a personal contribution from a private sector...

P R I V A T E S E C T O R

P A R T N E R S H I P S

A PERSONAL CONTRIBUTION

F R O M

A PRIVATE SECTOR PERSPECTIVE

Wallace R. BAKER

Avocat à la Cour

Baker and McKenzie

Paris, France

P R I V A T E S E C T O R

P A R T N E R S H I P S

A PERSONAL CONTRIBUTION FROM


A Background Paper

"It is my ambition to turn UNESCO into anunchallenged reference, I would even say into anintellectual, strategic, and ethical authority, inall fields pertaining to its competence. To thisend, UNESCO must first reorganize as a worldcentre listening to, collecting, assessing, and re-disseminating knowledge and experience avail-able around the world, backed-up and docu-mented to meet the highest standards of qualityand professionalism."

Koïchiro MatsuuraDirector-General of UNESCO

Statement of 2 July, 2000

Wallace R. BAKERAvocat à la Cour

Baker and McKenzieParis, France

Paris, 2003

Introduction

ERC-2003/WS/07)

Note of the UNESCO Secretariat

This background paper is a personal contribution by a senior member of theprivate sector. It analyses what might be done by the business community tohelp UNESCO address the strategic objectives determined in theOrganization’s Medium-Term Strategy 2002-2007 (31 C/4). These obejctivesand the related priorities contained in the Programme and Budget for 2002-2003 (31 C/5) are inspired by the pursuit of one central theme – namely, con-tributing to peace and human development in an era of globalization througheducation, the sciences, culture and communication. These documents alsodraw on the goals described in key documents such as the UNESCOConstitution, the UN Universal Declaration of Human Rights, and theInternational Covenant on Economic, Social and Cultural Rights.

Two fundamental questions are addressed:

How can the business community benefit from partnership with UNESCO?

How can UNESCO benefit from increased linkages to the private sector?

This paper discusses how UNESCO could encourage business to become aneffective partner in furthering the Organization’s mission and aims to devel-op more useful co-operation between UNESCO and the business world. Theapproaches are inspired by the Report of the United Nations Secretary-General to the UN General Assembly entitled Towards Global Partnerships(28/08/2001) which examines possibilities for an enhanced interface betweenUN agencies and the private sector.

The study was prepared by Wallace R. Baker, partner in Baker and McKenzie,an international law firm. UNESCO expresses its thanks to the author for theresearch undertaken and for his contribution and commitment to the debateon this important subject.

Private Sector Partnerships

Note on the Author

The author was educated in Europe and North America. He and the law firmin which he is a partner have been engaged in the wave of globalization driv-en by the business community. From a single office in one country his firmhas grown to be a large international business of many lawyers of more thansixty nationalities in thirty-five countries with more than sixty-two offices. Heis a witness of what can happen if people of all nationalities interact, educatetheir young people and each other and learn to work well together as teamsto reach common objectives. Decisions are generally reached by consensusafter careful study and discussion. His firm is local, regional and global andmust understand the world's problems from all these perspectives in order tohelp find workable solutions to current problems in the best interest of busi-ness and the people. For this reason, he has developed a special interest ininternational organizations such as UNESCO.

Acknowledgements

The author wishes to thank all those who made valuable contributions in thepreparation of this paper, including: Professor Nazli Choucri (MIT), ClaudeMosseri-Marlio, Iqbal Quadir, Lecturer of Public Policy, Fellow, Center forBusiness and Government Harvard University, John F. Kennedy School ofGovernment, Gerald L. Maatman Jr., David Hackett, Martijn Wilder, JamesCameron, Claes Cronstedt, Professor René Demeestère (ESSEC), Tien-shiChen, Barrett Dower, Professor Emeritus Charlotte Kessler (AmericanUniversity of Paris), Al Kessler, Isé Serret (OECD), Suzanne Durdevic, Sig-BrittCox, Sonia Mendieta de Badaroux, immediate Past President of the ExecutiveBoard of UNESCO and Ambassador and Permanent Delegate of Honduras toUNESCO, Professor Emeritus Oliver Oldman (Harvard Law School), IsabellaVourecas Petalas (ICC), Hans d'Orville (UNESCO), Mary-Louise Kearney(UNESCO), Tony Marjoram (UNESCO), Mike Millward (UNESCO), PhilippMuller-Wirth (UNESCO) and Sophie Cauvin-Lucchini.

The author is responsible for the choice and the presentation of the facts con-tained in this report and for the opinions expressed therein, which are notnecessarily those of UNESCO and do not commit the Organization.

© UNESCO 2003

Introduction

Table of Contents

PRIVATE SECTOR PARTNERSHIPSA PERSONAL CONTRIBUTION FROM A PRIVATE SECTOR PERSPECTIVE

A Background Paper

EXECUTIVE SUMMARY................................................................................................................................. 8

PRIVATE SECTOR PARTNERSHIPS.............................................................................................................. 11

1. Introduction........................................................................................................................................ 11

2. Some Important Preliminary Questions....................................................................................... 13

(a) In order to attract the best business partners UNESCO

needs to reform itself, which requires a clear view of its

shortcomings. What changes need to be made in UNESCO? ................................................ 13

(b) If UNESCO is to undertake a programme for

new partnerships with private enterprise,

what aspects of UNESCO's special role within

the UN system, its Charter and its priorities should be chosen?............................................ 13

(c) Is this a propitious time for UNESCO to focus on

Partnerships with the Private Sector? ....................................................................................... 16

3. Benefits to the Private Sector Resulting from Partnerships with UNESCO ........................... 23

(a) Prestige resulting from UNESCO's

idealistic mission and its successful accomplishments ........................................................... 23

(b) Linking the education and training of

private sector personnel to UNESCO ‘s goals ......................................................................... 23

(c) Advice and information to help companies adjust to

emerging future society where

business conduct is changing for

the reasons listed in this part ................................................................................................... 24

(d) UNESCO’s knowledge networks -–

a potentially valuable partnership

asset for the business community ............................................................................................ 37

4. Benefits to UNESCO from Partnerships with Business ............................................................. 40

(a) Business – A powerful potential partner for UNESCO........................................................... 40

(b) Provision of skilled services by business personnel to UNESCO .......................................... 41

(c) Utilizing the financial resources of the private sector ............................................................ 42


5. Conclusions ........................................................................................................................................ 44

(a) Conclusions related to Chapter 2 -

Some Important Preliminary Questions ................................................................................... 44

(b) Conclusions related to Chapter 3 – Benefits to the

Private Sector Resulting from Partnerships with UNESCO ..................................................... 45

(c) Conclusions related to Chapter 4 –

Benefits to UNESCO from Partnerships with Business ........................................................... 46

(d) Final Conclusions to this Report............................................................................................... 47

6. Recommendations as to Future Operations – Principles and Procedures ............................ 49

7. End Notes ............................................................................................................................................ 51

ANNEX I – Overview of Present UN Partnerships with the Private Sector....................................... 56

(a) The Global Compact ................................................................................................................. 56

(b) The Secretary-General's Report on Co-operation between the UN and all

relevant partners, in particular with the private sector (28 August 2001) ............................. 56

(c) Private sector involvement and co-operation with

the United Nations System (JUI/REP/99/6, Geneva, 1999) .................................................... 58

(d) Partnerships with The Private Sector - UN Guidelines (17 July 2000) .................................. 63

(e) Partnerships Organized by Other UN Agencies ...................................................................... 64

(i) International Labour Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

(ii) The World Bank Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

(iii) The United Nations Development Programme (UNDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

(iv) United Nations Industrial Development Organization (UNIDO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

(v) The United Nations Environment Program (UNEP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

(vi) UNICEF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

ANNEX II – Overview of UNESCO Private Sector Partnerships which

have been mostly limited to fund-raising .................................................................................... 72

(a) The Results of the Report of 5 January 1995 on these activities ........................................... 72

(b) UNESCO's internal guidelines for private sector fund-raising (April 1997)........................... 73

(c) UNESCO - Guidelines for selecting partners and use of

name and emblem (159 EX/30) ............................................................................................... 74

SELECTED BIBLIOGRAPHY ......................................................................................................................... 76

Extracts and notes on Education and Culture Rights: the UNESCO Constitution,

the Universal Declaration of Human Rights and the International Covenant on

Economic, Social and Cultural Rights, Extracts from UNESCO's Guide to Human

Rights, Institutions, Standards, Procedures Relating to Cultural Rights, Universal

Declaration on Cultural Diversity ............................................................................................................. 81

Table of Contents

EXECUTIVE SUMMARY

PRIVATE SECTOR PARTNERSHIPA PERSONAL CONTRIBUTION FROM


1. Why does UNESCO need the private sector?

If UNESCO can attract a number of top-quality, dedicated, energetic, ethicalcompanies as partners and find ways to work together efficiently, which is acomplex problem, this can open up many new opportunities for it to betteraccomplish its mission.

Such partnerships, if they are good ones, will allow UNESCO to share itshighly qualified, skilled, technical human resources – experts who are"results-oriented" and who can give good advice and deliver sought-afterservices across a broad range of cultural contexts. This special expertise,which is the essence of UNESCO’s mission, is becoming increasingly neces-sary in the private sector.

Over the past century, the business community has continued to acquirepowerful influence in the world and has become a strong voice in govern-ments. Having such influential partners can help UNESCO do more and bet-ter work.

Business can help UNESCO raise more money to carry out new programmesbecause companies which make money also know how to raise money.Without adequate funding, little can be done. Better financial resourceswould ensure greater impact for UNESCO’s well-designed and culturally-sen-sitive programmes.

2. Why should business want to work withUNESCO?

The long-term interests of the private sector are the same as those ofUNESCO. Both have a fundamental interest in sustainable developmentwhich allows people and their countries to achieve real social progress andprosperity.

Wider access to education for all produces better trained and more efficientcitizens and employees. Due to their better employment prospects, they cansignificantly raise their living standards and, as consumers, contribute to eco-nomic development and growth.


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Business, because of its power and influence, is now required to accept itsresponsibilities to society and to operate in the public interest. It can nolonger work solely for the benefit of its executives and shareholders.Consumers, media, investors, governments, NGOs, lawyers, scholars andyouth are now advocating that business should become more responsi-ble – ethically and environmentally. Many customers will reward a companyby buying more of the company's products or services if they like the way itacts. For example, more capital markets and consumers are favouring ethicaland green companies by helping them to become more profitable. In addi-tion, corporate social responsibility improves employee morale and reducesbusiness risks.

These trends will help induce the private sector to become a worthy partnerfor UNESCO if it sees the real advantages of such alliances. Increasingly, busi-nesses are approaching UNESCO in order to create partnerships for mutuallybeneficial projects. The private sector can profit from the prestige and goodpublicity by supporting UNESCO's programmes and projects.

UNESCO's work to foster tolerance, human rights and duties, and a healthypeaceful society helps to provide the type of environment which businessneeds to prosper. In addition, business needs rules-of-the-game, (i.e. ethicaland legal rules) which UNESCO is helping to develop just as it has workedto create standards in education, science, culture and communication and toprotect human rights in these areas.

These are some of the important reasons why business and UNESCO shouldwork together.

3. Structure of the Study

The structure of the study deals with the various substantive issues whichunderpin and evidence the two major questions raised.

After an introduction, Chapter 2 examines how UNESCO could secure addedvalue from private sector partnerships by completing internal reform meas-ures necessary to address this task. It also notes the relevance of programmepriorities to the interests of business and the timeliness of the partnershipmodality.

Chapter 3 studies benefits to the private sector accruing from partnership withUNESCO: prestige, linkage with a vast array of knowledge networks, associ-ation with NGOs and civil society organizations, and perspectives on thefuture priorities for sustainable human development which will require inno-vative socio-economic and legislative frameworks.

Chapter 4 lists advantages which UNESCO can gain from association with theprivate sector whose power and special skills can be complementary to theparticular social and ethical objectives of this UN agency.

Executive summary

9

Chapter 5 gives conclusions to each of the previous chapters and a final con-clusion to the report as a whole.

Chapter 6 lists recommendations, principles and procedures.

The last two chapters (Chapters 5 and 6) present the author’s main conclu-sions and recommendations for future action. With regard to Chapter 6, six-teen specific points are suggested to serve as guiding principles and proce-dures for future operations. These cover, inter alia, the necessity for UNESCOto streamline its internal infrastructure responsible for partnerships to ensureoptimal efficiency; criteria determining the choice of partner; monitoring andauditing; the desirability of cooperation with a wide range of partners whichinclude the business sector, and the legal steps needed to guarantee full pro-tection of the UNESCO logo. Two important recommendations advocate themobilization of business expertise (either by direct employment or on a vol-untary basis, as a way of assuring access to experience and know-how), andthe establishment of a Senior Advisory Group to guide UNESCO’s rapidlyexpanding partnerships with the private sector.

Readers who would like more background on present UN and UNESCO part-nerships experience, may wish to read Annex I which gives an overview ofcurrent UN partnerships with the private sector. It discusses the UN GlobalCompact and guidelines for these linkages, as well as providing details ofpartnerships organized by specific UN agencies (ILO, the World Bank Group,UNDP, UNIDO, UNEP and UNICEF).

Annex II focuses on the specificity of fund-raising partnerships, notablyUNESCO’s internal guidelines for these and issues to be considered in grant-ing use of the UNESCO name and logo.


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More and more leading companies haveexpressed a serious interest in some kind of co-operation with UNESCO which goes wellbeyond the passive act of supplying funds.They also want active participation in the plan-ning and the action, and expect the projectsand programmes to be meaningful and of prac-tical use. In addition, capital markets, throughthe expanding "ethical" and "green" funds, sig-nal that exemplary conduct by companiesincreases capital made available to them andcan increase their profitability. Recently thereseems to be a correlation between ethical andclean environmental conduct, i.e. corporatesocial responsibility (CSR) and profitability inpart because such conduct improves a compa-ny’s morale, reputation and image and reducesbusiness risks. This gives UNESCO an impor-tant opportunity to work more closely with theprivate sector, which in the last century hasgained enormous economic power, highlyskilled technical and management experts, andintelligent, active employees.

It is unrealistic to think that UNESCO can doan effective job without taking into accountand working with the private sector. Ignoringit will leave UNESCO in bureaucratic isolationand seal off potential access to massive privatefunds to do its important work.

Partnerships with UNESCO or sponsored byUNESCO with businesses can be even moreeffective if other partners are added where

appropriate – governmental entities, civil soci-ety entities such as non-governmental organi-zations (NGOs), associations and foundations,as well as universities and research centres,and others when more special or interdiscipli-nary, multilingual knowledge and capacity arerequired and a more diversified team is neces-sary to accomplish the objectives in view.

As suggested by UNESCO’s Medium TermStrategy for 2002-2007, every programmeshould have partners, who should be identi-fied and publicized within the Organizationand their respective roles and contributionsclearly stated.

In the fast moving world economy and civilsociety, as society and circumstances change,UNESCO like any institution or organizationneeds to reorganize and update its system ofoperation in order to be useful so it can sur-vive and prosper and find solutions to newchallenges.

Many types of partnerships, alliances and link-ages have been formed in recent yearsbetween private companies, research universi-ties and government entities, and betweenthese different kinds of entities and institu-tions, where none of them separately couldaccomplish the objectives in view3.

