environment and 

social performance policies and MSs; 

risk- and impact assessment; whistleblower 

/ grievance mechanisms; antibribery 

and corruption procedures; 

etc. A Health, Safety, Environmental, 

and Social Action Plan – a publicly 

available, detailed system of standards 

and commitments – was developed 

on the basis of the best Russian and 

international experiences in an open 

and honest discussion with stakeholders. 

• Roles and responsibilities are mainstreamed 

into corporate functions and 

business units. 

• Value-chain policies and procedures 

are in place and supported by communicating 

policies and expectations 

to suppliers and other relevant business. 

• Trainings, awareness-raising workshops, 

etc., are conducted for staff and contractors; 

control measures are in place to 

guarantee operations. 

Sakhalin Energy endeavors to contribute to the 

future global agenda for corporate responsibility 

and is taking actions in support of broader 

UN goals and issues via: 

• Company’s core business strategy, 

which aligns with UN goals/issues on 

environment, labor, human rights, anticorruption, 

etc.; 

• Strategic social investments and philanthropy, 

which is an integrated element 

of the company’s sustainability strategy 

and MS; 

• Implementing partnerships (graphic 1); 

• Robust and comprehensive mechanism 

to deal with concerns and grievances 

(company is one of five business participants 

in the UN’s Ruggie Guiding 

Principles testing project); 

• Fair, transparent, and open stakeholder 

engagement and information disclosure; 

unique three-level engagement 

mechanism (graphic 2); 

• Active participant in the Russian Global 

Compact Local Network openly sharing 

the best practices and experience. 

Graphic 1 above: Partnerships – 

corporate strategy 

Graphic 2 right: Three-Level System 

of Communication with communities 

is a unique mechanism developed and 

tested by the company: Information 

exchange with stakeholders happens 

at each level of organization and 

between them. 

Company 

Information 

dislosure, impact 

assessment 

and monitoring, 

grievance procedure, 

public reporting, etc. 

Community Liaison 

Network 

Community visits, public/focused/ 

individual meetings, open hours, dealing with 

community concerns grievances in “fields” 

(e.g., 193 public meetings with app. 6,000 

participants 2003-2010) 

Information Centers 

23 Company Information Centers based in district and village 

libraries along the route of the project facilities and targeted 

to distribute company-related information in communities and to 

receive questions or concerns/grievances from the local residents 

(e.g., 3,753 visitors to Information Centers in 2010) 


81

Best Practice 

Human Rights 


Sakhalin Indigenous Minorities 

Development Plan: Come with the gas 

When the Tripartite Agreement on implementation 

of the Sakhalin Indigenous 

Minorities Development Plan was signed 

back in 2006, its partners were among 

the optimists who sincerely believed in 

success. But even they did not realize 

what a long way they had to go together 

for true cooperation. 

The history of relations 

The Sakhalin Indigenous Minorities Development 

Plan is an innovative social 

plan funded by Sakhalin Energy. Sakhalin 

Energy has had an ongoing dialog 

with Sakhalin’s indigenous minorities 

since the Company was founded in 1994. 

Since its inception, the company has 

supported a lot of social projects for 

indigenous minorities in a range of areas 

– cultural, sport, and educational. 

But in 2005, indigenous minorities staged 

a protest against all the oil and gas companies 

operating on Sakhalin Island. The 

protest was supported by national and 

international NGOs. They demanded a 

more regular and transparent dialog 

and greater recognition of the needs of 

the indigenous peoples. Doing “a lot” 

turned out to be not enough. Responding 

to indigenous protests, Sakhalin 

Energy decided to completely revise its 

strategy of engagement with the Sakhalin 

indigenous peoples. The year ended with 

Sakhalin Energy signing a Memorandum 

of Understanding with the communities, 

and a commitment to build for them a 

series of development plans in compliance 

with the best international and 

Russian standards. 

SIMDP 1 – An essential first step 

From 2005 to 2006, Sakhalin Energy 

held large-scale consultations with all 

stakeholders, including in areas densely 

populated by the indigenous minorities 

and in the city of Yuzhno-Sakhalinsk, 

the capital of Sakhalin Oblast. Based 

on a strategy developed by the indigenous 

minorities and suggestions on 

how to implement it, the first Sakhalin 

Indigenous Minorities Development Plan 

(SIMDP 1) was created and signed in 

May 2006. SIMDP 1 was prepared by 

the company in close cooperation with 

the Sakhalin Oblast Government and 

the Regional Council of the Authorized 

Representatives of Indigenous Minorities 

of Sakhalin Oblast. It incorporated 

measures to mitigate potential negative 

impacts from the project on the Sakhalin 

indigenous minorities, as well as activities 

to improve the living standards of 

the indigenous peoples, provide access 

to the project benefits, and help the 

4,000 indigenous Sakhalin inhabitants 

(Nivkh, Uilta, Evenki, and Nanai peoples 

– key Sakhalin indigenous population 

groups) in capacity-building. The Plan 

was delivered through the Traditional 

Economic Activities Support Program, 

the Social Development Program, and 

Mini-Grant Fund activities. In order to 

ensure the Plan’s effectiveness in meeting 

its objectives, an External Monitor 

worked during the entire period of SIMDP 

1 implementation, visiting all the indigenous 

communities and meeting key 

stakeholders and public representatives. 

In the last year of implementation, a 

plan completion evaluation (PCE) was 

performed. The PCE Team interviewed 

people and conducted a survey of indigenous 

opinion. The Team included 

the Head of Sociological Laboratory of 

the Sakhalin State University, and independent 

indigenous representative not 

previously involved in SIMDP activities, 

and was headed by the External Monitor. 

The Team found the Plan to be a 

success in terms of both the very positive 

material benefits received and the 

strong capacity-building accomplished. 

Quoting a prominent government official, 

the evaluation noted, “Thanks to 

the SIMDP, people changed. The Plan 

helped to unite the people and give 

them some direction for the future.” 

Some difficulties were inevitable and 

indeed occurred, but they did not detract 

significantly from the Plan’s overall success 

as a benefits-providing mechanism, 

a capacity-building exercise, and as a 

qualified model for similar projects. PCE 

performed by three independent experts 

is a good practice model that shows accurate 

results of Plan implementation 

and, by itself, contributes to building and 

maintaining trust between the partners. 

SIMDP 2 – Complying with and 

setting the best international 

standards 

Simultaneously with the PCE process, 

a Working Group started preparations 

for the second SIMDP (SIMDP 2). The 

Working Group was established on the 

principle of equal partnership and comprised 

the representatives of the Regional 

Council of the Authorized Representatives 

of Indigenous Minorities of Sakhalin 

Oblast, Sakhalin Energy, the Sakhalin 

Oblast Government, the Sakhalin Oblast 

Duma (elected legislative assembly), and 

the Russian Association of Indigenous 

Peoples of the North, Siberia, and the 

Far East – the umbrella organization 

of indigenous peoples in Russia. Six of 

eight Working Group members were 

indigenous. The goal of the Working 

Group was to elaborate recommendations 

for the development of SIMDP 2 

on the basis of experiences with the first 

Plan and lessons learned, as well as the 

results of the two rounds of consultations, 

held in the seven Sakhalin districts of 

traditional living of the Sakhalin indigenous 

minorities. The consultations were 

followed by a special indigenous peoples’ 

conference in Yuzhno-Sakhalinsk, 

where they discussed the prospects for 

further development under the SIMDP 2. 

Delegates from seven districts traditionally 

inhabited by indigenous peoples of 

Sakhalin examined the draft of SIMDP 2 

and approved its implementation. 

At the conference, the indigenous delegates 

agreed that consultations were 

carried out without coercion, were held 

early enough for the community to discuss 

the issues at length, and that they 

had been provided all information regarding 

the first and second Plans that 

was necessary for them to formulate 

their own independent assessments of 

the Plans. The delegates also declared 

that they gave their consent to the Plan 

and authorized their representatives 

to sign a new Tripartite Agreement to 

implement the Plan. 

SIMDP 2 will be carried out with even 

more active participation by the indigenous 

population. The Governing Board 

is the highest management body; its 

work is supplemented by an Executive 

Committee, a Traditional Economic Activities 

Support Program Committee, and 

a Social Development Fund Council. The 

two latter bodies are now completely 

managed and monitored by the elected 

representatives of indigenous peoples 

from seven districts where the indigenous 

population traditionally lives and 

works. In December 2010, a new Tripartite 

Agreement on implementation of 

SIMDP 2 was signed by the three parties 

in Moscow, Russia. 

SIMDP: Good example deserves to 

be followed 

The development and implementation 

of SIMDP caused a breakthrough in the 

relationship between the oil and gas 

company and the indigenous inhabitants 

of the island. Indigenous peoples 

are directly involved in management, 

fund allocation, and control. The Plan 

has emerged as a good practice model 

on both the international and national 

levels, but what is most important is 

that the Plan is highly appreciated by 

the indigenous peoples. 

The International Finance Corporation 

called SIMDP “a good practice example” 

in their 2007 Stakeholder Engagement 

guidebook; the World Bank also holds up 

SIMDP as a good practice example of plan 

implementation for indigenous peoples. 

SIMDP became laureate of the Corporate 

Donor, a Russia-wide contest for social 

investment, and won the international 

Vitus Bering award at the Sixth Russian 

Congress of Indigenous Peoples. 

One of the important tools for building 

trust-based relationships with indigenous 

minorities was the implementation 

of grievance procedures, which effectively 

regulates the process of receipt, 

registration, and resolving grievances 

related to the implementation of the 

first and second SIMDPs. This procedure 

was developed in accordance with the 

general principles and approaches of 

the Community Grievance Procedure 

of Sakhalin Energy and with involvement 

of indigenous peoples communities. 

Having proven its effectiveness over the 

years, it was called “a best practice” by 

UN experts in the process of testing the 

Ruggie Guiding Principles. Prof. John 

Ruggie, Special Representative of the 

UN Secretary General for Business and 

Human Rights, developed this set of 

practical principles, which constitute a 

new standard for the complaints review 

process for businesses worldwide. 

Oleg Kapkaun, PCE independent indigenous 

expert: “In the course of SIMDP 

implementation, the mindset of indigenous 

individuals started to change. They 

started to understand that with support 

from SIMDP, they can establish clan 

enterprises. Even their appearance has 

changed; they’ve got more sparkle in 

their eyes, a desire for a full life rather 

than mere subsistence, and increasing 

pride in their ethnic lifestyles. They want 

to preserve their traditions and culture, 

they envisage growth of their clan enterprises 

and communities, and they’ve 

begun to develop a vision for the future. 

SIMDP provides real and effective assistance 

in preserving their languages, 

in promotion of health, and support 

of national sports. With support from 

SIMDP, indigenous community leaders 

have received capacity-building trainings, 

computer equipment has been purchased, 

and accounting workshops have 

been organized for clan enterprises and 

communities and for indigenous NGOs. 

Most significantly, young indigenous 

leaders have emerged and they care 

about future generations and about the 

revival of indigenous traditions. The indigenous 

peoples themselves say SIMDP 

represents an historic change, and is the 

kind of agreement they’ve been asking 

for decades.” 


83

Best Practice 



Working 

Together on 

Safety 

Autostrade per l’Italia has always been committed to an 

effective policy of accident prevention through the 

empowerment of workers and companies. In addition to 

the strict observance of rules regarding safety at work 

provided for by the legislative decree no. 81, Consolidated 

Health and Safety at Work, on April 9, 2008, the company 

carries out training of workers and also finances enhanced 

training programs. In addition to the requirements of 

the law, it identifies standards of self-regulation and, above 

all, establishes an ongoing dialogue with governments, 

regulatory institutions, and associations within the industry. 

By Simonetta Giordani, Andrea Ragni and Alessandra Gagliardi 

In 2010, the company embarked on 

an ambitious path for the voluntary 

certification of the Occupational Health 

and Safety Management System (OHSAS) 

of the entire organization according 

to the international standard OHSAS 

18001 : 2007. The certification encompasses 

all workplaces and construction 

sites, and in the coming years, it will be 

extended to all of the highway concessionaires 

of the company. 

The other element of fundamental importance 

for an effective safety policy is, 

for us, the constant consultation with 

the authorities, public safety bodies, and 

trade unions. To this end, Autostrade per 

l’Italia formed the Council for Health and 

Safety in Workplaces, which includes the 

trade union organizations, company officials, 

and industry experts. The Council’s 

scope is to identify initiatives, projects, 

and solutions for the improvement of 

safety standards in the workplace and 

to monitor the progress of occupational 

accidents and occupational diseases. 

Still focusing on this front, the company 

has created – in collaboration with local 

authorities and trade unions – the 

Permanent Provincial Board for Safety 

of Construction Sites for the Variante 

Autostradale di Valico, which is the main 

strategic highway infrastructure currently 

under construction in Italy. The 

work now involves some 90 companies 

and over 1,600 employees. 

Starting with the need to implement an 

effective policy of accident prevention 

through the development of a “culture 

of safety at work,” Autostrade per l’Italia 

considers it essential to focus on behavior 

by creating an atmosphere of awareness 

and responsibility where possibly 

dangerous situations are recognized 

and workers take an active role in the 

improvement process. This strategy led 

the company to embark upon a path 

to success several years ago with the 

realization of the Variante Autostradale 

di Valico and the proposal for the Permanent 

Provincial Board for Safety of 

Construction Sites. The company had 

a plan of action to create the adoption 

of good practices by the workers on the 

major construction sites. This led to the 

signing of a Memorandum of Understanding 

between Autostrade per l’Italia, 

the Regional Department of Safety at 

Work, the companies involved in the 

road works, municipalities, the Bologna 

Health Center, INAIL (state body providing 

sick benefits to people injured at 

work), the Regional Department of Labor, 

the trade unions, the fire department, 

the 118, and the Observatory for the 

Variante Autostradale di Valico. 

Aimed at risk prevention through empowerment 

and direct involvement of 

workers, the project provides for the 

following: the establishment of special 

Committees of Safety that are composed 

of project managers, coordinators, heads 

of safety at the company, and representatives 

of the workers; the submission of 

reports to both worksite directors and 

committees; the adoption of appropriate 

remedial measures; the adoption of a 

reporting system for potential hazards 

and deficiencies in safety procedures 

on the part of individual workers to the 

Committee; the adoption of a system 

for recording and analysis of the “near 

misses” through reports made directly 

by the workers (who are suitably trained 

and aware of safety policies). 

The central element of the project is the 

registration system of “near accidents,” 

in other words, anomalous and negative 

incidents that did not lead to accidents 

causing damage to persons or property 

and were only a result of circumstances 

that were favorable and/or random. The 

identification of these episodes by workers 

is, in fact, an important part of the 

risk-prevention strategy in the field of 

workplace safety: near accidents are 

considered warning signs that a more 

serious accident may occur. Reports of 

near misses, as mentioned, are made directly 

by the workers, who forward them 

to both the director of the worksite and 

to the Safety Committee so that the appropriate 

corrective measures are taken. 

In order to fully implement the initiative 

and, above all, to spread the culture of 

accident prevention and compliance, 

the project includes the development of 

specific training courses conducted by 

accredited sources. The courses are funded 

annually by Autostrade per l’Italia 

(which has funded, to date, courses for 

over 4,500 hours of training) and there 

is also a reward system. This reward 

system provides economic incentives 

“ad personam” for the workers who have 

distinguished themselves with good and 

efficient behavior in terms of safety and 

incentives for the “teams” that have 

effectively implemented the system of 

near accidents. Autostrade per l’Italia 

is committed to the financing of the 

project for the entire duration of the 

work and for all main lots of the Variante 

Autostradale di Valico – at a total cost 

of €1 million. 

The initiative was very successful, and 

in 2010, during the award ceremonies, 

Ad Personam awards were given to 99 

workers and four Team awards were given 

for the detection and reporting of near 

accidents – for a total of approximately 

€70,000. Workers have been given the 

credit for having complied with safety 

regulations marked by good practices, 

especially in reporting to the responsible 

figures for the critical issues that could 

have resulted in accidents and injuries. 

The award ceremonies were attended by 

representatives of the authorities and institutions 

that signed the protocol. Thanks 

to the training provided and following 

the implementation of the control system, 

there was a significant decrease in the 

frequency and severity of injuries. From 

2008 to 2010, injuries were reduced by 

approximately 23 percent and 35 percent, 

respectively, even though the amount 

of resources used and total number of 

working hours had increased. 


85

Best Practice 


COOP 

Good Agricultural Social 

Practice for Fruit and 

Vegetable Farming 

Corporate social responsibility has become an emerging issue in global food supply 

chains. Partners involved in the food sector are challenged to find innovative and 

meaningful approaches to ensure that their agricultural products are produced in line with 

internationally agreed labor requirements such as the UN Global Compact Principles. 

In the second project phase, additional 

retailers were involved in further developing 

GRASP. The purpose of this phase 

was primarily to adapt GRASP to local 

conditions, train the auditors, help more 

producers with implementation and, 

lastly, assess the value of GRASP. Local 

experts and NGOs were also involved 

in this phase. Using a range of methods, 

Coop raised awareness of social 

requirements among its suppliers in 

selected risk regions and then trained 

them to implement the requirements. 

The Almería region in southern Spain 

is a major sourcing region for fresh fruit 

and vegetables for Coop and other retailers 

participating in the GRASP project. 

Therefore, the vegetable suppliers of the 

region were the first to be audited for 

compliance with GRASP requirements 

at the end of 2008. 

By Emma Arvidsson 

Millions of rural workers worldwide, 

among them seasonal and migrant workers, 

are active in agricultural production 

processes. Lacking viable economic alternatives, 

workers in many cases agree 

to work in poor social and depreciative 

conditions. Improving working conditions 

of farm workers is on the agenda 

of various actors and has presented itself 

as a complex area. Differing from 

the often precarious situation of rural 

workers on farms producing for the 

mainstream market, numerous social 

standards, private guidelines, and labels 

have emerged to address and improve 

the situation on farms, providing for 

niche markets. Examples are the Fairtrade 

label and organic labels. Farmers 

producing for such markets often have 

to carry the burden of multiple checks 

though different initiatives, but on very 

similar topics. So far, there are very few 

approaches trying to bridge the gap 

between full social audits for a limited 

market and mainstream agricultural 

production. 

Perceiving this need for action, 

GLOBALG.A.P., the Deutsche Gesell- 

schaft für Internationale Zusammenarbeit 

GmbH (GIZ – former GTZ) on behalf 

of the German Federal Ministry for 

Economic Cooperation and Development, 

and Coop Switzerland initiated the 

GRASP project in June 2005 as a tripartite 

development partnership within the 

program develoPPP.de. The abbreviation 

GRASP stands for GLOBALGAP Risk Assessment 

on Social Practices. The aim 

was to develop an approach covering 

basic social criteria, applicable to all 

agricultural production systems and 

different farm sizes. In the first phase, 

completed in 2007, a module consisting 

of 14 criteria for good social practice in 

agriculture was developed and discussed 

in stakeholder workshops. 

Over 30 test audits were performed in five 

countries and the first implementation 

tools were created. By using synergies 

with the GLOBALG.A.P. auditing system, 

assessment costs could be kept low, 

which made the module affordable to the 

mainstream production. The GRASP module 

– a tool to support farmers in helping 

them to demonstrate their compliance 

with international as well as national 

labor legislation – was introduced as a 

voluntary module to be audited in the 

framework of a normal GLOBALG.A.P. 

audit. The GRASP Assessments do not 

offer complete social audits with indepth 

investigations, but rather focus 

on the review of an implemented social 

management system. For its successful 

implementation, farmers are supported 

with guidelines providing background 

information and practical examples. 

In the last years, cooperation with the 

BSCI (Business Social Compliance Intiative) 

has been stepped up. Coop has 

played a key role in ensuring that the 

experience gained in manufacturing 

and non-food is successfully integrated 

into the agricultural sector with the 

help of the primary production module. 

With GRASP and the BSCI’s primary 

production module, two instruments are 

now available for implementing social 

standards in agriculture, resulting in 

a marked improvement in awareness 

among facility managers. 

"The GRASP project can be seen as an innovative, 

creative, and successful partnership 

of public organizations and private 

enterprises to address one of the 

main challenges in agricultural production: 

social conditions of workers." 

Carsten Schmitz-Hoffmann, 

Head of the Section Agricultural Trade and Standards, 

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) 


87

Best Practice 




Introduces Women’s Quota 

Deutsche Telekom has been the first DAX 30 company to establish a quota for women: By 

the end of 2015, 30 percent of upper and middle management positions in the company are 

to be filled by women. This is a Group-internal requirement and applies worldwide. René 

Obermann, Chairman of the Board of Management of Telekom, summed it up as follows: 

“Taking on more women in management positions is a matter of social fairness and, above 

all, a categorical necessity for our success. Having a greater number of women at the top will 

simply enable us to operate better.” 

By Mechthilde Maier 

We firmly believe that our company will 

benefit from having more women in 

management. Extensive research shows 

that mixed teams are not only more innovative 

but also more productive and 

more successful in business. Companies 

with a large proportion of female managers 

generate new cultural and financial 

value. Studies confirm that companies 

with a higher percentage of women 

achieve significantly better results and 

greater profitability. What is more, investors 

and funds are increasingly looking 

for sustainable business practices that 

include gender equality. These are concrete 

economic arguments for putting 

more women in management positions. 

Women remain underrepresented at 

all management levels of our company. 

Compared with the other DAX 30 companies, 

the numbers at Telekom are average. 

In the last decade, the percentage of 

women at the top management level in 

large German enterprises has only risen 

from around 5 percent to just under 

5.8 percent. At Telekom, 9.6 percent of 

upper management positions were filled 

by women in 1996. Today, this stands 

at 12.5 percent. 

Although Telekom has spent many years 

initiating and implementing extensive 

measures designed to promote the interests 

of women, this did not bring the 

success we had hoped for. The “glass ceiling” 

could not be broken, which is deeply 

unsatisfactory. For this reason, we have 

now decided to take another approach 

by making a binding commitment. This 

is down to the fact that traditional roles, 

entrenched hierarchies, old boys’ networks, 

and ingrained mentalities cannot 

be changed by good intentions alone. We 

have learned this from the past. 

We believe the women’s quota is also 

the right response to the medium-term 

development we are seeing on the labor 

and talent market. Already, more 

than half of all business graduates from 

German universities are women. We 

can already expect a future shortage of 

specialist workers, which will impact 

the economy and thus also the business 

world. One example of this: The OECD 

states that, in the year 2020, there will 

probably only be seven young engineers 

for every ten engineers approaching retirement. 

Unless companies get actively 

involved in making sure this is not the 

case, these seven female engineers will be 

rarities. The biggest challenges lie firstly 

in getting girls interested in and encouraging 

them to pursue mathematics and 

science-based subjects, and secondly in 

making young women aware of the vast 

range of career opportunities open to 

them in business. These are precisely the 

objectives of our diverse range of STEM 

initiatives, which are already in full 

swing. The women’s quota sends out a 

clear signal to females that they can start 

their careers with Telekom. This will also 

make the quota commitment a key part 

of our strategic workforce restructuring 

activities. It will help us greatly expand 

our talent pool in a meaningful, fair, and 

sustainable effort to win tomorrow’s 

young management hopefuls. 

Following the resolution on the quota, 

Telekom is now focusing on its implementation, 

which is being done systematically 

and steadfastly. All aspects of the 

talent chain – from young trainees to 

management reviews for positions in 

leadership – have been assigned target 

figures. For example, we have defined 

targets for recruitment of university 

graduates, for selection processes, for 

talent pools, and for participation in 

executive development programs. Over 

the next few years, Telekom envisages 

that the percentage of female graduates 

from cooperative degree programs and 

university leavers in technical subjects 

recruited worldwide will be twice as high 

as the quota of women graduates overall 

in these fields in Germany. 

Potential assessments, selection processes, 

and development forecasts must 

take place openly and transparently. 

When filling management positions 

at Telekom in the future, women must 

make up at least 30 percent of the applicants 

shortlisted. 

Since November 2008 Mechthilde 

Maier is Head of Group Diversity 

Management at Deutsche Telekom. 

But this is all an exercise in futility if 

no solution is provided to the overriding 

question of how women and men 

can achieve a healthy work-life balance. 

This is why we have substantially extended 

the support we offer in-house 

with childcare and care for the elderly. 

By actively maintaining contact with 

employees during parental leave, and 

using individual reintegration measures, 

we are also making the transition back to 

working life easier for women and men. 

We have just introduced a policy designed 

to increase acceptance of – and 

even expressly encourage – leadership 

on a part-time and remote basis in order 

to maintain a healthy work-life balance. 

After all, a part-time leadership model is 

also an excellent HR development tool. 

It enables executives working part-time 

to systematically mandate junior talent 

with taking on increasing leadership 

responsibility locally. Last but not least, 

greater control over working hours also 

calls for a second policy, which we have 

just introduced. This sets out rules on 

the use of and attitudes toward mobile 

work resources outside of normal working 

hours. 

Internal and external reactions to the 

women’s quota at Telekom indicate that 

the Board of Management’s decision to 

introduce a quota was the right one. In 

the future, a lot of able, well-qualified 

women will have significantly better career 

prospects with our company and will 

occupy a larger proportion of positions 

in leadership. We will only have reached 

our ultimate goal when the women’s 

quota becomes redundant. It will be 

some time before this happens but we 

have now taken the first big step. 


89

Best Practice 



How Do You Avoid Gender 

Discrimination? 

Gender discrimination in the workplace is an issue that we need to stand against. In today’s 

day and age, where equal contributions from both sexes in the corporate world are valued, 

gender discrimination simply should not be tolerated or encouraged. 

By Nusrat Fathima 

Gender roles in the workplace differ, 

but as can often be seen – as portrayed 

through the media – the roles, responsibilities, 

and most importantly, the recognition 

levels are often the same. The 

differences that do exist are likely to 

diminish with time and advancement, 

as it has over the years. 

Within Green Delta Insurance Company, 

a firm believer of equal rights and opportunities, 

we have uniform policies 

for both male and female employees 

(this includes all policies including the 

spouses of the employees), such as: 

• giving equal chances to both genders to 

continue employment in the company, 

provided that terms of contract are 

observed and exercised; 

• ensuring that women have attained 

high positions in our workplaces due 

to their dedication and contributions; 

ensuring that there is recognition by 

the company, which rewards this dedication 

through promotions, pay raises, 

and other medical or financial benefits; 

• ensuring proper working conditions 

and fair employment opportunities 

for both genders; criteria for promotion 

and retention are equal for both 

genders, as they are working with the 

same job responsibilities; 

• correcting, preventing, or stopping 

any action, behavior, or condition in 

the workplace that attacks the gender 

of any employee, affecting his or her 

work performance; 

• paying equal salary/wage or benefit 

packages to both genders working with 

the same job responsibilities; 

• persuading and informing our female 

staff that nothing can replace good 

work ethics and performance. “Don’t 

hesitate to be honest enough to speak 

your mind. If you are having a hard 

time with officemates who consider 

your sex a disability, use it as a fuel to 

perform and exceed expectations and 

simply show that when it comes to 

perseverance and performance, there 

is no gender difference.” 

How do you promote diversity? 

Diversity is a business strategy that 

supports and promotes service for a 

heterogeneous population. Every business 

and company has a broad diversity 

of employees. We need to develop the 

diversity within the workplace to work 

better as a single unit and also to be able 

to serve customers. Green Delta Insurance 

Company’s view is that promoting 

diversity in the workplace will also 

decrease the incidents of discrimination 

among colleagues. Green Delta has some 

guidelines on how to promote diversity 

in the workplace. 

Identify the different ethnicities that are present 

in the workplace and the percentage 

of people according to their age and 

gender. By identifying these, we are able 

to create strategies that will promote 

diversity in our organization. 

Leadership Commitment is another tool 

to implement policies and strategies to 

promote diversity in the workplace. We 

believe that if the leaders know what is 

important to the organization, then the 

whole community in the workplace will 

follow their examples. 

Provide Equal Opportunities for all our employees 

regardless of the age and gender 

of our employees, and ensure that each 

is given equal merit based on their performances 

in the workplace. 

Diversity Training will teach the employees 

the guidelines to bear in mind on how 

to avoid discrimination and also provide 

information on how to promote diversity 

in the workplace. In addition, this 

training will also increase the quality of 

customer service of the company. 

Mentoring is another strategy we use to 

break down divisions in the workplace, 

encouraging senior employees to train 

the new employees so that they can work 

together in improving the company. This 

mentoring activity will not only improve 

their output but will also create a bond 

among the employees. 

How do you ensure the well-being of 

employees? 

Employee well-being is incorporated into 

every aspect of Green Delta’s business 

plans, strategies, and activities. To succeed, 

we inspire ingenuity, nurture talent, and 

create an inclusive workplace where people 

thrive and grow. We balance this with 

our other business needs. These include: 

• code of policy that outlines employee 

conduct on issues such as ethics, values, 

environment, diversity, employee 

respect, and customer service; 

• creating a clear workplace health and 

safety program that documents policies 

and actions, particularly important to 

ensure the well-being of employees; 

• remaining committed to regular training 

and development so our employees 

excel at their work and advance in their 

careers; 

• developing a culture of personal 

growth; 

• providing flexible work hours and company 

holidays to celebrate the holidays 

that are important to them; 

• fair and unbiased decisions about benefit 

changes during open enrollment 

periods; 

• applying marketing techniques that 

are fair and honest, so that they reflect 

our company’s integrity, such as avoiding 

any advertising or communication 

that could be seen as manipulative or 

harmful to the public. 

Much like the popular saying that “what 

a man can do, a woman can do better,” 

Green Delta Insurance Company believes 

that a woman can also do best. 


91

Best Practice 


ManpowerGroup 

The Human Age 

Recent events in many countries across the world are a stark reminder that the power of the 

human spirit should not be underestimated. As we put the “Great Recession” behind us and 

look toward a more positive – and yet vastly different – new era, we are reminded that 

it was the innovation, creativity, and passion of people who got the world through those 

challenging times. During the downturn, companies had to cope with “doing more with 

less” – raising productivity yet with fewer people to get the work done. This required new 

approaches, new perspectives, and above all, new ingenuity. The recession is in our rearview 

mirror but that pressure to do more with less has endured – we have entered the Human 

Age. 

By Jeffrey A. Joerres 

Sustainable work, being able to provide 

for one’s family, and contributing to one’s 

community allows self-confidence to be 

restored. It is only human to want to feel 

needed, and too many people feel as if 

they are surplus to requirements. The 

most frustrating thing for all concerned, 

though, is that they are needed. With 

unemployment remaining high in many 

countries, it could appear that employers 

are spoilt for choice when it comes to 

selecting the best of the best employees. 

Unfortunately, the companies we talk to 

tell a different story. They are constantly 

frustrated in their attempts to attract 

the talent they need, and individuals 

are similarly struggling to match their 

career ambitions with the companies 

who need their skills. 

A major contributing factor to this apparent 

paradox is that those who are available 

do not possess the right specificity 

of skills that businesses require. In the 

past, all that was considered important 

was that a candidate possessed the right 

technical skills to get the job done. In 

the Human Age, however, they need all 

that and more. The velocity of change in 

the world of work means employers need 

their people to be agile and adaptable 

in order to evolve in tandem with the 

growing complexities of this new era. 

Attributes such as flexibility, intellectual 

curiosity, and a learning mindset become 

priceless. The notion of doing more with 

less has continued into the recovery, so 

every person within an organization has 

to be very talented. In order to address 

the challenges posed by the Human 

Age, we need to unlock the potential 

of people everywhere. Demographic 

shifts mean the working population 

in most countries is aging, yet there 

is the serious threat that a whole new 

generation could be left on the sidelines. 

Youth unemployment is a chronic and 

growing problem and has been a factor 

in much of the civil unrest in the Middle 

East, North Africa, and other parts of the 

world. In addition to the social ills associated 

with having a disengaged youth, 

it also poses an economic threat. If we 

cannot get the new generation – both 

men and women – to take the place 

of the Baby Boomers who are retiring, 

talent shortages will become even more 

acute and global economic growth will 

suffer. The power of humans and their 

potential can drive economies forward. 

Therefore, young women and men must 

be given the tools to make themselves 

marketable to employers. 

In January, I took part in a CNBC debate 

at the World Economic Forum Annual 

Meeting, which focused on the importance 

of overhauling education to make 

young people more job-ready. The fact is 

that educational institutions are simply 

not equipping workforce entrants with 

the skills that businesses need. And in 

many regions, half the population – 

women – have a limited opportunity 

for any education. The responsibility lies 

with all of us – governments, educators, 

and, yes, businesses – to see to it that 

education changes. To do so will require 

a radical overhaul, as entrepreneurship 

must be incentivized and students need 

to be taught differently. Without dramatic 

changes, whole societies will simply 

not have enough people with the right 

skills, thus robbing them of the opportunity 

to gain self-sufficiency and leaving 

their countries unable to compete in a 

global economy. Additionally, we must 

confront the fact that millions of people 

have been out of work for long periods of 

time and have seen their skills become 

antiquated as the pace of change in the 

world of work quickens. 

The global economy needs talented people 

as much as people need the dignity 

of work. The companies that succeed 

in this new age will be those whose 

leaders understand how to channel and 

unleash human passion and potential. 

The single-minded focus on reducing 

costs is forcing organizations to look at 

their workforce in new ways – inspiring 

creativity and innovation like never before 

– awakening employers to the very 

real power of humans. Companies that 

successfully navigate this new “normal” 

will be those best prepared to leverage 

the potential of their people. 

At ManpowerGroup, our clients depend 

on us to provide them with the people 

they need, and our candidates look to 

us to connect them with the companies 

that can unleash their potential. In other 

words, their success leads to our success, 

so it makes sense for us to cast our net 

to all sections of society to source the 

best possible talent for our clients. We 

recently teamed up with Microsoft to 

help stimulate youth employment and 

early entrepreneurship in the Middle 

East and North Africa – a region in 

which the issue of youth joblessness 

runs deep. Together, we are working to 

develop a training curriculum for young 

entrepreneurs that includes leading-edge 

technical-, organizational-, and business 

development skills. In addition, we are 

joining with governments and NGOs 

for training, mentoring, career guidance, 

work-preparation, job-linkage, and 

entrepreneurship projects for youth in 

other regions, including Serbia (pictured). 

These and numerous similar programs 

are targeted specifically at men and women 

who experience barriers to employment. 

Another notable example is Project 

Ability in the United States – a national 

program aimed at transitioning people 

with disabilities into sustainable employment 

with leading employers nationwide. 

Make no mistake, this is no act of charity; 

it is all about finding a solution to the 

worsening talent mismatch by looking 

at talent pools that have traditionally 

gone untapped. People with disabilities 

represent the largest minority group in 

the United States. A key component of 

Project Ability is the partnership with 

local community-based organizations 

that have the access to candidates with 

the appropriate skill sets. Through local 

recruitment strategies, ManpowerGroup 

works with local employers to identify 

and place candidates with disabilities. 

In all of this, we remain committed to 

the UN Global Compact Principles, which 

become even more relevant at the dawn 

of the Human Age. In the Human Age, 

men and women will take their rightful 

place at center stage as the world’s 

only source of inspiration, passion, and 

innovation and the driving force behind 

all endeavors and enterprise. Unleashing 

that human potential provides people 

with the dignity of work while building 

strong economies and sustainable 

communities. 

Jeff Joerres is Chairman and CEO of 

ManpowerGroup. 


93

Best Practice 


Randstad 

Imagine What We Can Do 

Together: Randstad – VSO 

Partnership 

“We strongly believe that companies have no reason to exist if they don’t add value to 

society,” says Ben Noteboom, CEO of Randstad Holding nv. “Our core activity, putting people 

to work, means improving people’s lives. But we want to do something extra. Working with 

development organization VSO (Voluntary Service Overseas) is a perfect match because we 

can help them select the right people, something we do every day. And: All of our employees 

can play a role in this partnership.” 

By Eveline Kramers 

Randstad, one of the world’s largest HR 

services providers, and VSO, the world’s 

leading international development organization, 

started their partnership in 

2004. Since then, they have been working 

side by side to enhance VSO’s reach 

across the globe and increase VSO’s ability 

to recruit volunteers for placements 

in developing countries. 

Acting in a socially responsible manner 

changes over time, but for Randstad 

it is a timeless prerequisite that we must 

contribute, either materially or immaterially, 

to groups that make up our 

direct or indirect environment. Today we 

bring to life one of our core values, “the 

simultaneous promotion of all interests,” 

through our partnership with VSO. 

Randstad volunteer Mignon Schaap 

in Oshakati, Namibia 

At the request of local organizations 

in developing countries around the 

world, VSO places professionals in those 

countries to share their knowledge and 

expertise. Thus, VSO aims to achieve 

sustainable change, striving for a fairer 

world without poverty. 

Justine Douphis, Randstad France, 

volunteered in China: “By transferring 

my experience in the field of HR to my 

colleagues here in China, I’m able to 

make a difference. The approach is ‘participatory’: 

My colleagues figure everything 

out, do the work, and end up being 

fully in control. I’m just here to guide 

them and help where needed.” 

Mutual benefits 

VSO benefits from Randstad’s know-how, 

both in the field and in its internal processes. 

In 2010 VSO started to re-engineer 

its business process, or as VSO calls it 

“the Volunteer Journey” – essential to recruiting 

and placing volunteers overseas. 

Giles Meyer, Strategic Change Program 

Manager VSO UK, says: “We map our 

processes against Randstad’s to work 

out the levels of efficiency within each 

step of our journey. I think by learning 

from the clarity, focus, and clear measurements 

of the Randstad concepts we 

will be heading in the right direction.” 

