Overslaan en naar de inhoud gaan

Caux Round Table Archives: Principle for business (1994)

Principle for business by Caux Round Table

 

The Caux Round Table

In a world which is experiencing profound transformations, the Caux Round Table of business leaders from Europe, Japan and the United States is committed to energizing the role of business and industry as a vital force for innovative global change.

The Round Table was founded in 1986 by Frederik Philips, former President of Philips Electronics, and Olivier Giscard d'Estaing, Vice-Chairman of INSEAD, as a means of reducing escalating trade tensions. It is concerned with the development of constructive

economic and social relationships between the participants'countries, and with their urgent joint responsibilities toward the rest of the world. At the urging of Ryuzaburo Kaku, Chairman of Canon Inc., the Round Table has focused attention on the

importance of global corporate responsibility in reducing social and economic threats to world peace and stability. 

The Round Table recognizes that shared leadership is indispensable to a revitalized and more harmonious world. It emphasizes the development of continuing friendship, understanding and cooperation, based on a common respect for the highest moral values

and on responsible action by individuals in their own spheres of influence.

 

Introduction

The Caux Round Table believes that the world business community should

play an important role in improving economic and social conditions. As a

statement of aspirations, this document aims to express a world standard

against which business behavior can be measured. We seek to begin a

process that identifies shared values, reconciles differing values, and thereby

develops a shared perspective on business behavior acceptable to and

honored by all.

These principles are rooted in two basic ethical ideals: kyosei and human

dignity. The Japanese concept of kyosei means living and working together

for the common good - enabling cooperation and mutual prosperity to

coexist with healthy and fair competition. "Human dignity" refers to the

sacredness or value of each person as an end, not simply as a means to the

fulfillment of others'purposes or even majority prescription.

The General Principles in Section 2 seek to clarify the spirit of kyosei and

"human dignity," while the specific Stakeholder Principles in Section 3 are

concerned with their practical application.

In its language and form, the document owes a substantial debt to The

Minnesota Prineゆles, a statement of business behavior developed by the

Minnesota Center for Corporate Responsibility. The Center hosted and

chaired the drafting committee, which included Japanese, European, and U.S.

representatives.

Business behavior can affect relationships among nations and the prosperity

and well-being of us all. Business is often the first contact between nations

and, by the way in which it causes social and economic changes, has a

significant impact on the level of fear or confidence felt by people

worldwide. Members of the Caux Round Table place their first emphasis on

putting one's own house in order, and on seeking to establish what is right

rather than who is right.

 

Section 1 • Preamble

The mobility of employment, capital, products and technology is making

business increasingly global in its transactions and its effects.

Laws and market forces are necessary but insufficient guides for conduct.

Responsibility for the policies and actions of business and respect for the

dignity and interests of its stakeholders are fundamental.

Shared values, including a commitment to shared prosperity, are as important

for a global community as for communities of smaller scale.

For these reasons, and because business can be a powerful agent of positive

social change, we offer the following principles as a foundation for dialogue

and action by business leaders in search of business responsibility. In so

doing, we affirm the necessity for moral values in business decision making.

Without them, stable business relationships and a sustainable world

community are impossible.

 

Section 2. General Principles

Principle 1. The Responsibilities Of Businesses:

Beyond Shareholders Toward Stakeholders

The value of a business to society is the wealth and employment it creates

and the marketable products and services it provides to consumers at a

reasonable price commensurate with quality. To create such value, a business

must maintain its own economic health and viability, but survival is not a

sufficient goal.

Businesses have a role to play in improving the lives of all their customers,

employees, and shareholders by sharing with them the wealth they have

created. Suppliers and competitors as well should expect businesses to

honor their obligations in a spirit of honesty and fairness. As responsible

citizens of the local, national, regional and global communities in which they

operate, businesses share a part in shaping the future of those communities.

 

Principle 2. The Economic and Social Impact of Business: Toward Innovation, Justice and World Community

Businesses established in foreign countries to develop, produce or sell should

also contribute to the social advancement of those countries by creating

productive employment and helping to raise the purchasing power of their

citizens. Businesses also should contribute to human rights, education,

welfare, and vitalization of the countries in which they operate.

Businesses should contribute to economic and social development not only

in the countries in which they operate, but also in the world community at

large, through effective and prudent use of resources, free and fair

competition, and emphasis upon innovation in technology, production

methods, marketing and communications.

 

Principle 3. Business Behavior:

Beyond the Letter of Law Toward a Spirit of Trust

While accepting the legitimacy of trade secrets, businesses should recognize

that sincerity, candor, truthfulness, the keeping of promises, and

transparency contribute not only to their own credibility and stability but

also to the smoothness and efficiency of business transactions, particularly

on the international level.

 

Principle 4. Respect for Rules

To avoid trade frictions and to promote freer trade, equal conditions for

competition, and fair and equitable treatment for all participants , businesses

should respect international and domestic rules. In addition , they should

recognize that some behavior, although legal, may still have adverse

consequences.