Although some UN agencies, organizationsand funds within the UN system have a histo-

Introduction

11

PRIVATE SECTOR1 PARTNERSHIPS2

A PERSONAL CONTRIBUTION FROM A PRIVATE SECTOR PERSPECTIVE

HOW CAN THE BUSINESS COMMUNITY HELP UNESCO?

HOW CAN UNESCO HELP THE BUSINESS COMMUNITY?

1. Introduction

ry of co-operation and partnerships with thebusiness community, it was only in January1999 that Kofi Annan announced that thisactivity in the form of a Global Compactwould take on high priority in the UN system.

The paper poses the important questions relat-ing to this new priority and includes informa-tion on UNESCO's continuing reform, theevolving roles played by the UN and UNESCOand the growing importance of the businesscommunity.

It also examines under what conditions andwhy the business community should be willingif not anxious to work with UNESCO to fulfillthe latter's mission and how the author believesthe world of business is changing so that thistransition may become easier for many busi-nesses. Business is now more and more eithervoluntarily or forced to pay increasing attentionto major problems in society, not simply con-centrating on making a profit. The businesscommunity must become even more sociallyand ethically responsible than it has been in the

past, and it has a special responsibility to safe-guard the environment.

An important aim of the paper is to enumer-ate how UNESCO could benefit from strongpartners from the business community. In thisregard, certain conclusions and specific rec-ommendations are suggested for possiblefuture action.

Further information is contained in the annex-es to the paper. Annex 1 deals with the UN’sexperience regarding cooperation and part-nerships with private enterprise. This knowl-edge is important because UNESCO shouldlearn from the partnership experience andexpertise of other UN agencies, entities, funds,and programmes.

UNESCO's own cooperation and partnershipswith business has for the most part been pri-marily in fund-raising from the private sectorfor which rules and guidelines have been for-mulated. Information on this activity is pre-sented in Annex II.


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Some Important Preliminary Questions

13

(a) In order to attract the best businesspartners UNESCO needs to reformitself, which requires a clear view ofits shortcomings. What changes needto be made in UNESCO?

The reform process is well under way as evi-denced by a speech given by KoïchiroMatsuura, Director-General of UNESCO, inJuly 2000 when he announced his plans forUNESCO as follows:

"It is my ambition to turn UNESCO into anunchallenged reference, I would even say intoan intellectual, strategic, and ethical authori-ty, in all fields pertaining to its competence. Tothis end, UNESCO must first reorganize as aworld centre listening to, collecting, assessing,and re-disseminating knowledge and experi-ence available around the world, backed-upand documented to meet the highest standardsof quality and professionalism."

Many changes have already been made sinceKoïchiro Matsuura began his mandate in 1999.These include a new top management teamappointed through open international recruit-ment, a streamlined structure of fewer staffand a network of decentralized offices.Programme execution places strong emphasison results-based management.

Two of UNESCO's shortcomings in a modernworld have been identified as its visibility andability to communicate its message to society atlarge. These were studied by an Expert Groupled by Nils Gunnar Nilsson, Chairman of theSwedish National Commission for UNESCO,whose report analysed the image of theOrganization in the fast-changing society ofthe 21st century. These deliberations yieldedinteresting views. On one hand, there was thefeeling that UNESCO has remained toobureaucratic and cannot illustrate its missionin a simple and easily understandable manner.On the other hand, its mission itself continues

to be both valid and attractive becauseUNESCO is charged with the in-depth analysisof major global issues (such as education forall, the conservation of cultural heritage, envi-ronmental protection, the promotion of ethicsand of access to public information), and withmobilizing civil society to attain these objec-tives. Moreover, the report noted that, likeother inter-governmental organizations,UNESCO is feeling the effects of the generaldisengagement occurring within the publicsector. In short, to ensure its relevance andimpact, UNESCO needs to make its action andachievement clearer and more comprehensi-ble to the general public.

Such problems usually point to the need formanagement reforms and UNESCO is pro-ceeding in this direction. The Director-Generalsees a need to restore excellence and rele-vance to UNESCO. His goals include staff col-legiality, intersectorial co-operation, manageri-al transparency and oversight, and more activecommunication and dialogue internally andexternally with UNESCO’s many partners incivil society. This intelligent self-analysis isencouraging, since realistic progress andimprovement must start with an honestacknowledgment and analysis of the prob-lems. In UNESCO, like in other organizations,there is strong resistance to change. However,although many problems remain to be settled,the Director-General’s resolve to modernizethe Organization is clear.

(b) If UNESCO is to undertake a pro-gramme for new partnerships withprivate enterprise, what aspects ofUNESCO's special role within the UNsystem, its Charter and its prioritiesshould be chosen?

Education is UNESCO's primary mission. Whyis this important? Education is considered notonly the best guarantor of social progress butthe sine qua non for generating tolerance and

2. Some Important Preliminary Questions

inter-cultural understanding in an increasinglymulti-cultural world. Such understanding isintended to engender dialogue and peacerather than conflict and violence. This is anextremely difficult but important objectivewhich is absolutely necessary today. Theworld is a new level of community as a resultof accelerated modern transportation, commu-nications and other forms of globalization thathave occurred throughout history, acceleratingvery rapidly during the last century.

UNESCO addresses the need to establish astandard for human conduct – such as thatdefined in the Universal Declaration ofHuman Rights which the Organization helpedto define. This standard, based on toleranceand understanding, should guide the learningprocess and permeate its diverse experiencesas far as possible.

The astounding scientific progress registered inthe last century has changed the way we viewthe world and has greatly increased our under-standing of it. The additional knowledge, sci-ence and technology our scientists have uncov-ered in such fields as computers, informationand communication technology, brain science,artificial intelligence, socio-biology, biotechnol-ogy, medicine, psychology and other fieldsopen up even greater vistas for understanding,shaping and improving human behavior in thefuture in order to accelerate improvements insociety. Underpinning all this must be a code ofhuman behaviour based on ethics and human-itarian values. Knowledge without these ethicswill lack the practical relevance needed tobring about real social progress.

These values then underpin the general frame-work of priorities set forth in UNESCO's keydocuments, namely its Medium Term Strategy2002-2007 and its Approved Programme andBudget 2002-2003:

(i) Education for All

UNESCO's mission in education, consideredto be a fundamental human right, has always

been at the heart of its mandate. This rightmust be transformed from an ideal into areality in order to meet the enormous andparadoxical challenges of the 21st century.Though already described as the KnowledgeSociety, the Third Millennium faces graveimbalances in terms of educational accessand opportunity. Education is the priority forevery nation, rich or poor. Over the next fiftyyears, the world's population will increase byhalf to more than 9 billion people. Most ofthese people will be young and in the devel-oping world. All have the right to educationand will seek access to learning. Neverbefore has history faced such a daunting task.Better and more widely available education isessential to help stimulate social and eco-nomic development and so to improve thequality of life for human beings. Its contribu-tion to the reduction of poverty and to theprevention of disease (including AIDS) andits role in addressing population issues islong acknowledged. However, new socialimperative’s exist which threaten humanwell-being and global security. Education forall cannot be limited to literacy or to basicskills alone. This objective also covers educa-tion for citizenship to promote the values ofpeace, democracy, human rights, internation-al understanding and solidarity, and culturaldiversity, which have never been more cru-cial.

(ii) Water Resources and Eco-Systems

Many parts of the globe now suffer from cleanwater shortages and more are threatened withshortages in the future. This is a critical healthand welfare problem. Our planet's ecologicaldegradation by man is now unfortunately animportant fact of life, although opinions seri-ously differ as to the extent of this problemand the remedies, if any, to be applied. It isbad news which some sectors of the businesscommunity are often reluctant to face becausebusinesses fear the high clean-up costs ofsolutions and substantial investments to pre-vent future problems.


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(iii) Ethics of Science and Technology

Science's enormous advances in directly alter-ing the traits of species at a genetic level openup new opportunities to raise crop yields, butpose extremely complex business and sus-pected health risks of unknown size for farm-ers and consumers, as well as for natural evo-lution when species pollute each other andexchange genetic information. In order to sup-plement and support this effort, more funda-mental work also needs to be done on therelation of ethics to the new world communi-ty, because if each separate culture only fol-lows its own ethics, this will be insufficient tobring peace to the world4.

The relation of ethics to business and eco-nomics is of primary concern if UNESCO is toincrease its linkage to the private sector sincethis relationship needs to be subject to properrules. Those have not yet been finally deter-mined and will vary depending upon the proj-ect undertaken together.

(iv) Diversity, Cultural Pluralism andIntercultural Dialogue

The variety and richness of human cultures arethreatened by new life styles and moderniza-tion. Uneven progress toward democracy andmodernization within different cultures createslack of communication and fear and resent-ment of dominant cultures which can lead toviolence. Languages and local cultures can dis-appear as a result of the power of the mediaand the growing preeminence of a few lan-guages. When one language and one culturedominate international relations, finance, tradeand the media, providing equality of econom-ic and other forms of opportunity betweenindividuals from other countries becomesmore difficult. An important objective is tohelp avoid reinforcing ethnic hatred that sooften leads to violence. Education in severallanguages and cultures should be helpful inavoiding clashes of cultures and increase tol-erance, understanding and communicationbetween cultures5 (see extracts at the end of

this paper for basic texts relating to culturaldiversity).

UNESCO's work in defining universal stan-dards and values, despite diversity and cultur-al pluralism through intercultural dialogue, hasbecome a necessity if less violence and betterunderstanding are to occur.

(v) Access to Information, especiallyin the Public Domain

The lack of access to new communication andinformation technologies and equipment cutsoff poor people from the growing knowledgestored and transmitted by new technologiesand emphasizes the gulf between the "haves"and the "have-nots" – a major cause of presentand future instability and violence in theworld. Recently the importance of citizensreceiving good information on environmentalproblems has been classified as a fundamentalhuman right.

In addition, there are transverse themesthrough intersectorial work on:

(vi) Poverty Eradication

The causes of poverty are beginning to be bet-ter understood, although there is still little agree-ment on solutions. However, a well-educatedpopulation seems to be an important factor ineconomic development along with good gov-ernment, sound socio-economic infrastructureand a population with the work ethic. Somebelieve reducing poverty is essential to avoid asystemic catastrophe6.

(vii) Information and CommunicationTechnologies (ICT's) andKnowledge Societies and otherinterdisciplinary work

New technologies transmit knowledge. Giventhe nature and complexity of many problems,analysis and knowledge are essential in manydisciplines. A good answer in one disciplinemay not be a good answer when tested by


15

other disciplines and values7. UNESCO,through closer cooperation amongst its vari-ous sectors, is equipped to produce solutionsdrawing on many disciplines to solve society'sdifficult problems.

(viii) Africa

This continent continues to need special help,particularly in the field of education.Destruction of native cultures because of wars,the slave trade and colonialism will requirespecial efforts in education to encourage pri-vate initiative and work toward the preventionof AIDS.

(ix) Least Developed Countries(LDCs)

Lack of education, poor health care and per-sistent poverty in these countries pose specialproblems and have emerged as serious risks toglobal growth. The dangers of a worldreduced to the haves and the have-nots is self-evident and the principal responsibility ofboth nation states and of the UN system mustbe to stimulate democracy, growth andprogress in the developing countries. Theimbalance of access to IT technology – 80% ofthe world’s population lacks access to electric-ity – is a statistic which amply illustrates theextent of current discrepancies.

(x) Women and Youth

Women make up over half of the world’s pop-ulation. In countries where they enjoy equalstatus and rights with men (including the rightto vote, to education and to employment),their contribution to social and economicdevelopment has proved invaluable.However, elsewhere, many uneducatedwomen still live in a state of poverty and evenof semi-slavery or are denied their basichuman rights. For these reasons they areunable to make contribute effectively tonational development. In the same vein, theeducation of youth, beginning in the home, isa priority action because it is necessary to

assure the wellbeing of future generations andto prepare young people for social leadershipand for their roles as responsible citizens. Forthese reasons, gender and youth issues remainmajor social priorities.

In focusing on these interesting, enormouslycomplex and vast areas, it would also be use-ful to follow Kofi Annan's suggestion thatUNESCO should move to closer participationwith civil society and the business communityand be less governmental in outlook – closerto people and local businesses, so it can pro-duce practical results that will not be remoteand bureaucratic. In short, the Organizationshould focus on its raison d’être and on itsstrengths.

(c) Is this a propitious time for UNESCOto focus on Partnerships with thePrivate Sector?

In this regard, three questions must be posed.Are UNESCO and the UN improving theirimages? In addition, what role in internationalsociety can these organizations play? And, inthe current geo-political situation, how wellcan UNESCO perform its mission under exist-ing or emerging conditions taking intoaccount the new ways of thinking about arapidly changing world?

(i) Improved Image of the UN andUNESCO

In one respect, this is a very good time forUNESCO to concentrate on private partner-ships. Both the UN with Kofi Annan andUNESCO with Koïchiro Matsuura have recent-ly received very favourable press coveragerelating to their plans for renewal of theirrespective organizations from the internationalpress, inter alia in Le Monde, Le Figaro, New York Times International, and TheInternational Herald Tribune.

In awarding the Nobel Peace Prize to KofiAnnan and to the United Nations Organizationin October, 2001, Gunnar Berge, the Nobel


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Committee Chairman, stressed that the body"wishes in this centenary year to proclaim thatthe only negotiable route to global peace andcooperation goes by way of the UnitedNations". He also declared that the UnitedNations was rising at last to the mission forwhich it was created. This award furtherenhances its image and prestige which shouldhelp it perform the difficult work it is moreand more called upon to perform.

Even the United States, since its 1984 exit fromUNESCO, appears to be impressed withUNESCO's reform efforts. The United Statesattitude to act alone in international relationsappears to be changing since the World TradeCentre disaster culminating in the announce-ment on 12 September 2002 by PresidentGeorge W. Bush that the United States ofAmerica would rejoin UNESCO. The UnitedStates Congress recently voted to rejoinUNESCO. However, further action by theSenate and the Executive is still necessary forthe United States to actually rejoin the agency.

It should also be noted that with science andtechnology becoming more accessible tomany citizens through books, publications andscience pages in major newspapers its influ-ence in the world has been increasing. Sinceeducation in science and other bodies ofknowledge is a UNESCO priority, UNESCO isnow better positioned to respond to presentday challenges.

(ii) The Increasing Importance of theRoles of the UN and UNESCO inthe world

Scholars and world leaders are seeking waysto organize a global world which has to a cer-tain extent outgrown the framework of nation-al governments. Hardt and Negri, in theirrecent book Empire (Harvard University Press2000), give a complex theoretical explanationin order to find emerging order in a globalizedworld. The UN is indeed vital in this regard.The authors credit Hans Kelson, one of thecentral intellectual figures behind the forma-

tion of the United Nations, with foreseeing theneed for universality and objectivity of inter-national order. According to the authors, thelogical, ethical, and legal conception and thesupreme source of every national juridical for-mation and constitution would tend to put anend to conflicts between states.