Meanwhile, motivated Randstad 

employees can follow their hearts to help 

others – and develop their own talent 

as well – thanks to facilitation by VSO’s 

network and services. The partnership 

enhances employee loyalty and increases 

Randstad’s appeal as employer. Additionally, 

returned volunteers add value to 

the organization with newly developed 

skills such as creativity, flexibility, and 

the ability to improvise. 

Randstad employees can be actively 

involved in the partnership in many 

ways. Volunteering abroad is appealing 

but recruiting volunteers and raising 

awareness and funds back home is just 

as vital and exciting. Even corporate staff 

at the headquarters in the Netherlands 

participate in fundraising through an 

annual event called the Walk Against 

Poverty. 

What We Do Together: Randstad – 

VSO Partnership in Practice 

Better working conditions 

The partnership encompasses several 

specific programs. In Namibia and Zambia, 

Randstad was instrumental in the 

creation of HR Solutions. The program 

focuses on improving organizational 

capacities, resulting in better working 

conditions. Ehrens Mbamanovandu, VSO 

Program Manager Education in Namibia, 

says: “A better HR policy is essential for 

running schools and for good education. 

The work of Randstad volunteers 

decreased absenteeism amongst teachers 

and improved their motivation.” Consequently, 

the quality of education is 

higher. Patricia Sola, founder of HISA 

(Hope Initiatives Southern Africa), is also 

happy with the program: “Our organization 

didn’t have adequate HR systems. 

Together with Randstad volunteer Saskia 

Furrer, we identified the problems and 

charted out the solutions. We now have 

an HR policy and manuals and are able 

to run our human resources better.” 

Jobs for people with disabilities 

In Indonesia VSO and Randstad cooperate 

to increase job opportunities for 

people with disabilities. Often they are 

dependent on others and in many cases 

live in poverty. Randstad Canada volunteer 

Dan Bryson worked with Interaksi, 

a local disabled person’s organization. 

“Most people with disabilities have little 

knowledge of formal employment as 

many have never even been to school, 

let alone work. We facilitated training 

sessions on creating effective CVs, job 

interviews, and work expectations. What 

impressed me most was their incredible 

courage and determination. Instead of 

being helpless or needy, they were proud, 

engaging, ambitious, and adventurous. 

I learned more from them than I could 

have ever hoped to teach.” 

Volunteer Marisca Jansen from 

Yacht, a Randstad company, worked as 

a disability workplace advisor at Bedo 

(Bali Export Development Organization). 

“Fifty people are now working for Bedo 

members. Another 50 will start producing 

design products for a number 

of stores.” 

Sustainable impact 

Through Marisca, Joko Dharmanto obtained 

a job in security at a large furniture 

company. He now feels he is able to 

support not just himself but his family. 

“To receive money is only momentary, 

but a job is an actual way to survive!” 

VSO: Sharing 

skills, changing 

lives 

VSO is the world’s leading independent 

international development 

organization, which works through 

volunteers to fight poverty in 

deve l oping countries. VSO’s 

high-impact approach involves 

bringing people together to share 

skills, build capabilities, promote 

international understanding and 

action, and chan ge lives to make 

the world a fairer place for all. 

Randstad: Good to 

know you 

Randstad is one of the world’s lar - 

gest providers of HR services, mat - 

ching people with companies that 

will develop their potential, and 

matching companies with people 

who will take their business to the 

next level. In 2010 Randstad had 

approximately 27,500 corporate 

employees working from close 

to 4,200 branches and inhouse 

locations in 43 countries in the 

world and generated revenue of 

€14.2 billion for the year. 


95

Best Practice 


Viyellatex 

Trailblazer 

in Responsible 

Business 

Adopting sustainable business practices to manufacture 

goods in conformity with the natural environment will 

pave the way to the future for companies in the 21st 

century. The Viyellatex Group follows such a forwardlooking 

way regarding business applications. Started in 

1996 with just six lines, Viyellatex now has over 135 lines 

with an average production capacity of 2.5 million per 

month. 

By Ravi Khan 

An integrated textile and apparel manufacturing 

company in Bangladesh, 

Viyellatex became a signatory of the UN 

Global Compact in April 2009. The Group 

uses modern machines, state-of-the-art 

software, environmentally friendly 

chemicals, and the latest production 

systems for efficient functioning of the 

supply chain units, spinning, knitting, 

dyeing, washing, printing, and garmenting. 

In accordance to the Ten Principles 

of UN Global Compact, Viyellatex strictly 

follows a child-labor-free and safe and 

hygienic working environment. Regular 

training is given to the workers on health 

and safety measures, medical emergencies, 

fire-fighting, and their rights and 

privileges. 

Having taken eco-friendly initiatives 

in efficient energy use and combating 

carbon emissions, Viyellatex has won 

several awards both home and abroad 

from international organizations, private 

sector forums, local workers’ organizations, 

and the government of Bangladesh. 

In the Millennium Development Goals 

private sector forum in New York, the 

Chairman of the Viyellatex Group has 

pledged to the UN that the Viyellatex 

Group shall become carbon-neutral by 

2016. The company is also certified by 

organic and non-organic raw cotton suppliers 

such as FLO Fairtrade, Control 

Union, Cotton USA, and CmiA. Timely 

product shipments, upholding labor 

and environmental standards, buyer’s 

code of conduct, and transparency in all 

business affairs have encouraged global 

top brands to become Viyellatex’s clients. 

Goods made from Viyellatex are sold to 

over 45 countries worldwide. 

A smiling workforce 

As per law of the government of Bangladesh, 

a minimum wage has been assigned 

for the garment workers of the country. 

Viyellatex takes pride and great pleasure 

in readily paying the workers more than 

what is required by the government. 

Training programs are held continuously 

to educate the workers about their rights 

and the facilities the company has in 

store for them. A happy workforce is 

a key ingredient for producing highquality 

products on time, which is why 

Viyellatex has some of the top brands in 

the world as their buyers. The company 

goes a long way to fulfill the needs of the 

workers by providing all precautionary 

tools and protective gear such as steel 

protected gloves, eye guards, gasmasks, 

earplugs, boots, caps, signs on walls, etc. 

Viyellatex also constructed a daycare 

center for children of the workers, assigned 

a full-time doctor on standby, and 

most importantly, has given opportunities 

for the employees to work their way 

up the chain of command by performing 

well and showing a strong work ethic. 

Cultural programs and sports days are 

held where the workers can show off 

their skills and talents in front of their 

peers, creating a greater sense of belonging 

and togetherness. A no smoking, 

spitting, and littering zone within the 

factory compound helps raise awareness 

on good social practices that the employees 

take back home and spread around 

the community they live in. 

Conformity with the UN Global 

Compact 

To comply with the Global Compact’s 

first six Principles, Viyellatex has made 

several commitments and taken actions 

accordingly. Employment is chosen 

freely without any forced, bonded, or 

involuntary labor. No discrimination is 

practiced during recruitment, compensation, 

access to training, promotion, or 

disciplinary actions based on race, caste, 

national origin, religion, age, disability, 

gender, marital status, sexual orientation, 

union membership, or political 

affiliations. The company does not employ 

underage workers, which is quite 

difficult to monitor as poor people start 

working from a very early age and it 

is very easy to make fake identification 

cards to hide their real ages. The 

HR department honors this pledge by 

thoroughly checking files of new recruits 

and constantly monitoring the 

factory floors for any workers who look 

underage. Another agenda taken up by 

Viyellatex is the employment of physically 

challenged workers who are encouraged 

to become self-reliant. The company 

has now over 40 physically challenged 

workers, some of whom are in administrative 

posts with people working under 

them. A Workers Participation Committee 

is created to keep direct liaison 

between the employer and employee. 

Problems the workers face or ideas they 

want to put forth can be shared with the 

employer through this platform. The 

committee has numerous other roles 

such as educating the workers about the 

company’s code of conduct, selection of 

workers for cultural and sports activities, 

etc. This committee is chosen through 

election and the group can stay together 

for two years if no complications arise. 

People, products, and customers 

The management team helps workers to 

adapt quickly to newer ways and gives 

them a greater sense of responsibility 

and importance. The surrounding community 

also benefits from Viyellatex’s 

presence, as the company provides some 

community services such as distribution 

of medicines, eye camp, 0 - 5 clinic, etc. 

Viyellatex provides a number of maternity 

benefits, including ultra sonograms 

and medicines for pregnant workers. 

In order to motivate the workers, there 

are also performance-based policies for 

promotion, salary increases, training, as 

well as development-based policies on 

skills, education, prior training, experience, 

behavior, etc. Viyellatex believes 

that the organization is more likely to 

build trust that is sustained at the organizational 

and interpersonal levels when 

a feeling of mutual respect and care is 

shared among the employers, management 

staff, and workers. In order to keep 

such harmony, several safety manuals 

and measures have been implemented 

for everyone associated with the company. 

Written policies on every aspect 

of human rights are posted on all notice 

boards within the facility. 

As the Viyellatex Group adheres 

to its vision of becoming the most regarded 

company by 2015, the company 

maintains a world-class management 

structure, characterized by a culture of 

transparency. In order to become carbon-neutral, 

the company has bought 

a Tea Estate in the northeast of Bangladesh, 

where 6 million plus trees are 

to be planted to offset the company’s 

carbon emissions. Taking sustainability 

measures as a priority, the Group aims 

to diversify into other sectors, where it 

pledges to remain accountable, transparent, 

and responsible for all its activities. 

Viyellatex is the first company in South 

Asia to prepare a sustainability report 

and submit to the Global Reporting Initiative 

(GRI). It is a progressive company 

that is committed to sustainable solutions 

throughout all aspects of its work. 

Viyellatex’s best practices serves as a model 

for other companies in Bangladesh. 


97

Best Practice 

Environment 

100 

102 

104 

106 

108 

110 

107 

112 

114 

116 

120 

122 

124 

126 

128 

130 

132 

134 

136 

Air France 

Armacell 


Camposol 

Carrefour 


Copeinca 

Deutsche Bank 

EDF Group 

Grundfos 

Hochtief 

Huawei 

Otto Group 


Siemens 

Sonae 

Sopharma 

Toshiba 



138 


Environment 


Principle 7: Businesses should support a precautionary 

approach to environmental challenges; 

Principle 8: undertake initiatives to promote greater 

environmental responsibility; and 

Principle 9: encourage the development and diffusion of 

environmentally friendly technologies. 

Principle 10: Businesses should work against corruption 

in all its forms, including extortion and bribery. 


99

Best Practice 

Environment 

Air France 

Combating Deforestation 

in Madagascar 

hectares of moist forest and 85,000 hectares 

of dry forest. This is an opportunity 

for front-line teams to raise awareness 

among farmers living close to the forests 

classed as “new protected areas” about 

the importance of preserving them. 

Air France is providing €5 million in financial backing for 

a large project to combat deforestation in Madagascar in 

partnership with the GoodPlanet Foundation in France and 

WWF. 

Why help Madagascar to protect its forests, 

one may ask. The answer is that 

deforestation is responsible for 15 percent 

of greenhouse gas emissions – the 

equivalent of those generated by all 

transport modes combined. Not only that, 

but while Madagascar is outstanding for 

its biodiversity, half of its forest cover has 

disappeared over the past 50 years due 

to slash-and-burn agricultural practice, 

the creation of pastureland for livestock, 

and charcoal production. The program 

is being directed by photographer Yann 

Arthus-Bertrand’s GoodPlanet Foundation 

and run locally by WWF, which has 

a very strong presence in Madagascar. 

Working with the country’s authorities, 

the Holistic Conservation Program for 

Forests (HCPF) aims to help communities 

living in over 500,000 hectares of forest 

land to manage their forests efficiently 

and sustainably for the benefit of the 

people concerned. The project has so 

far enabled the WWF team to hire 68 

people locally. 

Contributing to local community 

development 

The project aims to involve local people 

in all the activities by empowering them 

and training them to become self-sufficient 

as well as enabling them to steer 

their future development themselves. 

Creating new protected areas 

The program involves creating new 

protected areas covering over 265,000 

Helping local communities to manage their 

forests sustainably 

The program is organizing transfers of 

natural resource management skills 

based on empowerment, while building 

up communities’ abilities across a 

spectrum of technical, agricultural, and 

financial management areas to help 

them become self-sufficient when it 

comes to managing their forests sustainably. 

Literally thousands of families living 

in an area of more than 140,000 hectares 

are affected. The project deploys alternative 

and sustainable farming practices 

such as systems of rice intensifications, 

small-scale breeding, fish farming, and 

agro-forestry techniques. In this way, local 

communities will ultimately benefit 

from additional income and improved 

living conditions. 

Restoring 20,000 hectares of degraded forest 

land 

This will be achieved by setting up community 

tree nurseries using native species. 

Protecting plots of forest land will 

also help them to regenerate naturally. 

Replanting 5,000 hectares 

Trees to be used for fuel wood will also 

be planted in extremely degraded areas 

close to urban settlements. Two years 

into the project, local people are beginning 

to make the connection between 

deforestation and forest degradation, 

and between climate change and the 

phenomena they experience day-to-day 

such as a changing crop calendar, flooding, 

and so on. Some 500 farmers have 

already been trained to diversify their 

crops, and half of these have adopted 

intensive rice-growing. Over 300,000 

seedlings from 50 native species have 

already been planted to restore degraded 

forests, while 34 tree nurseries have 

also been set up to provide the seedlings 

needed to replant 900 hectares 

with fast-growing tree species for use as 

fuel wood. Twenty one natural resource 

transfer-contracts have been signed with 

local communities. 

Ensuring the potential sequestration 

of 60 - 70 million tons of carbon 

According to IPCC estimates, the carbon 

sequestration potential of the forests affected 

by the program stands at around 

60 - 70 million tons. The project accordingly 

seeks to maintain this storage capacity 

and preserve biodiversity, as well 

as soil and water resources. 

Assessing carbon stocks in preserved 

forests 

The project involves a large-scale scientific 

component, which consists in 

evaluating as accurately as possible the 

reduction in greenhouse gas emissions 

generated through reducing deforestation. 

GoodPlanet is overseeing this research 

component in conjunction with 

WWF and in partnership with a clutch 

of European, American, and Malagasy 

research bodies: Spot Image, Carnegie 

Institution-University of Stanford, IOGA 

(Institut et Observatoire de Géophysique 

d’Antananarivo), IRD (Institut de Recherche 

pour le Développement), CIRAD 

(Centre de coopération internationale 

en recherche agronomique pour le 

Développement), LRI (Laboratoire des 

Radio-Isotopes) et ESSA Forêts (Ecole 

Supérieure des Sciences Agronomiques), 

CNRS (Centre National de la Recherche 

Scientifique). 

Protecting Madagascar’s unique 

biodiversity 

Madagascar is one of 35 regions worldwide 

on WWF’s list of biodiversity protection 

priorities. Although modest in size 

compared with those in Brazil or Indonesia, 

Madagascar’s forests are home to an 

equally large and diverse range of animal 

and plant species: 250,000 species, of 

which 70 percent are found nowhere else. 

Deforestation is one of the most serious 

threats facing this outstanding biodiversity. 

Deforestation, which is mainly due 

to slash-and-burn farming, the creation 

of pastureland for livestock, and charcoal 

production, is a major problem for the 

island’s ecology and biodiversity. It has 

a dramatic impact on the incomes of 

farmers and fishermen. 

Although the global airline industry accounts 

for no more than approximately 

two percent of man-made greenhouse 

gas emissions, it is still responsible for 

the emissions it generates. The world’s 

airlines, grouped together in the International 

Air Transport Association (IATA), 

have undertaken to play their part in 

combating climate change. Air France- 

KLM has put considerable effort into 

rallying the industry, as it has worked 

hard for a number of years to control its 

environmental impact via its “Climate 

Action Plan.” 


101

Best Practice 

Environment 

Armacell 

Energy Efficiency Is 

Our Business 

How can we integrate the UN Global Compact into our day-to-day business with measurable 

results? For Armacell, the medium-sized industrial company headquartered in Münster, 

Germany, the answer lies not only in their products, which have already made a significant 

contribution to the way in which scarce resources are used. 

By Susan Heuer and Malte Witt 

“As the world’s leading manufacturer of 

flexible technical insulation materials, 

we stand for innovative sustainable solutions,” 

states Mark Harakal, CEO of the 

Armacell Group, when asked about the 

significance of the company’s commitment 

to the environment. And this commitment 

applies to all areas – the bar is 

set high both for the manufacturing process 

and for the efficiency of the products. 

Participating in the Global Compact since 

2006 has further sharpened the company’s 

focus on the way in which it does 

business. Armacell’s best-known brand, 

Armaflex, which is used in heating, airconditioning, 

and refrigeration applications, 

has been a success story for many 

years. The results of a lifecycle assessment 

that was initiated by the company in 

accor dance with ISO 14040 show that, 

based on a service life of 20 years, an 

average of 140 times more energy is saved 

through the use of the products than is 

needed for their production, transport, 

Technical insulation with Armaflex is 

an efficient energy-saving measure. 

and disposal. The energy required to 

manufacture Armaflex is “recovered” after 

just 50 days. And the climate footprint 

is equally positive: Installing Armaflex 

saves 150 times more greenhouse gas 

emissions than are generated during its 

production. 

It was certainly not only the brand 

name that led to Armaflex being used 

to insulate pipework in the “most environmentally-friendly 

skyscrapers in the 

world” – the twin towers of Deutsche 

Bank in Frankfurt. From the very beginning 

of this refurbishment project, 

those responsible were aiming for LEED 

(Leadership in Energy and Environmental 

Design) Platinum certification, the 

highest category of the internationally 

recognized environmental seal of quality. 

Environmental requirements were 

integrated into the corporate philosophy 

long before the climate debate began. 

This is not only reflected in the continuously 

improved product properties of the 

insulation materials; the company has 

also been working on national and international 

committees for many years. As a 

member of the European Alliance for Energy 

Efficiency in Buildings (EuroACE), for 

example, Armacell has recently backed 

the passing of stricter energy requirements 

for new and modernized buildings. 

The challenge of industrial 

installations 

As far as the insulation of industrial installations 

is concerned, environmental 

protection still has a long way to go. Only 

a minority are insulated, according to the 

current state of the technology – in this 

respect little has changed over the past 

30 years. This is all the more surprising 

because industry accounts for around 26 

percent of the total energy consumption 

and over 50 percent of CO 2 

emissions 

worldwide. Experts agree that there is 

still enormous potential for improvements 

in this area. Armacell, together 

with other leading European insulation 

companies, is searching for a solution. 

The nonprofit European Industrial Insulation 

Foundation (EiiF), which was 

founded in 2009, aims to improve the 

situation. The foremost objective is to 

make decision-makers on all levels aware 

of the economic and ecological potential 

of sustainable insulation solutions. In 

addition, Armacell itself is constantly 

developing innovative solutions such as 

tailor-made systems and can thus provide 

impetus for active environmental 

protection in the sector. 

Recycling products for innovations 

Apart from flexible technical insulation 

materials, the company also produces 

PET foam cores for composite materials. 

In this segment too, Armacell is proving 

to be particularly far-sighted in terms of 

product and process optimization. In 

September of 2010, these efforts were 

recognized by the Industrievereinigung 

Verstärkte Kunststoffe e.V. (Federation of 

Reinforced Plastics) with an innovation 

prize in the Environment category. 

It is well-known that PET is 100 

percent recyclable and can be fully fed 

back into the economic cycle. The polyester 

fibers gained in this way are used to 

produce fleece textiles or new beverage 

bottles, for example. With innovative 

technology, Armacell has now succeeded 

in using the recyclate of PET bottles for 

its own production. From this recyclate 

the company makes foam cores that are 

comprised entirely of recyclable PET. 

This means that the use 

of one metric ton of 

recycled PET material 

saves around 

5,774 kWh of energy 

and avoids 

the emission of 

some 1.5 metric 

tons of CO 2 

. This 

“green” plastic foam 

has the same technical 

values as PET foams manufactured 

from primary raw materials. 

It is used in transportation, windturbine 

construction, or ship building. 

PET core foams are in general environmentally 

friendly and energy-efficient 

to use because their low weight requires 

less input power during use than other 

traditional core materials. 

Implementing the principles of 

sustainability in the company’s own 

production process 

In Armacell’s own production, the 

technical cycle is viewed critically for 

all products and constantly optimized. 

For example, materials that occur regularly 

as byproducts in the production 

of Armaflex are used in ArmaSound – 

Armacell’s high-performance insulation 

material for noise control. Whereas in 

2009 some 20 percent of these byproducts 

were used as alternatives to raw 

materials worldwide, 25-30 percent were 

used in 2010. Individual locations (Great 

Britain, India, Saudi Arabia) have even 

been able to reuse over 90 percent of 

their byproducts as valuable raw materials 

for the production of ArmaSound. 

Reuse of all byproducts from the 

manufacturing process is a key objective 

that is strongly advocated by the Armacell 

Environmental Guidelines. Non-cured 

rubber recyclables are already reused 

with the support of a waste management 

firm. Tests are currently being conducted 

to find out whether cured rubber residues 

may also be reused for new products. If 

this proves to be possible, Armacell will 

make a significant contribution to the 

reduction in CO 2 

emissions. 

Conserving resources: ArmaSound 

Industrial Systems provide both noise 

control and thermal insulation. 


103

Best Practice 

Environment 


Safeguarding Biodiversity 

in Practice 

By Pakis Papademetriou and Nikos Fokas 

Airport operations can have an impact on local ecosystems. 

Athens International Airport is located near the Vravrona 

Wetland, an area of great environmental and historical 

significance. The Airport Company undertakes initiatives 

to preserve this sensitive natural environment and protect 

a number of important wildlife species, while at the same 

time helping to divert birds away from the airport and 

reduce risks related to aircraft operations. 

We at Athens International Airport (AIA) 

consider success to be the outcome of 

a balanced and responsible approach 

that leads to both sound financial performance 

and a positive impact on the 

people and the environment affecting 

and affected by our business. In these 

challenging times, it becomes increasingly 

difficult for a company to maintain 

a sustainable and prudent business 

perspective. We believe, however, that 

especially when challenged, it is important 

to maintain a steady course of 

responsibility, as a reliable measure of 

corporate governance. 

Environmental responsibility – 

a strategic priority 

AIA has established a Corporate Responsibility 

Policy, which complements various 

distinct corporate policies with regard 

to the environment, local community 

relations, communications, safety, hu- 

man resources, and quality. This policy 

is regularly reviewed so as to incorporate 

global best practices. The policy states 

the Airport Company’s commitment 

toward sustainable value creation for 

all stakeholders, while balancing its role, 

objectives, and actions among the four 

perspectives of corporate responsibility. 

The environmental perspective of 

corporate responsibility as well as the 

specific environmental policy reflect 

AIA’s acknowledgment that effective 

management of environmental challenges 

is a strategic priority. In order 

to serve this purpose, it is necessary to 

continuously monitor environmental 

conditions and to undertake initiatives 

that minimize the impact of airport 

operations on the natural environment. 

Credibility and transparency 

AIA has committed, as of June 2008, 

to support and advance the UN Global 

Little ringed plover in Vravrona 

Compact’s Ten Principles within its 

sphere of influence. As such, AIA aims 

to ensure that the Ten Principles, covering 

the areas of human rights, labor 

standards, environmental protection, 

and anti-corruption, are internalized into 

our corporate policies, operations, and 

culture. In order to ensure materiality, 

completeness, and comparability of our 

corporate responsibility disclosures, we 

apply globally prevailing standards and 

best practices for systematic reporting. 

Since 2003, AIA issues on an annual 

basis the Corporate Responsibility Report, 

which includes since 2009 a Communication 

on Progress (COP) section as part of 

our commitment toward the UN Global 

Compact. The Corporate Responsibility 

Report is subject to an external assurance 

process by an independent audit 

firm. It contains information on issues 

that are crucial to our business and our 

stakeholders. The report also contains 

information on our actions to minimize 

environmental impact, including our 

continuous efforts to safeguard biodiversity 

in the region where we operate. 

Biodiversity initiatives – A practical 

approach to upholding UNGC’s 8th 

Principle 

In the context of managing the impact 

of airport operations both on site and 

in the vicinity of the airport, we continuously 

monitor the status of the local 

ecosystems through an extensive biomonitoring 

program. AIA’s dedicated 

team of specialists monitors and records 

wildlife and also implements measures 

to reduce the risk of bird strikes with aircraft. 

It is worth noting that the diversity 

of bird species spotted in the vicinity of 

the airport has increased in recent years, 

indicating the health of the local ecosystem. 

Through 2010, 173 species of birds 

have been recorded in the airport vicinity. 

Our challenge is to continue developing 

aviation and non-aviation activities in 

accordance with best practices for business 

and environmental protection. One 

of AIA’s most important initiatives has 

been the “adoption” of the Vravrona 

Wetland, a local site of unique ecological 

and archaeological value that belongs 

to the Natura 2000 EU-wide network 

of protected areas. Since 2008, we have 

been cooperating with the Hellenic Ornithological 

Society, a nongovernmental 

conservation organization and partner 

of Birdlife International for the protection 

of wild birds and their habitats in 

Greece. Jointly, we have implemented 

a number of various activities with the 

aim of improving the condition of the 

wetland. The actions have included: 

• Cleanup of the wetland by approximately 

150 volunteers from the Airport 

Company and greater airport community 

as well as representatives of the 

Association for the Protection and Welfare 

of Wildlife (ANIMA). Several tons 

of waste were removed from the site. 

In addition, a buzzard, an owl, and 

three young hedgehogs, which had 

recuperated from injuries in ANIMA’s 

care, were released back to their natural 

habitat. 

• In order to discourage further dumping 

of waste, wooden fences were installed 

at several strategic locations around 

the site to prevent vehicle access. This 

also helps limit use of the site by offroad 

recreational vehicles and thus 

further minimizes disturbance of the 

ecosystem. 

• Footpaths were created and signage was 

installed to inform and guide visitors 

through the site. In addition, special 

paths have been created to enable the 

visually impaired to enjoy the benefits 

of the wetland. Information kiosks play 

the calls of different bird species and 

allow visitors to explore the terrain 

and its inhabitants with their hands 

thanks to 3-D relief maps and animal 

models. 

• New plantings with native species were 

undertaken, while signs banning hunting 

have been installed at different 

locations around the site. This helps 

guarantee that the Vravrona Wetland 

is a safe haven for numerous birds and 

other species. 

• Finally, environmental awareness 

programs have been implemented at 

schools, companies, and nongovernmental 

organizations in the region in 

collaboration with the Hellenic Ornithological 

Society. 

The adoption of the Vravrona Wetland 

by Athens International Airport is part 

of a consistent commitment that enables 

us to effectively manage environmental 

challenges while promoting environmental 

protection. 

Corporate Responsibility perspectives of AIA 

Perspective 

Airport Operator´s 

Responsibility 

Corporate 

Citizenship 

Environmental 


Employer´s 


Focus 

Running the airport efficiently and establishing an airport community culture 

Acting on public interest in particular with respect to safety and service quality 

Neighbourly relations with local communities 

Advancing social partnership and prosperity in the region 

Undertaking initiatives and commitments to minimise impact from airport 

operation & development 

Communicating and raising awareness with all stakeholders regarding 

environmental issues 

Development, compensation and engagement of our human capital 

Maintaining a committed workforce in a safe, productive and fair 

work environment 


105

Best Practice 

Environment 

Camposol | Copeinca 

Biological 

Control in 

Agriculture 

By Francesca Carnesella 

CAMPOSOL is a leading company in 

crop treatment and is an extremely important 

base for the development of 

quality products that are completely 

safe and can be successfully exported 

to international markets. 

Our field operations support sustainable 

agricultural activity. Therefore, 

in the area of vegetable sanitation, strategies 

have been developed for managing 

company fields, since the goal is to adopt 

systems of sustainable agriculture that 

use different techniques for Integrated 

Plague Management (IPM). The objective 

is to reduce these plagues to levels that 

do not cause any economic harm or 

damage to the crops, thereby promoting 

environmental conservation and also 

biodiversity. We also have a Biodiversity 

Area, which is where different beneficial 

insects are raised for field tests and the 

consumption of biological controllers. 

IPM mixes different specialized 

practices that include ethological control, 

biological control, chemistry control, the 

use of alternative products, and biodiversity 

management. CAMPOSOL’s policy 

concerning IPM is to have these practices 

blend with the environment. It has its 

fundamental basis in biological control, 

which is based on an agro-sustainable 

policy to which we are committed for 

the health of our employees, the environment, 

and the healthiness of our 

raw materials (crops). To achieve this, 

we use beneficial insects such as fungi 

entomopathogens and alternative products 

like vegetable extracts: chili, garlic, 

among other things. 

IPM at CAMPOSOL 

Ethologic control: Ethologic control is based 

on the use of different traps to capture 

populations of insects with the purpose 

of reducing their numbers. CAMPSOL 

uses light traps, water traps, molasses 

traps, vegetable oil traps, as well as color 

materials to capture the insects. These 

traps do not damage the environment. 

For example, the color traps are yellow 

plastic structures in which the vegetable 

oil is placed so that they attract the harmful 

insects and eliminate them. 

Biological control – microbial: We use natural 

enemies of the plagues. Predator 

insects are used, also entomopathogen 

fungi, wasp parasites, among others. 

Alternative products: We use chili, garlic, 

and other products. There is a wide range 

of natural extracts and medicinal plants 

that help with plague control due to 

the different properties that they possess: 

repellent properties, insecticide 

properties, etc. 

Biodiversity management: This management 

is applied across the biological corridors, 

wooded areas, and windshield curtains, 

which allow the beneficial fauna to 

thrive in our fields, where they obtain 

food and grow. 

Chemical control: This form of control is 

based on the use of chemical products. 

It is CAMPOSOL’s last control option for 

plague management since our company 

prioritizes cleaner measures; although 

the chemical products that we use are 

manageable with the environment. 

Further information: www.camposol.com.pe 

Improvements 

in Processing 

Plants 

By Francesca Carnesella 

COPEINCA’s environmental management 

is oriented toward efficiency in the process 

of production. We have modernized 

and re-promoted our processing plants 

to reduce the greenhouse gas emissions 

from the fuel used for the production 

of fishmeal. The process is now efficient 

thanks to the technological implementations 

and innovations that allow us 

to produce fishmeal of better quality 

with Steam Dried technology instead of 

Direct Fire technology. This innovation 

has allowed us to not only reduce the 

amount of gas emissions and particulate 

materials released into the environment, 

but also to create a type of fishmeal with 

better levels of protein. 

The improvement process in our 

fishmeal plants was initiated in Chicama 

(Libertad, Perú). The conversion 

of our plants to accommodate Steam 

Dried technology with a capacity of 

159 tm/hr earned our plan in Chicama 

ISO14001 certification. In Bayovar (Piura, 

Peru) we process 160 tm/hr of fishmeal 

with Steam Dried technology (indirect 

flame). In addition, this fishmeal plant 

carried out the implementation of the 

first “closed circuit” unloading system, 

which takes advantage of the maximum 

amount of soluble proteins, allowing 

us to be more efficient in the process 

without contaminating either the environment 

or the sea. 

In Chimbote (Ancash, Peru) we 

have installed a new kitchen-and-press 

zone. This activity represents the first 

phase of a large-scale project that will 

turn Chimbote into the biggest fishmeal 

plant in Peru, with a capacity of 250 tm/ 

hr. Likewise, we improved the stage of 

cooling and grinding fish, thereby avoiding 

sacking hot fishmeal and creating 

reprocessing and quality problems. It is 

important to indicate that this year we 

initiated the construction of three new 

fishing vessels with the latest technology 

to improve fish quality. 

For our Chancay’ fishmeal plant 

(Lima, Peru), we have improved the 

whole system in the fishmeal plant so 

that the raw material is processed with 

the best quality and fewer losses. In 

addition, we changed the flat-bottomed 

boats to improve the unloading of fish. 

Regarding environmental improvements, 

the drainage was relocated to 

make the process of unloading to the 

fishmeal plant more efficient. With 

these improvements and the licenses to 

extend production capacity of the plant 

to 168 tm/hr of processed fishmeal with 

Steam Dried technology, we are looking 

forward to achieving better-quality 

indicators. 

Ilo (Moquegua, Peru) is our fishmeal 

plant located south of Lima. As 

in our other plants, we produce 100 

percent of the fishmeal with Steam 

Dried technology. Therefore, for 2011 

we expect to improve substantially the 

quality of our products, which will positively 

impact our profitability and also 

will contribute to environmental and 

resource preservation. 

Thanks to these strategic improvements, 

we are starting 2011 with different 

expectations regarding efficiency, the 

market strategy for our high-quality fishmeal, 

and environmental management. 

Further information: www.copeinca.com 

CAMPOSOL & COPEINCA belong to D&C Group. 


107

Best Practice 

Environment 

Carrefour 

Carrefour's commitment 

for 2020: work towards 

"Zero deforestation" 

Engaged since 1997 in an approach to control the sourcing of its wood supplies, Carrefour 

has been working with WWF since 1998 to privilege FSC (Forest Stewardship Council) 

certified wood. The Group is now stepping up these efforts to positively influence all 

concerned supply chains through appropriate purchasing practices in order to preserve 

biodiversity, to reduce associated greenhouse gas emissions, and to ensure the respect of 

human rights. 

By Sevda Latapie-Bayro 

At the end of 2010, Carrefour gave new 

impetus to its forest-linked purchasing 

practice by setting an ambitious goal: 

work towards “Zero deforestation” by 

2020. With this new target, Carrefour’s 

Aerial view of flooded forest – 

Rio Negro, Amazonas, Brazil 

ambition is to preserve natural resources, 

biodiversity, and to help put an end to 

deforestation. Indeed, the Group has 

established strict rules that will apply to 

a part of its forest-related sourcing. This 

commitment – initiated in 2010 during 

the UN International Year of Biodiversity – 

will be detailed and implemented in 2011 

on the occasion of the International Year 

of Forests, declared by the United Nations. 

This global policy concerns a wide range 

of products linked to forest management 

issues, for example: 

• goods made from wood, paper, and 

pulp; 

• agricultural commodities whose production 

can have an impact on forests 

(especially palm oil); 

• non-merchandising items such as commercial 

publications or cash register 

receipts. 

For these products, Carrefour will improve 

its purchasing practices worldwide, 

and will work with its suppliers to ensure 

legality and no associated land conversion 

of natural forests and peat lands. 

Moreover, the Group is committed to 

promoting responsible consumption 

among its consumers and to raise their 

awareness on this issue. 

For 100% traceable, certified palm oil 

In its efforts to protect biodiversity and 

to prevent deforestation, Carrefour is 

an active member of the Roundtable 

on Sustainable Palm Oil (RSPO) and in 

this case promotes the production of 

100% traceable and certified palm oil. 

The RSPO was formed in 2004 with the 

objective of promoting the growth and 

use of sustainable oil palm products 

through credible global standards and 

engagement of stakeholders. 

Sustainable palm oil production 

only officially began at the end of 2008. 

In 2009, 1.3 million tons were produced 

out of a total production of approximately 

45 million tons. In 2010, this 

production reached 3.8 million tons, 

that is 8 percent of the global production. 

The supply chain for palm oil and 

its byproducts, however, is very complex 

and lacks traceability. There are very few 

mills and factories that produce certified 

palm oil, most being certified only for a 

part of their production. They therefore 

still sell a mix of palm oils – both certified 

and non-certified – and in parallel 

purchase certificates for their quota of 

certified palm oil, off the Internet, via a 

system similar to the purchase of green 

electricity. These “green” certificates are 

only a first stage in the international 

process. To promote a more transparent 

market, Carrefour defends the idea 

of palm oil production that is certified 

and can be traced from start to finish. 

In 2010, the Group committed to 

developing a palm oil Carrefour Quality 

Line in Indonesia, sharing its 18 years of 

global experience on agricultural quality 

lines. In August, Carrefour Indonesia 

actually started the project in association 

with several local NGOs. This new 

quality line will provide Indonesian consumers 

with the possibility to choose 

products that do not result in further 

deforestation and that ensure working 

conditions that comply with the rules of 

the International Labour Organization. 

MORE THAN 15 YEARS OF COMITMENT 

of FORESTS AND BIODIVERSITY 

1997–1998: 

• Carrefour signed a partnership with 

WWF France to preserve natural resources 

and biodiversity. 

2003: 

• Carrefour invested in the European 

Commission’s Forest Law Enforcement 

on Government and Trade action plan 

aimed at establishing a framework for 

fighting the illegal sale of wood. 

2006: 

• Carrefour was the only French retailer 

to join the RSPO and became a member 

of the RSPO Executive Board in 2009. 

Since 2007: 

• Awareness campaigns on palm oil 

issues to all own-brand suppliers and 

inventory of the use of palm oil in its 

own-brand products. 

• Carrefour has been a member of the 

Round Table for Responsible Soy. 

Since 2008: 

• Carrefour European Purchasing Office’s 

assortment of outdoor wood furniture 

consists of FSC-certified products and 

acacia, a species for which the suppliers 

are involved in a process of certification 

with the Global Forest and Trade 

Network Vietnam. 

• In 2008, Carrefour France substituted 

the use of palm oil in its own-brand 

crisps. 

2009: 

• Carrefour committed to using certified 

palm oil in all own-brand products 

throughout the world by 2015. 

• Carrefour is encouraging its suppliers 

to use preferably segregated certified 

palm oil or Greenpalm certificates for 

all palm oil supply. 