 

Principle 5. Support for Multilateral Trade

Businesses should support the multilateral trade systems of the GATT /World

Trade Organization and similar international agreements. They should

cooperate in efforts to promote the progressive and judicious liberalization of

trade and to relax those domestic measures that unreasonably hinder global

commerce, while giving due respect to national policy objectives.

 

Principle 6. Respect for the Environment

A business should protect and, where possible, improve the environment,

promote sustainable development, and prevent the wasteful use of natural

resources.

 

Principle 7. Avoidance of Illicit Operations

A business should not participate in or condone bribery, money laundering,

or other corrupt practices: indeed, it should seek cooperation with others to

eliminate them. It should not trade in arms or other materials used for

terrorist activities, drug traffic or other organized crime.

 

Section 3. Stakeholder Principles

Customers

We believe in treating all customers with dignity, irrespective of whether

they purchase our products and services directly from us or otherwise

acquire them in the market. We therefore have a responsibility to:

◆ provide our customers with the highest quality products and services

consistent with their requirements;

◆ treat our customers fairly in all aspects of our business transactions,

including a high level of service and remedies for their dissatisfaction;

make every effort to ensure that the health and safety of our

customers, as well as the quality of their environment, will be

sustained or enhanced by our products and services;

◆ assure respect for human dignity in products offered, marketing, and

advertising; and

◆ respect the integrity of the culture of our customers.

Employees

We believe in the dignity of every employee and in taking employee

interests seriously. We therefore have a responsibility to:

• provide jobs and compensation that improve workers'living

conditions;

◆ provide working conditions that respect each employee's health

and dignity;

◆ be honest in communications with employees and open in sharing

information, limited only by legal and competitive constraints;

• listen to and, where possible, act on employee suggestions, ideas,

requests and complaints;

◆ engage in good faith negotiations when conflict arises;

◆ avoid discriminatory practices and guarantee equal treatment and

opportunity in areas such as gender, age, race and religion;

• promote in the business itself the employment of differently abled

people in places of work where they can be genuinely useful;

protect employees from avoidable injury and illness in the

workplace;

◆ encourage and assist employees in developing relevant and transferable

skills and knowledge; and

◆ be sensitive to the serious unemployment problems frequently

associated with business decisions, and work with governments,

employee groups, other agencies and each other in addressing these

dislocations.

Owners / Investors

We believe in honoring the trust our investors place in us. We therefore have a

responsibility to:

◆ apply professional and diligent management in order to secure a fair and

competitive return on our owners'investment;

◆ disclose relevant information to owners/investors subject only to legal

requirements and competitive constraints;

◆ conserve , protect and increase the owners/investors'assets; and

• respect owners/investors 'requests, suggestions, complaints, and

formal resolutions.

Suppliers

Our relationship with suppliers and subcontractors must be based on mutual

respect. We therefore have a responsibility to:

• seek fairness and truthfulness in all our activities, including pricing,

licensing , and rights to sell;

◆ ensure that our business activities are free from coercion and

unnecessary litigation;

foster long-term stability in the supplier relationship in return for

value, quality, competitiveness and reliability;

• share information with suppliers and integrate them into our

planning processes;

• pay suppliers on time and in accordance with agreed terms of

trade; and

◆ seek, encourage and prefer suppliers and subcontractors whose

employment practices respect human dignity.

Competitors

We believe that fair economic competition is one of the basic requirements

for increasing the wealth of nations and ultimately for making possible the

just distribution of goods and services. We therefore have a responsibility to:

◆ foster open markets for trade and investment;

◆ promote competitive behavior that is socially and environmentally

beneficial and demonstrates mutual respect among competitors;

◆ refrain from either seeking or participating in questionable payments

or favors to secure competitive advantages;

◆ respect both tangible and intellectual property rights; and

◆ refuse to acquire commercial information by dishonest or unethical

means, such as industrial espionage.

Communities

We believe that as global corporate citizens we can contribute to such forces

of reform and human rights as are at work in the communities in which we

operate. We therefore have a responsibility in those communities to:

◆ respect human rights and democratic institutions, and promote them

wherever practicable;

recognize government's legitimate obligation to the society at large

and support public policies and practices that promote human

development through harmonious relations between business and

other segments of society;

◆ collaborate with those forces in the community dedicated to raising

standards of health, education, workplace safety and economic

well-being;

◆ promote and stimulate sustainable development and play a leading

role in preserving and enhancing the physical environment and

conserving the earth's resources;

• support peace, security, diversity and social integration;

• respect the integrity of local cultures; and

◆ be a good corporate citizen through charitable donations, educational

and cultural contributions, and employee participation in community

and civic affairs.