With regard to the role of the UN in a globalcontext, Kofi Annan recently stated that theUN system is not a world government – a factwhich renders national governments andnational politicians much more cooperativebecause they will feel less concern that the UNwill try to take their governmental powersaway from them. Some countries, have nothad great faith in multilateral organizationswhere they believe action often gets boggeddown by inefficiencies and disagreements, buthave preferred to work primarily on a bilater-al basis, country by country or sometimes uni-laterally where necessary for quick action.Certain governments, due to lack of develop-ment and/or local political considerations,have been unable to provide the necessaryleadership to do many of the things necessaryto make progress in the world. The UN can incertain cases circumvent such difficultiesthrough the close co-operation of NGOs, civilsociety, the private sector and the govern-ments who join the consensus.

The Secretary-General has said that the UN isan organization trying to co-ordinate the workof all social actors who should work together.Others have described the UN system's role asa "facilitator" "honest broker", "match-maker",or "consensus builder" which can animate andcoordinate action or organize special adminis-trative bodies to do so. It can provide leader-ship for building consensus as a springboardfor a co-operative action for many partici-pants – civil society, NGOs, universities, gov-ernments, and the private sector. A goodexample is the Global Environmental Facility(GEF) for which the UNDP, UNEP, and theWorld Bank serve as implementing agencies inwhich the private sector participates in a vari-ety of ways. The UN system has an advantage


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in dealing with many countries because it is anorganization with a potentially powerful inter-national network that can help resolve prob-lems provided it receives sufficient funds.Developing countries generally feel less hos-tility towards the UN than towards developedcountries who often were their colonial mas-ters . For these reasons, it should be easier forthe United Nations than the nation states toovercome the multitude of other barriers toopen friendly relationships in the world. UNagencies have created worthwhile projectswhich would not otherwise have happened ifleft to national governments whose politiciansare primarily responsible to their own nation-al electorate and primarily concerned by short-term issues. In effect, a mantle of leadership incertain activities has fallen upon the UnitedNations when no national state can – or iswilling to – fill the need.

In this regard, present conflicts in the worldmainly arise within national states amongstvarious groups for ethnic, religious, unfairsocial discrimination, historical or other rea-sons. In such cases, the partnerships with co-operating national states in peace-keepingneed to be closely co-ordinated with relevantUN agencies.

Perhaps in the future, the UN and its agenciessuch as UNESCO will be the forerunners – andultimately the backbone - of a limited worldgovernment. In the meantime, they are busyacting as a catalyst to convince governments,civil society, NGOs, educational institutionsand the private sector to work together – amost important function. If they succeed, wemay not need a world government, but willdevelop another system in which different sec-tors in society exercise a mutual balance (sim-ilar to that operating in some constitutionalsystems) to ensure that a global societyremains in a healthy state. If this occurs,UNESCO as a part of its "facilitator" functionshould and will play a more and more impor-tant role. This kind of system has in fact begunto work already in many instances. No onecan foresee the precise nature of the future

governance of the global international societybut it seems obvious, with the present techno-logical revolution in which information tech-nology has exploded, the rapid modern trans-portation and communication systems whichhave been created, the international reach ofmost businesses and governments and somenon-governmental institutions greatly expand-ed, that some new form of regulation needs tobe found.

Hardt and Negri’s book sketches a vision ofthe future which is described as "a new theo-retical synthesis of the new millennium". Theauthors regard the United Nations as a possi-ble precursor of a real "supranational centre"still under construction. In contrast to histori-cal models, this new "empire" has "no emper-or, no geographic capital, and no single seat ofpower" […] "it is almost easier to say whatEmpire isn't than what it is: a fluid, infinitelyexpanding and highly organized system thatencompasses the world's entire population. Itis a system that no one person, corporation, orcountry can control". As Hardt puts it "Thething we call Empire is actually an enormoushistorical improvement over the internationalsystem and imperialism. […] Because powerunder Empire is widely dispersed, so presum-ably just about anyone can effect its course".The author of this report is somewhat appre-hensive whether this new "system" will be animprovement without more violence whenconflicts occur, which do not seem to havesolutions over territorial or other disputescomplicated by ethnic, religious, cultural orsocial issues.

Other ideas on the shape of the future arefound in Allen Hammond’s book WhichWorld? Scenarios for the 21st Century, GlobalDestinies, Regional Choices, (IslandPress/Shearworks Books 1998) which suggeststhat economic forecasting is difficult, if notimpossible, in a chaotic world. This authorexamines possible scenarios of outcomeswhich help us think about the future to facili-tate planning or to limit surprises. His analysisincludes the following factors: demographic,


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economic, technological, environmental, secu-rity, and political in a global and regionalframework. He proposes three scenarios: a"Market World", a free enterprise driven sys-tem which may not lift the bulk of humanityout of poverty; a "Fortress World" which ispredominantly unstable and violent; and a"Transformed World" in which our collectivebehaviour changes because of enlightenedleaders and thoughtful, committed citizens,and increased knowledge and education for abetter and more hopeful society. This wouldvalue human welfare, happiness and socialjustice as the real goals of security and wealthcreation.

Such visions of the future are often linked tothe right kind of education and knowledge. In1958, Julian Huxley’s book The WonderfulWorld of Life, considered that these could bethe fastest way of improving human capaci-ties. The world's problems will probably onlybe solved, if they are solved, with the help ofexperience and knowledge from many disci-plines.

These observations recall the concepts of com-plexity, complex adaptive systems, chaos, net-works and emergent phenomena in the natu-ral sciences which would also seem to haverelevance to the study of global, political andsocial systems. Complexity as a thoughtprocess has received extensive study in Franceby Edgar Morin and his disciples as outlined inhis book Introduction à la pensée complexe(ESF éditeur, Paris, 1990)8. According to thisauthor, complexity does not have a noblephilosophical, scientific, or epistemologicalheritage and it carries with it the idea of con-fusion, uncertainty, and disorder. It is a "prob-lem" word not a "solution" word, which doesnot eliminate the simple but rather integratesthis factor. It shuns simplification whichreduces or mutilates reality. He believes erroris often caused by the way knowledge isorganized into systems of separate ideas (the-ories or ideologies) and is too compartmental-ized into different disciplines. Perhaps that iswhy the economic ideas of the free enterprise

system (free trade and primarily economicthinking and action) alone do not seem to becuring the world's ills fast enough andappear to some to be worsening them.Improvement can only happen when theimportant actors in society work togetherand if analysis and knowledge from manycountries and the various necessary disci-plines are utilized.

A companion concept to complexity is chaoswhich is the subject of Chaos - Making a NewScience, by James Geick (Penguin Books,1988). The typical example of chaos is wheresmall differences on initial conditions haveunpredictable consequences – a butterfly flap-ping its wings in Brazil causes a hurricane inFlorida. Some attribute this concept to RayBradbury's science-fiction of forty years ago. Ifthis is true, two disciplines, literature and sci-ence, have indeed met.

Murray Gell-Mann, a Nobel Prize laureat inphysics, has defined chaos as "a technical phe-nomenon on non-linear dynamics on whichthe outcome […] is so sensitive to initial con-ditions that minuscule change at the beginningof the process results in a large difference atthe end." (The Quark and the Jaguar, page 27,W. H. Freeman and Co, New York 1994).Thus, chaos is not pure randomness.

Another concept which currently is receivingmuch research and attention is the structureand operation of networks in high technologycommunications, not only Internet but also inbiology, physics, chemistry, and other naturalsciences, such as neural networks and bloodcirculation, and in the social sciences.Governments, the UN system, companies, andother organizations have networks whichwork more or less efficiently. Today's world ismade up of many large organizations whichuse networks to send commands, controls,motivate and manage themselves in variousways. They can receive feedback, and learn,and remember. Even terrorists have their ownnetworks which can remain passive or in apreparatory state before springing into action.


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UNESCO's numerous regional and nationaloffices have developed into widespread net-works in fifty-five different countries.Furthermore, its programmes are almostentirely network-based. These relatively newconcepts which have been subject to intensestudy during the last part of the last centurylead us to think in new ways about the sci-ences, social sciences, other disciplines, thesystems of governance in the world and therole the UN and UNESCO could play. Theseconcepts may also be helpful judging progressin the law (see Baker, Law, Chaos, andComplexity in The International Lawyer,Nomos Verlagsgesellschaft, Baden-Baden1999).

These approaches, coupled with an everincreasing base of new knowledge, underlinehow fast ways of thinking and knowing arenow changing. This trend is likely to continuein the future, which means that methods andthe content of education (a priority ofUNESCO) need to be constantly updated if itwishes to be the "unchallenged reference"sought by Koïchiro Matsuura. Care needs tobe taken that redistribution of knowledge israpid so UNESCO speeds up the transmissionand adds value.

These concepts are also relevant to the busi-ness sector which must operate in an increas-ingly complex and unpredictable environ-ment. Forces are emerging which motivatebusinesses to incorporate more corporateresponsibility for ethics, social norms andecology into their management strategy. Theseforces, outlined in the next chapter, appear tobe beginning to shape the business communi-ty despite spirited resistance from many com-panies to continue their business-as-usual phi-losophy.

(iii) Expanding Power and Influenceof Free Enterprise in the World

Except for the United States, Japan, thewealthier European countries, Australia, Braziland a few other countries, the hundred largest

industrial corporations in the world whichhave large international business are morepowerful than most countries if only econom-ic power is taken into account.

As of 1998, only between 20 and 25 countrieshad a GNP larger than the sales of the largestindustrial corporation (General Motors, the carmanufacturer). The last ranking of the 100largest companies (Merck, a pharmaceuticalcompany) had sales in excess of the 1998GNPs of more than 120 countries. About 60%of these companies were European (39) andJapanese (24) while the remainder wereAmerican.

The 21 November 2001 issue of L'Expansion,in its listing of the top 1000 corporations, con-firms the continuous rapid growth of thelargest French companies in the last ten years.With sales doubling from 627 to 1,225 billionEuros, they grew more than the economyitself. The ten largest French companies grew130% in this ten-year period.

Although not usually classified as part of civilsociety, the business community has greatinfluence with politicians in Europe and theUnited States, enjoys the same constitutionalor human rights as individuals and has mas-sive social and economic effects on civil soci-ety through its financial power, vast numbersof employees and influence. More and morecompanies are making efforts not only to beprofitable, but also socially responsible.Corporate social responsibility has become anobjective of many corporations, to promotesocial justice, respect human rights and worktoward sustainable development.

It is interesting to compare the power of thehuge Microsoft Corporation, one of the mostsuccessful United States corporations with amarket capitalization of USD 333 billion and47,000 employees, with the United States gov-ernment during its recent anti-trust litigation.After suffering a defeat in the lower court forabusing its dominant position in the market,Microsoft prevailed in the Appellate Court


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when this court decided that breaking up thecompany was not an appropriate remedy.Government prosecutors have sought to settlewith Microsoft on a much more favourablebasis whereby the company will be obliged tomake only a few changes in how it does busi-ness, which probably will not significantlyadversely affect its position in the market. Thiscase is cited not to show that this situation isnecessarily good for the country or the world,but as evidence that powerful corporationsmay have more power than nation states andtheir judicial systems.

In the United States in 2000, charitable contri-butions came to USD 203 billion, of whichabout USD 50 billion was from corporationsand about USD 150 billion from individuals.Estimates by a research organization indicatethat Americans could have given twice asmuch as they did. Education received USD 28.2 billion, which was considerably less than theUSD 36. 5 billion given to religious organiza-tions. This indicates that the giving potential inthe United States of both wealthy individualsand corporations is very significant. If the UN,UNESCO and other UN entities were seen asworthy recipients, those entities should beable to increase the scope of their activities ifthey could close the gap between themselvesand potential donors.

For many years, leading United States researchand teaching universities have had closealliances (partnerships) with private enter-prise. There has been a large growth in indus-try-funded Research and Development to thepoint that the private sectors contribution isgreater than that of the Federal government.After World War II, through the 1960s, the R &D funding ratio was about two-thirds federalgovernment to one-third private. Today, it isroughly two-third private, one-third federal.

Thus, when one considers the millions ofmedium and smaller-sized business enterpris-es in the world and the continuing privatiza-tion (at least for the moment) of activities pre-viously controlled by governments, it is clear

that enormous economic power, money,wealth, and influence now lies in the privatesector. It also should be noted that a signifi-cant part of the financing of governments inmany countries comes from the taxation ofbusiness enterprises as well as from individu-als. In addition, companies pay wages to theirmillions of employees – another area wherebusiness enterprises’ enormous power andinfluence is exerted. An additional characteris-tic of their power is that they often can actfaster than governments in reacting to new sit-uations. Those that do not can disappear or beabsorbed by other companies.

At the present time, most governments indeveloped countries now accept the freeenterprise economic theories to maximize theproduction of goods and services. Many haveprivatized their industries which were publiclyowned. The free enterprise system in recentyears has often been advocated by professorsof economics at the University of ChicagoBusiness School. So not only the practice offree enterprise but the theory has been wide-ly accepted by governments and industry inmany parts of the developed and developingworld. This trend, added to the considerablenumber of governments both on the right andcenter-left of the political spectrum espousingthe free enterprise system, has recentlyincreased the influence and growth of thiseconomic system. These factors, including thegrowing trend to mega-mergers, added to thecontinuing exploitation of the new frontiersoutside of their borders to expand their busi-ness, has meant that the global reach of thesecompanies and that of their networks havegeographic coverage and power whichexceed or equal that of most governments.Thus business represents an enormous eco-nomic force in the modern world. It alsoappears to be gaining ground in the fewremaining totalitarian countries.

However, it cannot be said that this "triumph"of the market system in industrialized coun-tries solves all problems. Poverty has grown inmany regions resulting in pressure to forgive


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or reschedule national debts in an effort toavoid social disorder.

In a recent book, When Corporations Rule theWorld (Kumarian Press 2001), David C.Korten records what he views as the failuresof the free enterprise system and governmen-tal development activities to raise the stan-dard of living of the poor. Korten claims thatdevelopment based on wealth or money doesnot work. Rather, it needs to be people-cen-tered and local without large sums of moneyadministered through some distant central-ized government authority which takes awayauthority and the resources from the localpeople. If Korten is right, UNESCO's activitiesgenerally are people-centered and shouldhelp to solve the problems he has seen withthe free enterprise economy and governmentdevelopment programmes which he claimsare not working either. Korten also believesthat in the United States money now votesmore effectively than individual citizens, sotraditional democracy has been largely lost

and politicians respond to money powerrather than to the welfare of individual citi-zens.

Both the right and the left sides of the politi-cal spectrum understand that neither the freeenterprise system alone, as practiced in thepast, nor most governmental programmesalone are sufficient to raise poor countries outof poverty. Amongst the most successful eco-nomic weapons to date are the micro-loans,primarily to women and families, that helpcreate small private enterprises and makethem grow to create wealth.

To end this section, one can conclude thatpartnerships with powerful companies, as wellas medium and smaller companies, can lever-age UNESCO's actions significantly and a rolefor the United Nations and UNESCO is becom-ing recognized by business and other leadersas a useful potential partner to add what soci-ety lacks and that business alone is not able tosupply.