• The Group supported the UN’s “Seal 

the Deal” campaign calling for an 

ambitious, fair, and effective deal 

including forest preservation. Carrefour 

also signed the Copenhagen 

Communiqué. 

• The Carrefour Group has increased 

the percentage of recycled or certified 

paper for its commercial publications 

and aims at achieving the target of 100 

percent recycled or certified paper for 

catalogues in the Group in 2012. 

2010: 

• Carrefour France bought Greenpalm 

certificates for the equivalent of the 

total volume of palm oil used in its 

own-brand products. 

• Carrefour, together with Tetra Pak, 

launched FSC-certified packaging for 

several of its private brand products 

including fruit juice and milk. With this 

action, Carrefour was the first French 

retailer to deploy FSC beverage cartons 

on a massive scale. 

• Carrefour welcomed the European 

Commission’s 2008 proposed legislation 

to establish rules for those involved 

in the trade of wood and its byproducts. 

In 2010, the Group was one of the 

founders of the Timber Retail Coalition, 

set up to support the European Commission’s 

efforts to create EU-wide 

regulation as a crucial step toward the 

widespread adoption of responsible 

timber-sourcing practices. 

• The Carrefour Group announced on the 

occasion of the Consumer Goods Forum 

a large-scale collective target for the 

protection of forest resources: work 

towards “Zero deforestation” by 2020. 


109

Best Practice 

Environment 


Water Stewardship at 


By Jens Rupp 

As populations grow and become more affluent, demand for 

freshwater grows. Since the world’s freshwater is finite, there 

is competing demand for this vital resource: for drinking 

water and sanitation, agriculture, industry, and maintaining 

ecosystems. Climate change is expected to further disrupt 

water availability in many areas. 

This emerging water crisis is not just a 

challenge for communities, NGOs, and 

governments. It is becoming a major 

strategic challenge for businesses, too. As 

a bev erage company, Coca-Cola Hellenic’s 

business depends on the availability 

and quality of local freshwater sources. 

Consequently, water stewardship is a 

central part of its sustainability agenda. 

The company’s comprehensive strategy is 

underpinned by the CEO Water Mandate 

and focuses on: 

• Ensuring the sustainability of water 

extraction 

• Reducing water use within operations 

• Treating 100 percent of wastewater 

• Working with suppliers and others to 

reduce indirect water use 

• Partnering with others to protect local 

watersheds 

Understanding water risks 

Since water is essentially a local issue, it 

is important to understand the context 

of water use. Each Coca-Cola Hellenic 

bottling plant conducts periodic risk 

assessments of local water resources: the 

health of the aquifer, the quality and 

quantity of supplies, and the needs of the 

business vis-à-vis other users. The plant 

then develops source water protection 

plans to address the challenges identified. 

Over the last decade, Coca-Cola Hellenic 

has focused on reducing and recycling 

water in manufacturing processes. 

More than 90 percent of bottling operations 

have been certified to the environmental 

management system standard 

ISO 14001, and all are scheduled to be 

certified by 2012. Since 2004, water-use 

efficiency has improved by 19 percent. 

This concerted program has involved 

setting year-on-year targets, developing 

toolkits, implementing projects, conducting 

audits, and sharing best practice. 

Treating wastewater 

Pollution is another aspect of the water 

crisis. In some territories, municipal 

facilities cannot treat wastewater to a 

level that supports aquatic life – the 

stan dard required within the Coca-Cola 

system. In 2003, the company therefore 

committed to build on-site wastewater 

treatment facilities wherever needed. The 

company now operates 43 such facilities, 

ensuring that over 99 percent of wastewater 

is treated. In addition, the chemical 

oxygen demand (COD) of wastewater has 

been reduced by 70 percent compared 

to 2004. The commissioning of the last 

facility in 2011 will lead to 100 percent 

treatment of wastewater. 

As water-saving programs in company 

operations mature, Coca-Cola Hellenic’s 

focus moves increasingly on indirect 

water use. Calculations show that 

its supply chain accounts for 98 percent 

of its wider water footprint; operations 

represent only 2 percent. 

Agricultural crops – especially sugar 

– represent the bulk of this footprint. 

Coca-Cola Hellenic is a founding member 

of the European Water Footprint Sustainability 

Assessment Sounding Board 

for Sugar, which brings the company 

together with The Coca-Cola Company, 

Water Foot print Network, academia, and 

sugar com panies to better understand the 

water footprint of beet sugar and to assess 

its sustainability within a local context. 

Water and sanitation 

In addition to environmental dimensions, 

the water crisis has critical implications 

for human health and development. As 

the deadline for the Millennium Development 

Goals approaches, one-third of 

the world’s population still lack access 

to safe water and sanitation. 

Sub-Saharan Africa is the worstaffected 

region. In Nigeria – the only 

All 13 Nigerian plants of Coca-Cola 

Hellenic's operations now are equipped 

with on-site wastewater treatment 

facilities. On World Water Day 2010, 

children from 60 schools visited 

the bottling plants to learn about 

protecting water resources. As part of 

the company's Water Ambassadors 

programme, the pupils saw the wastewater 

treatment facilities, met local 

water officials and received water 

treatment products for use at home. 

territory where the company operates 

in the region – bottling plants already 

provide access to community taps, boreholes, 

and water tanks. In 2011, this support 

will be taken to a new level as part 

of the Replenish Africa Initiative, a $30 

million commitment by The Coca-Cola 

Company and others to give two million 

people on the continent access to clean 

water by 2015. 

As the water crisis escalates, however, 

efforts must be intensified. Coca-Cola Hellenic 

has therefore committed to improve 

its water efficiency by 40 percent by 2020, 

as compared to 2004, and to stabilize absolute 

water use. The company is deepening 

its engagement with NGOs, government 

agencies, suppliers, and others to raise 

awareness, address water use in the supply 

chain, and protect watersheds. 

Community partnerships 

In addition to addressing water use in 

its value chain, Coca-Cola Hellenic is 

committed to protect local watersheds. 

To date, the company has established 

partnerships with NGOs, governments, 

and UN agencies to develop programs that 

benefit local ecosystems and communities. 

Since poor governance contributes to the 

water crisis, initiatives that promote better 

water governance are also supported. 

Rivers are a particular focus, given 

the wide-ranging threats they face, from 

over-extraction and over-fishing to agricultural 

run-off and infrastructure. 

The company’s projects now cover all 

major river basins in its territories. The 

most longstanding is the Green Danube 

partnership with the International 

Commission for the Protection of the 

Danube River. Since 2005, this partnership 

has worked to restore wet lands, 

sup port better river basin management, 

and conduct awareness campaigns in 10 

countries. A new transboundary project 

addresses plastic pollution in the Tisza, 

an important Danube tributary. Other 

partnerships include restoring the endangered 

Yelnya Bog with Birdlife Belarus 

and restocking the Vistula with salmon 

together with WWF. 

Building public awareness and understanding 

is also critical. To demonstrate 

the importance of rivers to local 

ecological, economic, and social wellbeing, 

the company supports high-profile 

river festivals. Danube Day, the world’s 

largest river festival, is celebrated in eight 

countries. In 2010, 480 NGOs and other 

organizations helped to run 140 events, 

from scientific seminars and roundtables 

to eco-camps, community cleanups, and 

cultural performances. Similar festivals 

celebrate the Volga, Dnieper, Sava, Tisza, 

and Vistula and are the annual culmination 

of conservation, education, and 

awareness-raising activities. 

To encourage participation in conservation 

activities, Coca-Cola Hellenic 

mobilizes volunteers from its workforce, 

as well as local communities and businesses. 

The aim is for programs to be 

community-owned and self-sustaining. 

Across Ireland, for example, over 100 

groups of volun teers care for rural beaches 

as part of the Clean Coasts initiative. 

Teaching young people about water 

sustainability is another im portant 

aspect and Coca-Cola Hellenic works 

with governments and NGOs to develop 

educational resources. On World Water 

Day 2010, children from schools across 

Nigeria visited newly constructed wastewater 

treatment facilities to learn about 

protecting water quality. In Europe, the 

award-winning Danube Box tool-kit has 

reached more than one million schoolchildren 

in eight countries. In Italy, the 

company published a book, The Mystery 

of the Disappear ing Water, which has 

been used by 3,500 schools. 


111

Best Practice 

Environment 

Deutsche Bank 

Solar Impulse and 

Deutsche Bank – 

Inventing the Future 

With the Solar Impulse project, Bertrand Piccard and André Borschberg, both natives of 

Switzerland, plan to achieve one of the great pioneering feats of the 21st century with the 

support of Deutsche Bank: the first flight around the world in a manned solar airplane. Their 

aim is to demonstrate the potential of renewable energies – and revolutionize how they are 

used. 

As of 2013, Piccard and Borschberg want 

to be able to circumnavigate the globe 

in five stages in an airplane that neither 

consumes fossil fuels nor produces CO 2 

emissions. Solar Impulse will establish 

new standards for clean mobility and 

energy efficiency, thus promoting the 

development of sustainable future-proof 

technologies that will help us become 

independent of fossil fuels some day. 

At the same time, the project aims to 

inspire as many people as possible to use 

energy more intelligently and efficiently. 

Together with an international team of 

scientists, technicians, and engineers, 

the two pilots have developed a unique 

aircraft: the “Solar Impulse HB-SIA” prototype. 

At just under 1,600 kg, it weighs 

as much as a medium-sized car, but it has 

the wingspan of an Airbus A340 – 63.4 

meters. The core of the airplane consists 

of an extremely lightweight carbon-fiber 

skeleton. That makes the airplane light, 

but also ensures stability and durability. 

With 1.3 cubic meters of space, the 

cockpit can only accommodate one pilot. 

They are pilots and pioneers conducting 

the development of Solar Impulse: 

Bertrand Piccard (right) and André 

Borschberg (left). 

Bertrand Piccard, who has a PhD 

in psychiatry, comes from a dynasty of 

researchers and adventurers. He became 

famous in 1999 when – together with 

Brian Jones – he succeeded in completing 

the first circumnavigation of the globe 

in a hot-air balloon. 

André Borschberg is a former Swiss 

Air Force pilot and, in addition, a successful 

business consultant and company 

founder. The two men share a pioneering 

spirit and a belief in the power of change 

of technological innovation. In July 2010, 

the Solar Impulse team was able to complete 

the most important phase since the 

project was founded in 2003: For the 

first time in the history of aviation, a 

manned solar aircraft stayed in the air day 

and night without interruption – powered 

solely by the sun. For this purpose, 

roughly 12,000 photovoltaic cells on the 

wings had to generate enough energy to 

keep the solar airplane going all night. 

The batteries that were charged with solar 

energy during the daytime flight had to 

propel the aircraft throughout the entire 

night and the following morning until 

two hours after sunrise. 

The mission was a success: The airplane 

stayed aloft for over 26 hours. Pilot 

André Borschberg’s enthusiastic comment 

was: “I have been a pilot for over 40 

years, but that was the most incredible 

flight of my entire career! What a joyous 

feeling it was when the sun rose and I 

pictured how energy started circulating 

in the solar panels again! I was flying for 

over 26 hours, but I did not use up one 

single drop of kerosene and I did not 

pollute the environment.” That proves 

that solar flight lasting several days is 

possible – independently of fossil fuels. 

The next milestones of the Solar Impulse 

team will be additional test flights within 

Switzerland and Europe. Later on, the 

plan is to cross the Atlantic and the United 

States in a new, improved aircraft. The 

final goal is to fly around the world as 

of the year 2013. 

“Treating our resources with a view 

to sustainability is the greatest adventure 

of our time. Our goal is not just to fly 

around the world without conventional 

fuel. We have to ask ourselves what really 

sustainable development is for us. Making 

environmental protection profitable 

is not so much a moral challenge, but 

rather an economic one,” says Bertrand 

Piccard. Solar Impulse aims to show that 

sustainability can and must be worth it. 

As a main partner of the project, Deutsche 

Bank also shares that conviction. Economic 

success, social responsibility, and 

future viability are inextricably linked. 

“Solar Impulse breaks with habitual patterns 

of thinking and promotes the courage 

to attempt something new,” says Dr. 

Josef Ackermann, CEO of Deutsche Bank. 

On the basis of shared values – such 

as performance orientation, innovation, 

and sustainability – the bank’s commitment 

to Solar Impulse stands for its 

avowal to dedicate itself to sustainable 

activities. In 1999 already, Deutsche 

Bank became the first major German 

bank to establish a global sustainability 

management system that was certified 

according to the ISO 14001 standard. Its 

sustainability management is strategically 

focused and integrated throughout the 

corporate group in the “Environmental 

Steering Committee” and the “Group 

Reputational Risk Committee.” 

As of 2013, the global operational 

activities within the group will be climate 

neutral. At present 67 percent of the 

bank’s energy requirements are filled 

from renewable sources in conjunction 

with a comprehensive climate strategy. 

In Germany, Italy, Spain, and Switzerland, 

the plan is to use 100 percent renewable 

energy in the future. 

Moreover, Deutsche Bank is constantly 

expanding its range of financial 

services in response to climate change. 

Acclaimed sustainability rating agencies 

have repeatedly confirmed that, within 

the financial services sector, Deutsche 

Bank is also one of the best in this area. 

Thus, it enables its clients to exploit the 

potential of ecologically and socially sustainable 

products – and at the same time 

to invest profitably and responsibly in 

their own future and that of the globe. 


www.banking-on-green.com 


113

Best Practice 

Environment 

EDF Group 

Climate Change 

Adaptation 

The development of the EDF Group adaptation strategy 

started from the premise that the earth’s climate is changing. 

The full range of impacts may not yet be fully understood, 

but the climatic evolution has started and mitigation 

measures will be, in the short term at least, insufficient to 

stop it. 

EDF Group devised an adaptation strategy 

that focuses on the principal challenges 

that lie ahead up to 2100. We assumed a 

range of plausible long-term climate and 

economic scenarios to create a description 

of the likely effects on natural systems 

and processes. 

Mitigation versus adaptation 

The most important means of minimizing 

the impacts of climate change, and thus 

the need for adaptation, is to limit and 

reduce greenhouse gas emissions at the 

global scale as early as possible. 

EDF Group is the world’s number one 

nuclear energy company and Europe’s 

number one hydro-power company. Our 

existing electricity generation fleet has 

the lowest carbon intensity of all major 

European energy companies. We believe 

that low-carbon electricity generation has 

a vital role to play in cutting global carbon 

emissions, and we are leading this energy 

change. However, climate scenarios show 

no significant downturn in the current 

global-warming trend for decades to come, 

even if drastic action were to be taken 

immediately at a global scale. So, whilst 

our business strategy focuses on climate 

change mitigation through widespread 

adoption of low-carbon generation, we 

must also prepare ourselves for the impacts 

of climate change that will occur. 

Indeed, EDF has already started to make 

significant changes to its operations in 

response to changes to the climate that 

have already occurred. 

Climate impacts 

Climate change, observed and foreseen, 

influences EDF’s activities in a variety 

of ways through impacts on existing 

installations, organizations, markets, and 

stakeholders. For example, many of our 

nuclear and thermal power stations use 

river water for cooling and discharge 

warm water back into rivers – a heavily 

The EDF Group is a leading player in the 

energy industry, active in all areas of the 

electricity value chain, from generation 

to trading and network management, in 

more than 30 countries. 

regulated process. Hotter summers would 

increase river temperatures, limiting 

our authorization to discharge warm 

water. A warmer but more turbulent 

climate would also impact our distribution 

networks. Warmer summers would 

decrease efficiency, and stormier winters 

would cause more structural damage. 

And we are already seeing our customers’ 

demands change, with more people using 

air conditioning in summer. As a result, 

electricity demand in some markets peaks 

in the summer rather than in winter, 

reversing the historical trend. This has 

consequences for maintenance planning 

and for network reinforcement. 

Adaptation to climate change refers to 

the capacity of EDF’s main activities to 

adjust to these changes, either through 

minimizing the adverse impacts or by 

taking advantage of the benefits. A proper 

adaptation strategy needs to take into 

account all of these aspects and to prioritize 

them. 

EDF’s climate change adaptation 

strategy 

Launched in 2010, EDF’s adaptation 

strategy comprises 10 key points, implemented 

through action plans within 

each Group business line or company. 

Gaining access to relevant and sufficient information 

• Produce and exchange the right climaterelated 

data and launch a joint project 

of databases for our businesses 

Adapting existing facilities certain to stay in 

the landscape for a long time 

• Adapt our facilities and operating processes 

in addition to the Climate Hazards 

Plan 

Mainstreaming the expected consequences of 

climate change into our design of future assets 

and facilities 

• From the onset of the design phase, 

the future climate is one of the design 

parameters for future power-generation 

facilities 

Boosting our resilience to extreme climate 

events – Direct application of our Climate Hazard 

Plan – Preparing for crisis management 

• Prevent an extreme climate event from 

having catastrophic impacts, and return 

to initial status as early as possible 

Adapting our offers to climate change 

• Based on consumer needs, also affected 

by climate change 

• Factor in new uses, in particular smart 

grids and electric vehicles 

Adapting our internal operations and expertise 

to climate change 

• Adapt the working environment and 

skills 

Activating the right R&D to address the right 

topics 

• Deliver information on the latest breakthroughs 

about the predictable effects 

of climate change 

• Provide support to define their impacts 

on our facilities and organizations 

• Contribute to the construction of our 

future asset base 

Mainstreaming national and international 

solidarity when implementing our adaptation 

measures 

• Solidarity in energy issues, and consequently 

in health issues as well 

Incorporating knowledge breakthroughs into 

our strategy 

• Initiate and monitor action plans to 

implement this adaptation strategy 

• Update the strategy based on the latest 

climate change forecasts 

Reinforcing dialog between our entities and 

our respective public authorities 

• Participate actively in the national debates 

devoted to the development of 

national climate adaptation strategy 


www.edf.com 

Examples of adaptation 

The small changes to the climate that we 

have already experienced have forced EDF 

Energy to reassess their view of “normal” 

temperatures. By integrating the results 

of climate change prediction models, EDF 

Energy is now able to more accurately 

forecast gas and electricity demand over 

the medium term (three to five years 

ahead). 

Meltwater from underneath the Mer de 

Glace, in the Alps near Chamonix, feeds 

the 40 MW “Les Bois” hydropower plant. 

EDF has redesigned the sub-glacial water 

intake, as accelerated glacier retreat will 

soon leave the water intake stranded. 

Extended periods of hot weather can affect 

electricity production. Power plants 

extracting water from rivers, for cooling 

or for steam, must work within strict 

boundaries to ensure stable river water 

temperatures, so as to comply with regulations. 

In order to adjust generation output 

at its power stations beside large rivers in 

France, and to provide quality information 

to the authorities, EDF has developed 

more efficient hydro-meteorological forecasting 

systems, which consider water 

temperatures and river flow rates. EDF is 

therefore better able to predict the impact 

of heat waves on its generation capacity 

and to effectively anticipate periods 

when river levels are too low, or water 

temperatures are too high. 


115

Best Practice 

Environment 

Grundfos 

The Sustainable 

Potential in 

Energy Efficiency 

By Lisbet Bræmer-Jensen 

The human race is facing one of its biggest challenges, 

and if ignored, it could potentially spiral out of control. 

Over the past century, the rising global population has 

triggered a massive growth in industry development, 

leading to a bottleneck effect where existing resources are 

disappearing and the challenge to discover new energy 

sources has become a top priority. According to the US 

Energy Information Administration, the world’s energy 

consumption has increased on average 1.4 percent every 

year since 1990. It is forecasted to continue, which will result 

in a 49 percent increase in energy consumption from now 

until 2035. 

Pumps account for 10% of the 

worlds electricity consumption - 

too much of it is wasted. 

In response to increased public awareness 

of energy consumption and carbon 

footprinting, the general population 

seems to have woken up and is taking 

a more responsible approach to sustainability. 

Initiatives such as the introduction 

of energy ratings for appliances 

have made us more aware of personal 

or household energy use. 

Raising awareness – unveiling 

tremendous opportunities 

The private or household sectors are not 

the main contributors to global energy 

use. The largest consumers of the world’s 

energy are businesses and industries. 

And although around the globe many 

of these businesses are drafting new 

contingencies for energy efficiency, they 

may be missing out on the full potential 

of sustainable industry. This is largely 

due to the lack of awareness regarding 

one of the main sources of energy 

waste – the pump. As a leading pump 

manufacturer, Grundfos believes it is our 

duty and responsibility to educate the 

world about the potential savings to be 

made through the use of energy-efficient 

pumps. Pumps account for 10 percent of 

the worlds electricity consumption and 

thereby one of the largest contributors to 

energy use, with a substantial impact on 

the environment. In businesses, buildings, 

households, and industries, pumps 

exist in some form or another in systems 

that contain liquid. They are the key 

components for maintaining comfort 

levels in buildings. They deliver and 

distribute clean drinking water from 

water treatment plants throughout cities, 

while at the same time removing 

wastewater. And, they are highly present 

within the worldwide food and beverage 

industry. Pumps are involved in nearly 

every aspect of modern living, yet public 

awareness of the presence and purpose 

of them is very low. Pumps offer a great 

opportunity for reducing the world’s 

energy consumption. An example is in 

the EU, where most pumps currently 

installed are larger than necessary for 

the job at hand and the majority of 

the motors chosen to drive the pumps 

are inefficient. In fact, two-thirds of all 


117

Best Practice 

Environment 

Grundfos 

pumps in the EU use up to 60 percent 

more energy than necessary. 

Call to action 

We at Grundfos believe the answer to 

reducing pump energy wastage is to 

raise awareness to their presence and 

purpose, and to the potential savings 

in both energy and cost by switching to 

more energy-efficient solutions. There is 

tremendous potential for environmental 

CO 2 

reduction, as well as economical 

savings for businesses and industries 

that take it upon themselves to rise up to 

the energy challenge and switch to more 

energy-efficient pumps. "It is estimated 

that if every business was to switch to a 

high-efficiency pump system, we could 

reduce global electricity consumption 

by 4 percent, which is comparable to 

the combined residential electricity consumption 

of one billion people", according 

to International Energy Agency (IEA). 

Grundfos is currently working with 

politicians to drive change on both a 

regional and international level. With 

political support and involvement, we 

can further strengthen our message and 

influence. We also work hand-in-hand 

with installers, consultants, and contractors, 

because it is crucial that they realize 

how pumps can bring potential savings 

to their customers. 

Grundfos aims to be a responsible player 

that appeals to businesses and stakeholders, 

and to focus on replacing every inefficient 

pump operating in their systems. 

In effect, the agenda is more of a call 

to action than simply a distribution of 

knowledge. There is a public debate 

for energy efficiency, and our goal is 

to persuade businesses to do their part 

in ensuring a brighter future for us all. 

The big payback 

By taking advantage of the enormous 

energy-saving potential of pumps, and 

the hidden opportunity they present, we 

can create value for the environment, for 

society, and for businesses too. A typical 

lifecycle assessment of a pump shows 

that 95 - 97 percent of environmental 

impact is caused by energy consumption 

related to pump use. Therefore, using 

energy-efficient pumps will have a positive 

effect on the environment, as global 

CO 2 

emissions will be reduced. It will 

also generate financial savings for businesses 

that choose to use energy-efficient 

pumps. For Grundfos, it is not only our 

responsibility to provide information 

about the effect that inefficient pumps 

have on a business and the world, but 

also to provide the solutions. Our products 

are efficient and intelligent, and we 

currently hold the technology to offer 

businesses the most sustainable solutions 

immediately. And while retrofitting 

pump systems to operate more efficiently 

can appear a daunting endeavor, businesses 

will save immediately on their 

energy costs, with an average payback 

time of one to five years. 

Meeting the energy challenge NOW 

Putting sustainability first, Grundfos 

has initiated the movement, "Meet the 

energy challenge NOW". Its purpose is 

to inform about pump optimization and 

the potential savings of both energy and 

costs to a broad array of stakeholders. 

It is indispensable to the future of the 

environment that we raise awareness 

of this enormous opportunity to reduce 

energy consumption. 

Grundfos is a leading pump manufacturer, 

and via our products we have the 

ability to help businesses and industries 

greatly to reduce their CO 2 

emissions 

and save money. As one of the pioneers 

of this agenda, we have developed the 

Grundfos Blueflux® motor technology for 

pumps to minimize energy usage while 

still ensuring top-of-the-line performance 

and reliability. 

However, Grundfos alone cannot put 

pumps on the global energy agenda, or 

persuade legislators to follow suit. We 

need to work together with stakeholders 

such as politicians, NGOs, and opinion 

leaders and build relevant partnerships 

in order to raise awareness of the potential 

of highly efficient technology. 

Collectively, we need to emphasize that 

this is not just a national or companyspecific 

issue. It is a global call to action. 

A challenge to change the world. 


www.grundfos.com/energy 

Crowne Plaza 

Copenhagen 

Towers – 

Grundfos 

Pumps Are the 

Perfect Fit, 

with Renewable 

Technologies 

The elegant Crowne Plaza 

Copenhagen Towers in 

Copenhagen, has been designed 

from the ground upwards with 

sustainability in mind. The hotel is 

one of the first hotels to meet the 

standards in the EU Green Building 

Programme. In terms of energy 

consumption and the environment, 

the hotel is several steps ahead of 

any other hotel in the world. 

There is no doubt about that 

Crowne Plaza in Copenhagen is a 

luxury hotel in international class 

when it comes guest comfort, 

service, and conference facilities 

etc. and at a first glance there 

is nothing green about the 85 

m black hotel, Crowne Plaza. 

However behind the shiny facade 

there is a building, that sets new 

standards for sustainability and 

low energy consumption. This 

hotel shows that comfort goes 

hand in hand with sustainable 

solutions. Sustainability is 

crucial to the concept and 

construction of the Copenhagen 

Towers. And energy-saving 

solutions have been given high 

priority throughout the 59,000 sq 

meters of space for offices and 

international hotel. Therefore, 

the building meets the EU’s 

requirements for “Green Building” 

as well as the Danish Low Energy 

Class II requirements. 

The complex features northern 

Europe’s largest private array 

of solar panels, producing more 

than 200,000 kWh annually. 

This corresponds to the total 

electricity consumption of more 

than 60 Danish family houses. 

The air conditioning system is 

furthermore based on groundwater 

cooling and is designed 

to deliver savings of 88 percent 

compared to a conventional 

cooling system. The hotel’s total 

annual energy consumption is 

a remarkable 42.6 kWh per sq 

meter per year. The average 

energy consumption in European 

four-star hotels is more than 

300 kWh per sq meter per year. To 

ensure that the ambitious energy 

reduction levels would be met, 

the consulting engineer specified 

Grundfos MAGNA circulators 

and Hydro MPC pressure booster 

systems for the heating and 

cooling applications, based on the 

Grundfos Blueflux technology. 

“Along with our other sustainable solutions, the Grundfos system has helped make our 

hotel both more environmentally friendly and more profitable than our competitors. 

Among our stakeholders, we see a rising demand for products and services founded in a 

more value-based and holistic approach to doing business, and we as an industry have 

a unique chance to take action and seize the opportunity to take the ‘green lead’ in our 

field. Thanks to innovative frontrunners such as Grundfos, modern living and a healthy 

business really can go hand-in-hand by taking the responsibility for the environment that 

is needed today.” 

Statement from Frederikke Tømmergaard, 

Director of Communications and CSR for Copenhagen Towers 


119

Best Practice 

Environment 

HOCHTIEF 

Thinking Holistically – 

Green Building at HOCHTIEF 

Lower costs, environmental protection, higher earnings, enhanced user productivity, and 

comfort – green real estate and facilities designed for sustainability are efficient and 

attractive, and they blend in perfectly with their socio-cultural surroundings. One basic 

prerequisite for creating a sustainable property is to view its lifecycle holistically. This is 

precisely what HOCHTIEF does. 

By Verena Blaschke 

As an international construction services 

provider, HOCHTIEF offers a broad range 

of services to ensure that buildings are 

designed, planned, constructed, and 

operated in a sustainable manner and 

in accordance with the highest standards 

of quality. Sustainability criteria are an 

acknowledged factor in cost-effectiveness. 

That is because buildings that meet strict 

ecological requirements are also economical. 

Production costs may be slightly 

higher than with conventionally realized 

projects, but this is offset by the lasting 

lower operating costs achieved throughout 

a building’s service life by means 

of improved energy efficiency. Tenants 

also appreciate the potential for cost 

savings such buildings offer and their 

positive effect on the interior climate. 

This is reflected by higher rental rates 

and higher rental income. Sustainable 

properties also generally have a high 

resale value. So green building pays off 

for all concerned: from project developers 

and construction contractors to those 

who own and operate such properties, 

and also, of course, those who occupy 

or use them. 

One current example of this kind of 

holistic approach, with a concept ori- 

ented to a property’s entire lifecycle, 

is the maxCologne project in Cologne, 

which is being developed and realized 

by HOCHTIEF. 

High-grade revitalization 

Since March 2010 the buildings, which 

date from 1969 and 1978, are being 

refurbished to new-build standard. In 

the period up to fall 2012, a total area 

of 46,000 sq meters of high-grade and 

flexible office and catering space is being 

created, including a 22-story high-rise 

and the terraced 11-floor “Rheinetagen” 

building. The maxCologne complex is 

in a prominent position directly on the 

Rhine River, looking straight across to 

Cologne Cathedral and the Old Town 

district. The property was sold even before 

construction commenced. 

Integrated concept instead of single 

solutions 

In revitalizing this structure, HOCHTIEF’s 

project development team is observing 

the principles of sustainability, in particular 

with respect to technical stan - 

dards and energy efficiency. Saving energy 

during construction and operation 

is the prime imperative. In addition, it is 

intended that the maxCologne complex 

should serve to upgrade its surroundings 

and the overall location and at the same 

time blend in ideally with the neighborhood. 

Extensive demolition measures 

are creating a public area offering fresh 

vistas. The catering zone that will be 

created on the ground floor will also 

be open to the public. At the invitation 

of HOCHTIEF, the jury that judged the 

contest on the new design of the facade 

included representatives of the Cologne 

municipal administration. 

The redesigned facade gives the building 

an attractive and distinctive exterior, 

which also makes for optimum functionality 

in relation to the ground plan. 

The concept provides for a horizontally 

structured glass facade. The single-pitch 

roof topping the 11-story block gives it a 

dynamic appearance. In addition, on the 

top seven floors, there are large terraces 

facing the Rhine. Inside, flexible ground 

plans and movable partition walls permit 

varied forms of space division in line 

with user requirements. 

Resource-saving refurbishment and 

upgrading 

Demolition work began in March 2010. 

Next, the two office buildings were gutted 

and the facade was removed. Summer 

2010 saw the start of special foundation 

works to ensure structural stability 

and the commencement of the shell 

works, which are being executed by the 

HOCHTIEF construction experts. The 

previously visible concrete stairwells on 

the outer south and north sides of the 

high-rise were integrated into an enclosing 

structure, thus creating additional 

office space. The enlarged facade surface 

allows more light to enter the individual 

building levels. From the stairwells, 

which now are located centrally inside 

the building, quick access is possible to 

all areas of the floor. 

The materials and components used in 

this refurbishment and upgrading project 

are eco-friendly. Since this is a revitalization 

of an existing building and large 

parts of the old load-bearing concrete 

structure are preserved, the amount of 

“gray energy” required – that is, the total 

amount of energy required to create a 

product – is considerably lower than in 

a new building of similar size. 

Project under the banner of 

sustainability 

The energy concept for maxCologne 

focuses above all on reducing the consumption 

of primary energy and on more 

efficient energy utilization. Most of the 

energy for the complex is obtained from 

renewable resources: Groundwater is 

raised via two wells and used for climate 

control in the offices by means of heating/cooling 

ceilings. 

The new twin-shell facade consists of a 

triple-glazed inner shell and a curtaintype 

outer shell. This helps to save energy. 

The sun-shielding can be adjusted 

manually and in line with individual 

requirements. Since the shielding is 

installed inside the twin-shell facade 

in both buildings, it can be used even 

in strong wind. 

With maxCologne, HOCHTIEF is aiming 

for the Gold Certificate of the German 

Sustainable Building Council (DGNB). In 

February 2010, it was already awarded 

pre-certification in gold, in recognition 

of the project’s functional, technical, and 

process quality. This means that even 

before it has been completed, the ecological, 

socio-cultural, and economic quality 

of the project has been acknowledged. 

These are factors that the occupants will 

be able to discover for themselves from 

fall 2012 onwards. 

Facts 

HOCHTIEF is one of the major 

international providers of 

construction and constructionrelated 

services and for many 

years has played a shaping role in 

the development of sustainable 

construction. Its wide-ranging 

experience has given the company 

a leading position in this market. 

Holistic and sustainable design/ 

planning, construction, and 

operation have a long-standing 

tradition in the HOCHTIEF 

Group. Clients are offered a 

360º program, which takes the 

entire lifecycle of real estate 

and facilities into account and 

incorporates new methodologies. 

In this field, HOCHTIEF supports 

independent certification and 

guides clients around the 

world through the certification 

procedure for green buildings. 


121

Best Practice 

Environment 

Huawei 

Digital Solution Helps 

Build Smart Green Cities 

By Wang Dong 

Xi'an Hi-tech Zone is a national high-tech industrial development zone in China as well as 

a frontier of new scientific and technological industries of Xi'an and western China. With 

numerous innovations, Xi'an Hi-tech Zone has become a showcase for strong economic 

growth and the opening up of Shaanxi and Xi'an. 

Xi'an Hi-tech Zone is located in the 

southern outskirts of Xi'an and has a 

development area of 35 sq km. To become 

a world-class high-tech zone as 

well as an important R & D base and 

innovative service base in the world, 

Xi'an Hi-tech Zone urgently needed to 

combine city management with digital, 

mobile, wireless, and Internet of Things 

(IOT) technologies as well as establish a 

low-carbon, energy-saving, efficient, and 

smart urban management system and 

structure. In 2009, Huawei was honored 

to start cooperating with local telecom 

operators and become part of the Hightech 

Zone initiative. The Xi'an High-tech 

Zone project (Phase I) is to establish a 

unified platform and build an urban 

data center. 

With Huawei’s E-City solution, a service-oriented digital urban management application 

system was put in place, which covers a first class business system, a public 

participation system, a leader supervision system, and an emergency management 

system incorporated with cutting-edge management processes and concepts. 

Based on its six core capabilities (provide 

applications rapidly; integrate with thirdparty 

systems; share system resources; 

enable smooth system evolution; unify 

hardware/storage/security solutions; 

unify data analysis), the project provides 

integrated application support and management 

as well as effectively combining 

a mobile supervision/law enforcement 

system, a mobile monitoring system, 

and an SMS interaction system with 

community/enterprise service systems. 

It also conducts dynamic monitoring 

of ongoing construction projects and 

wireless connected work regarding urban 

management through high-speed 

3G wireless transmission technology. 

A service-oriented digital urban management 

application system with the 

characteristics of the High-tech Zone was 

put in place, which covers a first-class 

business system, a public participation 

system, a leader supervision system, and 

an emergency management system that 

is incorporated with cutting-edge management 

processes and concepts. 

The High-tech Zone Service-Oriented 

Digital Urban Management project (Phase 

I) was officially piloted in November 2009. 

Within one month after its launch, it 

received and allocated 194 cases – the 

number of cases processed every day 

increased six-fold, the processing rate 

increased from 29 to 97.42 percent, and 

the processing cycle was shortened from 

one week to 6.5 hours. After the success 

of Phase I, an expansion to Phase II (covering 

86 sq km) will be made. In this phase, 

the IOT will be further developed and 

platform capabilities will be leveraged 

to build various business applications. 

This will allow for the smooth evolution 

toward a smart city system architecture 

that is characterized by unified management 

and unlimited scalability. Through 

this project, the participation of enterprises, 

residents, and communities in local 

city administration was substantially 

facilitated. While helping to improve the 

city’s operating efficiency and enhancing 

social inclusiveness, Huawei also proved 

that its E-City solution can effectively 

contribute to low-carbon economics. 

The acceleration of global urbanization 

further highlights issues such as urban 

safety, people-oriented services, industry 

upgrades, and livelihood. Huawei has 

come up with a wide range of E-City 

solutions that cover smart transportation, 

government hotlines, digital city management, 

online healthcare, and more, 

all in a bid to help tackle deteriorating 

environmental and social problems that 

modern cities are facing. In the future, 

Huawei will continue to emphasize the 

development and application of new 

technologies such as E-City and IOT solutions 

as well as guide urban planning 

and deployment of information-based 

developments. 

Working relentlessly with our partners, 

we are committed to contributing continuously 

to global urban informationbased 

development and to make society 

low-carbon, environmentally friendly, 

smart, and efficient. 


123

Best Practice 

Environment 

Otto Group 

Climate 

Protection in 

the Otto Group: 

Efficiency First 

By Andreas Streubig and Daniel Hußmann 

The Otto Group has set its own climate 

protection targets independently of political 

objectives. The multichannel retail 

group’s Climate Protection Strategy goes 

clearly beyond the current climate goals 

established by political bodies and industry’s 

own commitments. The Group’s 

Strategy targets a much-needed, drastic 

reduction in greenhouse gas emissions, 

while also providing a key tool in establishing 

sustainable competitiveness and 

maximizing independence from future 

energy-cost increases. 

The Otto Group’s Climate Protection 

Strategy 

Climate protection at facilities: Hermes’ 

main site at Hanover-Langenhagen 

is certified as a sustainable building. 