 

July 1994

 

Caux Round Table Steering Committee:

Friedrich Baur, Pres ident, MST GmbH, Formerl y Member of Executive Board , Siemens AG,Germany; John Charlton, Managing Director,The Chase Manhattan Bank, USA; Neville

Cooper, Chairman, The Top Management Partnership , Ltd., Formerly Executive Director STCand Vice President , ITI (U.K.), United Kingdom; Charles M. Denny, Jr. , Formerly Chairmanand CEO,ADC Telecommunications , Inc., USA; Jean-Loup Dherse, (Chairman, cRn Consult -and , Formerly Vice President , World Bank, France; Olivier Giscard D'Estaing, Vice Chairman, INSEAD, France; Walter E. Hoadley, (P'ast Chairman, CRわSenior Research Fellow, Hoover Institution , Formerly Executive Vice President and Chief Economist, Bank of America ,USA; Ryuz:aburo Kaku, Chairman, Canon Inc. ,Japan; Morihisa Kaneko,Assistant Senior Counsellor, Tokyo Area, Corporate Overseas Management Division , Matsushita Electric Industrial Co. , Ltd. ,Japan; Toshiaki Ogasawara, President Nifco , Inc. , Chairman and Publi sher, The Japan Times,Japan. Other Participants between 1986 and 1994 Include:

 

From Europe:

Alfredo Ambrosetti, Chairman,Ambrosetti Group ; Maurice Amiel, President, Timken,

(Europe ,Africa & West Asia) ; Richard Burke, President , Canon Foundation Europe; John

Cox, Director General, Chemical Industries Association ; Reinhard Fischer, President ,

BLANCO GmbH & Co. KG*; Sergio Giuliani, Chairman, Ciba Gei~Italy Group; Peter

Huggler, President , Interallianz Bank Zurich AG*; Frederik J. Phi ips , Formerly President ,

Philips Electronics ; Kurt Schips, Member of the Supervisory Board, Robert Bosch GmbH;

Friedrich Schock, President, Schock & Co.; Klaus-Heinrich Standke, President , Ost Wes t

Wirtschafts Akademie; Gerrit A. Wagner, Formerly President , Royal Dutch Petroleum Co.

From Japan:

Gentaro Endo, Chairman, Gunze Limited ; Yoshikaz:u Hanawa, Executive Vice President ,

Nissan Motor Co. ; Shigeichiro Kanamori, President, Kintetsu Corporation ; Saburo

Kawai, Formerly Vice Chairman and President , Keizai Doyukai (Association of Corporate

Executives) ; Hisaya Nara, President, Mitsubishi Research Institute Inc.; Noboru

Okamura, Formerly Chairman, Honda Motor Co. Ltd.; Masanori Oz:eki, President , Railway

Technical Research Institute ; Sakae Shimizu, Senior Advisor, Toshiba Corporation;

Yoshiteru Sumitomo,Advisor, Sumitomo Electric Industries Ltd. ; Setsuya Tabuchi,

Formerly Chairman,The Nomura Securities Co. Ltd. ; Tamotsu Takase, Professor, Facul ty of

Law, Tokai University, Formerly official of GAIT; Yoshio Terasawa, Minister of Stat e, Economic Planning Agency, Formerly Executive Vice President , MIGA (Multilateral Inve stment Guarantee Agency); Toshihiko Yamashita, Executive Advisor & Formerly President,

Matsushita Electric Industrial Co. Ltd.; Kyohei Yokose, Director and Formerly Chairman,

Sumitomo Rubber Industries .

 

From USA:

Stephen R. Braswell, President, Investment Services Group, Prudential Insurance Company

ofAmerica;Owen B. Butler,Retired Chairman of the Board,The Procter & Gamble Co.*;

Weldon B. Gibson, Sr. , Director, SRI International ; Robert N. Gurnitz, President & CEO,

Northwestern Steel and Wire Co. ; Harry A. Hammerly, Executive Vice President , 3M

Company; Thomas E. Holloran, Professor of Management, University of St . Thomas,

Formerly President , Medtronic , Inc.; Ronald James, Vice President & CEO-Minnesota, US

West Communications; Garnett L. Keith, Jr. , Vice Chairman, Prudential Insurance Company

of America; Robert MacGregor, President , Minnesota Center for Corporate Responsibili ty;

James A.F. Montgomery, Formerly Chairman & CEO, PANAM World Services ; Roger

Parkinson, Publisher and CEO, The Globe and Mail, Formerly President and Publisher,

Minneapolis-St 和ul Star Tribune; William A. Pearce, President & CEO, IDS Mutual Fund

Grout Borge R. Reimer, Executive Vice President, Dana Corporation; Francis X.

Stan ard, Chairman, Chase Manhattan Capital Markets Corporation*; Winston R. Wallin,

Chairman of the Board, Medtronic, Inc.

* Position held at the time of initial participation.

 

 

Type programma
Jaren
1994
Type programma
Jaren
1994