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(a) Prestige resulting from UNESCO'sidealistic mission and its successfulaccomplishments

Some of UNESCO's present partners havetaken great advantage of the prestige withinthe framework of existing partnerships. Insome cases, one can question whether the pri-vate partner is not getting more out of thepartnership than UNESCO in fulfilling its mis-sion. In negotiating a partnership, a fair divi-sion of the benefits needs to be reached sothat the principal purpose of partnership is tocarry out UNESCO’s mission, and benefits tothe business are incidental even if substantial.

UNESCO may never match the non-profitInternational Olympic Committee in securingvery large contributions (a budget of 3.7 bil-lion dollars over three years9), but it can cer-tainly do better than at present. Of course,sports are a spectacle and entertainment draw-ing millions of spectators which drives up theprice of publicity companies are willing topay. There is also the competitive phenome-non between potential advertisers that worksin the Olympics Committee’s favour. Goodeducation is probably a more important activ-ity in the world than excellent performance insports even though it may not always seem toattract more money. However, if one takes theUnited States as an example, educational insti-tutions do attract billions of dollars from pri-vate enterprise and wealthy businessmen.

Nevertheless, it must surely be possible toincrease companies' interest in educationalactivities by UNESCO and create many morepartnerships. Companies should have stronglong-term interest in education in countrieswhere they do business because they neededucated employees. Many companiesencourage their employees to act as part-timeteachers in schools where teachers are in shortsupply or of low quality and the companies

provide training periods and apprenticeshipsto students which often result in employmentupon graduation. This is a natural area forcooperation between UNESCO and the privatesector, and one where private enterprise on itsown often makes substantial contributions toeducating youth.

In the industrialized countries, the businesssector spends enormous amounts of moneyon educating its employees.

(b) Linking the education and training of private sector personnelto UNESCO’s goals

Education and training of private sector exec-utives and employees relating to corporatesocial responsibility by UNESCO and its civilsociety, university and NGO partners as wellas other UN organizations through partner-ships with private enterprises provide animportant learning opportunity for privateenterprise. Private enterprise is usually andprimarily focused on short term profitbecause it is not easy to be a successful busi-ness enterprise as attested to by the fact thatnine out of ten new businesses fail. There isnow growing evidence that in the future theprivate sector with all its stakeholders andsuppliers will be required to act with morecorporate social responsibility. This includessocial justice (respect for Human Rights) andit is slowly moving towards sustainable devel-opment (improving the environment andrelated problems) as well. This way of actingappears more and more to be a requirementfor large companies, not only because of lawsrequiring it, but also because investors andcustomers will tend to disappear if the com-pany does not have a positive social balance-sheet to accompany its successful economicand financial balance-sheet. Professor E.Merrick Dodd, writing in 1932, anticipatedthis developement10.

Benefits to the Private Sector

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3. Benefits to the Private Sector Resulting fromPartnerships with UNESCO

An example of a possible partnership thatcould develop as part of the new emphasis onalliances is one in which UNESCO, the busi-ness community (including experiencedretired businessmen), universities and busi-ness schools develop courses on corporatesocial responsibility (i.e. Business Ethics) andtrain teachers in this discipline, with a view toencouraging courses required for all businessdegrees under the auspices of a network suchas the UNITWIN/UNESCO Chairs Programmewhich promotes innovative and socially rele-vant academic teaching and research. In fact,the groundwork for such an initiative hasalready been laid through UNESCO’s co-oper-ation with groups such as the EuropeanBusiness Network for Social Cohesion whichencourages companies to prosper in ways thatboth stimulate employment and prevent socialexclusion.

(c) Advice and information to help companies adjust to emerging futuresociety where business conduct ischanging for the reasons listed inthis part

There is recognition by many private compa-nies that there are "missing markets" in poorand developing countries. If global marketsare to be expanded it must be in least devel-oped countries, since developed countries'markets are often near saturation. If inhabi-tants in these countries moved out of povertyinto a higher standard of living, they couldbuy more products. Most companies are notinterested in attacking this problem because itis enormous, long term, and costly. But far-seeing companies can be recruited to help.This problem is not solely an economic prob-lem but has deep cultural, ethical and humanelements which in the past were often ignoredor underestimated by businesses and govern-ment development agencies. UNESCO has itsown mandate, namely education, culture,ethics, values, knowledge, and its strengths liein these areas rather than in business skills. Ofparticular relevance UNESCO’s promotion ofand expertise in the area of cultural diversity

which has emerged as one of the most com-plex – and powerful – factors affecting thedevelopment process in the 21st century.Governments consult UNESCO to learn moreabout designing new education policies andsystems which must be culturally sensitive todeal with the multiple needs of ethnically var-ied populations. It is now commonly held that,to understand a culture, it is necessary to studythe complex web of relationships and beliefs,values and motivations which lie at its heart.The reference text in this regard is OurCreative Diversity, the report of the WorldCommission on Culture and Development,convened by UNESCO and chaired by JavierPerez de Cuellar, a former Secretary-Generalof the United Nations. The Executive Summaryof this report states that “Developmentdivorced from its human or cultural context isgrowth without a soul. Economic develop-ment in its full flowering is part of a people’sculture.”

From this milestone report, UNESCO has goneon to take two important initiatives – thepreparation of a legal instrument, theUniversal Declaration on Cultural Diversity,which was ratified by its 190 Member States in2001 and contains in Article 10 an explicit ref-erence to the link between culture and eco-nomic development, and the establishment ofthe Global Alliance for Cultural Diversity, apartnership amongst the public, private andcivil society sectors to promote, inter alia, thegrowth of domestic cultural industries as anelement of socio-economic development.

This linkage between culture and economicdevelopment are increasingly frequent andmust be more deeply appreciated by the busi-ness sector. For example, it is interesting tonote that the scholar Amartya Sen has equatedeconomic development with "freedom", ahuman value which is widely appreciated,generally considered a universal value andrecognized as essential. The World Bank'seconomic approach has sometimes been lesssuccessful than hoped, but it is now verymuch aware of the complexity and importance


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of a "more bottom up" approach to improvinglife and increasing wealth in developing coun-tries. Sustained economic progress comes afterthe acquisition of certain values, the establish-ment of enforceable rules, a reasonable courtand system of governance with economic andother freedoms and the creation of institutionsnecessary for economic progress. UNESCO'sstrength in these areas accompanied by eco-nomic development help could make a majorcontribution. Therefore, those companies whowish to participate in alleviating this long termproblem should find UNESCO useful in organ-izing partnerships with them and others.

The private sector is moving toward more cor-porate social responsibility due to forcesbuilding up in society and the market place, orit is doing it voluntarily. A list of these factorsis as follows:

(i) Customer pressure and politicaland public opinion.

Many customers consider the social responsi-bility of manufacturers before buying theirproducts. So companies often make extensiveefforts to be "green" and socially responsiblethrough their public relations, environmentaland personnel policy. The press is quick toexploit failures in responsible corporateaction, particularly when the company is prof-itable. In case of lay-offs, it usually takes theside of the terminated workers and influencespublic opinion.

The United States public's perception of thegreat need to reinforce social responsibility oflarge corporations is perhaps best reflected bythe enormous jury verdicts of millions of dol-lars for victims of alleged manufacturingdefects in automobiles, not only for actualdamages but also for punitive damages – tomake the wrongdoer pay dearly for trans-gressing accepted rules of conduct – notunlike a heavy fine in criminal cases.

Companies spend large sums of money toimprove their reputation because it is good for

their business. A good image is a most valu-able asset. Large companies like Coca Colaspend fabulous sums on public relations toreinforce their image as well as their sales. Acompany's image embodied in its name ortrademarks is vulnerable and activists groupsand the press are well aware of this as a leverto force higher standards of conduct.

(ii) Voluntary action by organizationsand agencies representing busi-ness

➢ The World Business Councilfor Sustainable Development(WBCSD)

This organization, which voluntarily workstoward sustainable development, began whenStephan Schmidheiny, a Swiss businessman,led a group of companies involved in the1992 Earth Summit to Rio. It is an organizationof many of the world's leading companieswhich claims to have invented and globalizedthe concept of eco-efficiency, i.e. the idea thatcleaning the environment is not "all cost andno gain", that what is good for the environ-ment is also good for the bottom line. Thisorganization has also helped corporations seethe business value of corporate social respon-sibility. The WBCSD seeks ways to makemarkets encourage rather than discourageenvironmental and social sustainable devel-opment. The WBCSD recognizes that marketsare not accidents but human constructs andurges business to unite to craft the best mar-kets possible to lead to corporate socialresponsibility via the three pillars of econom-ic growth, environmental protection andsocial equity.

Its members are drawn from thirty countriesand twenty major industrial sectors and haveorganized a global network of thirty nationaland regional business councils and partnerorganizations involving over 700 businessleaders. (See Annual Review 2000, Ten Yearsof Achievement, World Business Council forSustainable Development)


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The WBCSD believes charitable giving frombusiness is not enough – it must be activelyengaged in upgrading human rights practicesand moving toward sustainable develop-ment.

Since this group is in commerce and industry,it encourages members' projects in corporatesocial responsibility with special emphasis onenvironmental issues. Its publications includePartnerships in Practice: Industry, FreshWater, and Sustainable Development;Corporate Social Responsibility: Making GoodSense, and Business and Climate Change:Case Studies in Greenhouse Gas Reduction. Itsbooks on eco-efficiency: The Business Link toSustainable Development (1992), andChanging Course: A Global BusinessPerspective on Development and Environment(MIT Press 1992). These publications havebeen major contributions of practical knowl-edge. Changing Course recounts impressiveand creditable case studies of industries mov-ing toward sustainable development.

These companies know that the present trendwhere many of the least developed countrieshave failed to benefit from globalization, thatgenuine global environment and social sus-tainable development will not occur.Therefore, the private sector partnerships withgovernments and others from civil societybecome vitally important to work to reversethis trend. Unfortunately, government to gov-ernment aid alone often does not seem to beefficient.

In its brochure Partnerships in Practice:Industry, Fresh Water, and SustainableDevelopment WBCSD 2001, the WBCSDreports on the partnership led by DuPontAgricultural Products on Chesapeake Farms onland owned by DuPont. It had twenty-six part-ners including environmental and agriculturalnon-profit organizations, government agen-cies, academia, agribusiness and a group ofconcerned farmers. Each group contributedspecific talents to give deep study to the prob-lems to ensure the project's success.

This project has demonstrated that sustainableagricultural practices can reduce the dischargeof pesticides and nutrients into surface andsub-surface water.

Other partnerships described in this brochureinclude:

� Rio Tinto's project to restore degradedriver basin catchments in Australia.

� Business Council for SustainableDevelopment – Gulf of Mexico broughttogether an alliance of government, indus-try, higher education and non-profit organ-izations in order to reforest the Mississippiriver banks to get rid of a 6,800 squaremile "dead zone" in the Gulf of Mexicowhere no fish could live.

� Flanders' efforts to avoid sewage pollu-tion of the North Sea resulted in a public-private project with Aquafin (a technologycompany which designs, constructs, oper-ates and finances waste water projects),private institutional banks, and the Flemishgovernment.

� Nestlé, a global leader in bottled water,has a partnership to alleviate the growingwater shortage in Africa through its SouthAfrican subsidiary, which works with gov-ernment agencies and non-governmentalorganizations and villages to provide skillsneeded to find and conserve more waterthrough capture from village rooftops,through clearing invasive alien plants frommountain catch basins – a project whichhas taught that "grass roots up" works bet-ter than "top down". People must acquirethe knowledge to solve their own prob-lems.

� Suez-Lyonnaise des Eaux works with theAguas Argentinas Consortium, which nowoperates the Buenos Aires water system. Ithas an agreement with the non-profitInternational Institute for Environment andDevelopment in Latin America to develop


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new strategies for water and sanitation inlow income areas. Various public-privatepartnerships have emerged using innova-tive technological solutions as well asappropriate institutional approaches.Participation of low income communitiesis the crucial factor. They can providelabour as a form of barter to pay for con-nections in a tripartite contract includingthe concessionaire, the municipality andthe community, which is an appropriatemechanism for neighborhoods with popu-lations of 500 to 2,500. In larger projects,up to 50,000 people, the provincial gov-ernment pays the cost of materials andadvances the cost of labour.

The WBCSD is preparing a new collection ofcase studies, which will soon be on-line, gath-ering the "best of the best" case histories fromits members. These case studies will extendthe collection across all business sectors andregions illustrating learning processes, includ-ing those with disappointing results. This willbe part of the Executive Primer and WorkBook scheduled for release at the summit in2002. (See WBCSD brochure Corporate SocialResponsibility: Making Good Business Sense,January 2000 which includes chapters onPractical Steps and Hands-on Tools, CSRNavigator, CSR Tools, Self-assessmentQuestionnaire, Key Characteristics of SocialReports and CSR Indicators listing key issuesi.e. values and governance, regulations andcontrols, business operations, accountabilityand disclosure, human rights, employeerights/working conditions, alliances in thebusiness context, the development of ethicalproducts, the social and environmental impactof investment)

The WBCSD is well aware that these issuesconcern a wider circle of stakeholders, notjust the member companies themselves. Thelist it has prepared includes: company own-ers, shareholders and investors, employees,customers, business partners, suppliers, com-petitors, government regulators, NGOs, pres-sure and influence groups, communities –

local, regional, state, national and interna-tional.

The work of the WBCSD shows that somevery large complex projects as well as smallerones have been undertaken by companies,sometimes with many partners. Some partner-ships are equipped with professional manage-ment provided by the company or speciallyhired for the occasion. Substantial funds havebeen furnished by the private sector and gov-ernmental partners.

➢ The Prince of Wales Business Leaders Forum(PWBLF)

Another active group founded by commerceand industry in the United Kingdom is theabove international charity founded in 1990 topromote socially responsible business prac-tices that benefit business and society andwhich help to achieve socially, economicallyand environmentally sustainable development.The PWBLF works with 50 of the world's lead-ing multinational companies and is active insome 30 emerging and transition economies topromote corporate social responsibility (CSR).It also interacts with agencies such as theWorld Bank, and the United NationsDevelopment Programme (UNDP).

➢ CSR Europe

CSR Europe (Corporate Social ResponsibilityEurope) is a dynamic business network whichbegan in 1995-96 and whose mission is "tohelp companies achieve profitability, sustain-able growth and human progress by placingCorporate Social Responsibility (CSR) in themainstream of business practice."

With over 40 company members and 15National Partners, CSR Europe achieves thisobjective via the following pathways:

- Serving over 50 000 business people andpartners annually through print and onlinepublications, best practices and tools


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- Offering business managers learning,benchmarking and tailored capacity build-ing programmes

- Including CSR issues in stakeholder dia-logue and focusing particularly on theEuropean Institutions."

[See <http://www.csreurope.org/csr_ europe/aboutus/aboutusmission.htm>, viewed 1/1/2002]

CSR Europe works with 13 organisations in 12European countries. These national partnerorganisations (NPOs) promote CorporateSocial Responsibility at national, regional andlocal level, reaching more than a thousandcompanies in Europe.