The increasing number of hurricanes, forest fires, and severe floods are just some of the 

examples of devastating natural events that can be attributed to climate change. Cooperating 

to mitigate climate change has never been more urgent. Economic considerations in 

the effort to cut greenhouse gas emissions are becoming ever-more important: In the Otto 

Group’s Climate Protection Strategy too, economic aspects play a key role. 

The Group’s declared target is a reduction 

in relative freight, facility, and mobilityrelated 

CO 2 

emissions by 50 percent by 

2020 and 70 percent by 2040. All Otto 

Group companies with an annual turnover 

of €50 million or more are included 

in this commitment. 

The Group began to implement its 

Strategy at the end of 2007. Eighteen 

German companies were initially included 

and the financial year 2006/07 

was agreed as the benchmark year for 

emission reduction targets. In that period, 

German Group companies emitted 

some 308,000 tons of CO 2 

– 62 percent 

through freight activities, 35 percent 

by facilities, and 3 percent through 

employee mobility. From financial year 

2011/12 onwards, international Otto 

Group companies will also be integrated 

in the Group’s Climate Strategy, with a 

total of over 40 Otto Group companies 

from 10 countries in Europe, the United 

States, and Japan committing. 

In the implementation of the 

Group’s climate protection targets, increasing 

energy efficiency is a priority, 

as it is currently the most effective 

approach. In addition, renewable energy 

sources are also being harnessed, 

and thirdly, CO 2 

emissions are being 

compensated through certified climateprotection 

measures. 

Implementation in freight, facilities, 

and mobility 

The Group is implementing its Strategy 

through a wide variety of measures. For 

instance, large quantities of CO 2 

emissions 

are to be eliminated in its freight 

activities by an intelligent shifting of air 

to sea cargo. On the roads, the Group’s 

new, more fuel-efficient vehicles and 

alternative power plants are also helping 

reduce CO 2 

output. 

Group companies’ facilities also offer 

great potential for increased energy 

efficiency. With the aid of a benchmark- 

ing system, we are pinpointing and implementing 

the most efficient measures 

for our buildings. Complementing such 

increases in energy efficiency, Group 

companies are intensifying their use of 

renewable energies at facilities, for example 

solar power and renewable fuels. 

Despite its lower share of overall 

CO 2 

emissions, the area of employee 

mobility plays a key role in employees’ 

awareness of climate protection. Our 

Company Car Guideline in effect from 

January 1, 2010, set an emissions ceiling 

of 200 g CO 2 

/km and was a hot discussion 

topic among Group staff from the 

very beginning. What is more, we will 

progressively lower this ceiling in the 

future. 

Where do we currently stand? 

Since the beginning in 2007, the Group 

has lowered its emissions by some percentage 

points. Some CO 2 

reduction 

measures will first show benefits in the 

medium term, for example following 

building refits. At the same time, challenges 

repeatedly crop up that demand 

a rapid business reaction – for instance, 

a sharp turnover increase meant a high 

quantity of repeat orders placed with our 

Asian suppliers, and thus an increased 

need for freight. 

Some measures are already showing 

a positive effect on our CO 2 

balance: According 

to our forecasts, in the 2009/10 

financial year, we already cut around 

5,000 tons of CO 2 

in our warehouse-based 

distribution. This is largely attributable 

to Hermes, the freight-forwarder wholly 

owned by the Otto Group. Among others, 

Hermes provides OTTO, bonprix, Baur, 

and SportScheck with parcel distribution 

services. With its WE DO! climate 

and environmental protection strategy, 

Hermes makes a significant contribution 

toward the Otto Group’s climate 

protection targets. 

Climate protection at Hermes – 

WE DO! 

Hermes has a long history of working 

toward climate protection. Thanks to 

the company’s continuous efforts, it 

has already reduced its CO 2 

emissions 

by 40 percent per delivery, based on 

1994 figures. Since 2010, Hermes’ WE 

DO! strategy has encompassed all the 

company’s climate, environmental, and 

nature protection measures. The core of 

WE DO! is a CO 2 

master plan targeting an 

annual 3.5 percent reduction at facilities 

and 2 percent in freight activities. To 

implement the plan in its freight operations, 

the company operates a modern 

fleet with vehicles that meet the stringent 

Euro 4 and Euro 5 emissions norms 

and that have an average age of just 18 

months. Besides increasing its energy 

efficiency, Hermes also participates in 

research projects on alternative automotive 

systems: For instance, as part of its research 

cooperation with Mercedes-Benz, 

Hermes currently operates 10 electric 

Vito E-CELL Transporters in its everyday 

parcel distribution activities. 

Hermes also includes its business 

partners in its WE DO! strategy. A fundamental 

element of this is a CO 2 

controlling 

system that is unique in the sector. 

This tool gives customers a cost-free 

indication of the CO 2 

emissions that 

their delivery will create, thus enabling 

them to improve their own CO 2 

balance. 

What is more, they are also able to have 

their parcels delivered bearing the WE 

DO! label at no extra charge. 

Dr. Philip Nölling, Commercial 

Managing Director at Hermes Logistics 

Group Germany, emphasizes the group’s 

commitment to sustainability through its 

WE DO! strategy: “In line with the Principles 

of the UN Global Compact, Hermes 

has always stood for a sustainable logistics 

model that conserves resources and 

keeps its impact on people and nature 

firmly in focus. WE DO! adds value for 

our customers and makes a substantial 

contribution to climate protection.” 

Electrical Vito E-CELL Transporter 


125

Best Practice 

Environment 

PE INTERNATIONAL 

Sustainability 2.0 – Looking 

Beyond the Factory Gates 

Sustainability is a trendy word. It is readily and frequently on everyone’s lips. But there is 

much more to the term than just a trend. For companies, sustainable business already is the 

key to future competitiveness and long-term success – but it remains a major challenge. 

This is because corporate responsibility does not end at the factory gate. 

By Volker Hasenberg and Celine Furnanz 

Corporate social responsibility and sustainability 

are not short-lived trends. 

They will determine the future competitiveness 

of a company. Therefore, taking 

over social and ecological responsibility 

is a task that can no longer be managed 

in an additive process. 

To tackle sustainability strategically 

Instead of implementing end-of-pipe 

measures, companies have to tackle 

sustainability strategically and integrate 

it into their core operations. Products, 

processes, and corporate activities all 

have to be aligned with sustainability 

goals. In the end this requires not 

only a change in mentality, but also a 

change of entire business models. In 

short: Sustainability 2.0. This can be a 

major challenge for those companies 

wanting to ensure long-term success 

and a leading position in the market. At 

PE INTERNATIONAL, this task is called 

“business transformation” and PE has 

turned it into its business model. Today, 

PE INTERNATIONAL’s range of solutions 

for product and corporate sustainability 

makes it both a pioneer and a leader 

in the field. Furthermore, as a globally 

operating software and consulting company, 

PE also intends to help companies 

worldwide, through its products and 

services, to become sustainability leaders 

themselves. 

The business model of PE 

INTERNATIONAL is “business 

transformation” 

1. Sustainable product design at PUMA 

The example of PUMA: When the sports 

goods manufacturer was developing a 

new, innovative packaging for sports 

shoes, PE INTERNATIONAL identified 

the environmental impacts of the different 

packaging alternatives with the 

help of Life Cycle Assessments (LCAs). 

The badly performing options could 

be rejected immediately, and the best 

performing ones could be pursued. Thus, 

the environmental performance of the 

new packaging was optimized as early 

as in the development stage. The outcome 

was a 65 percent reduction in 

material use and a 66 percent (10,000 

tons) reduction of greenhouse gas emissions, 

along with better protection of 

the products and an appealing design. 

This resulted in reducing environmental 

impacts and simultaneously increasing 

the customer’s benefit – a model for 

sustainable product design. 

2. Energy efficiency reduces costs and environmental 

impacts in China 

For years, the Baosteel Group in China 

has consistently been reducing energy 

consumption and, as a result, production 

costs with the help of PE. Actual 

consumption data is analyzed, efficiency 

potentials are detected, and reduction 

measures are identified by benchmarking 

the best available technologies. With 

regard to energy efficiency, the Chinese 

steel industry is still lagging behind the 

European steel industry, but at the same 

time, it has large actionable savings potentials. 

It is crucial for the Chinese steel 

industry to identify these potentials and 

to understand where to focus measures. 

3. Holistic analysis of buildings pays off 

Energy efficiency also plays a particularly 

important role in the building sector, 

given that buildings account for approximately 

40 percent of total energy consumption 

in Europe and North America 

and are some of the major emitters of 

greenhouse gases. The energy consumption 

of an entire portfolio of buildings 

can be optimized with the help of the 

Portfolio Carbon Management (PCM) solution, 

developed by PE INTERNATIONAL 

together with its partner Drees & Sommer. 

On the basis of key performance indicators, 

the environmental performance 

of buildings is measured and compared 

with other locations. 

On the other hand, the less electricity 

and heat a building consumes during 

the use phase, the more important 

becomes the construction phase. How 

to make construction as sustainable as 

possible? This requires complex LCAs 

for entire buildings, which provide crucial 

decision support. For example, the 

production hall of the NiroSan Mulitifit 

company near Dresden: High energy 

efficiency was achieved through a nature-orientated 

design. PE’s Life Cycle 

Assessment of the building determined, 

for example, the ecological influence of 

the energy supply and of the wooden 

structure of the hall. 

This type of investment pays off 

because the demand for “green buildings” 

is rising and with it the property value 

of certified “green buildings.” Certified 

buildings (e.g., in compliance with the 

German DGNB, the North American 

ENERGY STAR or LEED) can generate 

up to 31 percent more rental income, 

according to experts from the Henley 

Business School, UK. 

Reducing greenhouse gas emissions 

and supporting international 

standards 

For PE INTERNATIONAL, sustainability 

is not only a business model but 

also a commitment. Since 2004, PE has 

been accounting for its greenhouse gas 

emissions in order to monitor its own 

environmental performance, to identify 

emission reduction potentials, and to 

implement measures along the entire 

value chain. 

And for PE, corporate responsibility 

does not end at the factory gate. At 

the end of 2009, the World Resources 

Institute and the World Business Council 

for Sustainable Development presented, 

within the framework of the Greenhouse 

Gas Protocol Initiative, two new standards 

that allow companies to determine 

the indirect environmental impacts beyond 

their company boundaries. Such 

indirect emissions, linked for example to 

suppliers or the use phase of a product, 

are called Scope 3 emissions. 

PE participated in both the development 

of the new standards and, 

together with more than 60 international 

companies, the road-testing of 

the standards. The calculations showed 

that with a total of 87 percent, indirect 

emissions make up the majority of PE’s 

carbon footprint and therefore play an 

important role in the company’s climate 

strategy. Especially business travel is one 

of the main contributors. In consequence, 

PE’s consultants try to avoid air travel, 

in particular by using modern conference 

technologies and online services 

whenever possible. In addition, the PE 

headquarters use electricity from renewable 

sources, and the software solutions 

for end-users are exclusively hosted in 

carbon-neutral data centers. The remaining 

emissions are offset with high-quality 

certificates, making PE a climate-neutral 

company since 2006. 

Sustainability turns into a 

competitive edge 

Due to the new standards, carbon management 

and emissions reduction are 

becoming topics for the supply chain 

as well and will be gaining more importance 

for large and medium-sized 

companies than in the past. Suppliers 

that can provide accurate information 

on carbon emissions will enjoy a competitive 

advantage. A holistic approach 

beyond company boundaries will raise 

the credibility of a corporate sustainability 

strategy; companies will get a clearer 

view on the impacts of their activities 

and products, and will thus be able to 

recognize potential risks and benefits. 

Thus, sustainability will be integrated 

into all areas of the company and will 

become an inherent part of the company 

strategy. 


127

Best Practice 

Environment 

Siemens 

The Future of Cities 

Since cities will determine how a majority of the world’s 

population will live in the future, sustainable and innovative 

urban development is a must. The good news? Many 

solutions are already available. 

By Wolfram Haller 

Over half the world’s population now 

lives in cities and by 2050 this share 

will climb to 70 percent. Cities emit 80 

percent of all greenhouse gases and use 

75 percent of all energy. 

We must address the urgent challenges 

of a growing population, soaring 

energy demands, and climate change. 

Technology and financing models will 

play a key role. 

Green energy for green cities 

May 17, 2010: In the Bavarian town of 

Irsching, the 847 MW Irsching 5 combined-cycle 

power plant began operation 

– at nearly 60 percent efficiency. This 

saves 40,000 tons of CO 2 

a year compared 

to a conventional plant. Technologies 

like these, such as carbon capture and 

storage systems being developed for 

Full speed into the age of electricity: 

E-cars make cities greener. 

Solar power from the desert can also be transported to 

distant cities thanks to low-loss transmission technology. 

cleaner coal-fired power plants, will meet 

future needs. Since coal will be essential 

for satisfying growing energy demands 

in the immediate future, it should be 

eco-friendly. 

Add to that renewable energy 

sources such as solar, wind, and water. 

The world’s biggest offshore wind farm 

– Horns Rev II in the North Sea off Denmark 

– delivers up to 210 MW to supply 

200,000 households. Yet renewable 

energy sources are often located far from 

cities. New high-voltage, direct-current 

(HVDC) transmission lines are needed to 

move green electricity efficiently and in 

an environmentally sound manner over 

great distances. 

This technology is already reality in 

China, where 5,000 MW flow 1,400 km 

from hydro power plants to the megacities 

on the Pearl River Delta – with up to 

40 percent lower transmission losses than 

with comparable AC lines. The highly 

efficient system saves over 30 megatons 

of CO 2 

a year that would otherwise be 

emitted by fossil fuel plants. 

Intelligent solutions for efficiency 

and climate protection 

In addition to efficient power generation 

and transmission, we must use energy 

efficiently. This is especially true for 

buildings, which account for 40 percent 

of the world’s annual energy consumption 

– 40 percent of that total can be 

saved through intelligent solutions. And 

they work: Since 1994, Siemens has 

completed over 1,900 building efficiency 

programs, which have saved around 2.4 

million tons of CO 2 

and cut energy costs 

by €2.9 billion. 

Urban transport must also be made 

more efficient. In Oslo, over 60 new 

metro trains use 30 percent less energy 

than older units. And the new signaling 

system of the Delhi Metro saves 10,000 

tons of CO 2 

a year through especially 

efficient operations. 

Traffic management and tolling 

systems make public transportation more 

efficient and thus encourage a shift to 

public transportation, as in the City of 

London. Here, automatic tolling and an 

intelligent traffic control center reduced 

road traffic by 16 percent and congestion 

by 30 percent. Commuters now need 

about one-third less time on the road, 

which also helps the environment. Urban 

streets are increasingly being lighted 

with light-emitting diodes (LEDs) rather 

than conventional lamps. LED traffic 

lights in Berlin, Budapest, Vienna, and 

many other cities use 80 percent less 

electricity than the old lights. A major 

city with 700 intersections could save 

over €1 million a year and reduce CO 2 

emissions by 10 tons. 

Electricity is increasingly important 

for vehicles. In London, hybrid busses using 

Siemens technology emit 30 percent 

less CO 2 

. And more is to come: Siemens 

is also developing electric cars as well as 

the infrastructure and intelligent power 

grids needed to run them. This is especially 

important, since cars will be 

used to store electricity in the future to 

compensate for fluctuating generation 

from renewable sources. 

For cities, efficient water supply systems 

are particularly important. City administrations 

and industries worldwide 

rely on Siemens solutions, which range 

from water processing facilities and water 

distribution systems to electrical and 

automation systems for waterworks and 

security systems – including planning, 

construction, and maintenance. What 

this means for limited drinking water 

reserves can be seen in Singapore: Three 

plants process the city’s waste water and 

feed 92,000 cubic meters of water a day 

into the municipal water system. Most is 

used by industry, while 1 percent covers 

the daily demand for drinking water. 

Sustainability pays off 

All this, of course, has to be financed. 

Energy Saving Contracting offered by 

Siemens for the past 20 years has certainly 

paid off. Cities need not make their 

own investments for energy-efficiency 

consulting, installation, and financing, 

but merely pay installments covered 

by the guaranteed energy savings. And 

once the contract ends, the cities are the 

sole beneficiaries of the ongoing savings. 

Worldwide, Siemens has completed 

6,500 projects of this type to date, and 

they save customers €1 billion and 2.4 

million tons of CO 2 

emissions. 

Cooperation on a global level 

Sustainable urban development requires 

worldwide commitment, and Siemens is 

deeply engaged in appropriate initiatives 

such as the World Business Council for 

Sustainable Development. The company 

also works with the United Nations: A 

framework agreement between Siemens, 

the Siemens Foundation, and the World 

Urban Campaign – within the UN settlements 

program (UN-Habitat) – brings 

government authorities, companies, and 

NGOs together to work on the future 

of cities. 


129

Best Practice 

Environment 

Sonae 

A Green Building Inspired 

by the Future 

In an innovative way, Sonae manages to leverage the environmental performance in its 

various activities, believing that the preservation of the environment is an essential condition 

for the sustained and sustainable development of its businesses. A reflection of this culture of 

sustainability is Sonae’s decision in 2004 to participate in the UN Global Compact and adhere 

to its Ten Principles, thereby accepting the challenge of fully developing practices consistent 

with global sustainable development. 

Aware that all human actions lead to 

impacts on the environment, Sonae – as 

an agent of reference in the value chain 

of markets where it is present – identifies 

the environmental performance 

of its activities, products, and services 

as a corporate priority of its social responsibility. 

Sonae’s buildings, as factors 

with environmental impact of extreme 

relevance, reflect this conviction that an 

excellent environmental performance 

translates into an eco-efficient management 

of natural resources. The challenge 

of designing a sustainable building in 

a balanced manner guided the sustainability 

strategy of the construction of 

the Sonae Maia Business Center (SMBC). 

This is the first building on the Iberian 

Peninsula to be awarded the LEED Gold 

Design certification (Leadership in Energy 

and Environmental Design), awarded by 

US GBC (United States Green Building 

Council), one of the most prestigious 

certification agencies for sustainable 

real estate projects in the world. This 

distinction reflects the exemplary ecoefficient 

character of this complex with 

over 16,000 sq meters, which includes 

offices and support services of the Retail 

area of Sonae in the Business Park located 

in Maia, Portugal. Designed and built 

with the most advanced environmentally 

efficient technologies, according to LEED 

methodology guidelines, the Sonae Maia 

Business Center is capable of offering its 

occupants a healthy and comfortable 

indoor environment, while guaranteeing 

respect for natural resources through the 

implementation of effective measures to 

minimize environmental impact regarding 

energy and water consumption and 

waste recovery. 

The most innovative green practices 

Through an intelligent lighting system 

that adjusts automatically depending 

on the conditions of natural light and 

occupancy, it was possible to reduce the 

consumption of indoor lighting by 50 

percent in the building. Also contributing 

to the energy efficiency of the 

Sonae Maia Business Center are the lifts 

– equipped with an advanced system of 

route management, guaranteeing faster 

movement between floors – and the 

heating and cooling mechanisms of the 

building, powered by the surplus heat 

from an industrial process of generating 

electricity. In the SMBC, the consumption 

of drinking water is 40 percent lower 

than in a conventional building with the 

same type of use. Efficient equipment 

is utilized such as low-flow taps with 

infrared automatic control, in addition 

to a system of recycling sink and shower 

water, which after going through a treatment 

system is 100 percent recycled 

and used as toilet water. Using the roof 

of the building as an enormous “basin” 

to collect rainwater for use in irrigation 

and washing also contributes to reducing 

water consumption and provides a 

95 percent decrease in rainwater flow 

in the event of heavy rain, minimizing 

the risk of flooding. With regards to 

waste recovery, it is worth highlighting 

that from the waste resulting from the 

construction, 90 percent was reused or 

recycled on site and 95 percent of the 

wood used comes from sustainably managed 

forests. Additionally, the Sonae Maia 

Business Center is equipped with priority 

parking for eco-efficient vehicles and has 

a bus that connects the building to the 

nearest underground stations. 

Healthy indoor environment 

The comfort and well-being of the occupants 

are key aspects of the indoor 

environment of the Sonae Maia Business 

Center. There are 650 permanent employees 

and 600 occasional employees who 

work here on a daily basis. Of these, 95 

percent have access to natural light and 

outdoor views. Thus, they can feel the 

changes in daylight and “roam” through 

the landscape, which is essential to the 

comfort of the employees and beneficial 

to their health. Worth emphasizing are 

the acoustics of the building, the impact 

of which is minimized by a system of silent 

air conditioning units. One hundred 

percent of paints, glues, sealants, and 

carpets have very low levels of harmful 

chemicals. Also, highly efficient filters 

guarantee the cleanliness of inhaled air 

and provide a high indoor air quality. 

Also noteworthy is the existence of a 

pressurized space to keep polluted air 

from the parking lots traveling inside 

the building. 

Pioneer culture of sustainability 

From early on, Sonae’s environmental 

performance has been integrated into 

the overall management of the company, 

with eco-efficiency serving as a management 

benchmark. Apart from being the 

leader in the retail sector in Portugal, 

Sonae aims to lead the sector in matters 

related to the environment, implementing 

and driving the adoption of best 

environmental management practices 

through example. Since the genesis of 

the company 50 years ago, sustainability 

has been a long-term commitment of 

Sonae. This became evident when the 

company chose to commit to the Ten 

Principles of the UN Global Compact in 

2004. The application of the Principles 

in the various activities of the business 

The LEED Gold certification 

is a constant challenge, and at the same 

time an essential factor in achieving high 

standards and continuous improvement. 

Over the years, Sonae has sought to find 

balance in trying to achieve economic 

development, social responsibility, and 

environmental protection by promoting 

a culture of ethics, truth, justice, 

and respect for all of those with whom 

it interacts – clients, employees, and 

suppliers. 

Currently over 30,000 buildings are registered as certified in over 100 

countries. When the Sonae Maia Business Center was certified in 

2010, only 1,700 buildings, which corresponds to 5 percent, had achieved 

GOLD status from the greatest internationally recognized system for 

evaluating environmental merit. To accomplish this level of certification, the 

building had to adhere to doz ens of requirements regarding five dimensions 

fundamental to envi ronmen tal sustainability: Energy and Atmosphere, 

Water Efficiency, Materials and Resources, Sustainable Sites, and Indoor 

Environmental Quality. After a process of selecting the prerequisites that 

were best-suited to the enviro nmental and economic context of the region, 

an eco-friendly building was constructed that was capable of offering its 

occupants a healthy, comfortable, and attractive indoor environment that 

respects natural resources. 


131

Best Practice 

Environment 

Sopharma 

Life Is Good When We Are 

Healthy! 

tal impacts will come from the replacement 

of volatile organic compounds 

(VOC) during the process of covering 

the filmed tablets and the reduction 

of VOC in the granulating process. The 

replacement of VOC with water will lead 

to a total annual reduction of 20,000 kg 

of isopropanol and 9,200 kg of acetone. 

By Pelagia Viatcheva 

Sopharma is the leading Bulgarian pharmaceutical producer 

with a portfolio of more than 210 products, more than 

10 percent of which are developed by the company and 

based on the richness and bounty provided by nature to us 

humans. The herbal portfolio includes medicines extracted 

from Silybum marianum L., Glaucium flavum Crantz, 

Hypericum perforatum L., Tribulus terrestris L., Leucojum 

aestivum L., Cytisus laburnum, etc. 

Since the company’s privatization in 

2000, the management team has strived 

to bring forth the new values of sustainability 

and innovation through modernization 

of the company’s production 

facilities and the realization of a number 

of corporate social responsibility (CSR) 

projects in the community. We believe 

that CSR is what we do when no one 

is watching us. The continuous efforts 

have brought us to a natural unfolding 

of our potential. In 2010 alone we 

achieved over €102 million in revenues 

on an individual basis and close to €306 

million on a consolidated basis. Our net 

profit rounded up to €20 million in the 

same year. As a public company, we are a 

leader in the largest index on the Bulgarian 

Stock Exchange - Sofia, the SOFIX. We 

have created a big regional family with 

more than 15 daughter companies and 

we export our products in 38 countries 

on four continents. We realize we are 

a member of the global family, with all 

of the responsibilities that come with it. 

Changing the mold 

The last 10 years have been filled with 

intense reconstruction and equipment 

selection and purchases. In 2010 Sopharma 

began its most ambitious and 

outstanding project – the construction 

of a new solid forms production facility 

in Sofia, Bulgaria. The facility will be 

completed and fully operational in the 

beginning of 2013. The project for the 

construction of the facility won a firstclass 

investment award from the Investment 

Agency in Bulgaria back in 2007, 

but the realization was postponed due to 

the international financial and economic 

crisis. The project is for a state-of-the-art 

green building with more than 20,000 

square meters of usable space. 

Green energy 

Sopharma’s existing production complies 

fully with the respective legislative 

ecological impact limits, but our 

wish was to go one step further and 

exploit all available innovative technology 

to reduce our ecological footprint 

as much as possible. As a result, the 

new project envisages the building to 

be loaded with 8,000 square meters of 

photovoltaic equipment. The initial 

simple simulation for the Sofia region 

using the publicly available tools of the 

European Commission indicates that 

the likely annual output will exceed 

450,000 kWh. The effect will be doubled: 

Not only will the production cycle be 

almost entirely independent from public 

energy sources, but there will also be a 

significant reduction in CO 2 

emissions. 

The CO 2 

emission reductions, according 

to Ordinance RD-16-1058, will most likely 

reach up to 900 tons per year. 

Insulation 

The building walls are insulated with 

special industrial panels that are highly 

efficient in saving energy for creating 

the required microclimate. In the winter, 

the panels function as insulation 

from the cold and in the summer they 

keep the heat out. The special microclimate 

requirements according to Good 

Manufacturing Practice usually would 

mean higher energy costs, which will 

be reduced by more than half with the 

introduction of the most efficient insulation 

available. 

Environment 

The building will be surrounded by a 

park area providing an attractive and 

environmentally friendly working environment. 

The 40,000 square meters of 

garden and green roofs will extend the 

industrial arm into the natural green 

colors, adding a soothing touch to the 

gray glass facade. 

Materials 

One of the most significant environmen- 

Experience 

Sopharma has already built a number 

of ecological production sites, including 

the GMP-certified injectables facility, 

suppositories facility, liophillic facility, 

phytochemistry, etc. The latest project, 

which was partially financed by an EU 

funding program for competitiveness, 

was completed this year in one of our 

daughter companies in the Rose Valley: 

Bulgarian Rose - Sevtopolis. This is the 

facility for extraction of active pharmaceutical 

ingredients from herbs. The 

facility is GMP-certified and is located 

in mid Bulgaria. 

Shaping the 

future of our 

planet 

We have reached a point where 

we want to extend our mission 

even further. We have always 

believed that the production of 

medicinal products is not only a 

technological process, but rather 

a humane mission based on highquality 

standards, safety, and 

efficiency. 

Now we want to play an 

important role in maintaining the 

health of Earth itself. We have 

committed to creating a better 

future for the most important 

members of humanity – our 

children. 


133

Best Practice 

Environment 

Toshiba 

Cultivating a New Era of 

Lighting – In Harmony with 

the Earth 

March 17, 2010, was a landmark day for Toshiba – a simple flick of a switch brought an end 

to 120 years of production of general-use incandescent bulbs, a product that Toshiba was the 

very first to manufacture in Japan. 

By Pretty Shrestha 

The end of production for 103 different 

kinds of incandescent bulbs came a year 

ahead of the original plan. This move 

is expected to contribute to an annual 

reduction in CO 2 

emissions of 430,000 

tons compared to 2008, when Toshiba 

shipped about 20 million units. 

In an effort to become one of the 

world’s foremost eco-conscious companies, 

Toshiba is, at present, focusing on 

environmentally friendly lighting such 

as LED lighting. 

As part of efforts to counteract 

climate change 

In order to hasten the shift to a lowcarbon 

society and to make a positive 

contribution to the global environment, 

Toshiba Lighting and Technology Corporation 

(TLT), a unit of Toshiba Corporation, 

decided to end production 

of general-use incandescent bulbs in 

2008. As it did, it shifted its focus to 

accelerating promotion of environmentally 

friendly LED (light emitting diode) 

lighting, which it had succeeded in commercializing 

in 2007. 

On March 17, 2010, TLT held a ceremony 

at its Kanuma factory in Japan to mark 

the end of production of general-use 

incandescent bulbs after 120 years. On 

that day, it ended production of 103 

types of incandescent bulbs, excluding 

certain special-purpose bulbs. This step 

was taken far in advance of 2012 – the 

Japanese government’s target year for 

ending domestic production and sales 

of incandescent bulbs – and a full year 

ahead of Toshiba’s own original plan. 

“After 120 years in this business, lighting 

is in Toshiba’s DNA. Now, capitalizing on 

Toshiba Group’s comprehensive, advanced 

technological capabilities, we will 

promote lighting that delights people 

and contributes to the environment.” 

Norio Sasaki, President 

Employees at Kanuma bid final 

farewells to the incandescent bulb 

production line. 

In 2009, Kanuma was turning out some 

7 million incandescent bulbs a year, and 

earning good revenues with very costefficient 

product. At that time, LED lamps 

were very new to the market and cost 

approximately 10 times more than incandescent 

bulbs. The decision to end 

production was indeed a critical one 

for Toshiba. 

However, Toshiba was aware of the 

significance of the step as being part of 

its efforts to mitigating climate change. 

The transition from incandescent bulbs 

to LED and fluorescent lamps is expected 

to bring down CO 2 

emissions by 430,000 

tons a year compared to the benchmark 

year of 2008, when some 20 million 

incandescent bulbs (including imports) 

were shipped. 

At the production termination 

ceremony, the then-president of TLT 

addressed the employees, stressing that, 

“Today is not the end but marks the start 

of a new chapter of Toshiba’s lighting 

history. Let’s work together to create 

new lighting and promote it in Japan 

and throughout the world.” Following 

the speech, the final production line was 

stopped, an event that was broadcast 

live at the Kanuma factory. Closing the 

ceremony, Mr. Norio Sasaki, the President 

of Toshiba Corporation, emphasized the 

need to “cultivate a new era of lighting” 

and Toshiba’s determination to become 

one of the world’s most eco-conscious 

companies. 

Japan’s first incandescent bulb 

manufacturer 

Back in 1890, Ichisuke Fujioka, one of 

the leading engineers of his age, established 

Hakunetsu-sha & Co., one of the 

founding companies of today’s Toshiba, 

as Japan’s first incandescent bulb manufacturer. 

From initial production of 10 

bulbs a day, annual production grew 

remarkably, peaking at 78 million in 

1973, and Toshiba recorded cumulative 

shipments of 4.07 billion bulbs over 120 

years of production. 

In 1980, Toshiba developed the 

world’s first ball-shaped compact fluorescent 

lamp (CFL), in response to the 

increasing awareness of the need to save 

energy following the oil shocks of the 

1970s. As CFLs increased in popularity, 

production of incandescent light bulbs 

began to decline from around 2000. 

Looking ahead 

Toshiba has been a forerunner in the 

movement to discontinue production 

of incandescent bulbs. 

Toshiba is now directing its attention 

on promoting energy-efficient LED 

lamps, which have longer service lives 

of around 40,000 hours and reduce CO 2 

emissions by approximately 80 percent 

when compared with incandescent bulbs. 

The transition to LED lighting is one 

of the steps toward realizing Toshiba’s 

Environmental Vision 2050 – the envisioning 

of the ideal situation in 2050: a 

world where people live richer lifestyles 

in harmony with the earth. 


135

Best Practice 

Environment 


Sustainable 

Ship Recycling 

in Bangladesh 

By Kokila A.N 

The aim of the project is to focus on the current problems 

related to environment, health, safety, and social aspects 

of the ship recycling industry in Bangladesh. As part of 

the project, TÜV Rheinland conducts awareness-building 

programs and helps companies to build capacity as well as 

optimize their work techniques so that they comply with 

international standards and best practices. 

TÜV Rheinland India is involved in the 

public-private partnership (PPP) project 

“Holistic Program for Sustainable and 

Environmentally Balanced Safer Ship 

Recycling in Bangladesh” (SEBSSR). The 

project is funded by DEG (Deutsche Investitions- 

und Entwicklungsgesellschaft) 

Germany, Europe’s largest development 

finance institution. Assistance is provided 

by an NGO, the Bangladesh Ship 

Breakers Association and local partners 

to address the problems related to the 

environment, health, safety, and social 

aspects in the ship recycling industry in 

the South Asian country. 

In Bangladesh, more than 197 big ships 

are being dismantled every year. Bangladesh 

has more than 30 ship-breaking 

yards along the 5 kilometer coastline at 

Sitakundu in Chittagong. Most of the 

ships are sent without prior information 

about hazardous wastes that have 

not yet been cleaned up, which puts the 

whole coastal area at high risk, especially 

in Chittagong (which is the center of 

ship-breaking activities). Toxic chemicals 

and hazardous materials like asbestos, 

PVC, PCB, paints, oil sludge, burned oil, 

heavy metals, etc. are not managed in an 

environmentally sound way; the beach 

is black due to oil spills, and fish have 

started disappearing. 

The ship-breaking industry is a 

great contributor to the national economy 

of Bangladesh. It supplies scrap iron 

to the industry and offers employment 

opportunities for the workers. But at 

the same time – due to its careless and 

malfunctioning operation – it is also 

responsible for importing waste from the 

West, which is a danger for the environment 

and the coastal ecology, and also 

a death trap for the workers. 

The Department of Environment 

(Environment Ministry of Bangladesh), 

Department of Labour (Labour Ministry 

of Bangladesh), the Bangladesh Ship 

Breakers Association, and leading NGOs 

have been actively participating in the 

project to make the project sustainable. 

Only through the coordinated efforts 

of the government of Bangladesh, ship 

breakers, NGOs, trade unions, relevant 

UN agencies, and the international community 

have the working conditions 

in Bangladeshi yards improved. With 

the implementation of the PPP project, 

appropriate measures are being taken 

to help the ship-breaking industry in 

Bangladesh become compatible with 

international standards regarding labor, 

health, and environment. 

The joint efforts behind the PPP project will 

lead to: 

• Increased protection of the environment 

and the workers when the government 

of Bangladesh takes responsibility 

to ensure respect of domestic legislation 

in the yards; 

• harmonization of the laws of the country 

with international human rights 

standards; 

• coordination with all the players, from 

workers to the policymakers, enforce 

to the existing legislations regarding 

workers’ rights and environmental 

protection. 

The project’s aim is to address the current 

problems of the industry and help 

the ship-breaking companies comply 

with international standards and best 

practices. Some of the standards that 

would be part of this project are: SRMS 

(Ship Recycling Management Systems) – 

ISO 30000; OHSAS 18000 – Occupation 

Health and Safety Assessment Series for 

Health and Safety Management Systems. 

The project would be implemented 

at three levels. 

1. Inform – This part of the program 

would seek to create awareness through 

mass mobilization programs that would 

generate an overall attentiveness about 

the best management systems and 

health and safety standards in the 

ship-breaking industry. 

Means adopted: 

• Awareness campaigns / seminars 

2. Involve – At this level, the idea would 

be to create a pool of 10 to 15 internal 

experts who will be able to create the 

multiplier effect to sustain the initiatives 

of the project. Multiplier expert 

pools will be composed of people from 

various stakeholder interests – industry 

associations, chambers of commerce, 

academia, and government ministries 

– that would be trained to create a 

broad-based impact in the target region. 


• “Train the Trainer” workshops 

• Seminars 

3. Implement – At the third level, the 

project would seek to showcase the 

benefits of aligning practices with international 

standards and adopting best 

practices by directly implementing them 

in 10 selected ship-breaking companies. 

The companies would be offered a host 

of services including in-house trainings, 

consulting, mock assessments and 

audits. After project completion, the 

companies should be able to achieve 

a higher competitiveness in the local 

market as well as internationally. 


• Consulting 

• Assessment 

• Auditing 

The ship-breaking industry expects much 

growth in its activities. There will be 

50,000 new jobs created, which will 

help the country fight the global recession 

and boost the growth of the 

stakeholders involved. The project will 

also strengthen the companies to adopt 

measures that will help increase their 

profitability, implement continuous 

improvement methodologies, and also 

provide recognition in order to attract 

new business from global markets. TÜV 

Rheinland India successfully completed 

level 1 (awareness campaigns / seminars), 

and level 2 (“Train the Trainer” workshop 

and also seminars), and is currently executing 

level 3 (implementation) of the 

project. The success of the project will 

ensure that ship-breaking is hazard-free 

and that the challenges faced by shipbreaking 

companies are addressed without 

compromising on environmental, 

health or safety issues. The project will 

also enable ship-breaking companies to 

showcase their sustainable successes to 

various stakeholders – local government, 

society, etc. 


137

Best Practice 



Whistleblowing Systems 

as a Practical Foundation 

of Democratization 

By Kenan Tur 

The main challenge here is that the 

Western understanding of corruption 

and how to combat it is not recognized 

equally by all countries and cannot be 

implemented in the same way across the 

board. International companies have to 

coordinate their anti-corruption efforts 

to address cultural and legal differences. 

A common understanding of what corruption 

means must be cultivated so 

that it does not lead to competitive disadvantages. 

Each side must promote and ensure the 

integrity of its employees. Compliance 

has become a common term in business 

for the observation of rules. Internationally 

active companies recognize 

the need for unified rules and values in 

management within codes of conduct 

and must ensure that these are adhered 

to in all their locations by establishing 

compliance departments. Government 

agencies are increasingly making use 

of instruments such as internal audits, 

anti-corruption measures, and so-called 

black lists. 

whistleblowers from dangers and reprisals, 

if necessary by granting them 

anonymity. This is especially true in 

countries in which corruption fighters 

and their families fear for their lives. 

Moreover, such a whistleblowing system 

must ensure that information reaches 

the appropriate contact persons and that 

these people can communicate with the 

whistleblowers in order to assist and 

help solve cases. 

Morocco provides a good example of 

the most recent developments in fighting 

and preventing corruption. In 2003 

Morocco ratified the United Nations 

Convention against Corruption. In the 

course of this, an anti-corruption agency 

was created in Rabat that same year 

that works at preventing corruption 

and drafts related bills. Additionally, 

the Instance Centrale de Prévention de 

to the structural and cultural characteristics 

of Morocco. The whistleblowing 

process and the ensuing dialog with the 

investigators were made available to the 

public in both French and Arabic. 

Within the first three months, more 

than 20,000 Moroccan citizens became 

acquainted with the BKMS® system and 

how it can be used to provide information 

on corruption, fraud, breach of 

trust, competition offenses, abuses of 

office, irregularities in public procurement 

measures, and ethical misconduct. 

During this period, approximately 600 

citizens used the system to securely submit 

information. 

In spring 2011, reforms for fighting corruption 

continue following the civil 

protests: In April a team consisting of 

various ministers and headed by King 

The BKMS® whistleblowing system 

The current protest movements in various countries illustrate that citizens regard corruption 

as one of the greatest obstacles to democracy and that they demand responsible behavior 

from politicians. The interface between politics and business represents the most significant 

gateway for decisions that are not in the interest of the state and its citizens. Because of 

public pressure and an increase in international legislation, corruption prevention plays an 

increasingly important role in companies and government agencies, as required by Principle 

10 of the United Nations Global Compact. 

All measures stand and fall with the flow 

of information. Only when a corruption 

case and its perpetrators are known, 

however, can charges be made, process 

changes be constructed, companies be 

cut off from contracts, or aid to corrupt 

regimes be suspended. It is important 

here to involve citizens and employees 

in the reform process and to improve the 

information channels between citizens 

and anti-corruption agencies, as well 

as between employees and compliance 

departments. Companies need a global 

communications capability in native 

languages that combines the information 

centrally in order to identify patterns 

and connections. 

Government agencies also benefit from 

the targeted acquisition of information 

through the involvement of employees 

in exposed areas and their suppliers. 

An effective possibility for such acquisition 

is the use of whistleblowing systems 

by both government agencies and 

businesses. These systems must protect 

The BKMS® system is an internet-based whistleblowing system with 

integrated case management. It is used by government agencies, such as 

criminal investigation departments and anti-corruption units in developing 

countries, as well as by global players like Commerzbank AG, Deutsche 

Telekom AG, MAN SE, and Bertelsmann Group. 

la Corruption (ICPC) is responsible for 

the receipt and assessment of leads from 

the public before these are passed onto 

the ministry of justice for investigation. 

In 2010 the ICPC began using the webbased 

BKMS® whistleblowing system to 

help support the professional acquisition 

of information. With the support of the 

German Association for International 

Cooperation (Deutsche Gesellschaft für 

Internationale Zusammenarbeit GmbH), 

the system, which had already been tested 

and proven by the anti-corruption agencies 

in Kenya and Indonesia, was adjusted 

Mohammed VI submitted a draft law 

pertaining to the protection of witnesses, 

victims, and whistleblowers. Other basic 

measures for the democratization of the 

country were announced. 

The vehement demands in global society 

demonstrate the willingness of the 

populations and the employees to fight 

corruption; now these individuals must 

be given effective tools in order to take 

advantage of this motivation. The success 

of the whistleblowing system in Morocco 

is a superb best practice. 


139

Best Practice 

Development 

142 

144 

146 

150 

154 

156 

158 

160 

162 

ACI 

Adecco Group 

BASF 

Bayer 

Bradesco 

GDF Suez 

Merck 

Novo Nordisk 

The TMS Group 


164 

166 

168 

AKSA 

Kusch + Co 

Puma 


170 


Overall, the Global Compact pursues two 

complementary objectives: 

1| Mainstream the ten principles in business activities around the world 

2| Catalyze actions in support of broader UN goals, including the Millennium 

Development Goals (MDGs) 


141

Best Practice 

Development 

ACI 

ACI Contributes Where 

Others Do Not 

By Muallem A. Choudhury and Dr. Rumana Dowla 

Following its core values, ACI seeks to play a part in 

improving the quality of people’s lives through the creation 

of new jobs and offerings services to people. Based on this 

belief, the Medical Information and Research Team as well 

as the Medical Services Department of ACI Pharmaceuticals 

partnered with CARE Bangladesh – an international 

development agency – to initiate a healthcare project under 

the name Amar Shasthya, which stands for “my health.” 

Commencing in May 2009, the initiative 

has undertaken activities with the 

intent to reach the most underprivileged 

section of the population living in the 

most isolated and remote parts of the 

country, literally, where no access to 

medical services of any kind is available. 

Total lack of health services in such rural 

regions has been a growing concern 

that ACI felt could be mitigated with the 

helping hands of corporate organizations. 

What many thought to be rather 

impossible has been done by ACI with 

a simple and innovative solution. To allow 

the team to overcome the transport 

difficulty in reaching the water-clogged 

areas, Tothya Tori, or the "Information 

Boat,", which was utilised by ACI and 

Care, was built and well-equipped with 

computers,Internet, and other prerequisite 

facilities to ensure access and 

service even to the most isolated parts 

of the country. Armed and ready, ACI 

and CARE have since provided medical 

facilities to the seven camps in various 

locations. Hence, such initiatives from 

ACI have led to a remarkable increase 

in service satisfaction, thereby spreading 

the company’s goodwill among the 

needy villagers. 

Initially, the program was dedicated 

for the impoverished people of 

the Haor, or “water-clogged,” region 

adjacent to the Sylhet, Shunaganj, and 

Kishoreganj districts of Bangladesh. The 

locals on the expanse of wetlands are 

housed on remote and secluded islands 

called Aatis. They do not have clean 

water access or proper sewerage and 

are therefore prone to water-borne diseases, 

skin diseases, eyesight problem, 

arthritis, gastric-related issues, chest 

pains, allergies, heatstroke, regular fever, 

maternal health issues, etc. Moreover, 

because the government-run THC (Thana 

Health Centre) of the Upazila Sadar (Sub- 

District) is hours away, health clinics 

at the union level as well as qualified 

doctors are lacking in this rural region, 

where “village doctors” have flourished 

despite inadequate medical knowledge 

and technological know-how. 

In addition, for an individual earn- 

ing on average Tk. 100 ($1.37) a day, 

paying a thousand Taka ($13.70) for a 

doctor’s visit from Upazila (for transportation, 

medicine, fees, etc.) is not 

only highly expensive but impossible 

for poor villagers to afford. As a result, 

while some manage by borrowing from 

others, some completely skip the visits; 

only the comparatively well-off may find 

themselves fortunate enough to afford 

such quality medical services. 

Amar Shasthya is currently operating 

devotedly in selected areas of the 

country that lack medical aid of any 

kind. The locations include places like 

Sunamganj and Kishoreganj, most parts 

of which are totally inaccessible for half 

of the year by any means of transport 

other than boat. Under sponsorship of 

the company, the communities are provided 

with doctors, medicines, follow-up 

sessions, and camp-day management. 

The project sets up medical camps, 

which are built in local high schools, as 

those offer the only proper infrastructure 

in any village. The field staff of CARE 

are entrusted with the responsibility of 

organizing the camps. The staff consult 

with the boat manager and finalize the 

location of the camp. After that the staff 

and boat personnel visit the proposed 

camp site a couple of times to talk to 

the local authorities, school headmaster, 

teachers, and other people regarding the 

camp. Upon finalization of choosing 

the school venue, ACI is notified of the 

location and a date is fixed. 

In the meantime, ACI and its regional 

office send doctors (normally two) to 

the camp. Prior to the camps being set up, 

the boat authorities run a promotional 

activity in the area of the camp. Horns 

are hired to make prior announcements 

about the camp. Tokens for the camp are 

distributed simultaneously in the boat 

and in the villages before the camp is 

built. Normally 120 tickets are distributed 

for a day-long visit to the camp. The 

tickets are issued at a very nominal price 

to respect the dignity of the poor villagers 

who are buying the service. Though 

the demand is even higher, this is the 

number of patients that two doctors can 

examine within four hours. 

Reportedly, a total of 877 patients received 

treatment in the last period from 

Amar Shasthya for various health issues, 

including gastrointestinal issues, eye 

problems, conjunctivitis, various skin 

diseases, malnutrition, and reproductive 

diseases. Under Amar Shasthya, patients 

were treated in camps by doctors. Some 

women even claimed that Dr. Rumana 

Dowla – Project Manager in charge of 

Amar Shasthya and Coordinator and 

Manager from ACI (Medical Information 

and Research) – was the first female 

doctor they had seen in their whole life. 

Does this help? 

This humanitarian response for the remote 

people of the Haor region not only 

brought relief to these medically deprived 

people, it also gave them proper medicines, 

all for free. On the other hand, this 

also allowed ACI to earn well-deserved 

goodwill and respect in the communities. 

The general population considers 

the project activities as being extremely 

beneficial from every aspect. People have 

access to quality doctors and medicine, 

even though it is limited. Health camps 

for general medical checkups as well 

as eye camps and supplies of complete 

courses of medicine are greatly valued by 

the locals as well. The only area where 

the project currently needs to do more is 

to carry out increased follow-up sessions. 

Through these activities, we believe that 

ACI has already undertaken steps to 

confront health issues in Bangladesh. 

The company promises to go to the next 

level to help out the distressed. Though 

some might consider it as just a few drops 

in the ocean, we at ACI believe it is the 

start of a noble cause. A lot more can be 

done with such cost-effective and simple 

initiatives, and by partnering with the 

right organizations, it can lead to much 

greater impacts. 

Future steps 

The Amar Shasthya health initiative will 

be continued and expanded to other similar 

“Information Boats” run by CARE in 

the Haor region. Expansion would help 

these poor people further by including 

people from the neighboring villages. 

CARE has been working in the region 

for a long time and has access to and 

information about the place. ACI is in a 

great position to use its links and make 

an impact from a socially responsible 

perspective. 

Facts 

Advanced Chemical Industries 

Limited (ACI) was established originally 

as the subsidiary of Imperial 

Chemical Industries (ICI) in the 

then East Pakistan in 1968. Today 

it is one of the largest conglomerates 

in Bangladesh. It started in 

the pharmaceuticals business, but 

now has expanded its interests to 

consumer, commodity, agricultural, 

and packaging products and has 

also recently started in the retail 

business. With 13 subsidiaries and 

8 areas of expertise, it has almost 

7,000 employees. ACI’s mission 

is to enrich the quality of life of 

people through the responsible application 

of knowledge, skills, and 

technology. 


143

Best Practice 

Development 

Adecco Group 

Stepping Up for Skills 

In difficult economic and social situations, education and skills give young people a chance 

to overcome discrimination and exclusion, obtain work, and play a fulfilling role in society. 

Helping people to obtain work and career opportunities is part of the Adecco Group’s core 

business. As the world leader in HR services, we have over 32,000 colleagues in touch with 

the tough challenges many young people face around the globe. In carrying out our role, we 

adhere to the UN Global Compact and its Ten Principles. In 2010, our colleagues went many 

steps further and took part in our first Win4Youth project. 

By Lilian Furrer 

Win4Youth became a transformational 

initiative for the Adecco Group. The 

concept was simple: run together with 

colleagues or clients and for every kilometre 

completed the Adecco Group would 

donate a dollar to charitable foundations 

in India, Chile, Haiti, Spain, France and 

the United States. They all share one 

mission: helping young people obtain the 

education and skills they need for a better 

life. We launched the Win4Youth project 

in mid-January 2010. By December 2010, 

an astonishing 29,255 colleague and 729 

client runs were recorded at 1,855 events, 

spanning 58 countries. A total of 228,002 

km were completed – far beyond our 

initial expectations. 

Exemplifying CSR and our values 

Win4Youth engages colleagues in an 

active way with our corporate social 

responsibility (CSR) strategy as well as 

our core values. Our CSR strategy has 

three pillars: Excellence, Integration, 

and Skills. By raising funds to further the 

development of young people in need, 

our Win4Youth project has now come 

to symbolise the Skills pillar worldwide. 

Moreover, by making Win4Youth happen, 

colleagues brought to life our four 

core values: Team Spirit, Customer Focus, 

Responsibility and Entrepreneurship. All 

over the globe, colleagues ran together 

for a good cause, involving hundreds of 

clients and organising and promoting 

thousands of running events aimed at 

making a difference. 

Win4Youth “ambassadors” in New 

York 

Adecco launched the project at the Global 

Management Conference in January 

2010. We announced that the Group 

was to prepare a team of 65 colleagues 

from around the world to run in the New 

York Marathon on November 7. After an 

application process and many hours of 

dedicated training, 62 colleagues made 

the starting line, with only one person 

– due to injury – being unable to 

complete the course. Our ambassadors 

for the Win4Youth project added 2,574 

km to the total distance accomplished. 

One of Adecco’s New York City Marathon 

runners, Zahra Boumahoud from Adecco 

Morocco, said: “Through running for 

Win4Youth we are all taking ‘responsibility’ 

to make a great project happen.” 

Global mobilisation 

After the launch, this uniting programme 

provoked the exchange of news from local 

runs that sprang up worldwide. Over 

the nine-month period, colleagues in 

India contributed the most km (75,754), 

and those in Morocco ran the highest 

number of km per colleague (87,79). 

People were clearly motivated by the 

cause. Armelle Derieux, from Adecco 

Group France, dedicated her 230 km trek 

in Nepal to Win4Youth and reported: “On 

reaching a 6,189 metre summit, a group 

of Germans asked about my Win4Youth 

shirt: I was really proud to explain the 

commitment of Adecco.” The biggest 

team effort was a Win4Youth “Solidarity 

Day,” when 2,700 colleagues in the 

French region, Switzerland, India and the 

Middle East added over 13,000 km. Keen 

to lead by example, the Adecco Group 

CEO, Patrick De Maeseneire, ran with 

his executive team and HQ colleagues, 

saying: “It’s great to be part of the global 

Win4Youth team. We are building up an 

amazing team spirit and make contributions 

to six charitable foundations. And 

we carry the banner of our values high.” 

Making a positive difference 

At the end of March 2011, Adecco country 

managers of France, North America, 

Spain, India, Chile and Switzerland 

(for Haiti) each handed over a check 

for $38,000 to the chosen foundations. 

Left: Adecco’s Win4Youth ambassadors 

getting ready for the NYC Marathon 2010. 

Right: Girls at Parikrma Humanity 

Foundation show their gratitude to 

Adecco and the Win4Youth initiative. 

In India, we supported the Parikrma Humanity 

Foundation, which helps underprivileged 

youth from poor urban areas 

achieve a first-class education. Shukla 

Bose, the Foundation’s CEO, said, “This 

support will help us fulfill our promise 

that children never ‘get left behind.’” In 

Spain, a donation was made to Fundació 

Èxit, dedicated to teenagers from 16 to 

18 years old in Catalonia and Madrid. 

Eighteen-year-old Abdelrahim Es, originally 

from Morocco, has attended an Èxit 

Foundation Centre in Madrid. “Always, 

in my country I have studied, but I had 

never before been in contact with the 

working world. Thanks to Èxit, I now 

have a lot of plans for my future.” 

Funds also went to the HEKS (Hilfswerk 

der Evangelischen Kirchen Schweiz), the 

foundation that supports Rural Centres 

for Primary Education in Haiti. The project 

has benefitted over 4,000 povertystricken 

children aged between 6 and 

12 years. HEKS representative, Susanne 

Loosli, said, “We can further improve 

school buildings and train more teachers. 

We will also intensify our activities that 

enable families make a better living, so 

that they can afford to let children go 

to school.” Manie, one of their students, 

said: “Other schools just teach in Creole 

but I can learn French and this will help 

me get a proper job later.” In France, 

Win4Youth 2010 supported Entreprendre 

pour Apprendre, an organisation focusing 

on people aged between 13 and 20 

to gain skills and knowledge to become 

entrepreneurs. In Chile, funds went to 

Fundación de Solidaridad Romanos XII, 

a training centre to enhance the employability 

of young people in the field 

of computer technology and telecoms. 

And finally in the United States, we contributed 

to the National Urban League 

efforts to provide academic and social 

support to high school students preparing 

for life after education. 

With Win4Youth we have created a 

shared sense of social responsibility 

among colleagues, while also making 

a positive difference to society. Looking 

back, this programme united our 

employees in over 60 countries, making 

everybody live and incorporate our core 

values, and it grew to the global programme, 

representing our Skills pillar 

within CSR. That is why it will go on – 

77 colleagues from 42 countries will be 

the ambassadors for Win4Youth 2011 

by cycling up Mont Ventoux in France. 

But all of our 32,000 colleagues around 

the world will pedal in joint events to 

raise money for three newly selected 

foundations in Asia, Europe and Latin 

America. They are all involved in innovative 

projects giving young people skills 

and education to achieve new perspectives 

and a better life. 


145

Best Practice 

Development 

BASF 

Securing Yields through 


How do we respond to the world’s increasing demand for food while protecting the 

environment and biodiversity for future generations? BASF’s sustainable agricultural work 

helps to address these global challenges. Our business is well-positioned to help customers 

become more sustainable. We provide farmers with reliable and innovative products, but 

also support them with our know-how. 

By Rainer von Mielecki 

BASF understands the many challenges 

farmers face today – running a successful 

business, protecting the land they live 

on and farm, as well as providing us all 

with an increasing quantity of healthy, 

affordable food. 

BASF has already implemented a 

number of effective programs in many 

parts of the world, with the company’s 

experts and farmers working closely together 

to achieve groundbreaking results. 

Knowledge transfer 

Many farmers around the world simply 

do not have access to the right products 

or to technology that is individually tailored 

to their needs. Alternatively, they 

may not have the appropriate knowledge 

or skills. According to a UN report, every 

second person suffering from chronic 

hunger is a small-scale farmer. If these 

smallholder farmers are lucky, their 

harvests are just about sufficient to meet 

their family’s needs. They could significantly 

improve their finances and the 

well-being of their families by increasing 

yields. However, according to a study by 

Deutsche Bank Research, farmers need 

access to education, knowledge, capital, 

loans, markets, and risk-management 

strategies. 

In India, soybean yields have been 

extremely low in international comparison, 

amounting to only about a third 

of the worldwide average. The BASF 

India team found that there were many 

reasons – inappropriate fertilization, 

excess seeding, and incorrect use of 

crop protection products coupled with 

a general lack of knowledge about good 

agricultural practice. 

In 2006, the “Samruddhi” idea was 

born. Meaning prosperity in Sanskrit, 

Samruddhi represents a holistic business 

approach that helps farmers and their 

As part of the “Samruddhi” project 

in India, BASF employees offer 

one-to-one advice to farmers. 

communities become more sustainable. 

The idea was simple: Talk with farmers, 

find ways to boost their yields and 

profitability, and offer hands-on advice. 

In 2007, the Samruddhi project was 

initiated in Madhya Pradesh, an Indian 

state, where about 75 percent of the land 

used for soy cultivation is located. BASF 

sent 280 agronomists to work with farmers. 

Starting three months before planting 

and ending when the soybeans were 

sold to market, these agronomists conducted 

thousands of workshops, harvest 

days, market days, and visits to individual 

farms. Each agronomist provided support 

and guidance to around 150 to 225 

farmers. Advice ranged from selecting 

the right seed to educating farmers as to 

when they should apply crop-protection 

products during the harvest, in addition 

to advice being offered about sales 

and cost-control measures such as price 

making and negotiation practices. Each 

farmer received an individual worksheet 

to help them track costs and earnings 

and to calculate profit per acre. 

The results were amazing – in 

2008, the soybean yield increased by 31 

percent compared to traditional cultivation 

methods, with farmers increasing 

their net income by 60 percent. In 2009, 

comparative yield increases averaged 24 

percent, despite a severe drought. 

Mahendra Singh (a 32-year-old who 

owns a six-acre farm) in Sayri, India, has 

used Samruddhi practices for the last 

two years. “Thanks to Samruddhi, my 

yield has increased from six quintals per 

acre to eight quintals per acre. With this 

additional income, I was able to get my 

house repaired and buy a generator for 

irrigation work. This year, I am planning 

to purchase a motor bike.” 

While the initial project benefitted 

about 30,000 Indian farmers, the 

success story is ongoing. In 2008, the 

Department of Agriculture of the State 

of Madhya Pradesh signed a Memorandum 

of Understanding for activities in 

an additional region, the Harda District. 

Currently, around 170,000 farmers 

in India are collaborating with 700 

BASF agronomists in order to make soy 

cultivation as sustainable as possible. 

The project has also delivered business 

benefits for BASF. In the period 2006 to 

2009, the company saw revenues for 

its soybean plant-protection products 

increase 60 percent annually. 

Encouraged by this success, BASF 

has ambitious goals for the future. Similar 

projects will make potato cultivation 

in India more sustainable, and help 

increase the yield of chilies, guar beans, 

and peanuts. In 2010, BASF extended 

Samruddhi to Indonesia and Sri Lanka. 

BASF also plans to launch a customized 

version of the project in Africa. 

Respecting nature and biodiversity 

Sustainable agriculture is not just about 

increasing yields, but also about taking 

nature and biodiversity into account. A 

project in the United Kingdom illustrates 

how conventional farming methods and 

biodiversity can co-exist in mutual harmony. 

Since 2002, BASF has been working 

with a conventional farmer near a 

small English village, Rawcliffe Bridge. 

Within just a few years, the Hinchliffe 

family’s arable farm has developed into 

an attractive habitat for around 100 bird 

and 150 plant species, some of them 

endangered. The idea was developed 

in collaboration with the Farming and 

Wildlife Advisory Group and the Royal 

Society for the Protection of Birds. 

One hectare near woodland was 

sown with a grass mix while two hectares 

nearby were sown with field margin 

mixtures – all aimed at encouraging 

beneficial insects, and farmland birds, 

for example skylarks. The farm also 

provides popular retreats for animals 

like the water vole and the brown hare. 

Working closely with local wildlife advisors, 

a “bed and breakfast” approach of 

providing nest boxes and food for birds 

was introduced. This helped to create 

ideal breeding conditions for bird species 

like the tree sparrow, the blue tit, and the 

great tit. Some farming practices were 

also slightly changed to minimize the 

impact to birds and their source of food, 

particularly at nesting time. “I want to 

stress that there was almost no impact 


147

Best Practice 

Development 

BASF 

to our commercial business – we didn’t 

use any special methods – the only 

commitment on our side was patience, 

a willingness to modify some farming 

practices, and a bit of time,” explains Mr. 

Hinchliffe, manager of the family farm. 

“Based on our positive experience, this is 

a simple, practical but effective way for 

farmers to protect nature and wildlife. 

It’s a win-win – nature and intensive 

farming are compatible and can live 

happily side by side.” 

The Agricultural Trials Services 

successfully conducted a number of 

comparative bird studies on the farm 

as well as analysis of different wheat 

varieties, fungicides, herbicides, and seed 

treatment programs. BASF participated 

in the studies along with leading seed 

companies. This helped to generate a 

high-quality, comprehensive database, 

which will help inform future projects. 

Rawcliffe Bridge clearly demonstrates 

the benefits of using crop rotation, 

best practice agronomy, and field margins 

to enhance the number of birds, butterflies, 

and bees. The results show that 

commercial farming systems – based on 

best practice – combined with sensible 

field margin and woodland management 

can deliver best practice biodiversity 

without impacting the commercial viability 

of the farm. This example sets 

a new precedent and should serve to 

inspire farmers everywhere. 

Protecting the environment and 

fostering social responsibility 

Sustainable agriculture is not a shortterm 

goal, but is rather focused on longterm 

success – not just for the economy 

but in the important areas of social responsibility 

and environmental protection. 

For over 20 years, BASF has teamed up 

with a broad range of partners from the 

business and scientific communities in 

Brazil, including the Gesellschaft für 

Technische Zusammenarbeit (German 

Technical Cooperation) to support “Mata 

Viva,” an environmental education and 

reforestation program. The goal is to 

conserve biodiversity, preserve the quality 

of water, and create areas between 

forests to encourage native vegetation 

and wildlife. The project receives funding 

from the Deutsche Investitions- und 

Entwicklungsgesellschaft mbH (German 

Investment Corporation). 

“DEG supports the BASF initiative 

as part of the Public-Private Partnership 

program of the Federal Ministry for Economic 

Cooperation and Development,” 

says Marco Christ, DEG’s Investment 

Manager. “Mata Viva is a very interesting 

project as it supports agricultural 

Right: Students learning on site: A new 

generation learns about combining 

sustainable agriculture and biodiversity 

in South America. 

Bottom: A harmonious balance 

between farming and biodiversity 

cooperatives spread across four Brazilian 

states, effectively from São Paulo to Paraná. 

The project is now moving toward 

even more challenging targets, focusing 

on reclaiming very badly degraded land.” 

Since 1984, with the help of BASF 

and its employees, over 500,000 native 

trees have been planted, covering an area 

of approximately 340 hectares – the 

equivalent of around 340 soccer fields. A 

hundred technicians have been trained 

on how to identify and map affected 

areas, complete a diagnosis, and prepare 

a reforestation plan. Through the media 

of theatre and art, children are being 

taught the importance of nature and 

recycling, using natural fibers to make 

arts and crafts. 

This experience is more than just 

a fun extracurricular activity – it is 

fostering a new generation of socially 

responsible children who understand 

that precision and high-yield agriculture 

can exist with biodiversity in mutual 

harmony, as the socio-eco efficient model 

for the future. 

Looking Ahead 

World food and agriculture face huge 

challenges in the decades ahead. It is 

possible to provide sufficient high-quality 

food at affordable prices to the rapidly 

growing world population, while at 

the same time reducing agricultural 

greenhouse gas emissions and preserving 

natural habitats. BASF employees 

will continue to help farmers around 

the world achieve more yield, using 

less land and water, while protecting 

the environment and precious natural 

resources. Sustainable agriculture is the 

key to achieving these essential goals. 

BASF’s Sustainable Agriculture Principles 

Sustainable agriculture is an integral Given the urgent need to increase agricultural 

production over the coming decades, 

part of society. 

Farming successes and failures greatly BASF believes that improved farming 

influence life and the general well-being of efficiency is necessary if we are to make the 

people in the broader community. Sustainable 

agriculture should therefore be an 

most efficient use of natural resources. 

integral part of political and economic debate. 

This is important if we are to sustain 

Sustainable agriculture is dynamic. 

BASF believes that farming concepts that 

farmer income and affordable consumer 

are exclusively driven to maintain the 

food prices. 

status quo or to re-establish historical 

farming practices should not be implemented 

on a large-scale basis when better 

Sustainable agriculture depends on 

farmers. 

alternative solutions are available. 

BASF is committed to partnering with 

farmers to enable them to continue growing Sustainable agriculture requires a diversity 

of solutions. 

food in an efficient and sustainable way. 

We listen carefully to understand farmers’ BASF supplies products, technologies, 

experiences and concerns. We respond to and services for all types of sustainable 

their needs by working with them to design farming methods and supports the coexistence 

of all these systems at the 

the farming tools of the future. 

farm level. 

Sustainable agriculture saves resources 

and protects the environment by: 

Sustainable agriculture needs collaboration 

and partnership. 

• making efficient use of the land, water, 

and other resources available on our Success can only be achieved through 

planet; 

increased and broader investment in 

• contributing to biodiversity in the agricultural 

landscape; 

industry, joint partnerships, dialog, and 

agricultural research by governments and 

• helping to mitigate against and adapt to the responsible, thoughtful behavior of all 

climate change. 

involved. 

Sustainable agriculture looks to the 

future. 

Innovation is critical to help farmers 

increase their productivity as well as 

protect their harvests and the land 

they farm, in addition to providing 

consumers with healthy, affordable 

food. 

Sustainable agriculture needs research 

and innovation. 

While new technologies require careful 

and detailed assessments of their 

associated risks and benefits, BASF believes 

that the exclusive or disproportionate 

consideration of risk only, isolated from 

the benefits, is not the right way to 

successfully implement the principles of 

sustainable agriculture. 

Sustainable agriculture needs to be quantified 

and managed. 

BASF believes that sustainability programs 

require clear measurement. 

Sustainable agriculture needs dialog. 

BASF engages in ongoing stakeholder 

dialog and consultation with feedback 

integrated into its sustainable agriculture 

programs and initiatives. 


149

Best Practice 

Development 

Bayer 

Partnerships for More 

High-Quality Food 

By Dr. Wolfgang Große Entrup 

Safeguarding food supplies for a constantly growing world population will be among 

the most pressing problems of the future. Bayer is providing an innovative solution with 

the program “food chain partnership.” This business model supports the United Nations 

Millennium Development Goal of fighting poverty and hunger throughout the world and 

contributes to sustainable development. 

The situation is alarming. Studies undertaken 

by the United Nations forecast that 

the world’s population will increase by 

three billion between today and 2050. All 

these people will require sufficient and 

affordable food. This is reason enough 

to begin reacting already today. With 

our “food chain partnership” program 

for vegetables and fruits and further 

crops, we help to enable farmers worldwide 

to raise agricultural yields, increase 

food quality, and improve their income 

situation. 

The food chain partnership concept 

Experts from our Bayer CropScience 

(BCS) subgroup advise mainly fruit and 

vegetable farmers on all matters from 

seeding to harvesting. The BCS professionals 

teach the farmers about sustainable 

cultivation in keeping with good 

agricultural practice. 

This also includes the controlled, environmentally 

friendly use of crop protection 

agents. High-quality seed, improved 

treatment plans, and consistent monitoring 

of pest infestation increase not only 

agricultural yields, but also in particular 

the quality of vegetables and fruits. 

An important aspect is that the farmers 

document every single cultivation 

step and each crop protection measure. 

Ultimately, monitoring and transparency 

benefit the entire supply chain: 

Exporters, importers, and traders can 

be sure that the produce was grown 

properly and that they are buying and 

selling products of the highest quality. 

For their part, consumers can assume 

they are purchasing high-quality fruits 

and vegetables. The producing farmers 

see their livelihoods become more secure, 

as the integrated measures significantly 

increase their net incomes. 

Pioneering lighthouse project in 

India 

As one of the lighthouse projects of our 

Sustainable Development Program, the 

food chain partnership project focusing 

on vegetables in India plays a pioneering 

role in safeguarding food supplies. 

To date, Indian food chain partnership 

projects have been organized in about 

100 planting regions, accounting for 

30,000 hectares of field area. A total of 

40,000 farmers participated directly in 

the program in 2010. The relevant vegeta- 

Farmers in India can increase yields 

significantly with a combination of 

modern seeds, plant protection, and 

good agricultural practices. 


151

Best Practice 

Development 

Bayer 

Left: Consumers in India are 

increasingly asking for high-quality 

vegetables – an Indian supermarket. 

Bottom: Tomatoes are one of the 

many vegetable species in Food Chain 

Partnerships. 

Only 20 percent of Kenya’s surface area 

is suitable for agricultural cultivation. It 

is thus all the more important for small 

farmers to be able to optimally cultivate 

their plots of land while at the same time 

meeting the rising demands placed on 

food safety in the most important export 

markets of Europe. 

benefit from higher yields, improved 

quality, and better prices. Another goal 

is to maintain the village structures that 

are of importance to people’s lives. 

Bayer is engaged in 240 food chain partnership 

projects worldwide, for example 

in southern Europe, South Africa, Latin 

America, and Asia. Projects primarily involve 

the cultivation of fruit and vegetable 

varieties. However, Bayer still wants 

to do more. In the coming years the 

company aims to further drive forward 

the food chain partnerships worldwide. 

Existing projects are being expanded 

and new projects initiated with food 

industry partners. For consumers around 

the world, this means more high-quality 

and affordable food. 

Global Sustainable Development 

Program 

For Bayer, sustainability means ensuring 

future viability. It is therefore firmly 

established in our core business. Food 

chain partnerships are thus a key element 

of the Bayer Sustainable Development 

Program launched at the end of 

2009. With this program, Bayer is responding 

to global challenges including 

not just food safety, but also healthcare, 

climate protection, and resource efficiency. 

As a research-based enterprise, 

we want to contribute to tackling these 

challenges successfully. We want to 

take on responsibility for the world of 

tomorrow – a world that will change 

significantly. 

Cooperation with development aid 

organizations 

bles are okra, chili, tomatoes, eggplants, 

potatoes, and cucumbers. It is planned 

to further increase the area of cultivated 

land and expand the program to include 

additional regions by the end of 2011. 

The activities are a response to rising 

quality demands on the part of consumers. 

After all, as in many other emerging 

countries, the standard of living is also 

increasing in India. Many people are 

buying more food, which they want 

to be fresh, healthy, and affordable. 

Furthermore, the processing industry 

and the export trade are also placing 

higher demands on food in terms of quality. 

The example of 27-year-old farmer 

Ashishkumar Patel shows how a food 

chain partnership works in practice. 

Patel cultivates some 2.4 hectares in 

the village of Chandrala in Gujarat state 

on India’s western coast. In addition to 

cotton and eggplants, he mainly grows 

okra, which is among the most popular 

foodstuffs in India. 

Our experts from Bayer CropScience 

advised him to plant a new okra variety 

that perfectly fits the requirements of the 

Indian food industry – and it is of such 

high quality that it can be exported as 

well. Our teams then regularly visited 

his fields and offered him advice and 

practical support, especially with regard 

to pest control. The effects were already 

noticeable after less than a year: The 

farmer’s okra yields alone rose from 

4.2 to 6 metric tons. Moreover, he was 

able to achieve better prices due to the 

increased quality of his crops. As a result, 

his net income rose by 40 percent. This 

stands as one of many examples. 

Yet it is not only farmers who benefit 

from this arrangement. What makes the 

food chain partnership concept special 

is that all partners along the food chain 

benefit from it – from farmers and 

traders to sellers and consumers, and 

over the long term Bayer as well. In the 

state of Gujarat, for example, one of the 

food chain project’s steady partners is 

a supermarket chain. The goods grown 

by Ashishkumar Patel and other farmers 

are sold in its shops. 

Supporting the Millennium 

Development Goals 

With concepts such as the food chain 

partnership projects, we are actively 

helping to realize the United Nations 

Millennium Development Goal of fighting 

hunger and poverty and providing a 

growing world population with sufficient 

food quantities. The radius of action here 

goes far beyond India. 

This is also evident in the “Green World” 

project launched in Kenya in 2006. With 

a surface area of 582,000 square km, this 

East African country is about the size 

of France. Among its more than 30 million 

inhabitants are a small number of 

large-scale farmers with significant land 

holdings, as well as about five million 

small farmers. These growers subsist on 

the production of the most important 

export crops – coffee, tea, and flowers – 

as well as increasingly on the cultivation 

of vegetables such as sugar peas, beans, 

and corn cobs, or bananas, pineapples, 

coconuts, and other exotic fruits. 

Most of these farmers are not familiar 

with modern cultivation methods. There 

is a lack of awareness about environmental 

issues and knowledge about the 

safe use of crop protection agents. The 

improper use of unregistered products 

is a major problem, as are counterfeit 

substances and the use of low-quality 

products. 

Many of these farmers have already taken 

a big step toward this goal by participating 

in the Green World project. We 

have joined together in a public-private 

partnership with the German developmental 

aid organization GIZ (Deutsche 

Gesellschaft für Internationale Zusammenarbeit 

GmbH). 

Specifically, about 100 selected businesses 

in Kenya’s villages have already been 

transformed into what are known as 

“Green World Shops.” The owners have 

received comprehensive training in good 

agricultural practice and the responsible 

use of crop protection agents, and are 

themselves offering training measures 

for small farmers. At the same time, GIZ 

has also launched a special training program 

for farmers. Included in the project 

are seed producers, exporters, and the 

national agriculture ministry, among 

other players. Furthermore, Equity Bank 

of Kenya grants microloans to the farmers, 

thus enabling them to purchase seed, 

fertilizer, and crop protection agents. 

The objective of all these efforts is to 

produce high-quality, safe food. As in 

India, the focus is not just on successful 

export business, but also on improving 

the living conditions of farmers – who 


153

Best Practice 

Development 

Bradesco 

Promoting 

Inclusion of the 

Population 

By Eduardo Dantas 

Since its founding in 1943, Bradesco’s operations have been 

grounded in its commitment to Brazil’s development, and for 

that reason, sustainability is not new to Bradesco Bank. Issues 

such as community development and social inclusion have 

always been part of the organization’s day-to-day business. 

In order to emphasize our strategic positioning, 

in 2007 Bradesco conceived the 

Banco do Planeta (Bank of the Planet) 

concept by which all of our socio-environmental 

actions are set under three key 

principles: sustainable finance, responsible 

governance, and socio-environmental 

investments. In January 2010, Bradesco 

took a new important step and reformulated 

its vision and mission to reflect 

more explicitly its pursuit of sustainability. 

Thus, promoting inclusion of 

the population through universal and 

democratic access to bank products and 

services continues to be one of the major 

sources of inspiration for Bradesco’s 

practices in day-to-day business. 

Bradesco’s presence 

Bradesco is the only Brazilian bank present 

in all 5,565 municipalities of the 

country. This is a key factor considering 

Brazil’s continental dimensions of more 

than 8 million sq km with many areas 

that are difficult to reach. In providing 

the population access to bank products 

and services – particularly the more 

needy communities – Bradesco contributes 

toward fostering local trade 

and supporting local economies in the 

effort to aid in the country’s development. 