The NPOs together with CSR Europe:

- provide expert products and specialisedservices to the business community

- identify ways for all organisations to bene-fit from the knowledge and experience oftheir peers

- engage in joint projects and programs thatresult in streamlined efforts to advancesocially responsible business practices"

[See website page <http://www.csreurope.o r g / c s r _ e u r o p e / n a t i o n a l n e t w o r k s /NPOscontent.htm>, viewed 1/1/2002]

CSR Europe's growing importance is based onmany reasons, including its special interest inincreasing jobs, improving working conditionsand the preparation of a database which pro-vides a listing of good practices of over thirty-five companies listed [see <http://www.csreu-rope.org> viewed 1/1/2002]. Another exampleis the surveys it has sponsored, such as theone showing that 70% of European consumerssay a company's commitment to social respon-sibility is important when buying a product orservice, which indicates that CSR is in the bestinterest of companies. In addition, its closeworking relationships with European Union

leaders, which began when Jacques Delorswas president, gives this group important syn-ergies with European Union governing bodiesand provides a bridge for businessmen towork with European political leaders to helpdefine a European corporate social responsi-bility. This has led to a call by European headsof state for companies to develop their senseof social responsibility.

A recent Organization for EconomicCooperation and Development (OECD) publi-cation provides a detailed overview of volun-tary private initiatives, sometimes motivatedby social pressure, for corporate responsibility(norms) relating to 246 codes of corporateconduct, which the report describes as"among the major global trends in internation-al business in recent years". The adoption ofcodes of corporate conduct contain commit-ments involving labour relations, environmen-tal reporting or environmental managementsystems, human rights, consumer protection,disclosure, fighting corruption, reporting andauditing standards.

The report notes that voluntary initiatives havea crucial, but necessarily only partial, role toplay in effective control of business conduct.Although there is little global social capital, itmust be built up because formal legal deter-rence accounts for only a small part of lawabiding behaviour. (Corporate Responsibility,Private Initiatives and Public Goals,Governance OECD 2001).

Other initiatives include companies which havetaken initiatives on their own through theirown foundations such as Novartis and IBMwhich have attempted to change their philan-thropic models by contributing technical assis-tance to educators, beyond just giving awaycash. For example, some 66% of the USD 125million contributed to the IBM Foundation wasgiven in the form of technical assistance.

➢ The International Associationof Students in Economicsand Management (AIESEC)


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AIESEC is an NGO with active membershipestimated at 50. 000 young people in some 83countries. It receives considerable supportfrom numerous international companies and isinterested in a wide range of themes linkingsociety and business, including the importanceof corporate social responsibility. AIESECmaintains official relations with UNESCO andhas co-operated in numerous activities,notably in the area of higher education andbusiness ethics. This topic was the theme of aRound Table co-hosted with UNESCO inDecember 1998 and addressed questions suchas ethics and cultures, professional codes ofconduct, ethics and justice and the role of gov-ernments in promoting business ethics. Thissubject continues to be a major field ofresearch for UNESCO’s Social Science Sectoras part of its work on trends shaping globalgovernance and sustainable development [see<http://www.aiesec.org> viewed 1/2/2002].

(iii) Action of non-governmentalorganizations (NGOs)

This sort of voluntary action has not silencedcriticism from militant NGOs which claim thatindustry does not address its most difficult orurgent matters when high costs or particularlysensitive or conflictive issues are involved.Many non-governmental organizations haveacquired substantial assets and created world-wide networks and so, like the business com-munity, they are increasing their power andinfluence. It is also Kofi Annan’s vision for theUN in the 21st Century that these organiza-tions should be a bridge between civil societyand national governments. This concept pro-voked negative reactions from some govern-ments.

NGO co-operation with the UN and its agen-cies and UNESCO has become much closer inrecent years. The power and influence ofNGOs with networks in many countries areparticularly strong. The subjects which interestNGOs have recently expanded. Some relate toenvironment, i.e. Greenpeace with forty-oneoffices throughout the world working in areas

such as climate change, pollution, food safety,forestry and anti-globalization. NGOs alsoattack injustices they believe are caused byfree trade and lobby in Davos. They are oftencritical observers of institutions like the WorldBank and other financial institutions and theirpolicies. Amnesty International focuses onHuman Rights and on working conditions.Other NGOs have a special role in disasterrelief, such as CARE and "Médecins sans fron-tières" which send doctors to trouble spots.The Third World Network represents the Southand finally many NGOs serve many objectives,like OXFAM .

The power of NGOs to affect the life of multi-nationals is a reality. Aside from their ownsources of funds (membership fees, publica-tions and foundation grants) public aid fordevelopment furnished to NGOs by nationalmembers of the Aid Committee of the OECDwas up to a billion dollars in 1966. TheBrussels office of the World WildlifeFoundation receives 40% of its budget fromthe European Union. Companies like Total, alarge French oil company, find it in its bestinterest to have a relationship with "FranceNature Environnement". So the NGOs havemoney which allows some of them to becomea strong influence in civil society.

By and large, advocacy groups are generallyhostile to multinational corporations. Many areengaged in wide-ranging investigations andprotests against perceived human rights abus-es by corporations. Others are focused ondrafting voluntary codes of conduct in aneffort to act as agents of change. Examples ofthe latter include the Framework For HumanRights Principles For Australian Companies(drafted by Amnesty International-Australia)and the FLA Workplace Code of Conduct (pre-pared by the U.S.-based Fair LabourAssociation, which is composed of corpora-tions and consumer, labour and human rightsgroups that include the International LabourRights Fund, the Lawyers' Committee forHuman Rights, the National ConsumersLeague, the National Council of Churches,


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Adidas-Salomon A. G., Eddie Bauer, Inc., LeviStrauss and Company, Liz Clairborne, Inc. andReebok International, Inc.

There are also a multitude of humanrights/corporate social responsibility organiza-tions which have their own agendas. Most ofthese groups are actively harnessing thepower of the Internet and many websites nowexist regarding international human rightsabuses and alleged corporate social breaches.Some of the more important websites includethe following:

� The Global Alliance For Workers (<http://www.theglobalalliance. org>)

� Human Rights Watch (<http://www.hrw.org>)

� Universal Rights Network (<http://www.universalrights.net>)

� Workers Rights Network (<http://www.tradewatch.org>)

The postings on these websites are excellentresources to illustrate the multitude of risksand pressure points facing multinational cor-porations in abiding by domestic and interna-tional standards expected of businesses oper-ating in the global marketplace.

The NGOs have increased their power andinfluence in the world very considerably in thelast 50 years and some exert strong influencenot only on multinational companies, but alsoon governments, consumers and public opin-ion. According to a recent poll, consumers inFrance are willing to support the work ofNGOs by favouring products from companieswhich co-operate with such groups.

Environmental lawyers in the United Stateshave recently explored options relating toglobal warming after taking a clue from broad-based class-actions lawsuits like those filed onbehalf of Holocaust survivors or against thetobacco companies. Plaintiffs on behalf of

whom a lawsuit might be filed may not onlybe for those who live near a source of pollu-tion but those who are thousands of milesaway. Such a lawsuit would force the UnitedStates government and corporations to reduceemissions of heat-trapping greenhouse gaseswhich scientists say are already warming theplanet and posing serious risks to humanhealth, property and even entire nations.Lawyers from NGOs like Greenpeace, theWorld Wildlife Fund and the NaturalResources Defense Council were among thosemeeting recently along with leading professorsof international law. UNESCO has relation-ships and cooperates with NGOs, i.e. frame-work agreements with the InternationalCouncil of Sport Science and PhysicalEducation (ICSSPE), the International Councilfor Engineering and Technology (ICET), theInternational Council for Science (ICS), theInternational Council for Philosophy andHumanities Studies (ICPHS), the InternationalSocial Sciences Council (ISSC) and many others.

If UNESCO succeeds in working with compa-nies in the private sector, there are surelyinteresting opportunities in creating tripartitepartnerships with some of the NGOs withwhom UNESCO already has projects wherethe addition of a private sector partner or part-ners could be advantageous.

Social justice and sustainable developmenthave not always had a priority position on thebusinesses' radar screen. An exception occurswhen an unexpected emergency arises wherea non-governmental organization and thepress launch a campaign against the company.This can be very damaging to the company'simage since the latter is often its most impor-tant asset. A good image sells products. Sucha dispute can go farther and include boycottsby consumers or lawsuits by injured parties,which increase the danger to the corporateimage and may result in substantial damages ifthe law provides a remedy. Class actionsunder United States law allow the joining ofmany members of a class of plaintiffs which


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provides a powerful weapon against large cor-porations who have damaged many people.

Examples of situations where companies havereacted to pressures generated by NGOs, pub-lic opinion and the press are:

Shell Oil Company became the first oilcompany to acknowledge responsibilityfor human rights, adopting a comprehen-sive set of "Global Business Principles" in1999, which includes company-wideinternational training programmes andpublic reporting on corporate socialresponsibility and international humanrights issues.

Starbucks Coffee adopted a programmein April 2000 called "Fair Trade Principles"to improve the livelihoods of coffee grow-ers in Central and Latin America throughmeasures such as guaranteed fair prices forharvests.

Abbott Laboratories, following a settle-ment with the United States Federal TradeCommission, appointed a "Chief EthicsOfficer" in November 2000 to advise thecompany on ethical constraints in doingbusiness around the world.

Broken Hill Proprietary Co. Ltd requiresall firms with whom it contracts to complywith its internal Code of Conduct whichcan be more stringent than many nationallaws in areas such as the environment.

On December 20, 2000, several major multi-national corporations (including Chevron,Texaco, Conoco, Royal Dutch/Shell, BPAmoco and Freeport McMoran) signed afirst-of-its-kind voluntary code of conductunder pressure from the United States andBritish Governments in which the companiespledged to adhere to a set of principles inmaintaining the safety and security of theiroperations within a framework that ensuresrespect for human rights and fundamentalfreedoms.

Most of these actions are responsive to on-going legal and/or public relations problems.Multinational corporations – at least in thepast – rarely have energetically addressedthese concerns.

In order to avoid such problems companiesare hiring lawyers and other consultants tocomplete a "corporate compliance" study tosensitize corporate executives to the new risksthey run. This is risk management where legaland ethical issues pose new risks.

(iv) Press coverage of Human Rightsviolations, ethical shortcomings,discriminatory personnel policiesand irresponsible environmentalconduct.

The press is a powerful voice in communicat-ing information and influencing public opin-ion. Although adverse publicity is not a directconstraint like a court order, it can be very dis-suasive. Very often, in such cases, an NGO isalso involved.

Many large companies spend enormous sumsof money to enhance the prestige of theirbrand name or trademarks, since they are gen-erally regarded as most valuable assets. If thepress, usually with the help of an NGO, pub-licizes unethical corporate conduct or viola-tions of environmental regulations, there canbe great damage to the company's goodwilland brand name. Large companies can be vul-nerable in case of such misdeeds, and damagecontrol is much harder today because of theoften extensive media coverage.

Moreover, the media itself is not beyondscrutiny. This is the subject of a new reportentitled Good News and Bad: The Media,Corporate Social Responsibility andSustainable Development jointly published by the United Nations DevelopmentProgrammme, Sustainability (a long estab-lished think tank which studies business anddevelopment) and Ketchum (one of theworld’s leading public relations and reputation


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management consultancies). Commissionedfor the forthcoming World Summit onSustainable Development (Johannesburg2002), it shows how media agendas haveevolved since the first Earth Summit in Rio in1992. According to the report, the media toooften overlooks significant long-term trends infavour of dramatic and immediate news.Furthermore, as businesses themselves, keymedia institutions could be more transparentand accountable and will come under increas-ing scrutiny from socially responsibleinvestors.

(v) New laws

In the last century and more particularly inthe last fifty years, many new laws have beenenacted regulating corporate social responsi-bility relating to employees' rights, benefits,on-the-job safety for employees, product safe-ty, consumer protection and laws protectingthe environment. There has also been a con-trary movement by industry toward deregula-tion in many developed countries to simplifythe rules, especially relating to the most high-ly regulated sectors. However, there has beena clear trend to require corporations tobecome more socially responsible in theiractivities. This trend in legislation is likely tocontinue, subject to simplification andremoval where market incentives can bemobilized to substitute for legislation withbetter results.

Although the Alien Tort Claims Act in theUnited States dates from the late 1770s, it hasbeen newly applied since the mid-1990s toallow foreign citizens to sue corporations inUnited States courts for human rights viola-tions and other illegal acts committed abroad.

Recent laws which have been passed to regu-late corporations are, for example:

- the United Kingdom's Human Rights Act1998 (which incorporates the EuropeanConvention on Human Rights into domes-tic law of the United Kingdom);

- the South African Constitution (whichincorporates international legal principlesinto domestic South African law);

- United States Free Trade Agreements (suchas the US-Jordan Free Trade Agreementintroduced in the United States Congress inOctober of 2000, which incorporates spe-cific provisions dealing with workers'rights and environmental protection andallows for dispute resolution proceedingsin cases of alleged breaches of those rightsand protections);

- the Australian Criminal Code Amendment(Bribery of Foreign Officials) Act 1999(which incorporates the OECD Conventionon Bribery of Foreign Officials) and theCrimes (Child Sex Tourism) Act 1994 (pro-hibiting such offenses when they occurabroad);

- proposed legislation in Australia (whichwould include a draft bill of rights as wellas a corporate code of conduct imposingstandards and regulating the overseasactivities of Australian companies in theareas of human rights, environment,labour and occupational health and safety);

- the United States House of Representativesin June of 2001 passed legislation toremove from United States stockexchanges any oil company doing busi-ness in countries, whose governmentsreportedly used revenue to finance civilwar and its casualities including, for exam-ple, the conscription of children.

In the United Kingdom, investment fund man-agers are under increasing pressure to becomeeducated about socially responsible investingdue to new regulations that took effect in Juneof 2000 requiring United Kingdom pensionfunds to disclose whether "social, environ-mental, or ethical concerns are taken intoaccount in the selection, retention and realiza-tion of investments." The new United


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Kingdom regulations do not require imple-mentation of social policies, but only their dis-closure. A by-product of the regulations willbe opportunities for activists groups to name(and shame) investment funds into applyingsocial, environmental, or ethical considera-tions in investment strategies. Similarly, inmid-November of 2000, thirty-nine leadingfinancial investors in the United States respon-sible for USD 140 billion in investments urgedCEOs of the Fortune 500 to adopt the GlobalReporting Initiative, a standardized measurefor social, environmental and economicreporting. The signatories to the letter sent tothe CEOs of the 500 largest companies includeleading socially responsible investors, such asthe Calvert Group, Domini Social Investmentsand Investment Advisors for the InstitutionalPension Funds for the city of New York. Thisinitiative, which is complicated, has less of afollowing in Europe.

(vi) Increasing litigation in developed countries for wrongs (torts) in the leastdeveloped countries

Litigation can be a most onerous burden forcompanies. The high cost expended by com-panies defending themselves under these lawsand tangible and intangible damages incurred,demonstrate a trend toward the use of classactions to litigate international human rightsdisputes. They also confirm that claimants ofmodest means with complex claims can – incircumstances where their domestic legal sys-tems are not capable of providing competentrepresentation and funding – bring claimsagainst multinational corporations directly inthe courts of major commercial jurisdictionslike Australia, the United Kingdom and theUnited States based on misconduct of theirforeign subsidiaries.