As of December 2010, there are 

41,053 Bradesco service points, including 

branches, PABs (banking service posts), 

ATMs, Bradesco Express locations (correspondent 

banking), and Bradesco Banco 

Postal (a partnership between Bradesco 

and the postal system). In the last years, 

an average of 8,000 accounts have been 

opened every day. Our efforts toward 

inclusion are made evident by the fact 

that, of all individual account holders 

in our organization (21.8 million), 31 

percent belong to social classes D and E: 

with family income averaging R$689.47 

for class E, and between R$689.48 and 

R$1,135.98 for class D. Our total individual 

and business client base increased 

from 20.9 million in 2009 to 23.1 million 

in 2010. More than 300,000 new client 

accounts for people in class D and E were 

open in 2010, representing 33.7 percent of 

the Brazilian population. The bank aims 

to open more than 300,000 accounts in 

2011 for clients in this segment. In order 

to strengthen our pursuit of banking 

inclusion, in 2009 Bradesco opened the 

first floating bank branch in the country. 

It is a branch of the bank kept on board 

of the Voyager III, a boat with a capacity 

for 500 tons of cargo and 200 passengers 

that navigates along the bank of the 

1,600 km Solimoes River in the Amazon 

State, covering 11 municipalities and 

50 communities. The idea is to provide 

for that population of around 250,000 

people living in one of the regions of the 

country most difficult to reach. People 

along the bank of the Solimoes River are 

used to traveling for more than 12 hours 

to get their salaries, pensions, and Bolsa 

Família (Brazilian Government Family 

Forest Grant Program for needy families). 

Set on a boat, the branch can receive 

and send data via satellite through an 

antenna on the boat. This enables the 

floating branch to send and receive bank 

Bradesco Branch Heliópolis 

(SP): the first community 

data even when the boat is traveling. The 

branch makes it possible to provide the 

riverbank population with services that 

had not been available to them before. 

Clients can open an account, make deposits 

and withdrawals, pay bills, contract 

loans (at lower interest rates than on 

the market), recharge prepaid mobiles, 

and apply for credit cards. This initiative 

was highlighted on the cover of the Wall 

Street Journal on March 16, 2010. 

Products and services within reach 

To achieve inclusion in the banking system 

and make it feasible, it is not enough 

just to be present – it is important to be 

able to count on adequate products and 

Riverboat Voyager III - Amazonas 

services to match each client’s profile so 

that more and more citizens can access 

the banking system. Here are some of 

the products we offer: 

Loans for low-income clients: 

In 2010, Bradesco achieved an R$1.86 

billion balance from credit operations 

for class D and E clients. It represents a 

considerable increase of 20.45 percent 

over results from 2009. 

Private Label cards: 

These cards are issued in partnership 

with a group of retailers to offer credit 

and other financial products to customers 

of those stores. Currently, the bank 

has more than 40 million active cards. 

Mobile Bonus account: 

An innovative product for low-income 

people who still do not hold a current 

account. By purchasing the service, clients 

may convert all the Services Basket 

monthly fees into a bonus for calls and 

text messages on prepaid mobiles or into 

a current account. 

Microinsurance: 

In 2010, Bradesco Vida e Previdência 

(Bradesco Life and Pension Plan) was the 

first to roll out in Brazil the Primeira Proteção 

Bradesco (Bradesco First Protection), 

a product adapted to the microinsurance 

concept, designed to meet the needs of 

people with lower purchasing power. The 

product covers personal accidents at a 

monthly cost of R$3.50, and covers up to 

R$20,000.00. In 2010 more than 560,000 

insurance policies were sold. There is 

also the Vida Segura Bradesco (Bradesco 

Safe Life) insurance at a monthly cost 

of R$9.94, and Tranquilidade Familiar 

Bradesco (Bradesco Family Tranquility) 

at a monthly cost of R$5.98. 

Educating about finance 

Bradesco understands that it is also of 

utmost importance to contribute to educating 

the population about finance so 

that everyone can use bank products and 

services properly. In 2010 free courses 

on personal finance, financial math, and 

Office Packages were made available on 

Bradesco’s website. However, there are 

many people in the country who have 

no access to the Internet. For this reason, 

the bank has held a series of “Encontros 

Municipais de Credito” (Municipal Meetings 

on Credit) in small towns, wherein 

the bank is introduced to people who, 

for most of their lives, have never had 

any contact with a financial institution. 

Acknowledgement 

As a result of our evolutionary process, 

society and markets have acknowledged 

Bradesco through various distinctions 

and awards. In addition to the awards, 

we would like to highlight: 

• For the fifth consecutive year, the bank 

is included on the New York Stock 

Exchange’s (NYSE) Dow Jones Sustainability 

World Index (DJSI World). 

• For the sixth consecutive year, the bank 

is part of BM & FBovespa’s ISE portfolio 

(Corporate Sustainability Index of Brazilian 

Mercantile and Futures Exchange 

on the Sao Paulo Stock Exchange). 

• In 2010, Bradesco became part of the 

newly created ICO 2 

(Efficient Carbon 

Index), which aims to encourage the 

most traded companies on the stock 

exchange to gauge, monitor, and publish 

information on their greenhouse 

gas emissions. The Index is compiled 

by the BM & FBovespa and the BNDES 

(The Brazilian Economic and Social 

Development Bank). 


155

Best Practice 

Development 

GDF SUEZ 

Access to Basic 

Services in Casablanca 

Shantytowns 

By Jean Pierre Ermenault 

SUEZ Environment and its subsidiaries are committed to the daily challenge of protecting 

resources and ecosystems. The company provides innovative solutions to millions of people 

and industries in the drinking water, wastewater treatment, and waste management fields. 

This case study shows how LYDEC provides access to energy, water, and sewage to households 

in Greater Casablanca. 

LYDEC, a subsidiary of SUEZ Environment, 

operates as a delegated water, 

sewage, electricity distribution, and 

street-lighting management contractor 

in Greater Casablanca (5 million inhabitants, 

of which 20 percent live in shantytowns 

and unhealthy housing). Since 

1997, when LYDEC started its activities, 

access to basic services (energy, water, 

sewage) for populations most vulnerable 

has developed in two stages: 

1. From 1998 to 2005, there was a provisional 

electrification program for 

urban shantytowns. Since the start of 

the contract, LYDEC faced problems in 

electricity distribution generated from 

illegal networks in urban shantytowns. 

It posed serious risks of security for 

residents, not to mention a high degradation 

of the quality of distribution. 

To rectify this situation, local authorities 

and LYDEC decided to implement 

a provisional electrification program 

for urban shantytowns, which 30,000 

households in the Casablanca areas 

have benefited from. 

2. On May 18, 2005, the National Initiative 

of Human Development (INDH) 

was launched by His Majesty King Mohammed 

VI, who made it a national 

priority to eradicate shantytowns and 

eliminate social exclusion. The INDH 

program was to combine different 

economic, social, and environmental 

development objectives in targeted 

Moroccan neighborhoods. This Initiative 

created an adequate institutional 

and political context in eradicating 

slums and unhealthy housing in 

Greater Casablanca. Thanks to this 

Initiative, LYDEC signed a framework 

agreement with the Delegating and 

Greater Casablanca Authorities on 

September 13, 2005, thereby founding 

the INDH-INMAE Project Management. 

The INDH-INMAE Project Management 

consists of 70 collaborators. Its mission 

is to find technical and financial 

solutions for access to electrical, water, 

and sewage services programs for 

500,000 inhabitants living in settlements. 

LYDEC’s method is in accordance with 

the agreement between the different 

partners regarding information, consulting, 

studies, decisions, and accomplishments. 

Up until December 31, 2010, this 

program required a total investment of 

€166 million to equip 272 neighborhoods 

in the Greater Casablanca region. 

LYDEC’s goals are as follows. First, it 

is about ensuring preliminary administrative, 

technical, and contractual work 

for the operations. Pre-assessment (land, 

urban planning, technical solutions, 

population status, financing), completion 

of technical analysis (water, sewage, and 

electricity), administrative procedures for 

land acquisition, and establishment of 

the lists of beneficiaries for authorization 

are all necessary. Second, LYDEC guarantees 

completion of the work for operations 

where financing is available, and to 

carry out the management and follow-up 

in partnership with all relevant authorities. 

Third, LYDEC permanently assists 

the beneficiaries through all phases of 

the operation: before, during, and after. 

Every six months, LYDEC prepares 

an operational progress report for the 

on-site upgrading of existing population 

settlement programs in accordance with 

the INDH framework agreement signed 

on September 13, 2005. This report is 

sent to local and national authorities and 

partners. By December 31, 2010, there 

were 32,000 households of the 80,000 in 

Greater Casablanca that had benefitted 

from completed operations, or those 

on the way to completion. Beyond the 

quantitative targets, the actions of LYDEC 

are characterized by their governance: 

dialog with the people and continuous 

cooperation with authorities. Proactive 

governance is an approach as strategic as 

the technical construction of networks. 

Prioritizing access to basic services 

(electricity, water, and sewage) for underprivileged 

populations living in slums 

and unhealthy housing is – for the firms 

in the utilities sector – a key element 

of their social responsibility. Those actions 

are made easy when the different 

contributors in the territory are real 

partners. In return, they are considered 

legitimate and are recognized as making 

contributions from their experiences and 

their jobs for the improvement of living 

conditions of the population for better 

social well-being. Those experiences illustrate 

the introduction of a solidarity 

economy in urban development. 

GDF SUEZ’s 


GDF SUEZ develops its businesses 

around a model based on responsible 

growth to take up today’s 

major energy and environmental 

challenges: meeting energy 

needs, ensuring the security of 

supply, fighting against climate 

change, and maximizing the use 

of resources. The Group provides 

highly efficient and innovative 

solutions to individuals, cities, and 

businesses by relying on diversified 

gas-supply sources, flexible 

and low-emission power generation, 

as well as unique expertise in 

four key sectors: liquefied natural 

gas, energy efficiency services, 

independent power production, 

and environmental services. GDF 

SUEZ’s environmental services are 

grouped around SUEZ Environment, 

its subsidiary that operates 

exclusively in the water and waste 

treatment business, in which it has 

a 35 percent stake. Specializing 

in the management of the rare, 

vital resource of water and the 

treatment and recovery of waste, 

SUEZ Environment is developing 

in two sectors that will see major 

growth in the long term. Its business 

areas respond to basic needs 

and address the problems facing 

the planet: demographic pressure, 

growing urbanization, increasing 

scarcity of resources, and climate 

change. 


157

Best Practice 

Development 

Merck 

Attacking a Potential 

Killer of Children 

By Dr. Barbara J. Kuter and Maggie M. Kohn 

vaccine dose, and storage and handling 

of the vaccine. Epidemiologists from 

both organizations worked to develop 

study protocols to strengthen the country’s 

disease surveillance network and 

to assess the impact of the vaccine. 

The involvement of NGOs and multilateral 

organizations also was critical. 

The Pan American Health Organization 

(PAHO), the US Centers for Disease Control 

and Prevention (CDC), PATH – an 

international nonprofit organization 

focused on health issues – and several 

local NGOs became strong supporters. 

Importantly, all partners recognized 

from the beginning the importance 

of ensuring long-term sustainability 

of vaccine funding 

Helping to Improve Children’s Health in Nicaragua: The 

Merck-Nicaraguan Ministry of Health RotaTeq® Partnership 

For millions of children living in the 

developing world, the first few years of 

life can be a struggle just to survive, due 

in large part to the threat of a handful 

of diseases that have been eradicated 

or are easily treatable in the developed 

world. Such is the case with rotavirus, 

a severe, acute form of gastroenteritis 

characterized by vomiting, watery diarrhea, 

and fever. Infection may result in 

dehydration, hospitalization, and / or 

death. Prior to vaccine introduction, it 

was estimated that worldwide more than 

527,000 children less than five years of 

age died each year from rotavirus; more 

than 80 percent of those deaths occurred 

in developing countries. 

In 2006, the healthcare company 

Merck (outside the United States and 

Canada known as MSD) introduced 

RotaTeq® – its live oral pentavalent 

rotavirus vaccine – in the United States. 

Merck recognized, however, that this 

vaccine was most needed in the developing 

world, where the introduction of 

new vaccines has traditionally lagged 

behind developed countries by 15 to 

20 years. 

“We knew that the developing world 

could not wait 20 years for this vaccine, 

and recognized – thanks to new funding 

sources such as the GAVI Alliance 

– that it could realize its goal to shorten 

the time for vaccine introduction,” says 

Dr. Mark Feinberg, Chief Public Health 

Officer at Merck. 

With this benefit in mind, Merck 

sought to introduce RotaTeq® soon after 

its US introduction in a developing country 

with a high rotavirus disease burden 

and a strong immunization program. 

Nicaragua, one of the poorest countries 

in Latin America, fit those criteria. In 

2005, Nicaragua experienced one of its 

largest gastroenteritis outbreaks, with 

more than 64,000 individuals affected 

and more than 56 deaths. Disease occurred 

predominantly in children under 

five years of age, and 67 percent 

of the gastroenteritis was identified as 

rotavirus. 

Nicaragua benefited from a good 

infrastructure for vaccine storage and 

delivery and had vaccination rates of 

87 - 99 percent for routine childhood 

vaccines – equal to or better than 

the rates in some developed countries. 

Nicaragua also was one of 72 countries 

eligible for funding through the GAVI 

Alliance, which supports the purchase 

of new vaccines for low-income countries 

to help meet the UN Millennium 

Development Goals. 

The only problem was that Nicaragua 

could not afford the new vaccine, 

which could address an urgent public 

health need. 

Partnering for change 

After more than a year of discussions, 

the Merck-Nicaraguan Ministry of Health 

RotaTeq® Partnership was announced 

in September 2006. Merck pledged to 

donate enough rotavirus vaccine for 

three birth cohorts of children – or 

roughly 150,000 children every year for 

three years. Every eligible child would 

receive a three-dose regimen of RotaTeq® 

as part of Nicaragua’s routine national 

vaccine program. 

Merck also provided funding to 

help Nicaragua introduce the vaccine, 

improve disease awareness, develop appropriate 

educational materials about 

the vaccine, and update the routine 

vaccination card. The company also provided 

technical and financial assistance 

to assess the impact of the vaccine on 

rotavirus disease. The major goal of the 

project was not only to successfully in- 

troduce another vaccine into Nicaragua’s 

standard childhood vaccination schedule, 

but also to demonstrate the reduction in 

this potentially life-threatening disease 

and transition the program from a Mercksupported 

effort to an independent and 

sustainable program. 

Over the next three years, Merck 

donated more than 1.3 million doses 

of RotaTeq® to Nicaragua, vaccinating 

more than 90 percent of infants with all 

three doses. The key measures used to 

assess the impact of the vaccine were an 

enhanced rotavirus surveillance system 

to identify any cases of rotavirus and a 

study to estimate vaccine effectiveness. 

Data revealed a major reduction (58 to 

73 percent) in severe rotavirus cases in 

Nicaragua within the first year of the 

vaccine being routinely administered. 

In December 2009, financial support 

for the project was transitioned to GAVI. 

Today – one year after the project ended 

– Nicaragua continues to routinely vaccinate 

all children against rotavirus with 

vaccine purchased by GAVI. 

Criteria for success 

The success of the project was due to 

many factors and partners. 

The Nicaraguan Ministry of Health 

was acutely aware of the significant 

morbidity and mortality associated with 

rotavirus and recognized the urgency 

of providing their children with rotavirus 

vaccine. Merck and the Ministry 

of Health worked closely together in 

training more than 200 physicians and 

health workers in Nicaragua about the 

safety and efficacy of the vaccine, the 

proper age of administration for each 

Conclusion 

Nicaragua was the first GAVI-eligible 

country to introduce a new vaccine in 

the same year that it was licensed and 

introduced in the United States. The 

country has benefited from the introduction 

of rotavirus vaccine not only 

through reduction in rotavirus disease, 

but also by strengthening its vaccine 

infrastructure, its research capabilities, 

and identification of a sustainable vaccine 

financing mechanism. 

According to Feinberg, “The pharmaceutical 

industry has a long history of 

product philanthropy, launching multiyear 

donation programs, and donating 

its time and resources for capacity-building 

purposes to those in need. While 

philanthropy will continue to play an 

important role, many in the industry 

are starting to recognize the value in 

identifying areas where the company 

can make a difference through its core 

business and by aligning with the Principles 

of the UN Global Compact.” 

The Merck-Nicaraguan Ministry of 

Health RotaTeq® Partnership is such an 

example. 

For more information, please visit: 

www.merck.com 


159

Best Practice 

Development 

Novo Nordisk 

Early Origins of Health 

By Scott Dille 

The global community is beginning to understand the enormity of the humanitarian, 

societal, and economic challenge that noncommunicable diseases (NCDs) present. The rates 

of diabetes, cardiovascular disease, cancer, and chronic respiratory diseases are rapidly 

increasing in almost all countries such that these are now among the world’s biggest killers. 

There is a growing recognition that the development of these diseases may have their roots 

in our earliest days of life within the uterine environment and up to the age of two years and 

that early intervention is a cost-effective means of preventing NCDs later in life. Therefore, 

pregnancy offers a unique window of opportunity to turn the tide of the NCD epidemic. 

As part of our pledge toward the UN 

Secretary-General’s Global Strategy 

for Women’s and Children’s Health, 

Novo Nordisk is championing an initiative 

called the Early Origins of Health. 

Through new broad-based partnerships 

and on-the-ground interventions, we 

intend to promote an understanding of 

how healthy pregnancy and normal birth 

weight may hold the key to preventing 

diabetes and other NCDs. 

In recent years, experts have honed 

in on the first 1,000 days – the uterine 

environment and the early years of life 

– as being a marker for the lifelong increased 

risk of several chronic diseases 

such as diabetes. Understanding how 

maternal and child health is linked to the 

prevention of diabetes and other NCDs 

will provide us with the ideal window 

of opportunity to change diabetes and 

other NCDs for good – a change that is 

likely to enhance the much-needed focus 

on maternal and child health. 

As a world leader in diabetes care, 

Novo Nordisk has a responsibility and 

also the competencies to contribute to 

sustainable solutions. However, when 

faced with a challenge of this magnitude, 

we need to carefully consider where we 

can have the greatest impact: immediately 

and over the long term. 

Concretely, diabetes during pregnancy 

– known as gestational diabetes 

– is a serious condition that poses 

significant risk to both mother and child 

if it is not detected and managed. It also 

plays a crucial role in the lifelong risk 

of developing diabetes and other NCDs 

for both mother and child. The UN Population 

Fund estimates that gestational 

diabetes affects between 5 and 10 million 

pregnant women every year out of 210 

million pregnancies worldwide. Universal 

screening for diabetes during pregnancy 

would help effectively address this, but 

in many parts of the world screening is 

not available and many experts therefore 

believe that the scale of the problem is 

underestimated. 

Gestational diabetes that is not managed 

can be harmful to both the mother 

and the child. Babies of mothers with 

gestational diabetes are typically larger, 

which contributes to health problems 

like damage to shoulders during birth, 

low blood glucose at birth, higher risk 

of breathing problems, and the need 

for delivery by caesarean section. Gestational 

diabetes is also associated with an 

increased risk of spontaneous abortion 

and pre-term delivery. In low-income 

countries, life-threatening complications 

develop in more than 5 percent of cases. 

Researchers have also pointed out 

the long-term impact of gestational diabetes 

on both mother and child. Women 

with gestational diabetes have an increased 

risk of developing type 2 diabetes, 

metabolic syndrome, and cardiovascular 

disease. Children born to mothers 

with gestational diabetes also have an 

increased risk of developing diabetes, 

metabolic syndrome, and becoming overweight, 

a precondition to many NCDs. 

But the challenge is much more 

complex and requires that we go beyond 

addressing gestational diabetes. 

Many chronic adult conditions, including 

diabetes, are found to be related to inadequate 

nutrition during pregnancy. The 

overarching aim of the Early Origins of 

Health initiative is to promote a healthy 

pregnancy that leads to a normal birth 

weight. And in this equation, nutrition 

is essential. 

Therefore, in addressing this complex 

issue, we need to rely on a multisectoral 

partnership. As a company with 

expertise in diabetes care, we hold one 

CELESTE SMITH 

South Africa 

Celeste has gestational diabetes 

’Hoping for healthy twins’. 

piece of the puzzle. To have a sustainable 

impact, we need to ensure that a multitude 

of core capabilities are brought in 

to reflect the full scale of this daunting 

undertaking. The Early Origins of Health 

initiative will rely on our colleagues in 

the private sector, including partners 

in the healthcare sector, who hold vital 

capabilities in the field of diagnostics 

and child and maternal health. The partnership 

will bring in companies representing 

the food and beverage, mobile 

technology, and sports sectors, as well 

as leading medical associations, the UN, 

and nongovernmental agencies. We look 

forward to working alongside Johnson & 

Johnson and PepsiCo – the other founding 

private sector partners – who will 

provide their expertise in the field of 

nutrition and health literacy. 

Together, our aim is to design a 

blueprint that will enable women to 

achieve a healthy pregnancy and a normal 

birth weight for their children. This 

is not only a fundamental starting point 

for lifelong health and development, 

but also a fundamental step toward reversing 

the prevalence and easing the 

burden of diabetes and other NCDs. In 

joining this effort, partners acknowledge 

the need for positively influencing the 

women’s standing in society, including 

the cultural, family-related, political, 

and societal contexts set for maternal 

and child health. The development of 

health literacy among mothers and those 

influencing their health will be an indicator 

for the long-term impact of our 

efforts and the successful outcome of 

the partnership. Our focus will be on 

women living in low and medium human 

development countries where the unmet 

needs are most prevalent and where the 

full impact is greatest. 

The scale and impact of Early Origins 

of Health will address several of the 

UN Millennium Development Goals: It 

will promote gender equality and empower 

women (goal 3); reduce child mortality 

(goal 4); improve maternal health 

(goal 5); combat HIV/AIDS, malaria, and 

other diseases such as diabetes (goal 6); 

and establish a global partnership for 

development (goal 8). 

The first step is to build a consortium 

of likeminded partners; the second 

step will be to design a blueprint for 

what change would look like involving 

the core capabilities of the represented 

partners; the third step is to take the 

blueprint to relevant locations as a largescale 

project. By setting relevant outcome 

indicators – including health outcomes 

and the level of health literacy in the 

target population – we aim to build a 

model designed for scalability. 

We understand that this is a longterm 

commitment where results and 

concrete outcomes materialize over time. 

We pledge to stay on course and make 

the first 1,000 days the key to lifelong 

health. 


161

Best Practice 

Development 

the TMS Group 

Corporate Citizenship – 

Going Beyond Expectations 

By Jeffrey Revels 

TMS Group is a global sourcing enterprise for apparel and 

fashion accessories throughout Asia. Since the founding of 

TMS Group, the company has operated with the expressed 

and clear understanding that our business success and 

sustainability are irrevocably linked with giving back to the 

communities that are home to both our global operations 

and our employees. 

With this in mind, TMS Group has 

partnered with and supported – both 

through financial and volunteer efforts 

– the education and child care programs 

in two of the largest countries where we 

operate. This is part of giving back to the 

communities where we operate and is 

consistent with our inherent responsibilities 

as a global corporate citizen. 

Our operations contribute to community 

development through job creation, 

which drives economic growth in both 

the local communities where our offices 

are operated and through networks in 

the regions where our suppliers reside. 

These regions include China, India, Bangladesh, 

Indonesia, and Vietnam, and 

span 30 major metropolitan areas. Furthermore, 

our direct efforts via outreach 

programs give back to the communities 

through education and social development 

by providing opportunities and access 

to education and the development of 

youth. Education, combined with social 

development, offers the best hope and 

is key to breaking the vicious cycle of 

poverty that pervades developing nations. 

TMS Group recognizes the critical areas 

of social action in the developing nations 

where we conduct business. These 

areas include the survival and healthy 

development of children coupled with 

the social and economic well-being of 

families. Furthermore, nongovernmental 

organizations have recognized and 

attempted to implement programs that 

address both the strong potential benefits 

and the tradeoffs that these programs 

may have for children, women, and 

working families. 

Supporting educational and social 

development 

In December 2004, a disastrous tsunami 

struck every corner of Southeast Asia. 

The southern coastal city of Chennai, 

India, suffered from the tsunami devastation. 

TMS Group operates an office 

in Chennai and became the sponsor and 

primary contributor to the rebuilding of 

the Sacred Heart of Jesus Convent School. 

The school is located in the Paramankeni 

Kanchipuram coastal district. Through 

this funding, coupled with volunteer 

support, the school was rebuilt, and 

within five years, the school had grown 

to a total of 316 students by 2010, nearly 

a 50 percent growth rate. The school is 

divided into primary and secondary levels. 

The 125 primary school students are 

aged 6 - 11 years old. The 240 secondary 

school students are aged 12 - 16 years old. 

The school continues to grow, as families 

are relocating so that their children are 

able to enroll. Furthermore, this translates 

into greater numbers of children 

in this community who now have access 

to quality free education that boasts 

a strong success rate for students matriculating 

to other institutions of higher 

learning. While basic education in India 

is free, much-needed essentials such as 

school uniforms, additional clothing, 

and notebooks are not. These costs can 

have a devastating impact on poor families, 

thus disenfranchising them from 

the education opportunities. Children 

from this rural and impoverished fishing 

community are being presented with 

the opportunity to break the cycle of 

poverty and go on to advanced education 

opportunities and, subsequently, make 

greater contributions to their future 

families and society at large. 

Child day care – supporting work 

opportunities for single parents and 

working families 

Many enterprises consider child day care 

as a perk or an added benefit. However, 

in developing nations, this may prove 

to be the one obstacle that prevents 

women from entering the work force and 

contributing to the financial strength of 

their families. TMS Group has provided 

child day care since its founding. 

Continuing with this contribution, in 

2010 the Indonesia office of TMS Group 

launched its new child day care facility 

for employees. This modern 700 sq 

meter, three-story facility is located 

within walking distance to the TMS 

Group office; 1,000 sq meters of outdoor 

enclosed play area is part of the facility, 

too. This is a 100 percent companyfunded 

child care program provided at 

no cost to the families of 350 employees. 

Working parents have an opportunity 

to take advantage of free child day care 

services and after-school activities for 

their older children. This also includes 

pick-up and drop-off transportation for 

those children who require it. The safe 

learning environment, with its close 

proximity to the TMS office, also affords 

parent peace of mind. Moreover, 

working mothers have time to interact 

with children during lunch or other 

designated break periods. 

These types of contributions to both 

community and employees are part of 

TMS Group’s core values and keep with 

the highest ethical standards of the corporate 

culture at TMS Group. Through 

its worldwide operations, TMS Group 

seeks opportunities to make a positive 

impact on the local communities and 

the lives of the residents. 


163

Best Practice 

CSR Management 

AKSA 

The Value of Improved 

Community Awareness 

AKSA, a leading manufacturer of acrylic and carbon fibers in the world, has initiated a 

Community Advisory Panel comprised of about 45 representatives of municipal mayors, 

village elders, teachers, local authorities, and students selected from the villages in the 

vicinity of the facility. Since 2001, biannual or more frequent Community Advisory Panel 

meetings are held to assess and evaluate the coexistence of AKSA with the community, 

including issues of environmental, health, and safety performance of the facility as seen from 

the eyes of the public. In its 10th year, this Community Awareness Program has proven to be 

a valuable asset for AKSA, which has also been a participant in Global Compact since 2006. 

By Sibel Bekler 

AKSA’s corporate social responsibility philosophy 

has been formulated on the basis 

of voluntarily contributing to achieve a 

better community and environment. In 

this context and in order to achieve sustainable 

economic development, AKSA 

complies with the terms of the law, the 

company’s Articles of Association, and 

internal regulations (code of ethics, corporate 

values, etc.). 

The fundamental tenets to which 

the company adheres in the context of 

social responsibility are: keeping the 

interests of the community ahead of 

individual interests; avoiding relations 

that may lead to financial dependence 

on others; impartiality; accessibility; 

accountability; transparency; openness; 

and honesty. AKSA has adopted the mission 

of becoming an exemplary leader in 

the practice of these principles. 

In upholding the principle of acting 

as a productive and environmentallyconscious 

manufacturer, AKSA supports 

this with its “corporate reputation.” The 

company sets strategic targets to sustain 

development, realizing its goals with 

annual projects. As in previous years, 

many more social responsibility projects 

were implemented in 2010 with the 

support of volunteers from the ranks 

of AKSA employees: the Community 

Advisory Panel, AKSA Community School, 

the Community Open House Day, and 

the forestation projects are only a few 

of such projects. Since 2004, all social, 

environmental, and economic activities 

are reported and published in the format 

of the internationally accepted Global 

Reporting Initiative (GRI). 

Increasing community 

environmental awareness 

The efforts that started in 2006 to enhance 

environmental awareness and 

install waste management systems in 

the community schools are continuing 

uninterruptedly to date. To ensure the 

efficient use of the waste collection stations, 

seminars are organized for the 

benefit of environment clubs at community 

schools and reference booklets 

on waste management are distributed. 

The schools are also furnished with bulletin 

boards with information on the 

environmental issues. 

As part of AKSA’s Open Door policy, 

the Community Open House project 

enjoys the participation of volunteer 

members of the Responsible Care Team. 

In 2010, this activity was repeated not 

just on one day, but on three different 

days, allowing various focus groups to 

visit the facility in operation. 

Periodic seminars and continual 

waste management campaigns held at 

the community primary schools and 

in the villages have proven to be very 

efficient contributions of AKSA to increase 

environmental awareness in all 

segments of the community. The three 

two-week summer school sessions held 

annually at the facility, in cooperation 

with the local educational authorities, 

have become popular extracurricular 

activities for the community children. 

The plant seedlings grown by AKSA 

at its greenhouse for facility landscaping 

are also sent out to different non-AKSA 

events. In 2010, of approximately 15,000 

seedlings grown, 14,500 of them were 

donated to numerous Community School 

Activities and the Community Advisory 

Panel and to those participating in the 

Community Open House Days. 

AKSA also provides support to extramural 

activities for the university 

students. The most recent example being 

support given to the Discovery and 

Adventure Group of 18 Mart University 

students for an EU project called “Green 

Europe.” Following EU approval of the 

project, a series of seminars were held for 

students in the 18–24 age groups from 

Romania, Bulgaria, Greece, and Portugal. 

The European students participated in a 

forestation event in Yalova, Turkey, along 

with the representatives of the Discovery 

and Adventure Group, as well as AKSA 

employees. They planted seedlings raised 

in an AKSA greenhouse to contribute in 

making Yalova a greener place. 

The year 2010 was the second year 

that the AKSA Polymer School of Yalova 

University’s Continuous Education 

Center held AKSA Competency Development 

Workshops. The 10-week Polymer 

School sessions aim to create learning 

opportunities for specialists at AKSA who 

would like to develop their knowledge 

of polymer technology, in cooperation 

with Yalova University. 

A corporate citizen with high 

community awareness... 

In keeping with its emphasis on “creating 

social awareness, communication, 

and transparency” (one of the themes of 

AKSA’s 1993 commitment to Responsible 

Care© of the world chemical industry’s 

voluntary initiative), the Community Advisory 

Panel, a first of its kind in Turkey, 

has been active since 2001. The panel 

involves the periodic gathering of AKSA 

facility representatives together with the 

representatives of different segments of 

the community. The panel takes place in 

an open and comfortable environment 

that is not only conducive to communication 

but also to an open and systematic 

exchange of ideas between the industry 

and the general public. Panel agenda are 

determined by means of survey inputs 

of the stakeholders. The panel members 

share information on the results 

of AKSA’s External Audits for the ISO 

9001, ISO 14001, OHSAS 18001 systems, 

Responsible Care, Oeko-Tex 100 Standard, 

ISO 14064-1, and environmental 

legislation. In addition, they are also 

consulted on topics related to AKSA’s 

applications for National Quality Awards, 

its support of educational programs, and 

about the Corporate Social Responsibility 

projects, where speakers from stakeholders 

are invited to make presentations 

and comment on environmental issues 

in the region. In its 10th year, the Community 

Awareness Program has proven 

to be a valuable asset for AKSA, which 

has participated in the Global Compact 

since 2006. 

Further information: www.aksa.com 


165

Best Practice 


Kusch + Co 

Fostering CSR – 

Contract Seating 

Manufacturer 

Kusch + Co 

This Sauerland-based family business offers convincing proof 

that traditional values can harmoniously coexist with a 

modern commitment to mankind and to nature. Corporate 

social responsibility is an intrinsic pillar of Kusch + Co’s 

corporate strategy. 

By Ferdinand Filusch 

Kusch + Co has always embraced responsibility 

for the impact of its activities on 

the environment and communities and 

proactively promoted the public interest, 

practicing corporate social responsibility 

(CSR) long before it was labeled as 

such. That is why this globally operating 

medium-sized company was able to 

identify with the Ten Principles of the UN 

Global Compact. It was therefore a logical 

step for Kusch + Co to become a signatory 

of the UN Global Compact in February 

of 2010. Over the years, Kusch + Co has 

implemented many measures, supporting 

the thesis that CSR may evolve from 

a long tradition. 

“Corporate social responsibility is 

deeply embedded into our economic and 

social processes,” confirms Managing Director 

Ricarda Kusch. “Our commitment 

reaches beyond the Global Compact 

Principles in the areas of Human Rights, 

Labor Standards, Environmental Protection, 

and Anti-Corruption. Kusch + Co 

has pledged itself to promote CSR by assuming 

its environmental responsibility, 

by raising the public’s environmental 

awareness, and by promoting sustainable 

resource management, as proven 

by independent certifications.” 

CSR also encompasses vocational 

training. Both employer and employee 

benefit from the company’s traditionally 

high vocational training rate. In September 

of 2009, the trainees constituted 

about 9 percent of Kusch + Co’s workforce, 

outperforming the national average 

rate of 6 percent, based on the figures 

presented by the German Institute 

for Employment Research (Institut für 

Arbeitsmarkt- und Berufsforschung). After 

having successfully completed their 

training, most trainees chose to remain 

with Kusch + Co. The vocational training 

scheme is implemented throughout all 

departments and ranges from seating 

and table production shops and logistics 

to IT and accounting, all the way 

to sales and marketing, ensuring that 

Kusch + Co does not suffer from skill 

shortages like many other German companies. 

Incidentally, all employees may 

benefit from Kusch + Co’s continuing 

education program; in-house trainers 

tutor the staff in company classrooms, 

combining theoretical knowledge with 

practical applications. The voluntarily 

implemented international system 

OHSAS 18001 (Occupational Health 

and Safety Assessment Series) ensures 

optimum labor safety. A trained Occupational 

Health and Safety officer oversees 

the implementation and observance of 

the safety regulations. In addition, firstaiders 

are on-call in every department 

in case of an emergency. They attend 

refresher courses at regular intervals. 

Kusch + Co’s corporate policy is 

geared toward sustainable resource management, 

mainly by working renewable 

or recyclable materials into their seating 

such as wood, metal, or aluminum. 

For instance, the high-quality woodenframe 

seating and tables are, for the most 

part, manufactured in beechwood from 

Ricarda Kusch runs the third-generation 

family business in tandem with 

her father, Dieter Kusch. 

A table configuration by Kusch + Co 

in the boardroom of the Raiffeisen 

Zentralbank AG, Vienna 

the nearby Sauerland forests. Supplied 

parts, regardless of material, have to 

be produced according to environmentally 

friendly processes in compliance 

with strict regulations documented in a 

specification sheet. Kusch + Co has been 

PEFC-certified (Programme for the Endorsement 

of Forest Certification) for 

its entire chain of custody, guaranteeing 

that only wood from legal and sustainable 

forest cultivation is used. 

Kusch + Co is also the first German 

manufacturer of contract seating to 

compile Environmental Product Declarations 

(EPDs) for its entire portfolio, 

which have been certified by the DQS 

(German certification body) in compliance 

with ISO 14021, type II. These 

EPDs supply detailed information on 

environmental performance with regard 

to worked materials, material composition, 

recyclability, eco-efficient production 

processes, and transportation as 

well as functional properties for an 

excellent utility value. The EPDs also 

list all the credit points that each series 

may contribute to a successful LEED 

certification (Leadership in Energy and 

Environmental Design) of the entire 

building. 

The head of Integrated Management 

Systems, in his position as Environmental 

Protection and Waste Management 

Officer, is in charge of monitoring the 

observance of the legal and self-imposed 

environmental regulations. He has to 

supervise the eco-efficient use of materials, 

natural resources, and energy 

– spanning all the departments to include 

purchasing, production, packaging, 

and transportation activities as well as 

monitoring the offices’ water, power, and 

heat energy consumption. Kusch + Co 

has implemented an all-embracing environmental 

policy, taking the entire 

value chain into account, as proven by 

independent certifications, for instance 

ISO 14001 environmental management. 

To Kusch + Co, it has become a 

matter of course to pledge support to 

environmental nonprofit organizations. 

In June 2008, the company joined up 

with the German Environmental Management 

Association (Bundesdeutscher 

Arbeitskreis für Umweltbewusstes Management) 

– all members in this organization 

have to conform to a strict code. 

In the development phase, before 

the start of serial production, all products 

are tested as if they were to obtain 

the GS Mark for product safety. In the 

company’s test laboratory, all products 

must be able to successfully withstand 

increased test cycles that are threefold 

those stipulated in the relevant standards. 

The product’s longevity has a 

beneficial impact on its environmental 

performance, while at the same time 

saving valuable resources. 

Add to this the fact that the value 

chain is almost entirely confined to Germany 

– with materials and supplied 

parts being purchased from German 

suppliers – this guarantees a consis t- 

ent, high-quality level. “Quality is irreplaceable” 

has always been Kusch + Co’s 

mission statement. What is the connection 

with CSR? “Quite simply,” explains 

Managing Director Ricarda Kusch, “staff 

members are highly motivated by excellent 

working conditions, which give 

them an extra incentive to avoid any type 

of errors, providing a solid foundation 

to put our guiding principle effectively 

into practice.” 

Kusch + Co has adopted a holistic 

approach to the objectives and principles 

of its corporate policy, with quality, 

the environment, and labor standards 

being important and intrinsic parts of 

its overall strategy. All measures are 

separately documented in the directives 

of its TQM manual (Total Quality Management) 

and signed by the managing 

directors. The implementation of a new 

energy concept for a long-term power 

supply or the extension of occupational 

health and safety systems provide sufficient 

evidence of the company’s commitment. 

Kusch + Co proves that CSR is compatible 

with SMEs, requiring a fine 

perception of the correlation between 

humans and their environment. What 

matters most is the right “vision” – irrespective 

of the production site or the 

business size. Kusch + Co has mastered 

this delicate balancing act. 


167

Best Practice 


Puma 

PUMAVision 

By Dr. Reiner Hengstmann and Stefan D. Seidel 

As part of PUMAVision – PUMA’s sustainability concept – and in line with its mission to 

become the most desirable and sustainable Sportlifestyle company, PUMA introduced the 

sustainability scorecard in 2010 to achieve its ambitious environmental targets by 2015. 

The scorecard lists targets for a 25 percent reduction in energy and water usage as well as 

climate and waste emissions by 2015 compared to 2010. The targets include not only all 

PUMA entities worldwide, but also extend to PUMA’s supplier factories and into the areas of 

“sustainable” products and logistics. 

PUMA became the first Sportlifestyle 

company to join the Climate Neutral 

Network of the United Nations Environment 

Programme (UNEP). Its membership 

in this network highlights its concerted 

endeavors to slash CO 2 

emissions. 

With its new head office in Herzogenaurach, 

Germany – PUMAVision Headquarters 

– PUMA provided material 

proof of its commitment to combating 

climate change. The PUMAVision 

Headquarters is the first carbon-neutral 

headquarters in the Sportlifestyle industry. 

The office complex is equipped with 

three photovoltaic solar power stations, 

uses only renewable electricity, and is 

designed, built, and operated in such a 

way as to cut back on pollution and cap 

energy consumption. 

In addition, PUMA completely offset its 

own global CO 2 

emissions from the operation 

of its offices, stores, and warehouses 

as well as employee business travel worldwide. 

By purchasing voluntary emission 

reduction certificates (with a value of 

40,000 tons of CO 2 

) from two projects in 

Uganda and South Africa that were designed 

to reduce CO 2 

emissions as well as 

to help local communities develop, PUMA 

became the first carbon-neutral company 

within the Sportlifestyle industry in 

2010. Furthermore, the company offset 

emissions deriving from international 

travel of the PUMA-sponsored national 

football teams taking part in the Football 

World Cup in South Africa during 

summer 2010.To contribute actively in 

protecting the environment, PUMA has 

for many years banned PVC in the raw 

materials used in the manufacturing 

process of its entire product range. This 

is communicated to customers through 

a “PVC-free” product label. 

PUMA’s partnership with the Aid by Trade 

Foundation was further expanded in 2010 

and PUMA increased the number of textile 

items produced from African-certified cotton 

and given a “Cotton made in Africa” 

label, highlighting the special ecological 

and social aspects of the project in southern 

and western African countries such 

as Zambia and Burkina Faso. PUMA also 

started a range of organic cotton products. 

As a first example for a more sustainable 

packaging initiative, PUMA launched 

the “Clever Little Bag,” a new innovative 

packaging concept for footwear. 

By replacing the traditional shoe box 

with a reusable polypropylene bag supported 

by a fully recycled cardboard 

structure, PUMA will be able to realize 

considerable improvements for the 

environment. 

PUMA entered into a partnership with 

UNEP to support biodiversity. During 

the UN International Year of Biodiversity 

2010, the joint initiative “Play for 

Life” used the 2010 FIFA World Cup to 

generate awareness for the protection of 

endangered species, both on the ground 

in Africa and among PUMA consumers 

worldwide. The PUMA “Play for Life” 

collection, sold in PUMA stores worldwide, 

not only led to the first PUMA 

organic cotton products manufactured 

in “sustainable” factories that released 

their own sustainability reports, but also 

managed to generate a high six-digit 

US dollar amount that was donated to 

support specific biodiversity projects 

in Africa that were selected by online 

voting via Facebook. 

The company’s activities have related 

to sustainability but also to other challenges. 

For example, wages in the supply 

chain were discussed with a wide range of 

stakeholders and experts during PUMAs 

8th annual Talks at Banz. 

In 2010 PUMA was rewarded for its 

PUMAVision sustainability efforts through 

numerous ratings and awards, such as 

achieving Industry Sector Leadership in 

the Dow Jones Sustainability Index, winning 

the German Sustainability Award in 

the category of “best future strategy” and 

receiving the Peace and Sport Award for 

its PUMA.Peace program and multilayered 

campaigns to support global peace. 

For 2011 PUMA plans to combine its 

sustainability reporting with traditional 

financial reporting in an effort to express 

the strategic importance of sustainability 

topics within the overall corporate strategy. 

The company will also start looking 

into closed material cycles and recycling 

options through a partnership with the 

inventors of the Cradle to Cradle concept. 

PUMA has also taken an initial step 

to measure the full economic impact 

on ecosystem services by the company 

and its supply chain by developing the 

first-ever Environmental Profit and Loss 

(EP & L) account statement. 

In recognizing that the world is currently 

overusing the services provided 

by nature and that this natural capital 

must be conserved in order to ensure 

sustained shareholder value through 

the delivery of its products, PUMA is 

setting the pace for others to follow. 

PUMA’s measurement and valuation 

of its own environmental impacts represents 

a revolutionary shift in how 

companies can and should account for 

the impacts on ecosystem services in 

their business models. Such services 

may include: clean and breathable air, 

a habitable climate, clean water, and 

the provision of natural materials for 

production. The ultimate aim of an 

EP & L is to help integrate the values 

of nature into corporate sustainability 

strategy, planning, and decision-making. 

The quantitative valuation of the direct 

effects of business operations on ecosystem 

services will enable companies to 

better understand and manage identified 

impacts along the supply chain. Ecosystem 

services are not infinitely available 

and many are in a growing state of decline, 

with resulting negative impacts on 

businesses and the global economy. At 

present, this crucial link is not explicitly 

addressed in corporate sustainability 

strategies. Businesses have traditionally 

taken ecosystem services for granted and 

treated them as “free” services that go 

unaccounted for in their traditional profit 

and loss accounting and the delivery of 

their bottom lines. Since ecosystem services 

are vital to the performance of most 

companies, integrating the true cost for 

these services in the future could have 

significant impacts on corporate bottom 

lines unless growth can be linked to positive 

environmental outcomes. PUMA will 

announce the detailed results of their 

EP & L in the second quarter of 2011. 


169

Best Practice 



Sustaining Finance and 

Financing Sustainability in 

the Middle East 

Arab African International Bank (AAIB) believes in the 

significance of conserving the global environment for future 

generations and realizes the major role it has to play regarding 

this increasingly important issue. AAIB was the first bank in Egypt and 

the second in the region to adopt the Equator Principles to appraise projects’ 

financing while taking into consideration the social, ethical, and environmental 

hazards. 

By Perihan Abdel Ghaly 

The pledge is derived from the AAIB 

belief in broadening the scope of risk to 

go beyond credit risk to include social 

and environmental risk. AAIB constantly 

finds ways to minimize resource use to 

better sustain the earth, which has taken 

place through the following measures: 

Expenses Committee: 

Launched in February 2009, the Expenses 

Committee has a mission to improve 

the banks cost structure and operating 

targets while replacing the “culture of 

excess” with the “culture of necessity.” 

E-Movement: 

In 2008, AAIB had an internal initiative 

for replacing monthly salary pay slips 

with e-Statements. Issuing pay slips electronically 

has many benefits. It reduces 

time pressures, reduces paper consumption, 

and allows employees to easily 

view their salaries for any pay period 

they wish, rather than being limited to 

a one-month statement. 

Environmental Conservation: AAIB 

goes beyond Finance 

From guidance to practice: AAIB taking responsibility 

In 2004, AAIB announced its adoption 

of the United Nations Global Compact’s 

Ten Principles, making AAIB one of the 

pioneering financial institutions in the 

Egyptian market to become a signatory. 

This step was taken to align business 

practices with the sustainability 

measures of the Ten Principles 

promoting 

human rights, labor standards, anticorruption, 

and the environment. Since 

then, AAIB has annually issued its Communication 

of Progress, which explains 

the organization’s practices according to 

the Principles. Central to AAIB’s philosophy 

is environmental preservation. The 

bank is collaborating with national and 

global partners as part of its corporate 

social responsibility (CSR) strategy. The 

bank has shown 

a gr eat 

commitment to the UN Global Compact 

through its involvement in the 

ECRC (Egyptian Corporate Responsibility 

Council) with the UN Local Network in 

Egypt, which aims at offering support, 

guidance, and assistance from the UN for 

the Global Compact participants in Egypt. 

AAIB is an Equator Bank 

In 2009, AAIB decided that CSR should 

go beyond the general corporate practices 

and charity principles to include 

assessment for investment standards that 

require financing of more than $10 million. 

Thereafter, AAIB joined the Equator 

Principles, which are a voluntary set of 

standards for determining, assessing, and 

managing social and environmental risk 

in project financing. AAIB has taken this 

step forward in the belief that sustainability 

of business practices is directly 

proportional with the sustainability of 

available resources. 

Facts 

The core business of AAIB is engaging 

its stakeholders and reflecting the transparency 

of its practices. AAIB published 

its first sustainability report, entitled Finance 

with Value Creation, in December 

2010, marking the first sustainability 

report to be issued by a corporate bank 

in Egypt. As part of its “policy advocacy,” 

AAIB shares its social and environmental 

risk-initiative with peers and other corporate 

banks in Egypt and the Middle 

East. In cooperation with the International 

Finance Corporation, AAIB has 

conducted a workshop for heads of functions, 

managers, and branch managers 

on social and environmental risk policies. 

In 2011, AAIB launched the CSR Awareness 

Campaign as a core component of 

its Product Awareness program for staff. 

From business impact … to 

community impact 

AAIB has made visible efforts to measure 

the business and community impacts of 

its spending scheme in an attempt to assess 

the impacts of the bank’s activities 

on the community. AAIB adopted the 

London Benchmarking Group in 2006, 

and in 2009 the CSR Unit submitted 

the first London Benchmarking Group 

report, which measures AAIB’s Corporate 

Community Investment (CCI). The 

report represents AAIB’s impact on the 

community with numbers and diagrams. 

The report includes the “We Owe It To 

Egypt” (WOITE) spending scheme; sponsorships; 

philanthropy and donations; 

in-kind contributions; and employees’ 

volunteer hours. 

Health and Education: Two main 

pillars that limp and hobble 

In 2007, AAIB has institutionalized its 

socially responsible practices within a 

foundation, namely the We Owe it To 

Egypt Foundation, with an objective of 

turning Egypt’s public sector hospitals 

into centers of excellence with worldclass 

service. Two sectors are of a concern 

to the foundation: Health and Education. 

What is special about WOITE? 

It is the “cross-sector cooperation” between 

health, education, and financial 

institutions. The Foundation is not an 

emblematic grant-giving foundation but 

an operational foundation with hands-on 

involvement in its projects. The approach 

adopted by the bank involves more than 

just material donations, and attends 

to details of the renovation process of 

projects. The Foundation is responsible 

for providing ongoing training and 

skills upgrade opportunities for medical 

staff and improving service delivery. The 

Foundation provided a major grant to 

upgrade the information technology system 

of these unique centers of excellence 

in Egypt to maintain their excellence 

as renowned educational and medical 

cen ters. This has taken place through 

the following projects: 

Cairo University Specialized 

Pediatrics Hospital (CUSPH) 

This hospital is dedicated to providing 

medical services for children aged up to 

eight years old. This is the only hospital 

in the district that specializes in treating 

infants and children, hence, it faces the 

pressure of serving the population of a 

colossal district. 

The National Cancer Institute (NCI) 

This project is the real challenge for 

AAIB. In Egypt, more than 90 percent of 

cancer patients cannot afford treatment 

costs. There has been a steady increase 

in cancer patients. The Foundation is 

in charge of supplying the state-of-theart 

equipment and doubling the capacity 

of the operating rooms and the ICU, 

thus cutting down on waiting lists. 

The Urology and Nephrology Center 

in Mansoura University 

This center provides not only world-class 

treatment to its patients, but also commands 

a research and academic center 

that helps in providing thousands of 

educational opportunities to Egypt’s 

doctors and scientists. 

AAIB Award: Young minds … great 

ideas 

The first of its kind in the field of academia, 

the AAIB Award encourages 

university undergraduates to design innovative 

financial products or services 

for the Egyptian market. The annual 

competition aims at bridging the gap 

between academic and professional life. 

The Award was launched in 2003, targeting 

only one university. In 2008 the 

scope expanded to include seven more 

universities across Egypt’s governorates. 


171

Agenda ISO 26000 

How Geopolitic Change 

alters Social and 

Environmental Standards – 

The ISO 26000 SR Case 


173

Agenda 

ISO 26000 

By Prof. Dr. Josef Wieland 

I. The Process of Developing Norms 

Real globalization of the economy and society is accompanied by 

the twofold problem of institutional and organizational deficit. 

In contrast to international standards – which are decided on 

by individual states or intergovernmental organizations, and 

subsequently enforced throughout the world – the design 

and establishment of global standards and rules is still at the 

very beginning of the development process. This is due, not 

least, to a lack of internationally recognized and motivated 

organizations capable of promoting such a development process 

for globally accepted norms to regulate fair individual and 

organizational rules for behavior. The UN Global Compact 

or International Labour Organization (ILO) “core norms” can 

be mentioned here as exemplary and valuable exceptions. 

Furthermore, new stakeholders need to be included in the 

process of developing norms and new methods have to be 

created to generate norms in order for behavioral standards to 

be accepted by societal actors as legitimate norms throughout 

the world as a whole. Multistakeholder dialogs are an example 

of this kind of method. I would like to explain a number of 

aspects of setting global norms and standards based on the 

example of how the ISO 26000:2010 norm, Guidance on Social 

Responsibility (SR), has been established. 

With the design of the ISO 26000 norm, the ISO picked up 

suggestions proposed by their own consumer organizations 

pertaining to social responsibility in companies operating in 

global markets. In June 2002, the consumer policy committee 

met to discuss this subject. In the run-up to this meeting, 

a report entitled The Desirability and Feasibility of ISO CSR 

Standards was created. The first ISO meeting was held in 2004 

in Sweden and determined that the standard would not be a 

corporate social responsibility (CSR) but an SR standard. The 

standard was designed by a work group that had involved 

more than 600 experts and observers from almost 90 countries 

over the course of the last six years. New to the history 

of ISO was that these experts and observers were not representatives 

from ISO member organizations but constituted six 

stakeholder groups from industry, trade unions, consumer 

associations, governmental organizations, nongovernmental 

organizations, and experts from a variety of other areas, such 

as scientific fields. Representatives also came from so-called 

liaison organizations, such as the ILO, the Global Compact, the 

International Chamber of Commerce (ICC), etc. The legitimacy 

of this guidance norm, composed by the work group, results 

particularly from the inclusivity of the group with regard to 

all the relevant stakeholders; the balance between the different 

stakeholder interests and the interests of both developing 

countries and industrial countries; and the consensus-oriented 

and democratic methods. The ISO Final Draft International 

Standard (FDIS) 26000 was accepted by a clear majority. Both 

criteria for acceptance were clearly fulfilled: 1) More than 

two-thirds of the participating members (called P-Members 

in the ISO / Technical Management Board Working Group 

Social Responsibility (ISO/TMB WG SR) has to vote for acceptance 

(93% voted for it); 2) No more than 25 percent of all ISO 

members may vote against it – only 6 percent voted against 

acceptance (Cuba, India, Luxembourg, Turkey, United States). 

Germany abstained, as the trade unions had issued a united 

vote against acceptance. 

II. Meaning of the norm and of “social responsibility” 

The standard is called the ISO 26000 Guidance on Social 

Responsibility. It is therefore not a technical standard but, as 

already mentioned, a guideline for fair practices. It refers to all 

types of organizations (not just to companies) in all countries 

of the world, and therefore not just to the developed industrial 

states. Here is the complete definition of SR taken from the 

standard (2.18): It is the: 

responsibility of an organization for the impacts of its decisions 

and activities on society and the environment through 

transparent and ethical behavior that 

• contributes to sustainable development, including health 

and the welfare of society; 

• takes into account the expectations of stakeholders; 

• is in compliance with applicable law and consistent with 

international norms of behavior; and 

• is integrated throughout the organization and practiced in 

its relationships. 

The translation frequently used in Germany, Soziale Verantwortung, 

is, linguistically speaking, incorrect and misleading 

in terms of content, as it gives the impression this is about 

an international, slightly more relaxed version of the German 

system of social responsibility, which, thematically speaking, 

has a much narrower meaning and is oriented toward state 

or corporative regulation through politics, business, and 

trade unions. In comparison, the ISO 26000 does not target 

judicial regulation by the state at all, but is geared toward the 

ethical influence by society on practices in private and also 

state organizations. The goal is not merely “social responsibility” 

but goes further to include “societal responsibility.” As a 

consequence, the standard is therefore oriented to all organizations 

in all countries in the world, not just to companies in 

industrial nations, but also to administrations, universities, 

schools, etc. – and includes the developing countries. It would 

therefore be too much of a constriction to regard it as another 

CSR standard, or – to take this even further – this would be 

a misunderstanding of the intention of this document. The 

idea is that, alone, each individual stakeholder – governments 

or companies – would be overburdened with having to cope 

with the consequences of globalization. It is only through 

proactive involvement and by promoting cooperation among 

all the relevant social forces, by creating different forms and 

levels in societal regulation, that global challenges can be met. 

III. Core issues of the ISO 26000 

The ISO 26000 is not a technical standard and it is not a 

management system standard either. It is a guideline, not intended 

for certification purposes, but which centrally defines 

a common understanding of basic terms, principles, and task 

fields of social responsibility in organizations. What is meant 

globally by the terms accountability, transparency, ethical behavior, 

respect for stakeholders’ interests, respect for the law, 

respect for international standards, and human rights? These 

are the seven principles for which definitions were found by 

consensus and describe what the terms mean. The basic task 

of organizational SR is identification of the organization’s own 

fields, the possible options pertaining to social responsibility, 

and the involved stakeholders. The seven core subjects of 

social responsibility in governing organizations are human 

rights, labor practices, the environment, integrity, consumer 

protection, and community involvement. The task fields are 

also described here. This normative structure of principles and 

compulsory elements is complemented by practical explanations 

of the major areas on implementing social responsibility. 

The following diagram provides an overview and classifies 

the content into respective paragraphs. 

ISO 26000 Guidance on Social Responsibility: Overview 

Clause 4 

Seven principles of SR 

Accountability 

Transparency 

Ethical behavior 

Respect for 

stakeholder interests 

Respect for 

rule of law 

Respect for 

international norms 

Respect for 

human rights 

Recognizing SR 

Source: ISO 26000 

Integrating SR into an organization Clause 7 

Relationship of the organization´s 

Voluntary 

initiatives on SR 

characteristics to SR 

Reviewing & improving the organization´s 

actions & practices related to SR 

Stakeholder identification & engagement 

Practices for 

integrating SR throughout the 

organization 

Understanding the SR 

of the organization 

Enhancing credibility 

regarding SR 

Communication 

on SR 

Clause 5 

Seven core subjects Clause 6 

Organizational governance 

Human Labour The Fair operating Consumer Community 

rights practices environment practices issues involvement & develop. 


175


Once the principles, core subjects, and implementation strategies 

on social responsibility have been determined, a global 

foundation with consensual content is created, pertinent to all 

organizations and therefore to companies as well. As already 

mentioned, the standard names examples of fair practices, 

however the challenge for companies in industrial nations is 

to comply with these principles and to implement the core 

subjects or the examples of good practices. The ISO 26000 is 

much more likely to particularly influence the emphasis and 

alignment of CSR activities in companies and how they shape 

stakeholder networks in solving social tasks and challenges. Not 

least because this is how small and medium-sized companies 

are able to be better activated. 

IV. What’s new and what are the benefits of the norm? 

Here is a list of the aspects that have been introduced by the 

ISO 26000 into discussion and implementation of SR (and 

subsequently also CSR): 

1| Developing countries and emerging nations have played 

a significant role in drafting the norm. They were particularly 

interested in creating action standards in their own 

countries. What we have said above is reflected here in that 

this standard is particularly oriented toward these countries 

and is not merely intended for western multinationals or 

governments. This is a new and essential element. The fact 

that the People’s Republic of China voted for the standard 

underlines this point. 

2| The insights gathered from the process of setting standards 

indicate that today, worldwide competition is about who 

sets what standards for global business and society in the 

21st century. New types of standard setting (e.g., guidelines 

or technical standards instead of laws) developed by new 

players (the BRIC states, NGOs) and via new methods (e.g., 

deliberative discourse instead of the balancing of interests 

based on the corporate model) are on the agenda. The 

standard and how skilled the players are in setting global 

norms have yet to be proven today. Rejection of this type 

of task is only possible at the cost of own marginalisation. 

3| The central part of the standard is about defining globally 

accepted standards for fair practice in organizations. 

They are called global and not just international, as they 

are developed and accepted in the course of a fair and 

reasoned process. International standards can be set by a 

single country or group of countries and established internationally, 

whereas global standards are global with regard 

to how they are developed and established. Therefore, the 

ISO 26000 contributes to countering the institutional and 

organizational deficit with regard to globalization. 

4| A common standard comprising principles and tasks to 

heighten awareness for social tasks has therefore been 

developed. This has particular significance with respect to 

organizations and companies that trade and cooperate in 

a global context. German companies are therefore now in 

a situation to refer to a common document of reference 

when dealing with their Chinese or Brazilian partners, 

which is commensurate with already existing international 

norms and (also) CSR standards. These are mentioned and 

classified in the annex to the ISO standard. 

5| As a result of the involvement of NGOs and consumer 

representatives in developing the standard, not only does 

dialog among these organizations become easier, but the ISO 

26000 is subsequently also aligned to these organizations. 

SR is no longer a set of tasks exclusively for companies, 

often arbitrarily criticized as “moving targets” and running 

the risk of being subject to governmental regulation. SR 

is far more a responsibility shared by all the players and 

established in order to deal with the dilemmas that so 

frequently occur here. 

6| The standard is suitable as a contribution toward strengthening 

the public’s trust in companies and to reinstate this 

trust wherever necessary. Withdrawal of social acceptance 

and lack of social responsibility is ranked one of the top 

10 risks for companies in the future. This is the result of a 

global management survey conducted by Ernst & Young. 

The financial crisis and the environmental catastrophes of 

the last few years and months as well as the energy debate, 

to name but a few, paint a clear picture. This is not just 

about individual issues but about legitimizing the system 

and entrepreneurship. 

7| The ISO 26000 represents a globally legitimized reference 

standard, which companies can use to check and systemize 

their own CSR activities and to communicate it to 

their cooperation partners, customers, and the relevant 

communities. It also enables comparisons to be made with 

companies from other countries – which is not likely to 

put German countries at a disadvantage. The standard, 

therefore, also promotes establishing regulatory policies 

to govern competition. 

8| Basically, the standard is also especially relevant for the 

global players in developing and emerging countries. What 

is not often seen by the public is that Western multinational 

companies have to see eye to eye with competitors from these 

countries, who are not quite so committed to the subject of 

social responsibility. In this respect, the guidelines include 

a document toward which the market and the public can 

orient themselves. 

V. What are the critical issues? 

I consider the following issues to be possible critical elements 

of the ISO 26000: 

1| As in all documents of this type, the guideline includes a 

whole series of formal compromises: Only the future will 

show what is actually meant by them in practice. They 

include terms such as “impact of an organization” and 

“sphere of influence,” which are already known to be controversial 

and have to be clarified through accepted daily 

practice. However, the ISO 26000 does not contain any new 

(and complicated) definitions in this area. 

2| Even though the document is designed for all types of 

organizations, there is a risk that the public will largely 

perceive this to mean corporate organizations. This is where 

communication has to be clear and precise right from the 

start. The other stakeholders involved in the process have to 

be taken to task here to accept this standard for themselves. 

In this regard, the ISO 26000 has proposed the following 

communications strategy: SR (CSR) is not exclusively for 

companies, but the result of efforts made by all players in 

today’s society and their networks. Public administrations, 

universities, and NGOs shall assume major roles here and 

shoulder the respective responsibilities. These organizations 

especially will have to accept the fact of “shared dilemmas.” 

3| The “danger” of certification has been perceived from a 

number of different sides. Even though the standard has 

not been developed for certification purposes, certification 

companies already have offers in this regard and are likely 

to be increasing this kind of offer. This is unavoidable 

because of supply and demand dictated by business. Connected 

with the word “danger” is the expectation that not 

only will new regulatory burdens (for industry) emerge, 

but that statutory regulatory activities will be restricted (by 

the trade unions). We can safely say that not the quantity 

but the quality of public regulation can and will change. 

It seems more correct to me to point out that the standard 

itself corresponds to the status of real movement; it does not 

prescribe any specific activities or instruments but allows 

space for innovation and experiments. It is not possible 

today to seriously determine in a precise and definitive 

manner what will belong to fair social corporate practice in 

the global world. Any type of detailed regulation (whether 

this concerns laws or certification standards) hinders the 

search for new, better, and innovative solutions by the 

relevant players. In the global world, norms and standards 

must be left open to practical experience and subject to 

continual improvement. Therefore, forums are urgently 

required as a platform to exchange practical experiences 

about implementing the norm and should include involvement 

of all the affected players. Norms and standards as a 

continual learning process for the better: Maybe this is the 

real challenge of governing global interaction. 

Dr. Josef Wieland is Professor for 

Business Administration & Economics 

with emphasis on Business Ethics at the 

University of Applied Sciences, 

Konstanz. 


177

Agenda 

ISO 26000 

The Power of Voluntarism 

In today’s corporate responsibility debate, so-called soft laws are 

omnipresent. They seem to be the best solution to combine a maximum of 

social responsibility with a minimum of public interference. Their rise is 

closely connected with the age of globalization. 

By Dr. Elmer Lenzen 

Soft laws form part of a graded interpretation of law that explicitly 

welcomes multilateral and multi-sectoral arrangements. 

That was not always so. In the first decades after World War II, 

political science showed little interest in the laws of nations and 

scientific studies of their content, form, and processes. During 

the Cold War, the then prevailing “political realism” denied 

that international standards could influence the behavior of 

governmental and nongovernmental actors significantly, let 

alone that they could be conducted reliably through cooperative 

and peaceful channels. The criticism was directed against 

apparently old-fashioned moral values, which were blamed for 

delivering a wrong analysis of international relations, and worse, 

were interpreted as weakness by politicians in the East and 

the West. It was the time of the hawks in the centers of power. 

Nevertheless, this school of thought was by no means unchallenged. 

Back in the 1970s, critics of “political realism” cited 

that the nation-state can only respond within its borders, and 

therefore would be insufficient in addressing global and, by 

definition, transnational challenges. Economic issues gained 

relevance and became highly visible after the oil crisis in 1973. 

Also, new groups of actors and new social movements changed 

the political landscape. 

The end of the Cold War and the beginning of globalization in 

1990s led to a paradigm shift. John Ruggie writes that large parts 

of international relations entered a process of institutionalization 

and legalization. Volker Rittberger from the University of 

Tübingen adds: “With the end of the East-West conflict, the 

international standard setting and its enforcement seemed to 

have entered a new era, described by an increasing awareness 

of the importance and commitment to international law – an 

effectuation of the United Nations in general and the Security 

Council in particular – and an increasing acceptance by states 

of restrictions on their sovereignty in the area of human rights 

and environmental protection.” 

It was in that period of redefining the standard setting and 

its enforcement when politicians and stakeholders developed 

new instruments of control. Analyzing the political options of 

the European Union, John Ruggie listed in 2009 a large and 

well-balanced set of instruments that politicians can use today. 

They are both top-down as well as participative, depending 

on the specific needs: They start with recommendations and 

other instruments of awareness-raising, followed by public 

programs and public-private partnerships. The next stage are 

soft laws – standards and codices – which are legally nonbinding 

and sanctionable but which, as an effect, significantly 

influence the conduct of its participants thanks to internal 

rules and competition. The last and most strict instruments 

are directives and (hard) laws. 

Comparing “soft laws” with “hard laws,” it is undeniable that 

the latter are broadly accepted and more consistent with a 

clear set of sanctions. That reduces the amount of discussion 

about their interpretation. On the other hand, “hard laws” limit 

the autonomy of each of us. They also permit even counterproductive 

adaptation strategies, for example when actors 

include the cost of breaking laws. Finally, they do not give any 

incentive for optimizing the system. That is what makes “soft 

laws” and their often invisible barriers so attractive. The United 

Nations Global Compact and the Global Reporting Initiative 

are good examples of where this may lead. 


179

Agenda 

ISO 26000 

EXAMPLES 

UN Global Compact 

The UN Global Compact is a strategic policy initiative for 

businesses that are committed to aligning their operations and 

strategies with 10 universally accepted principles in the areas 

of human rights, labor, environment, and anti-corruption. By 

doing so, business – as a primary driver of globalization – can 

help ensure that markets, commerce, technology, and finance 

advance in ways that benefit economies and societies everywhere. 

ISO 26000 

ISO 26000 is intended to assist organizations in contributing to 

sustainable development. It is intended to encourage them to go 

beyond legal compliance, recognizing that compliance with the 

law is a fundamental duty of any organization and an essential 

part of their social responsibility. It is intended to promote 

common understanding in the field of social responsibility, and 

to complement other instruments and initiatives for social 

responsibility, not to replace them. ISO 26000 is a voluntary 

guidance standard that is not to be used for certification. 

models, and organizational strategy, as well as provide operational 

guidance on sustainability assurance and stakeholder engagement. 

The AA1000 standards are designed for the integrated thinking 

required by the low-carbon and green economy, and support 

integrated reporting and assurance. 

Tripartite Declaration on Multinational Enterprises and 

Social Policy 

This global declaration, adopted in 1977 and last revised in 

2006, is aimed at inspiring effective, socially responsible labor 

relations policies and practices in the world of work. It is the only 

international instrument on socially responsible business practices 

that has been agreed to by governments and representatives of 

workers’ and employers’ organizations. It sets core labor principles 

and promotes effective practices for both multinational and 

domestic enterprises in the areas of employment, skills training, 

conditions of work and life, and industrial relations. 

Global Reporting Initiative (GRI) 

GRI is a network-based organization that pioneered the world’s 

most widely used sustainability reporting framework. GRI is 

committed to the Framework’s continuous improvement and 

application worldwide. GRI’s core goals include the mainstreaming 

of disclosure on environmental, social, and governance 

performance. GRI’s Reporting Framework is developed through 

a consensus-seeking, multi-stakeholder process. Participants 

are drawn from global business, civil society, labor, academic and 

professional institutions. 

OECD Guidelines for Multinational Enterprises 

The Guidelines are recommendations addressed by governments 

to multinational enterprises operating in or from adhering 

countries. They provide voluntary principles and standards for 

responsible business conduct in areas such as employment and 

industrial relations, human rights, environment, information 

disclosure, combating bribery, consumer interests, science and 

technology, competition, and taxation. 

SA8000 

Social Accountability International (SAI) established one of the 

world’s preeminent social standards – SA8000. It is a recognized 

benchmark among the voluntary codes and standards initiatives 

that employers, including well-known brands, use to measure 

their own performance and responsibly manage their supply 

chains. Grounded on the principles of core ILO conventions, UN 

Conventions, and an ISO-style management system, SA8000 is 

applicable to virtually all industrial sectors. 

AA1000 Standards 

AccountAbility’s AA1000 series are principles-based standards 

to help organizations become more accountable, responsible, and 

sustainable. They address issues affecting governance, business 

OECD Convention on Combating Bribery of Foreign Public 

Officials in International Business Transactions 

The OECD Anti-Bribery Convention establishes legally binding 

standards to criminalize bribery of foreign public officials in 

international business transactions and provides for a host of 

related measures that make this effective. It is the first and only 

international anti-corruption instrument focused on the “supply 

side” of the bribery transaction. The Convention itself establishes 

an open-ended, peer-driven monitoring mechanism to ensure the 

thorough implementation of the international obligations that 

countries have taken on under the Convention. 

Ceres Principles 

By endorsing the Ceres Principles, or adopting their own 

comparable code, companies not only formalize their dedication 

to environmental awareness and accountability, but also actively 

commit to an ongoing process of continuous improvement, dialog, 

and comprehensive, systematic public reporting. In 2010, Ceres 

published The 21st Century Corporation: The Ceres Roadmap 

for Sustainability. It analyzes the drivers, risks, and opportunities 

involved in making the shift to sustainability, and details strategies 

and results from companies that are taking on these challenges. 

EMAS (Eco-Management and Audit Scheme) 

EMAS is a voluntary environmental management system 

(EMS), under which companies and other public organisations 

evaluate, manage and continuously improve their environmental 

performance. EMAS has been operative since 1995. EMAS 

was strengthened by the integration of EN/ISO 14001 as the 

environmental management system required by EMAS, by 

considering more strongly indirect effects such as those related 

to financial services or administrative and planning decisions. 

Currently, more than 4,400 organisations and approximately 

7,600 sites are EMAS-registered. 

Source: Descriptions from the organizations 

ISO 26000: Adding 

value to organizations 

and their habits 

By Marie d’Huart, 

Partner 

CAP conseil 

1 

“ISO 26000 moves from what is a really nice idea to providing 

something that is pragmatic and which people can actually 

implement.” That is how Rob Steele, ISO Secretary-General, 

describes the added value of ISO 26000. After six years of 

worldwide consultation and heavy debates, the main strength 

of the new Guidance on Social Responsibility (SR) is probably 

its affirmative answers to recurrent questions that have kept 

organizations awake for decades: How can we speak the same 

language when talking about values, principles, and ethics as 

well as contributions to society while avoiding inflicting any 

harm? How can we imbed SR inside our organizations and 

be sure we cover all the crucial topics? 

Many already say there is nothing really new in the Guidelines 

and that these are issues they have been dealing with. Probably. 

But agreeing on common definitions and practices when 

talking about SR is a real achievement when you deal with 

touchy issues like human rights, discrimination, complicity, 

and governance. 

Briefly, what is in there? 

ISO 26000 sets seven principles as the incontrovertible foundation 

of SR: Only after you have understood the real impact that 

they can have on your corporate behavior and finally agree 

with them can you start thinking about how to be socially 

responsible. Quite logically, stakeholders hold a central place. 

They are the fundamental partners of quality SR. 

The Guidelines then list seven core subjects pertaining to SR, 

affirming that they are relevant for all organizations. The 

Guidelines are, in a way, not “negotiable,” and luckily, they 

do not include subjects that anyone would find objection- 

180 



181

Agenda 

ISO 26000 

able. Each core subject contains a list of issues pertaining to 

that topic and related, specific principles. Not all issues are 

deemed to be relevant and significant to all organizations, 

and useful criteria are suggested to guide organizations in 

determining which are relevant to them. From a management 

perspective, this eases the work in finding which issues 

to focus upon. 

In practice… not a management standard! 

ISO has clearly stated this boundary: ISO will not provide a 

management system that is certifiable through third-party 

certification. This subject is too sensitive. ISO will (only) offer 

guidance, practical examples, best practices, and even links to 

useful tools and initiatives. Still, the chapter on integrating SR 

throughout an organization can seem misleading following 

ISO’s declarative approach in the previous clauses. Indeed, 

one senses the difficulties involved in writing practical guidance 

on “implementation” while at the same time avoiding 

making it appear like management systems ISO 14001 or ISO 

9001. No “shall,” no “must,” no declarations this time. Just 

suggestions. Still, there are helpful, detailed explanations 

about determining the sphere of influence of an organization, 

setting up an effective due diligence processes, and adapting 

one’s organizational governance, to name just a few fundamental 

practices. 

Future evolution 

But how can a non-restrictive standard have an impact on 

organizations? It looks like a very soft tool for achieving its 

ambition: making organizations more responsible regarding 

society and sustainable development. The existence of an 

international reference document from a recognized institution 

with such a strong multistakeholder consensus seems 

to launch a self-regulating mechanism that enables critical 

stakeholders to promote those who progress toward more 

SR and to sanction those going against the current. Social 

networks can play a role, like LinkedIn and Twitter already 

do. Will social pressure really function? There will probably 

be abuses – some have already happened. Regarding some 

points, the Guidelines can be very difficult to objectivize. 