A new type of litigation risk has alsoemerged in the form of third-party claims offraud and misrepresentation. Illustrative ofthis trend is a consumer fraud lawsuitbrought before a California court in 1998 by

human rights activists against a leadingsportsware manufacturer for allegedly mis-leading consumers and shareholders regard-ing the company's treatment of its Asian fac-tory workers. The lawsuit contends that thefirm sought to mollify consumers and share-holders with a false advertising campaign (tocounter charges that it employed Asianwomen working for very low wages in dan-gerous conditions), and seeks court-orderedrefunds to consumers for all profits obtainedthrough false statements. Lower courts dis-missed the suit and the plaintiffs' appeal isnow before the California Supreme Court onthe issue of whether "image ads" are gov-erned by the same laws as product advertis-ing. In December of 2000, the CaliforniaAttorney General submitted an amicus briefsupporting the position of the human rightsactivists and arguing that a human rightspublic relations campaign should be subjectto false advertising laws. The success of thisclaim (still pending) may portend additionallawsuits of this variety.

Another case was filed in California in 1999 asa public interest private Attorney General'saction brought by the Labor Union of NeedleTrades (AFL-CIO) and several NGOs, i.e.Global Exchange, Sweatshop Watch, andAsian Law Caucus against some leading "highend" clothing companies which included sev-eral leading brand names on today’s market.This case was based upon alleged unlawfulbusiness acts and practices, unfair and fraudu-lent actions and making untrue or misleadingadvertising.

The complaint alleged that more than one bil-lion dollars (wholesale value) worth of clothesmanufactured by sub-contractors of the com-panies involved were sold under a made-in-USA label when they were made in Saipan inthe Mariana Islands, which are located 120miles north of Guam in the South PacificOcean. Although these islands are aCommonwealth of the United States, they arenot subject to the same labour standards thatprotect United States workers. The garment


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factories in the islands are owned and operat-ed by foreign companies who send in theirown managerial staffs. Plaintiffs alleged itwas illegal to take advantage of this loopholein the law, i.e. that the place of manufacturewas on United States territory, when every-thing else – workers, nationality of the man-ufacturing companies, their shareholders,executives and lack of labour standards – wasforeign.

The complaint also alleged that the non-USworkers imported into these islands to manu-facture the goods were charged fees by theagencies operating in these islands of fromUSD 3,000 to 7,000 for the "privilege" of work-ing in these factories. The fees were paidbefore arrival or taken out of wages (some-times amounting to over 90% of their lowwages). The labour conditions were abusive –no overtime payment, poor quality food,denial of salary when excessive quotas werenot met, sub-standard housing and restrictionson workers’ freedom .

The complaint states that the defendants exer-cise control over overtime policies and work-ing conditions, quality standards and controland that they are responsible for the subcon-tractors they hire. The plaintiffs requested thecourt to issue an injunction to stop such prac-tices and to order the companies to repayprofits. In this case, the NGOs supplementedthe efforts of the California Attorney Generalin investigating the facts and in enforcing thelaw.

Such examples serve to illustrate that compa-nies worldwide are now regularly monitoredby powerful special interest groups which canhave a decisive influence on the positiveimage of big business, as well as on their prof-it margins.

A number of similar cases have been filed,which allege environmental damage, injuriesto employees as a result of toxic substancesand pharmaceutical clinical trials on non-con-senting young people11.

(vii) Investors' requirements.

A discernable new trend in the area of inter-national human rights law and corporatesocial responsibility issues concerns theexpectations of financial investors and man-agers of investments funds. Although suchfunds began in the 1930s in the United States,it was in the 1990s that such "ethical" fundsgrowth accelerated.

In France, the Forum for ResponsibleInvestment noted that nine of twenty-onefunds (socialement responsables ou "éthiques")were created since 1997, nineteen were creat-ed after 1999, which explains why theamounts invested passed from 324,5 millionEuros on 31 December 1998 to 777,2 millionEuros as of 31 December 2000. Forty-sevenwere focused on the concept of sustainabledevelopment. The largest savings and bankinginstitutions are offering these funds toinvestors.

In the United States, more than USD 2 trillionby 1999 were invested in a socially responsi-ble manner, up 82% from 1997 levels or abouttwice the growth rate of all assets under man-agement in the United States, according to theSocial Investment Forum (SIF) study, or about13% of the amount under professional man-agement in the United States.

A company, considered more ethical andcleaner environmentally, can, not only attractmore capital than an equally profitable onenot considered "ethical" or "green" due to theethics of the investor, but also because man-aging a company following a more ethicalpath usually results in lower risks which tendsto avoid costly liabilities for the company.

The above cases suggest that the United Statescourt system and plaintiffs' lawyers along withNGOs are succeeding in enforcing in real lifeUNESCO's priorities – helping the least devel-oped countries and raising ethical standards,when business conduct is not up to acceptablestandards in these contexts.


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(viii) Resistance to the free enterpriseeconomy by political views, reli-gions and other cultures andcommunities

It is clear that a more liberal or left-wing polit-ical orientation causes citizens to accept fewerof the values of a free enterprise society.Others have also noted that the most avidenvironmentalists are often from the left of thepolitical spectrum and include many youngpeople. There has also been a strong negativereaction to market-place values by religiouspeople of many faiths. Many protestors do notlike change and modernization which tends toundermine traditional values.

(ix) A growing literature and researchbase

A growing literature often embraced by thepress is influencing public opinion withregard to the environment. The influence ofmeetings sponsored by the United Nationsculminating in the Earth Summit in Rio in1992 has been substantial and will continuewith the Rio+10 scheduled for South Africa in2002. Our Common Future, prepared underUN auspices, is a basic text for the ideasunderlying sustainable development. Therehas been a deluge of books and articles onenvironmental issues, mostly by environmen-talists. A sampling of these is of interestbecause the environmental concerns consti-tute an important part of corporate socialresponsibility. The gist of some of this writingis as follows:

The United States provides a good example ofthe debate between environmental values andbusiness interests due to the fact that therehas been a remarkable production of writingfrom businessmen who have become sensi-tive to environmental issues and who havebecome intellectual leaders in the environ-mental movement. Some consultants andmany environmentalists often connected withNGOs have published many books and arti-cles.

Businessman Paul Hawken in The Ecology ofCommerce (Harper Collins 1993) notes thatthe ultimate purpose of business is not simplymaking money. He believes that because cor-porations are the dominant institutions of theplanet, the promise of business is to increasethe general well-being of humankind. Hisopinion is that we have reached an unsettlingand portentous turning-point in society andthat business is on the verge of a major trans-formation – that the democracy won in revo-lutionary times, and freedom from abusivegovernments is changing. He notes that cor-porations in the United States, like individuals,benefit from the constitutional due processclause, free speech under the first amendmentand the other constitutional rights, so theyhave become super citizens. According toHawken, corporations in the United Statestend to dominate public thought and dis-course. In Europe Article 10 of the EuropeanHuman Rights Treaty also grants businessesthe same rights as individual citizens.

John Elkington, a British business consultant,believes that socialism is dead as an econom-ic theory but that it remains as a moral cru-sade. In his book Cannibals Without Forks -The Triple Bottom Line of 21st CenturyBusiness (New Society Publishers 1998), heposes the question as to whether capitalism issustainable. The author borrows his title froma Polish poet who asked "Is it progress if acannibal uses a fork?" For Mr. Elkington com-panies are cannibals since they eat up eachother through acquisitions and mergers. Thefork represents sustainability's triple-bottomline – economic prosperity, environmentalquality and social justice. His book focusesmore on environment sustainability and citesseven revolutions which, the author believes,are beginning to transform the world of busi-ness:

1. Markets will force triple bottom-linebehavior by companies. "Triple Bottom-Line" is now the common CSR expres-sion used at international and nationallevels.


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2. Human values: hard commercial valueslike profit-only will shift to softer humanvalues (the younger generation is moresensitive to these values). Business leaderswill believe business is not only, or princi-pally, about creating economic value butalso about social and ethical values.

3. Transparency is out of control in the busi-ness world. NGOs, the press, and otherswill make sure it stays that way.

4. Life Cycle Technology: a company'sresponsibility does not end at the time ofsale but it will be judged by its suppliers,products in transit, and the performance oftheir products from the cradle to the grave.Used products will need to be recoveredby businesses in many cases.

5. Partnerships will become important withother companies, government entities,NGOs and others. Longer term sustainablestrategies are being followed. Eighty-fiveper cent of NGOs polled believed theyshould get involved in more companypartnerships.

6. Time: business will need to escape fromshort-term market-driven thinking in orderto think about longer term socialissues – or they will not survive the sus-tainability transition.

7. Corporate governance: this will becomemore complicated with triple-bottom lineobjectives, especially in large complexorganizations. They will need sustainabili-ty audits to keep on the track.

If the environmentalists do not work withbusiness and through markets, any environ-mental improvements in the world will not bepossible. However, this is often a fragile orstormy alliance involving a wide range ofopinions.

On one side are the libertarians who, thoughconsidered right-wing conservatives by the

environmentalists, regularly challenge thevalidity of the predictions made by this lattergroup. For example, Ronald Bailey in hispreface to The True State of the Planet (FreePress 1995), notes that such disasters asworldwide famine and global warming havenot actually happened with the exception ofgrave but sporadic instances. In Hard Green:Saving the Environment from theEnvironmentalists A Conservative Manifesto(Basic Books 1999), Peter W. Huber express-es skepticism that the computer modelsfavored by environmental pundits can accu-rately predict the future. Moreover, he holdsthat economic scarcities can be remedied bymarket efficiency.

On the other side are the sort of viewsexpressed by David C. Korten, previouslyquoted for his book When Corporations Rulethe World (Kumarian Press 2001). He is astrong critic of the free enterprise system andbelieves that economic globalization has cre-ated dysfunctional societies marked by vio-lence, extreme competitiveness, social frag-mentation and environmental degradation.Rather, desirable goals are environmentalsustainability, economic justice, biologicaland cultural diversity and intrinsic socialresponsibility. A similar conclusion is reachedby David Min, a student writing in theHarvard Law School Record (March 9, 2001)who is troubled by the fact that capitalismseems to have moved beyond the economicsphere into the system of core social beliefs.For Min, real justice and democracy areincompatible with the principles of capital-ism, namely wealth and efficiency. As anexample, companies are managed on thebasis of efficiency, not democracy, thus cre-ating a fundamental dichotomy betweenthese two objectives. This young author con-siders that, at some point, capitalism mustdefer to democracy – simply because the lat-ter is more acceptable in human terms. Sinceyoung people often provide fresh and pene-trating insight into such paradoxical issues, itwill be interesting to see if Min’s opinionsattract further support12.


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Clearly, at least in the United States, corporatesocial responsibility as a concept variesdepending upon the politics of the writer, hisor her experiences or the interest group he orshe represents. Nevertheless, even the mostconservative views acknowledge that there areenvironmental problems that should beaddressed even though there is wide variationas to where a problem lies and what remediesare appropriate. All this makes UNESCO's taskmore difficult to ensure that its corporate part-ners are doing their duty in trying to reach sus-tainable development in carrying on theirbusiness given the different standards whichare invoked.

Europeans and the European Union appear tohave reached more of a consensus on thenecessity for CSR.

Nevertheless, the situation is still dynamic andconfrontational in some countries, where gov-ernments and particular industries remain gen-erally hostile to binding agreements relating toenvironmental action such as that prescribedin the Kyoto Protocol (climate change) and toother environmentally protective policies.Some claim that environmental action is toocostly and that it is bad for an economy, espe-cially in a recession. Smaller industries areoften cool toward the changes required toreach sustainable development because theyfear that their costs will have a severe adverseeffect on their profits.

(d) UNESCO’s knowledge networks - a potentially valuable partnershipasset for the business community

UNESCO and other United Nations agencieshave potentially powerful networks. Thismeans that they are natural partners for inter-national, regional and local businessesbecause their global reach is comparable tolarge corporations and their employees andagents are international in outlook, nationality,training and experience. Thus United Nationspersonnel and that of UNESCO should moreeasily escape the limits, stereotypes and preju-

dices of those whose education and experi-ence are limited to one country and nationalculture. In the past, this tended to be the casewith employees of many multinational compa-nies. However, this is changing rapidly asmajor international firms are now doing 70%of their business abroad and so require staffwith sound knowledge and understanding ofother cultural contexts.

This internationalism should be a factor whichpermits employees and agents of UNESCOand employees of private companies to co-operate and play the role of educators, partic-ularly in the least developed countries as wellas in the developed countries which still havetoo many painfully poor uneducated people.

Partnership networks imply mutual benefits,exchange of expertise, two-way interaction –the sum total of these elements being the opti-mal use of social capital. This term refers tosocial interaction and collective civic responsi-bility which helps stimulate growth and thecreation of wealth in communities as well asin nations13. If UNESCO can strengthen itsmany networks – or, at any rate, help promotetheir reinforcement in co-operation with otherbodies involved – then it will encourage thedevelopment of social capital at all levels fromthe local to the global.

UNESCO has numerous networks – in the pro-gramme and in the policy areas of theSecretariat. These reach out to civil society inall its forms:

- political via parliamentarian leagues

- intellectual via programmes such as theUNESCO Chairs scheme, the Managementof Social Transformation (MOST) and Manand the Biosphere (MAB)

- cultural through its long and distinguishedtrack record in the preservation of culturalheritage and, more recently, through itspromotion of reflection and debate on cul-tural diversity


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- technological via IT programmes (theInternational Programme for theDevelopment of Communication, IPDC,and the ORBICOM Network of Chairs inCommunication)

- social via its 600 affiliated NGOs which arevolunteer workers in their specific fieldsinter alia, education, women, youth, thearts, and the community via the UNESCOClub movement

- economic via its contacts with other organ-izations of varying character in this area (e.g. IGOs and NGOs, business organizations/ lobbies, firms, experts, donors).

The efficiency and quality of these networksvary according to the dynamism of those incharge and their resources – and the efforts ofUNESCO's staff in liaison with them.

However, given the growing voice of civilsociety, those wishing to tap into this repos-itory of citizen spirit, opinion and desire tocontribute to social development will find awealth of talent through UNESCO's net-works.

Today it is possible to identify some clearbusiness links:

- education – all sectors of business IT firms

- science – pharmaceutical industry (in co-operation with the World HealthOrganization), energy companies and cropscience

- culture – transportation, language servicesand the tourism sector

- communication – IT and multi-mediaindustries.

When a partnership is designed and built witha business, other appropriate elements can beadded from UNESCO's many networks to per-form special functions inside the alliance.

Business webs such as Charles Schwab andCo. (online stock-brokers), eBay Inc. (onlineauctions), Cisco Systems Inc. (networkingproducts), MP3. Com. Inc (digital music) andLinux Online (a free operating software sys-tem) constitute a special type of network.These webs have become a new form ofwealth creation referred to as digital capital.According to Don Tapscott, Alex Lowry andDavid Ticoll, in their book Digital Capital, thisresults from inter-networking of three types ofknowledge assets: human capital (what peo-ple know), customer capital (who you knowand who knows and values you) and structur-al capital (how what you know is built intoyour business system).

To the extent that Internet can play an impor-tant role in UNESCO activities, recent devel-opments in business webs (networks) shouldbe observed to ascertain whether businessweb experience in Internet-based partnershipscan be useful in reaching the Organization’sobjectives.

The costs of doing business by UNESCO,which uses the methods of an internationalbureaucracy, are probably much more than ifnecessary functions were separated and car-ried out via Internet – and other networks.Ronald Coase in his book The Firm, theMarket and the Law (University of ChicagoPress 1990) explores the thesis that inter-net-working can dramatically reduce the costs ofmany types of transactions until they are vir-tually free. Such a perspective is very attractiveto business. Furthermore, inter-networkingcan bring additional knowledge and expertisewhich render a product or service innovativein character, adding value to them in the mar-ket place.

Although the Net is expanding fast in industri-alized countries, its use should be accelerated,through partnerships, in the developing worldas a means of increasing communication anddisseminating knowledge. The cost is proba-bly less than traditional methods but bothapproaches should be combined. Despite the


38

crash of significant parts of the new economy,new vistas of knowledge-sharing have beenopened up and bear close investigation byUNESCO.

It should be remembered that consultants andbusiness enterprises have spent huge sums onresearch related to the best ways to generateand organize wealth.

Some have developed groups dealing withglobal risk management, with expertise inethical risks, equitable commerce and triplebottom-line concerns. This expertise is proba-bly applicable to UNESCO’s operations ifadapted to its purposes. Similarly, the impactof networking offices has been dramaticallyillustrated over the last fifty years, one casebeing the huge expansion of the Big Fiveinternational accounting firms. The same istrue of business consulting companies and anumber of international law firms which havebecome large businesses covering all majorcountries.

The lesson to be drawn by UNESCO is toincrease the usefulness, efficiency and numberof its networks and partnerships to the extentthat they can do the required work moreeffectively and less expensively than if theOrganization acts alone. UNESCO is wellplaced in this regard because of its mandate asa clearing house for new knowledge andinformation and for its function as a standard-setting organization through its normativeaction. Its clients are many – its MemberStates, their regions and local governments,other UN agencies, inter-governmental organ-izations, NGOs and civil society groups, theacademic community and so on.

Ideally, UNESCO should retain a leadershiprole but to do so, it needs to understand howbusiness is changing in order to be an effec-tive and credible partner. In addition, the atti-tudes of both UNESCO personnel and thebusiness community need to show mutualrecognition for their respectively useful rolesin society.


39

It was Kofi Annan’s initiative, after seekingthe "rapprochement" of the UN through closecooperation with civil society and NGOs, toinvite the private sector to participate in theUN’s work in co-operation with organiza-tions from civil society, NGOs and govern-ments. This was an obvious next step to getcloser to the business community, an impor-tant part of the world, and not be insulatedfrom it by member state bureaucracies. So,has this succeeded and what are the benefitsto date?

(a) Business – A powerful potential part-ner for UNESCO

In the last fifty years, the free enterprise sys-tem has become the most successful econom-ic model which governments in developedand some developing countries have followedin shaping their own economic systemsdespite its failures to help many of the poor-est countries and the poorest portion of richcountries. The system that has created tremen-dous wealth for millions seems to have failedin alleviating poverty for billions. The compet-itive system allows the strong to get strongerand the weak, all too often, to become weak-er. Socially this is unacceptable and if it is notrectified could lead to the breakdown of soci-ety and the present free enterprise economicsystem. Protests in Seattle and elsewhere andattacks of eco-protesters on genetically modi-fied crops are evidence of extreme discomfortof some segments of society. This failure pro-vides an opening for the UN, UNESCO andother like-minded organizations to makeimportant contributions by adding the otherhuman ingredients necessary for a healthyworld. The partnerships organized by or withUNESCO should help the poor by opening upopportunities for them, and help the businesscommunity incorporate corporate socialresponsibility into its day-to-day management.This provides an important responsibility andopportunity for UNESCO.

Although UNESCO is not a research universi-ty, it is useful to note what partnershipsbetween businesses and some universitieshave produced.

Some universities in the United States havevery successful partnerships with the businesscommunity for research and developmentwhich have produced such remarkableachievements as the Internet, the GlobalPositioning System (GPS) and the HumanGenome Project. Although UNESCO may nothave the same research capacity as top uni-versities, it will need to produce products thatbusiness wants and can use. A partnershipmust be based on serving the best interests ofeach of the partners. If only one partner ben-efits, it cannot be a durable partnership.

In the case of the Massachusetts Institute ofTechnology (MIT), strategic relationships withcompanies provide sources of both knowl-edge and human capital. At MIT, there isgrowth in all areas of industry involvement:technology licensing, membership in theIndustrial Liaison Programme, research spon-sorship and gift income – all a part of theoverall growth in private sector R and Dinvestment. In fiscal year 2000, over 740 com-panies supported MIT through research spon-sorships and/or gifts and 179 were membersof the Industrial Liaison Programme.

A recent example of a large scale corporatepartnership is Merrill Lynch's 15 million-dollarfive-year Technical Research Initiative to fundcollaborative projects across a broad range ofdisciplines in financial engineering, technolo-gy innovation and management spanning theSchool of Engineering, the Sloan School ofManagement and the School of Architectureand Planning.

As we have seen earlier in this report, fundingof research in the United States up to 1960 wastwo-thirds government and one-third private.


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4. Benefits to UNESCO from Partnerships with Business

In 2000, the business community in the UnitedStates funded about two-thirds and the UnitedStates government only one third.

United States industry expanded support toresearch universities from USD 133 million in1976 to USD 2. 48 billion in 1998. This is ahuge surge in the financial contribution ofindustry to research and education. So it isclear that research, education and privatemoney can make a remarkable contribution totechnological progress as well as to progressin other disciplines. The creation of anadvanced knowledge society requires allthree.

(b) Provision of skilled services by busi-ness personnel to UNESCO

First, by working in partnership with business-es, UNESCO can benefit from the large pool ofbusiness personnel which can be made avail-able and who can render services to partner-ships. Successful businesses often have a highlevel of technical, administrative and manage-ment skills based upon their training andexperience in business. To the extent this istransferable to its partnership programmes andprojects, UNESCO should profit from it. Thiswill require a case by case analysis to deter-mine what skills can usefully be contributedby the private sector. Consider the partnershipfor the Mississippi River Reforestation Projectquoted by the World Business Council forSustainable Development in Chapter 3. Led bythe Dupont Corporation, the project was suc-cessful due to co-operation amongst the mul-tiple groups involved.

Furthermore, this issue reminds us of the cut-ting-edge expertise to be found in the busi-ness sector which has, overall, accounted forits ascent to power. In contrast and until theearly 1990s, most governments continued tobe run according to the traditional principlesof public bureaucracy, notably the importanceof hierarchy, lengthy and complicated admin-istrative procedures and no special regard forcost-effectiveness. Over the past decade and

in the industrialized countries, there has beenprofound reform in the field of public man-agement which has had far-reaching conse-quences. Today, the setting and meeting ofclear management targets, greater accountabil-ity, proven staff expertise, performance-basedcareer paths and job security are all acceptedaspects of national civil services. "Small" gov-ernment has become the norm. This, in turn,has impacted on international inter-govern-mental organizations, such as the UN agencieswhich are funded by their Member States. Thegradual disengagement of the public sectorhas been cause for alarm, mainly due to thereduction in core funding for these organiza-tions. Governments have become much moreexigent, requiring clear goals and provenresults for the projects supported. UNESCOhas already experienced this in its Funds-in-Trust arrangements whereby certain donorcountries select priority areas for support anddefine clear criteria for project management.

While it is true that the public and private sec-tors have different and distinct purposes, mostintergovernmental agencies have sought toprofessionalize their administrations as part oftheir reform processes. They must demon-strate their ability to deliver results in efficientand effective ways so as to satisfy the criteriaset by their various donor groups. By co-oper-ating on a regular basis with the business sec-tor, some of the latter’s more positive manage-ment practices may be transferred. One thingis sure, business will expect internationalagencies to be credible and efficient partnersin any co-operative project.

Businesses have considerable experience withstrategic alliances which include many differ-ent kinds of agreements with third parties,which, in the United States, account for twen-ty percent of the average large firms' revenuesand there is at present a twenty percent annu-al increase in the value of strategic alliances ofthe Fortune 1,000 companies14. Businessalliances prosper because of trust betweenallies, where both parties share both controland profits. So, why cannot this be true of

Benefits to UNESCO

41

partnerships with or sponsored by UNESCO?Although the nature of the organizations differwhen UNESCO allies itself with a business,lessons learned in wholly business alliancescan usefully be studied and adapted to coop-eration with UNESCO.

(c) Utilizing the financial resources ofthe private sector

The increased economic power of the privatesector can be utilized to good effect in fieldssuch as education. One American universityhas USD 19 billion in its endowment, which ismore than the GNP of Ecuador, and consti-tutes a net worth greater than all but a fewlarge United States business corporations(New York Time Magazine, June 24, 2001,page 38). Not-for-profit projects have flour-ished in recent years as well. Some not-for-profit associations (the International OlympicCommittee has been cited) are able to collectbillions of dollars from private enterprise tocarry on their activities encouraging sports byworking with business in order to finance theiractivities. They, in turn, get massive promotionand publicity for their money. There is mutu-al advantage – a key element in a true part-nership. These examples clearly indicate thatfunding potential is high in the private sectorand there is no reason why UNESCO cannotcapitalize on the business community's suc-cess to help with its work. However, to do soprivate industry should be an active partner,deeply engaged and committed and have aself-interest in a UNESCO partnership to sup-port a project or programme.

In order to secure additional funding,UNESCO should encourage member countriesto enact tax deductions for gifts to UNESCOor, where United Nations' local charitable cor-porations exist, take whatever action is neces-sary to allow a deduction for donors toUNESCO if channeled through such local char-itable corporations. Another possibility is toconstitute UNESCO foundations in countrieswhere major donors are located or negotiatetax conventions which facilitate deduction of

funding for money given directly toUNESCO15.

Generous funding by the business communitywill probably not be possible until thedeductibility issue is guaranteed in the donor'scountry. Free enterprise businesses, the off-spring of the industrial revolution which areresponsible for many environmental prob-lems, must play a major part in the responseto these opportunities of corporate socialresponsibility. They will be required to pro-vide viable solutions if they intend to fulfilltheir corporate social responsibility and stayprofitable.

In order to attract the most effective partners,UNESCO will need to demonstrate credibility,prestige and efficiency in carrying out its mis-sion in order for top-grade partners to beinterested in any continuing association withit.

UNESCO will need to be careful in its choiceof private sector partners. Legitimate busi-nesses are sometimes owned by criminal orterrorist organizations. Other companies,which, even though well known, have man-agement which is extremely aggressive or dis-honest or takes excessive risks to benefit themanagers or the company. There is also a riskfor UNESCO that a leading business whichmight be a good candidate to be a partner willfail – and integral part of the capitalistic sys-tem, i.e. creative destruction. But, in the main,most companies try to stay honest to build agood reputation, are prudent and avoid trou-ble, and many corporate executives exhibitthe highest ethical standards. A discriminatingchoice of new partners will be essential tosuccess.

UNESCO can learn from private enterpriseshow to better protect its name, trademarks andother intellectual properties so it can makethese valuable assets available for use in jointprojects in order to benefit both partners. Thisrequirement will become more urgent as thevalue of this intellectual property increases,


42

due to the increasing prestige of UNESCO, andas successful partnerships multiply.

UNESCO, in order to benefit from co-opera-tion and partnerships with the private sector,will need to develop principles of conductwhich will ensure that the private sector part-ner will substantially carry out the mission ofUNESCO. Care will also need to be taken

through appropriate rules, supervision andinspections that the money invested by freeenterprise is properly used and that there istransparency. Such investment should not pri-marily benefit the private enterprise partner.There needs to be a balance of benefitsbetween UNESCO and its private sector part-ners. UNESCO should always be the principalbeneficiary.

Benefits to UNESCO

43

Business, because of its importance, must nec-essarily play a large part in finding solutions totoday's problems, if there are to be solutions.But this will require efforts and educating thepublic and business sectors in order for busi-ness to fully carry out its responsibilities to thepublic. This is not easy for any business, sinceit complicates management problems. It is dif-ficult enough to make a profit for the share-holders without trying to fulfill other some-times ill-defined if not controversial obliga-tions of corporate social responsibility. Beingresponsible to shareholders alone for profit iseasier than being responsible for profit toshareholders and to the interests of all theother stakeholders whose interests are diverseand subject to change. The difficulties formanagement of this trend towards corporatesocial responsibility and ethics have been rec-ognized by a leading United States businessconsultant, Peter Drucker, who wrote:

"The success of management [...] has greatlychanged management's meaning. Its successhas made management the general, the perva-sive function, and the distinct organization ofour society of organizations. As such, manage-ment inevitably has become 'affected with thepublic interest.' To work out what this meansfor management theory and managementpractice will constitute the 'management prob-lems' of the next fifty years." (Peter Drucker,The Frontiers of Management (1986) pp. 192-193).

The main conclusions of this study should beconsidered in the light of this statement.

(a) Conclusions related to Chapter 2 -Some Important PreliminaryQuestions

In order to attract the best, strongest and mostefficient partners, UNESCO will need to accel-erate its internal reforms. If these are accom-plished, UNESCO should become a very

attractive partner and a world-class prestigiousorganization.

One should recall the remarkable and impor-tant role UNESCO has played on many occa-sions in the past. It has acted as an interna-tional body engaged in working out ethicalnorms or standards of conduct (soft law) inmany fields which later often find themselvesintroduced into treaties or enforceable nation-al laws.

It is now time that UNESCO return to centrestage and do more of the most important workfor which it was created, especially since aglobal society appears to be becoming moreand more of a reality in many respects. Thereis an enormous job to be done in providingconditions for peace in a world divided bylanguage, culture, level of science and tech-nology, modernization and democratic gover-nance. UNESCO is well placed to help in pro-viding a forum for dialogue and communica-tion between cultures and in facilitating thesetting of universal minimum standards ofconduct as it did in the preparation of theUniversal Declaration of Human Rights16.

UNESCO is in a strategic position to help workout by discussion those aspects of globaliza-tion and modernization that should be limitedor restrained for the benefit of humanity. Noteverything modern is necessarily good.

The next question concerns the priority activ-ities UNESCO should address. UNESCO's ownchoice of "Education for All" is simple anddirect but also subtle with transversal cross-cutting themes, intersectorial and interdiscipli-nary work.

A last question is whether the time is ripe forUNESCO to focus on partnerships in the privatesector. The answer to this question is that it is agood time to work out useful and efficient part-nerships with businesses and others subject to


44

5. Conclusions

the conditions indicated. The private sector isimportant and so powerful that any realisticefforts to educate and reform society mustinclude it as a major player. It also notes that cer-tain elements in the present world situation sup-port such an effort, such as recent favourablepublicity for UNESCO and the UN and theirincreasingly important role in society. However,a national, regional or worldwide recession, if itoccurs, could be a negative factor.