Besides setting a norm for behavior, ISO 26000 could become 

a reference to improve what already exists. The Guidelines are 

there to serve as an inspiration to improve existing organizations, 

policies, projects, etc. They enable people – inside 

their organizations – to go through the questions that have 

inspired the document, read about actual SR issues, find new 

ideas, be aware of conflicts that can occur, know how to deal 

with ethical dilemmas, etc. Instead of judging if things are 

good or bad, responsible or not, it will add value to organizations 

and challenge habits. And we need that fresh approach 

to induce real change. 

ISO 26000: 

How About a Bit of 

Recognition? 

By Aiko Bode, 

Global Head of CSR and 

Sustainability, TÜV Rheinland 

2 

Finally it came to light. After nearly six years of intensive 

debate and discussion, the International Organization for 

Standardization (ISO) has adopted and published the ISO 26000 

Guidance on Social Responsibility. A guidance paper for all 

types of organizations – companies, governments, foundations, 

business associations, and NGOs alike. The global reception of 

the new norm has been all but enthusiastic. Many consider 

it as too complex, too detailed, too much of a management 

norm which even could become certifiable after all. Others 

feel that something is missing: Okay, we now have a guidance 

document, but once I apply it, who will recognize my 

efforts, my successes, or my hard work? The answer currently 

is: no one can. Or at least: no one should. But is this what the 

market – in particular companies – really want? Well, the 

answer is yes and no. 

Certifying social responsibility – a concept that acknowledges 

the commitment of companies going beyond legal requirements 

to give back to society, their local communities, and 

their staff – is indeed difficult. Historically, there are not many 

comparable developments in different countries, cultures, and 

societal evolutions. Being socially responsible in continental 

Europe versus the United States, for example, are two very different 

cups of tea. And who can define a “right” or “minimum 

expected” way of pursuing social responsibility? 

Against this background, a performance certification with 

global reach seems impossible. The current solution is to 

define certifiable norms nationally, such as the 26001 series. 

Looking into these norms, one is very much puzzled: There 

are little or no performance indicators and mainly managerial 

and system elements are addressed. The overarching question 

is: Does the organization have one or more managerial tools to 

address the different chapters and topical issues of ISO 26000? 

This question, however, is akin to asking what can indeed be 

globalized. If the performance of an organization (i.e., different 

social, governance, and environmental challenges and 

issues) is of lesser significance, then the structures, the tools, 

and the managerial approaches are of paramount importance. 

This, after all, is something one could very well define, and 

subsequently also certify. 

An uncertifiable norm poses a dilemma for many. On the 

one hand, it is virtually impossible to globally position an 

organization as “socially responsible.” Now, even if the norm 

is certifiable, it would be difficult to demonstrate a minimum 

level of awareness and the company’s goals with respect to the 

issues of ISO 26000. On the other hand, one may well ask if a 

norm like ISO 26000 needs its own indicators and stand-alone 

criteria in order to measure progress. The old management 

rule still proves to be true: “What you cannot measure, you 

cannot manage.” In my personal opinion, it is not necessary to 

reinvent the wheel, but rather to embrace existing criteria sets. 

There are many well-established and developed sets of criteria 

– be it within the auspices of other ISO norms or the UN Global 

Compact, the International Labour Organization, or standards 

such as the SA 8000 or the Global Reporting Initiative – that 

make it unlikely that really new key performance indicators 

are needed. Moreover, had one really developed a management 

standard along the lines of the managerial norms such as ISO 

9000 and ISO 14000, many of those elements could have been 

used to promote a perhaps more holistic and, thus again, certifiable 

standard. But all this has not been the case, and there 

were some good reasons for it. In my view, we now need to 

rethink what to do with ISO 26000. This may already be provocative: 

doing something with it. Maybe we need some new 

ways to recognize those who really wish to apply and implement 

ISO 26000. Therefore, I suggest an award scheme, hosted 

by ISO. An international multistakeholder jury will examine 

the achievements attained and award recognition in a public 

event to those who not only take their social responsibility 

seriously but who also prove to be lighthouses for guidance 

toward a perhaps more sustainable and responsible future. 

A Contribution to 

Sustainable 

Development? 

By Dr. Franziska Humbert, 

Oxfam Germany 

3 

In India, women farm workers earn 85 euro cents for a work 

day of 12 hours on supplier farms of the German Metro Group. 

In Ecuador, women suffer from abortions because of contaminated 

water caused by pesticides used on banana plantations; 

Ecuador is one of the main exporters of bananas worldwide. And 

in Costa Rica – the main exporter of pineapples – owners of 

pineapple plantations systematically suppress trade union rights. 

ISO 26000 – the new standard on social responsibility of organizations 

– was adopted by the International Organization 

for Standardization (ISO) in 2010 in order to help companies 

improve their behavior with regard to social responsibility. 

Whether the standard will indeed contribute to improve the 

social behavior of companies remains to be seen. 

This new “guidance” on social responsibility of organizations 

was developed using a multistakeholder approach involving 

experts from six different stakeholder groups: industry; consumers; 

government; nongovernmental organizations; organized 

labor; and the group of service and support organizations, 

researchers, academics, and others, mainly consisting of 

consultants. In acknowledgement that this global multistakeholder 

process had the potential to contribute to sustainable 

development, Oxfam Germany joined the process in 2007. 

A major achievement of the guidance is the agreed definition of 

social responsibility. It refers to the impact of an organization 

on the environment and society, mentions the stakeholder approach 

and the need to comply with the law and international 

norms of behavior, and includes the “sphere of influence” 

concept as well as the supply chain. International norms of 

behavior are defined as expectations of socially responsible organizational 

behavior derived from customary international law, 

generally accepted principles of international law, or almost 

universally recognized international agreements. Accordingly, 


183


and most importantly, the definition of social responsibility 

refers to the UN’s International Covenant on Civil and Political 

Rights and the International Labour Organization’s Core 

Conventions. Thus, a company that claims to act in accordance 

with ISO 26000 has to ensure that, for example, there is no 

child labor in its supply chain. 

In general, Oxfam welcomes the broad scope of ISO 26000: It 

includes seven core subjects ranging from human rights to 

labor, the environment, fair operating practices, consumer 

issues, and community involvement and development. Companies 

and other organizations need to deal with all of these 

if they wish to refer to themselves as socially responsible in 

accordance with ISO 26000. 

With regard to community involvement and development, 

it is laudable that this chapter explicitly refers to the Millennium 

Development Goals and states that the development 

process depends on all organizations, and that community 

involvement of organizations helps in achieving these goals. 

While this chapter contains a broad set of recommendations 

for organizations on how to proactively reach out to the community 

and promote and support community development, it 

fails to adequately take into account the rights of indigenous 

peoples. In failing to include the principle of free prior informed 

consent and instead referring to prior consultation 

of communities, including indigenous peoples, it does not 

comply with the UN Declaration on the Rights of Indigenous 

Peoples. This is a fundamental shortcoming of the standard. 

Major drawbacks of this standard are, however, the vague 

wording and the lack of clear and concrete recommendations 

on how organizations can implement corporate social 

responsibility throughout their supply chains. While some 

elements are mentioned – such as sustainability reporting, 

conducting social audits, or capacity-building including the 

requirements of workers – it remains unclear what methods 

and instruments should be used in order to systematically 

implement human and labor rights throughout their supply 

chains. There should be more concrete prescriptions, for example 

on reporting, on capacity-building including workers, 

on peer reviews, on how to work with suppliers, and how to 

collaborate with local partners. 

Another major shortcoming is the lack of any supervisory 

mechanism, and therefore of means for accountability. ISO 

26000 is a voluntary standard that a company may apply 

or not. Thus, there is the risk that companies may use the 

standard for greenwashing, that is, to claim that they operate 

in accordance with ISO 26000 without actually doing it. 

There is already a list of auditors that offer certification in 

accordance with ISO 26000, although the standard explicitly 

excludes certification. Since the standard is indeed not certifiable 

due to its vague wording, there is a great risk of abuse of 

the standard for certification purposes. 

However, with regard to process, the multistakeholder approach 

in the drafting of the standard has led to dialog between civil 

society, business, and government officials at the national 

level in many countries. Several Oxfam partners have noted 

positive experiences resulting purely from the process. 

In conclusion, while ISO 26000 has the potential of improving 

corporate social responsibility and contributing to sustainable 

development – having established, for example, a consensus 

on the definition of corporate social responsibility – more 

instruments are needed to help companies properly implement 

corporate social responsibility throughout their supply chains. 

A new tool to ensure 

labour rights 

By Philip Jennings, 

General Secretary of 

UNI Global Union 

4 

UNI Global Union, the global union federation representing 

more than 20 million workers in the private services sector, 

advocates changing the rules of the game in the global labor 

market in order to give workers a stronger voice and better 

conditions on the job. We believe that organizing the global 

workforce through unions in order to raise pay and improve 

conditions for the world’s workers is key to a sustainable 

economic future. 

The new standard on social responsibility – ISO 26000 Guidance 

on Social Responsibility – is one of the latest international 

regulations that sets guidelines for “responsible” corporate 

behavior. It creates a set of criteria by which companies should 

be judged in key areas, including human rights, labor issues, 

the environment, and fair operating practices. 

ISO 26000 addresses a full range of labor issues: work conditions, 

social protection, industrial relations and social dialog, health 

and safety, as well as training and human development. It makes 

clear that having good industrial relations and recognizing 

trade unions is an essential part of being socially responsible. 

All employers should provide job security and recognize the 

right of all employees to join a union and bargain collectively. 

This new ISO standard incorporates the core labor standards 

of the International Labour Organization. It is in line with the 

UN “Protect, Respect, and Remedy” framework (the “Ruggie 

Principles”) adopted by the UN Human Rights Council, as well 

as the OECD Guidelines for Multinational Enterprises, which 

have been recently updated. This entire package has helped 

create a new business environment that acknowledges that a 

company is responsible for its behavior in all its operations 

around the world and that, moreover, employers have an obligation 

to respect human rights. It is now widely understood 

that a company’s social responsibility goes beyond simply 

making voluntary assertions of good will. ISO 26000, the 

OECD Guidelines, and the Ruggie Principles all embody the 

principle that companies are responsible for the impacts of 

their activities and decisions on society. 

For UNI and for our member unions, the biggest drawback 

to ISO 26000 and other codes is that, while they admonish 

companies to take the right course, they lack effective enforcement 

mechanisms and thus may be reduced to rhetoric 

without substance. Too often, companies only superficially 

measure their compliance with corporate social responsibility 

(CSR) obligations. When confronted with problems, they often 

excuse their irresponsible corporate behavior by maintaining 

that they follow local laws. Multinationals are all too aware of 

the governance gap that allows one set of standards in countries 

where legal social protections are strong and another where 

enforcement is rare. 

A global agreement between an employer and a global union 

is one step a company can take to give weight and credibility 

to its CSR commitments. 

By signing a Global Agreement, a company signifies that it 

commits to trade union rights, like those outlined in ISO 

26000, and ensures that wherever it operates, its workers 

can join unions without fear, bargain collectively, and work 

under safe and just conditions. Global agreements go beyond 

just giving a company voluntary guidelines. By signing such 

an agreement with UNI, the company agrees to oversight by 

UNI and its unions to protect these rights. 

Our goal is to come through for the global workforce by organizing 

workers, giving them a voice on the job, and helping 

them raise their pay and conditions. We will use ISO 26000 

as another tool to persuade employers to sign Global Agreements 

and ensure companies respect union rights wherever 

they do business around the world. 


185


Can Social Responsibility 

Be Standardized? 

ISO 26000 Gives It a Go! 

By Anne Gadegaard, 

Even though organizations cannot be certified according to 

the ISO 26000 Guidance on Social Responsibility, the short 

answer to this question about standardization would be a yes 

… and no. Yes, since it is possible to standardize an organization’s 

processes of working in an integrated environment 

with social responsibility. But no, since it is not possible to 

standardize the outcome of this process – the organization’s 

level of social responsibility. 

But in this respect, the outcome is not what matters. This is not 

just another beauty contest to determine who does best. The 

point is that all types of organizations, together with their stakeholders, 

should explore what their material issues are and how 

they should address them in order to deliver long-term value to 

the organization, the organization’s stakeholders, and society. 

With the publication of the long-awaited ISO 26000 Guidance 

on Social Responsibility, more than 500 experts from all types 

of organizations around the world have reached consensus on 

how social responsibility can be integrated in an organization. 

The mere fact that consensus has been reached with such a 

wide stakeholder representation in the process of developing 

the standard is a significant achievement and a key strength. 

I believe it was a bold move by ISO to initiate this process and 

they should be commended for this. One of the standard’s 

weaknesses is its length and level of complexity. For an organization 

that wants to initiate the process of working with 

social responsibility, I would suggest using the recommended 

seven principles and seven core subjects to get started rather 

than reading the standard from A to Z. 

In short, my summary of what an organization must do is: 

5 

Program Director, 

Novo Nordisk, and Chairman of 

the Danish Mirror Committee to 

the ISO 26000. 

1| identify its material issues and key stakeholders; 

2| engage with key stakeholders on key material issues – are 

these the right ones? 

3| decide on how the governance of the work with the key 

material issues should be organized internally; 

4| develop strategies and action plans for the prioritized material 

issues; 

5| engage with key stakeholders and receive their input to 

the priorities; 

6| initiate, follow up, and communicate about the progress 

in a balanced way. 

While this might seem simple, there will be several internal 

and external challenges on the journey. Once an organization 

has committed itself to this and has communicated this commitment, 

expectations will increase. Prioritizing stakeholder 

expectations entails that not all stakeholders will be content. 

Understanding how to deal with these challenges is part of 

the learning journey. 

It is important that the organization is clear about its purpose 

and how it can create long-term value for shareholders, 

stakeholders, and society. Being socially responsible should 

not be seen as just yet another cost to the organization, but 

rather as the way the organization understands its responsibility 

and seeks to meet stakeholder expectations in order 

to maximize value for all. The best way of illustrating this is 

through an example. 

Novo Nordisk is a healthcare company whose purpose is to 

discover, develop, and market therapeutic treatments to people 

with chronic conditions such as diabetes, hemophilia, and 

growth hormone deficiency. In other words, their purpose is 

to save lives and improve people’s quality of life. To succeed, 

the business must be profitable and deliver a competitive 

return on shareholders’ investment. Just as important, commercial 

success depends on the ability to earn and maintain a 

societal license to operate – to align business priorities with 

society’s needs and to reconcile diverse stakeholder expectations. 

That is why Novo Nordisk’s business philosophy is to 

always seek to balance financial, social, and environmental 

considerations with the aim of creating long-term value for 

the patients they serve as well as becoming a sustainable 

business. 

The most material issue for Novo Nordisk is access to health. 

With the epidemic spread of diabetes – there were an estimated 

285 million people with diabetes in 2010, and it is expected 

to increase to 438 million in 2030 – it will be impossible for 

Novo Nordisk alone to bring a halt to this pandemic. Diabetes 

is a lifestyle-related condition that is linked to economic 

growth, a result of dietary changes, and sedentary lifestyles. 

We therefore engage with patient organizations, healthcare 

professionals, governments, and other key opinion leaders 

through our Changing Diabetes® program to find shared solutions 

to this problem, which has immense personal, social, 

and economic costs. 

Another global and related challenge that Novo Nordisk 

faces is climate change. And while we do not belong to 

an energy-intensive sector – or for that matter have high 

carbon emissions – we recognize that these two challenges 

share the same root causes, and so the remedies would also 

be similar. Helping to address both is therefore consistent 

with our purpose. 

Initially we set an absolute reduction target for the CO 2 

emissions 

from our production process. This is our commitment as a 

member of WWF’s Climate Savers program. We have decoupled 

CO 2 

emissions from the growth in sales – CO 2 

emissions per 

sales have decreased from an index level of 100 in 2003 to an 

index level of 20 in 2010. This is based on investments that are 

paid back in two years on average and that will continue to 

generate annual cost savings in the long term, not forgetting 

the avoided social costs of carbon emissions. 

So my best advice is to get started. Use the ISO 26000 as a 

framework that includes the building blocks that need to be 

considered – then develop your own tailor-made approach 

to social responsibility. Do not get overwhelmed by the many 

issues. Prioritize, and then engage with your organization’s 

stakeholders to get the priorities right. That way you are in 

a much better position to secure long-term value for your 

organization, for your stakeholders, and for society. 


187

Agenda 

ISO 26000 

Sergei A. Ordzhonikidze was Director-General of the United Nations Office 

at Geneva (UNOG) from March 2002 until March 2011. A career diplomat, he joined the 

Soviet diplomatic service in 1969. He was first posted to the Permanent Mission of the Soviet 

Union to the UN in New York and then served as Assistant to the Deputy Foreign Minister in 

Moscow. In 1978, he returned to the Permanent Mission to the UN in New York. In 1983, he 

was appointed Deputy Chief of the International Legal Department of the Ministry of Foreign 

Affairs in Moscow before serving as Deputy Permanent Representative to the UN in New York. 

In 1996, he became Director of the Department of International Organizations until 1999 

when he was appointed Deputy Minister of Foreign Affairs. Mr. Ordzhonikidze graduated 

from the Moscow State Institute of International Relations and completed his post-graduate 

studies in international law at the Diplomatic Academy of Moscow. 

The long history of 

cooperation between 

ISO and the UN 

With only five years to go, can you give us a brief update on the status of 

the implementation of the UN Millennium Development Goals (MDGs)? 

Sergei A. Ordzhonikidze: In September 2000, world 

leaders gathered at the United Nations Headquarters in New 

York and adopted the United Nations Millennium Declaration, 

a milestone in international cooperation. They set up 

time-bound targets known as the Millennium Development 

Goals (MDGs). 

The leaders agreed to achieve the following MDGs by 2015: 

• Eradicate extreme poverty and hunger 

• Achieve universal primary education 

• Promote gender equality and empower women 

• Reduce child mortality 

• Improve maternal health 

• Combat HIV/AIDS, malaria and other diseases 

• Ensure environmental sustainability 

• Develop a global partnership for development. 

The last progress report issued in June 2010 shows that major 

progress has been made and that many countries are moving 

forward. It further highlights, and it is perhaps the most 

important aspect of it, that the MDGs are achievable if the 

political will is present. I would like to provide three examples 

to illustrate this positive trend. 

The first example is linked to goal 2: achieve universal primary 

education. In Kenya, the abolition of school fees led to an increase 

of the enrolment rate : two million more children were 

able to attend primary school. The second example is related 

to goal 6 : combat HIV/AIDS, malaria and other diseases. In 

Cambodia, the spread of HIV was reversed with the prevalence 

falling from 1.8 % in 2001 to 0.8 % in 2007. The last example 

illustrates the progress made in the field of environmental 

sustainability which corresponds to goal 7. Between 1999 

and 2005, Costa Rica prevented the loss of 720 km 2 of forests 

in biodiversity priority areas and avoided the emission of 11 

million tons of carbon. 

We have to build on these successes. The challenges ahead of 

us are still very important and the obstacles to overcome are 

numerous. Failure is not an option. The economic and financial 

crises have slowed down many projects and have impacted 

the most vulnerable populations. We therefore have to work 

even harder to keep our promises and allow every human 

being to enjoy basic human rights and needs. 

How can the implementation of ISO standards help organizations 

meet the MDGs? 

Sergei A. Ordzhonikidze: Generally speaking, norms, 

conventions and standards can significantly contribute to the 

achievement of the MDGs in a number of areas. For example, 

the United Nations Economic Commission for Europe (UNECE), 

which is one of the five regional commissions of the United 

Nations, has a mandate to promote pan-European economic 

integration. It has prepared an Action Plan which provides a 

set of targets and measures to raise energy efficiency in the 

housing sector. The latter is one of the main sources of CO 2 

emission in the European region and the application of such 

measures by countries would play a key role in the achievement 

of the relevant target under MDG7. 

ISO has developed a large set of standards in the environmental 

field which are quite complementary with the UNECE norms 

and conventions in this area, and thereby also contribute to 

the achievement of this MDG on environmental sustainability. 

And there are many other examples on how ISO standards help 

organizations meet the MDGs. For instance, ISO 26000 helps 


189

Agenda 

ISO 26000 

organizations achieve the benefits of operating in a socially 

responsible manner and is directly linked to MDG3, “Promote 

gender equality and empower women”. Thus, the core subjects 

and issues of social responsibility defined by ISO 26000 include 

human rights, labour practices, the environment, fair operating 

practices, consumer issues and community involvement 

which encompass, among other things, the principles of equal 

opportunities and non-discrimination. 

ISO 9000 has an important impact on education and many 

educational institutions have been called upon to use these 

standards. It contributes to MDG2, “Achieve universal primary 

education”. 

The role of International Standards in economic development 

has been emphasized on many occasions, more particularly 

with the reference to the standards in the Technical Barriers 

to Trade Agreement of the World Trade Organization. 

Building efficient partnership is one of the ways to address 

these global issues. The challenges ahead of us are numerous 

but together we can overcome the difficulties. 

Published in 2010, the ISO 26000 standard giving guidance on 

social responsibility is the result of the collaborative effort of industry, 

government, international organizations (including UN bodies such as 

UN Global Compact and the ILO), academia, NGOs, service providers, 

consumer representatives and other stakeholders. What do you foresee 

will be the impact of this standard? How does it complement the work 

being carried out by the UN Global Compact? 

Sergei A. Ordzhonikidze: It is the first time that a standard 

is dedicated to social responsibility and we highly support it. 

What makes it very interesting is that it is not only targeting 

private companies but all types of organizations as well 

as governments, so we really hope that it will contribute to 

protect the most vulnerable populations, the ones that are too 

often forgotten while they should be on the top of the agenda. 

Launched in July 2000, the UN Global Compact (UNGC) is composed 

of 8,700 stakeholders from over 130 countries. It is both 

a strategic voluntary policy initiative and a practical framework 

for entities willing to establish responsible business practices. 

It promotes the engagement of business activities to the 10 

universally accepted principles in the areas of human rights, 

labour, environment and anti-corruption. The key goals are 

to set the 10 principles in business activities as a global norm 

and thus rally action and support for UN mandates, more so 

with the MDGs. During the last UNGC Leaders Summit, which 

took place in June 2010 in New York, leaders from all sectors 

promoted the need for responsible business. Time has come to 

turn this need into reality. 

“ 

Concrete 

actions are 

expected and 

together we 

can make it a 

reality. 

” 

many of the conventions from which the principles are derived 

were formulated in Geneva. Furthermore, a large number of 

United Nations agencies here are involved in the implementation 

of these international instruments. 

On a daily basis, the United Nations family in Geneva is engaged 

in elaborating and monitoring technical standards, norms 

and agreements. When all these efforts are combined, they 

make up an essential part of the infrastructure for the global 

economy. Through normative work and technical assistance 

in areas as diverse as health, labour, intellectual property, 

telecommunication and trade, we contribute to creating an 

enabling environment for economic and social development. 

ISO 26000 and the UN Global Compact are both promoting 

the notion that there is a need for organizations to behave 

in a socially responsible manner. For instance, ISO 26000 

advises entities on how to support human rights and fight 

abuses which is fully consistent with UNGC principles 1 and 

2. It asserts that businesses should support and respect the 

protection of the universally proclaimed human rights and 

make sure that they are not complicit in human rights abuses. 

Multi-stakeholder collaboration is key to the ISO process in order 

to develop standards that truly represent global consensus and are 

widely accepted. ISO closely works with several UN bodies. What is 

the value of this collaboration and participation for the UN and its 

agencies? 

Sergei A. Ordzhonikidze: We highly value the long-time 

cooperation between the UN, its agencies and ISO, which either 

takes the form of Memoranda of Understanding (MoUs) and / 

or through direct contacts between UN groups of experts and 

relevant ISO technical committees (TCs). 

A MoU concerning standardization in the field of electronic 

business was, for instance, signed in 2000 by ISO, UNECE, 

the International Telecommunication Union (ITU) and the 

International Electrotechnical Commission (IEC). The international 

organizations named above, and other interested 

stakeholders, regularly meet in order to exchange information 

on the current activities and future projects, and to 

coordinate activities. 

Direct contacts between UNECE and ISO groups of experts 

occur, for example, at the Working Party on Regulatory Cooperation 

and Standardization Policies and the World Forum 

on the construction of vehicles. More specifically, the World 

Forum / WP29 widely uses relevant ISO standards while forming 

regulations for vehicles concerning safety, protection of 

environment and conservation of energy. 

Another form of cooperation is the adoption of UN standards 

as ISO standards. Some of the standards elaborated by UNECE 

were subsequently adopted as international standards. For 

The United Nations Office at 

Geneva (UNOG) 

2010 marked the 65th anniversary of the United Nations. 

The need for strong multilateral governance is as great today 

as when the United Nations was founded to overcome 

shared challenges such as human rights abuses, poverty, 

violent conflicts, ever-rising military expenditure, and 

inequalities among and within countries. 

example, the most widely cited “language” for electronic 

data interchange – UN / EDIFACT – was adopted as an ISO 

standard (ISO 9735). 

The same is also true for ISO standards being adopted by the 

United Nations. For instance, UNOG’s most recent certification 

to an ISO standard (ISO 14001) for its publishing operations 

illustrates one of the many efforts the organization has undertaken 

to promote sustainability. 

These few examples of strengthened cooperation illustrate how 

important common efforts are in helping solve some shared 

challenges. The value of collaboration between ISO and the 

UN is underwritten within the mandates of both organizations. 

Many of the values include knowledge sharing, coordination 

of activities, joint research and publication efforts, and ensuring 

effectiveness and efficiency as we respond to the urgent 

needs of the most vulnerable. 

Concrete actions are expected and together we can make it a 

reality. Today’s challenges are global in scope. We must combine 

the universal authority of the United Nations, the global 

reach of international business and the mobilizing power of 

civil society to confront these challenges together. 

This interview was originally published in “ISO Focus+”, 

March 2011. 

Examples of linkages are numerous in the field of labour, 

As the representative office of the Secretary-General of the 

United Nations in Switzerland, the United Nations Office 

environment, and anti-corruption. We therefore hope that 

at Geneva (UNOG) serves as a dynamic multilateral hub. It 

entities will choose to adopt ISO 26000 and become more aware 

enables Member States and partners to discuss and craft 

of the importance of their social responsibility. By adopting 

policies, works with the wider United Nations system to 

support the development and implementation of reforms and 

this new standard, one can change the life of many people 

contributes to raising awareness of the role of the United 

The United Nations family in Geneva works on areas that by making it healthier and safer. It is in our hands: we can 

Nations and to building the mutual understanding and 

touch upon all 10 principles of the Global Compact. Indeed, improve the quality of life for the many millions. 

respect among cultures. In 2010, 1,697 people were 

working at UNOG representing 117 nationalities, making 

it the biggest duty station outside of the United Nations 

Headquarters in New York. 


191

GC International Yearbook 

Imprint 

Publishing house: 

macondo Media Group 

Foreword: 

H.E. Ban Ki-moon, 

United Nations Secretary-General 

Publisher: 

Dr. Elmer Lenzen 

Editorial staff: 

Marion Book (Senior Editor), Judith Bomholt (Editor), Dennis 

Lohmann (Editor), Malte Jonas Klingenhäger (Assistant) 

Photo Director: 

Marion Book 

Art Director: 

Katja Montag 

Text Editor: 

Robert Furlong 

Translations: 

Casey Butterfield 

Advisory Board: 

Habiba Al Marashi (Chairperson Emirates Environmental 

Group, UN Global Compact Board Member), Matthias 

Stausberg (Spokesperson United Nations Global Compact), 

Dr. Cornis Theunis van der Lugt (Technology, Industry and 

Economics United Nations Environmental Programme), Prof. 

Dr. Peter Eigen (Founder of Transparency International [TI] 

and Chairman Extractive Industries Transparency Initiative 

[EITI] ), Ralph Thurm (Director Sustainability Strategies 

Deloitte Financial Advisory Services B.V.), Dr. Andreas Rasche 

(Assistant Professor of Business in Society Warwick Business 

School), John Finisdore (leads Business & Ecosystem Services 

Project at the World Ressource Institute) 

Authors of this edition (in alphabetical order): 

Editorial section: Craig Badings, Bill Baue, Robyn Elizabeth 

Beaver, Aiko Bode, Dr. Sasha Courville, Teresa Fogelberg, 

Anne Gadegaard, Lord Michael Hastings of Scarisbrick, Marie 

d’Huart, Dr. Franziska Humbert, Philip Jennings, Mark Lee, 

Prof. Dr. Jean-Pierre Lehmann, Dr. Elmer Lenzen, Dr. Markus 

Loewe, Habiba Al Marashi, Craig Moss, Prof. Dr. Dr. Hans 

Müller-Steinhagen, Dr. Marcy Murninghan, Walid Nagi, 

Prof. Dr. Adil Najam, Sergei A. Ordzhonikidze, Prof. Dr. Henrik 

Selin, Matthias Stausberg, Dr. FranzTrieb, Patrin Watanatada, 

Prof. Dr. Josef Wieland 

Best practice section: Emma Arvidsson, Sibel Bekler, 

Charlotte Bengt Petersen, Verena Blaschke, Lisbet Bræmer- 

Jensen, Francesca Carnesella, Muallem A. Choudhury, 

Eduardo Dantas, Scott Dille, Wang Dong, Dr. Rumana Dowla, 

Ralf Dürrwang, Marina Ee, Jean Pierre Ermenault, Nusrat 

Fathima, Ferdinand Filusch, Nikos Fokas, Christian Frutiger, 

Celine Furnanz, Lilian Furrer, Alessandra Gagliardi, Perihan 

Abdel Ghaly, Simonetta Giordani, Natalia Gonchar, 

Dr. Wolfgang Große Entrup, Wolfram Haller, Volker 

Hasenberg, Dr. Reiner Hengstmann, Susan Heuer, Daniel 

Hußmann, Jeffrey A. Joerres, Ravi Khan, Maggie M. Kohn, 

Kokila A.N, Eveline Kramers, Dr. Barbara J. Kuter, Sevda 

Latapie-Bayro, Allan Lerberg Jørgensen, Mechthilde Maier, 

Rainer von Mielecki, Pakis Papademetriou, Andrea Ragni, 

Jeffrey Revels, Jens Rupp, Stefan D. Seidel, Pretty Shrestha, 

Andreas Streubig, Kenan Tur, Pelagia Viatcheva, Malte Witt 

Solely responsible for the editorial contributions under the 

heading “Best practice” are the companies themselves. 

Named articles do not reflect the opinion of the publisher. 

Photo Credits: 

UN Photo/Mark Garten (P. 3), Kzenon/fotolia.com (P. 4, 

6/7), František Czanner/istockphoto.com (P. 5, 172/173), 

darknightsky/fotolia.com (P. 8), Pixmedia/Crime Concern 

(P. 10), Ermano Grosz/fotolia.com (P. 14/15), Deb Ost 

Photography (P. 17), Andrey Prokhorov/istockphoto.com 

(P. 18), Adam Kazmierski/istockphoto.com (P. 21), Jeff 

Woodward (P. 22 left), Marcy Murninghan (P. 22 right), 

Johannes Kohl/pixelio.de (P. 23 oben), Miro Sabic (P. 23 unten), 

UN Photo (P. 24/27), SVLuma/fotolia.com (28/29), UN Photo/ 

Martine Perret (P. 30), Abbie Trayler-Smith (P. 33 below), 

Pavel Losevsky/fotolia.com (P. 34), Zoe/fotolia.com (P. 36), 

Patrin Watanatada (P. 37 left), Mark Lee (P. 37 right), Vestas 

(P. 41, 43), WindMade/Vestas (P. 42), XtravaganT/fotolia.com 

(P. 44), Norman Hildenbrand/fotolia.com (P. 46), Adil Najam 

(P. 47 left), Henrik Selin (P. 47 right), UN Photo/UNHCR/A. 

Duclos (P. 50/51), Joel Carillet/istockphoto.com (P. 55), Evian 

Ceibs/Jean-Pierre Lehmann (P. 56), UN Global Compact/ 

Michael Dames (P. 57, 185), Habiba al Marashi (P. 58 left), 

Walid Nagi (P. 58 right), Siemens/Desertec (P. 61), Hans 

Müller-Steinhagen (P. 63 links), Franz Trieb (P. 63 right), 

Zeinab Mohamed/flickr.com (P. 64), German Development 

Institute (P. 65), Craig Moss (P. 67), Schiller Gymnasium 

Münster (P. 70/71), Danske Bank Group (P. 73), Deutsche 

Post DHL (P. 75-77), Nestlé (P. 78), Sakhalin Energy (P. 81- 

82), Bruno Matano (P. 84), Autostrade per L´Italia (P. 85), 

Heiner H. Schmitt/Coop (P. 86/87), Mareen Fischinger (P. 

88), Deutsche Telekom (P. 89), Green Delta Insurance (P. 91), 

ManpowerGroup (P. 92/93), Randstad/Gert IJszenga (P. 94), 

Viyellatex (P. 96/97), Yann Arthus Bertrand Altitude (P. 100), 

Martin Harvey/WWF-Canon (P. 101), Armacell (P. 102/103), 

N. Fokas (P. 104), Athens International Airport (P. 105), 

Camposol (P. 106), Gonzalo Olmos/Copeinca (P. 107), Michel 

Roggo/WWF-Canon (P. 108), Coca-Cola Hellenic (P. 111), 

Solar Impulse/AFP/Fabrice Coffrini 

(P. 112/113), La Mediatheque EDF (P. 114/115), Grundfos 

(P. 116-119), HOCHTIEF (P. 120), Huawei (P. 122/123), Otto 

Group/Hermes (P. 124/125 above), Paul-Langrock.de (P. 125 

below), fine2art.de/fotolia.com (P. 126), Siemens (P. 128/129), 

Pedro Granadeiro (P. 130), Sonae (P. 131), Sopharma (P. 

132/133), Toshiba (P. 134), Ken Rae/fotolia.com (P. 137), 

ayzek/istockphoto.com (P. 138), christian42/fotolia.com 

(P. 140/141), ACI (P. 142/143), Adecco (P. 144/145), BASF 

(P. 146-149), Bayer CropScience (P. 151-153), Bradesco 

(P. 154/155), GDF SUEZ (P. 156/157), Merck (P. 159), Novo 

Nordisk (P: 161), The TMS Group (P. 162/163), AKSA (P. 165), 

Rudolf Wichert (P. 166/167 above), Kusch + Co (P. 167 below), 

PUMA (P. 169), Arab African International Bank (P. 170/171), 

CreativeFire/istociphoto.com (P. 176), Josef Wieland (P. 177), 

sokaeiko/pixelio.de (P. 178), lebanmax/fotolia.com (P. 181 

above), Marie d´Huart (P. 181 below), Aiko Bode (P. 182), 

Franziska Humbert (P. 183), Marion Neuhauß/fotolia.com 

(P. 184), Anne Gadegaard (P. 186), KFM/pixelio.de (187), ISO 

Focus+ (P. 188), UN Photo/Klee (P. 189) and Marion Book (P. 9, 

33 above, 98/99) 

Cover: 

webphotographeer / istockphoto.com 

Sales price: 

USD 30,00 | EUR 25,00 | GBP 20,00 

Copyrights: 

All rights reserved. You may not modify, copy, reproduce, 

republish, upload, post, transmit or distribute in any way 

any material, including photos, without the express written 

consent of the media group macondo. 

ISBN-13: 978-3-9813540-1-0 

Printed in Germany © 2011 

Useful Adresses: 

United Nations Global Compact Office: 

DC2-618 

New York, NY 10017, USA 

Tel.: +1 (212) 963 - 1490 

Fax: +1 (212) 963 - 1207 

Mail: name@un.org 

URL: www.unglobalcompact.org 

Publishing House: 

macondo Media Group 

Dahlweg 87 

48153 Münster, Germany 

Tel.: +49 (0) 251 – 200 78 20 

Fax: +49 (0) 251 – 200 78 222 

Mail: info@macondo.de 

URL: www.macondo-group.com 

Tax ID number: DE214683825 


193

The ten Principles 

of the United Nations 

Global Compact 

At the core of the Global 

Compact initiative are 10 

principles for human rights, 

labour standards, the 

environment and eliminating 

corruption. 

The Global Compact 

calls upon globally active 

companies to recognise these 

principles and to take steps to 

put them into effect. 

1 

2 

Human Rights 

Principle 1: Businesses 

should support and 

respect the protection of 

internationally proclaimed 

human rights; and 

Principle 2: make sure that 

they are not complicit 

in human rights abuses. 

7 

8 

Environment 


should support a 

precautionary approach to 

environmental challenges; 

Principle 8: undertake 

initiatives to promote 

greater environmental 

responsibility; and 

3 

4 



should uphold the freedom 

of association and the 

effective recognition of 

the right to collective 

bargaining; 

Principle 4: the elemination 

of all forms of forced 

and compulsory labour; 

9 

10 

Principle 9: encourage the 

development and diffusion 

of environmentally friendly 

technologies. 

Anti-corruption 


should work against 

corruption in all it forms, 

including extortion and 

bribery. 

Previous Editions: 

5 

Principle 5: the effective 

abolition of 

child labour; and 

6 

Principle 6: the elemination 

of discrimination in 

respect of employment 

and occupation. 

194 

Global Compact International Yearbook 2011

“ 

This third Global Compact 

International Yearbook once 

again presents a broad range of 

illuminating stories of businesses 

using the platform provided by 

the Compact to make a difference 

through their own conduct or in 

partnership with others. 

Ban Ki-moon, UN Secretary-General 

” 

FSC Certification 

Published by 

Global Logistics Partner 

EUR 25.00 | USD 30.00 | GBP 20.00

Global Compact International Yearbook Ausgabe 2011

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