(b) Conclusions related to Chapter 3 –Benefits to the Private SectorResulting from Partnerships withUNESCO

Business can enjoy more of the prestige result-ing from UNESCO's idealistic mission and itssuccessful accomplishments by working inUNESCO's sponsored partnerships.

Education and training of executives andemployees in corporate social responsibility issomething the Division of Relations withNational Commissions and New Partnershipsof UNESCO and other civil society entities cando through organizing partnerships with pri-vate enterprise, business schools and universi-ties. Developing courses in CSR, with teachersdrawn from the ranks of successful and/orretired businessmen, would be a natural activ-ity for UNESCO to undertake with qualifiedpartners. This would also help to clarify theground rules for all UNESCO sponsored part-nerships. Some business schools have begunto consider offering such courses, not only tostudents but to experienced executives insummer courses.

There are a number of trends in the businessenvironment which are changing the business-as-usual attitude of corporate executiveswhich prepare them to be better partners forthe UN and its agencies. UNESCO can helpsupply the needs which businesses lack inbecoming more socially and environmentallyresponsible. Business is recognizing or beingforced to recognize that it must change formany reasons:

Customer pressure and political and publicopinion are two important factors.

Peer pressure arising from voluntary actions ofsocially responsible business leaders.

Changes are also being driven by global,regional, and local NGOs whose power viathe media has grown enormously in recentyears. They are now capable of seriously dam-aging or perhaps even destroying a corpora-tion's most valuable asset – its good will, nameand reputation – a potentially lethal weapon.

Additional forces acting on the business sectorinclude press coverage of improper businesspractices and new laws regulating corporateconduct as well as new use of old laws byimaginative plaintiffs' lawyers. We have alsoreviewed the growing level of litigation whichis influencing corporate conduct and havenoted that many investors now want to makeethical and "green" investments. In addition,there are many opponents of the free tradeand the free enterprise system, which is syn-onymous with the industrialized world. Thisleaves the impression, in poorer countries, ofan arrogant exercise of power, rather than ofco-operation with others. Finally there is agrowing and abundant literature being fedinto public opinion and taught in universitiesthat form the attitudes of younger generations.All these forces will surely have an effect onthe business community and hopefully willmotivate or force changes in corporate con-duct, where needed, to move toward ethicaland social responsibility as well as environ-mental sustainability.

Caution should be exercised, however, inoverestimating the changes that will be madein the business community, since some busi-nesses do not accept the concept of corporatesocial responsibility nor will they easilychange their sole focus on the profit bottom-line – usually for the most part a short-termobjective driven by markets. Progress in thisregard will fluctuate depending on the placeand the company. Nevertheless, these trends

Conclusion

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are important because they should encouragebusinesses to seek partnerships with the UN aswell as with UNESCO and provide strong busi-ness sector partners who will help UNESCOget action on the ground and increase thefunding of its projects.

But more importantly, the trends identifiedabove will, if they continue, induce businessto adjust due to customer pressure since busi-nesses recognize more and more that the cus-tomers are the ones who have the ultimatepower to determine their success or failure.They are beginning to decide more and more,with the incitation of the press and the NGOs,what they want from business corporations interms of conduct and products. This can bedescribed as a new form of democracy wherecustomers vote when they use their money topurchase products. UNESCO, like govern-ments, plaintiffs lawyers, particularly in theUnited States and the United Kingdom legisla-tors, foundations, and NGOs can help channelthe pressures on business so they are associally useful and represent the highest val-ues we have been able to define up to now.

(c) Conclusions related to Chapter 4 –Benefits to UNESCO fromPartnerships with Business

Strong partners from the business sector willbring extra skills – technical, managerial,administrative and others – to partnershipsorganized by UNESCO. It can also bring thelatest knowledge, particularly in technologyand knowledge of large organizations, law,accounting and many other fields. Knowledgeand expertise are not only located in universi-ties and research centers but great reservoirsare found in private businesses – particularlypractical knowledge.

Large corporations often have powerful con-nections and influence with politicians andwith society at large. A good corporate part-ner should be willing to contribute theseassets to UNESCO partnerships to reach itsobjectives.

Large businesses can bring more money intoUNESCO projects and programmes, particular-ly if the business has a hand in designing theirdesign and execution. Thus business becomesa real active partner, an active one and not justa "cash cow" to be passively milked. Thismeans that UNESCO like the UNDP can betterleverage its own funds by securing outsideinvestors in these projects, provided it hascredibility. This credibility can be enhanced byfirst-class partners if the project is sound andworkable.

The reform of UNESCO, its improving image,and the help the powerful and the expandingfree enterprise system can bring to it are favor-able factors allowing UNESCO to strengthen itsinfluence in the world and in attracting strongpartners. However, the key question is whetherUNESCO will be able to attract the best com-panies and be successful in working with themto better perform its mission. To do so, it mustdeliver something of value to these companies,which think they primarily are in the businessof making a profit by delivering good productsand services which please their customers. Co-operation in various educational projects, withbusiness schools or universities as partners andprivate businesses, appears to be a natural areaof mutual interest, but others need to be foundand developed where there is a real interest onthe part of a business and UNESCO receivessignificant benefits. Some argue that UNESCOand business do not have enough in commonto work efficiently together. To discover thebest points of convergence of interests will beone of UNESCO's most difficult but importanttasks. Designing the structure of partnershipswill also be important in order to make themefficient. Combining a UNESCO bureaucracywith the structures in a business may not be anoptimum design to accomplish the work to bedone.

Working with small companies, particularlyfrom the least developed countries, will alsoeducate UNESCO personnel regarding prob-lems these companies face and what theiremployees need in terms of education.


46

Bottom-up economic development like micro-loans seem to have worked better than macro-projects, so working with smaller business onethical and environmental issues could also bevery productive.

Even though this report is not directed tofund-raising, this activity should not be neg-lected. It should be carefully organized andcoordinated and skilled personnel expert inthis work hired. In addition, work should bedone to maximize methods for donors tosecure tax deductions in their respective juris-dictions, not only for their investments in part-nerships with UNESCO which may even nowqualify for deduction, but also for their dona-tions. With regard to United States partners ordonors, UNESCO should do what is necessaryto be able to use the United NationsFoundation as a conduit for funds coming to itfrom the United States or make other equiva-lent arrangements in the United States and inother countries. In this way governments,through tax deduction, join in the funding ofpartnerships through their willingness to allowtax deductions.

Although mistakes will surely be made in thechoice of partners from the business sector,they can be limited if UNESCO moves cau-tiously and builds up its internal expertise andcapacity and learns through experience to dothis work carefully.

(d) Final Conclusions to this Report

Education is UNESCO's major mission – how toeducate and what content to teach in a worldwhere cultural diversity continues to increase.However, though essential, education alonecannot eradicate all evil in the world. But it canhelp if social conditions are such that, regard-less of origin and financial resources, everyonehas a reasonable chance to get a good educa-tion and to accede to the highest positions insociety. Unfortunately, this is not the case atpresent, which may account for violent reac-tions of those who believe they have no hopeto succeed in contemporary society.

The major concern in UNESCO's Constitution ispeace. "Since wars begin in the minds of men",education and equal opportunity, to the extentit can be created, must orient action into peace-ful channels. However, where war is beingwaged or violence occurs in everyday life andpoverty reigns, changing attitudes by educationis difficult if not impossible. Since 1945, the vic-torious countries in World War II imposedpeace on defeated countries and major warswere avoided up to the present. Since educa-tion is hardly possible where there is war orviolence, it will need to be accomplished inpeaceful countries and peace forced upon ornegotiated in violent or warlike societies.

United Nations entities and UNESCO havealready co-operated and created partnershipswith the private sector which need to bestrengthened. The free enterprise economicsystem (the private sector) has grown to takea more powerful position because of its influ-ence and increasing economic and financialpower in the world, compared to govern-ments, as globalization accelerates. Many non-governmental organizations have also becomepowerful multinational organizations helpinggovernments control the activities of the pri-vate sector and looking after the "public inter-est". UNESCO should also study the experi-ence of some NGOs in promoting a healthierglobal civil society with more voluntary asso-ciations and corporate citizenship. SomeNGOs have often been imaginative and entre-preneurial in developing strategies forresource mobilization17.

With good press and renewed energy,UNESCO can begin to take the leading roles itcan properly play and for which it wasdesigned . The momentum now needs to beaccelerated through more internal teamworkand new dynamic partnerships with privateenterprise, universities and civil society.UNESCO's method of reaching this goalincludes providing renewed leadership in the"collection, assessment and re-disseminationof the knowledge and experience availablearound the world", as defined by Koïchiro

Conclusion

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Matsuura. In the future UNESCO couldbecome an even more effective partner in cre-ating useful knowledge by its choice of themost important and urgent subjects to be stud-ied, its employment of world-class leaders todo this important work and its organization ofconferences and research on these subjects.UNESCO's power to determine what shouldbe on its agenda is an important function thathas now been skillfully accomplished.

UNESCO's work in setting standards inEducation, Science, Culture, and Communi-cation should lead to better understandingbetween peoples of different cultures. This is

the goal expressed by Kofi Annan, when heaccepted the Nobel Prize for the UnitedNations and himself when he said: "We canlove what we are, without hating what andwho we are not". Producing better under-standing, tolerance, if not love, and "softlaw", are a means to lead to more peace andare a valuable contribution that UNESCO canmake.

These actions will be UNESCO's continuingjourney into the future if it is faithful to its mis-sion. The Organization should go forwardwith its present agenda and adapt it to presentand future needs in order to get results.


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(a) Enhance and optimize UNESCO per-formance. Accomplish the presentreorganization as rapidly as possiblein order to enhance the prestige ofUNESCO. However, prestige alone willprobably not be a sufficient incentiveto drive a dynamic partnership pro-gramme.

(b) Recruit the most talented, energeticand idealistic people to work forUNESCO, including leading businessand professional persons and makean intelligent choice of personnelfrom UNESCO and its networks towork in these new partnerships.Early retirement of many talentedcorporate executives and profession-al people constitute a rich and grow-ing pool of talent, due to increasedlife-expectancy, which should not beoverlooked.

(c) Constitute a Senior Advisory Groupfor UNESCO to help facilitate coopera-tion with the private sector withstrong representation from the busi-ness community to provide the neces-sary expertise.

(d) UNESCO will need to study and designnew partnerships, programmes andprojects with businesses, universitiesand others which should motivatedesirable private-sector partners towork with UNESCO. After carefulstudy UNESCO also should prepare aninventory of the companies it believesshould be the best partners and notpassively wait for offers of partner-ship by companies.

(e) Centralize information and controlin appropriate units of UNESCO forpartnerships and fund raising with-

out destroying individuals' effortsand initiatives in the various divi-sions and units which must be deeplyinvolved.

(f) Focus efforts on UNESCO's main pur-pose: education and its other relatedpriorities.

(g) Limit the number of new partner-ships formed by UNESCO untilUNESCO develops more capacity,expertise and experience and canproperly evaluate or have a thirdparty evaluate existing partnerships.

(h) Develop guidelines and procedureswhich will maximize the chances of aright choice of business partners – amost important decision.

(i) Foster partnerships, not only with thebusiness community, but with otherpartners in civil society such as gov-ernmental entities, universities andothers where appropriate.

(j) Ensure close monitoring of partner-ships ("Contrôleurs de gestion").

(k) Conduct periodic internal audits ofUNESCO's efforts to organize partner-ships.

(l) Organize, professionalize andimprove fund-raising – take steps toinsure the tax deductibility of fundingand gifts in donor countries toencourage more outside financialsupport. Co-ordinate new partner-ship activity with new fund-raisingefforts.

(m) Co-operate with other educationaland not-for-profit organizations.

Conclusion

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6. Recommendations as to Future Operations – Principlesand Procedures

(n) Co-ordinate partnerships' activitieswith other UN agencies.

(o) Reinforce protection of names, trade-marks and "brand name" (UNESCO'sintellectual property) as they becomemore valuable. Centralize their man-agement and control. This will con-tribute to the promotion of strongerpartnerships, facilitate policing oftheir unauthorized use and enhanceUNESCO's ability to better control itsintellectual property policy. At pres-ent, there are significant violations bythird parties that are occurring sospecialized personnel should becharged with this policing responsi-bility.

(p) As a part of its new partnershipeffort, initiate a study of a UNESCOpartnership for a business and ethicsprogramme with the private sector,business schools and universities toprepare courses, train teachers andpromote the proper ethical and envi-ronmental conduct (corporate socialresponsibility) for business, in accor-dance with the best standards andnorms that others and UNESCO canformulate.


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End Notes

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1. The term "private sector" in this paper means thoseentities engaged in business, i. e. not governmentorganizations, except for those government-ownedorganizations engaged in business. The private sectoras used in this paper is not considered part of civilsociety even though the power it exerts in civil soci-ety often far exceeds those of civil society organiza-tions, i. e. citizens and organizations of citizens, asso-ciations, and organizations like Greenpeace, Civicus,World Wild Life Fund (commonly referred to as non-governmental organizations or NGOs). Foundationswill be considered separately as foundations, even iffinanced partly or wholly by businesses.

Article 10 of the European Convention on HumanRights, as confirmed by the Cour de Strasbourg 22May 1990 in Autronet vs. La Suisse Série A178, pro-vides that companies benefit from human rightsunder this convention. In the United States they alsobenefit from protection of the Bill of Rights andother constitutional guarantees. When one also con-siders the powerful lobbying influence and the con-tribution of large campaign funds in some countries,the relative power of a large business compared tothe individual citizen is massively greater. Althoughfor the purposes of this paper businesses are con-sidered separately from civil society, it is obviousthat their effect on government and civil society isenormous.

2. [A] Partnership with a private sector entity, i. e. thebusiness community, means an agreement between(…) [UNESCO] and a private sector entity to worktogether for a common purpose, with the partiescommitting resources (financial, personal and/ortechnical) to agreed activities, to be implemented bythe parties in accordance with terms of the agree-ment. This definition is from The World Bank Group,Business Partnership and Outreach Group - BriefingNote No. 1 - web: <http://www.worldbank.org/busi-ness/03assessment.html> (see under "Briefing Notes":Business Partnership: Definition & Approval( < h t t p : / / w w w . w o r l d b a n k . o r g / b u s i n e s s /briefings/note1.pdf>).

3. United Nations. The United Nations and Business -Working with the UN System: New Dimensions inCooperation: Case Studies from the UN System.<http://www.un. org/partners/business/cases.htm>(viewed 1/1/2002).

OECD. 2001. Corporate Social Responsibility -Partners for Progress. OECD Code 042001131P1.

Corporate Social Responsibility is businesses' contri-bution to sustainable development. This book illus-trates that partnerships provide a powerful mecha-nism for helping firms become socially responsible.It includes the results of a 15 November 2000 Round-

Table Conference "Partners for Progress – Towards aNew Approach to Corporate Social Responsibility".

In "Part I / Corporate Social Responsibility in aGlobal Economy / Overview of Discussions", MaryRobinson, UN High Commissioner for Human Rights,is quoted: "Business decisions can profoundly affectthe dignity and rights of individuals and communi-ties… It is not a question of asking business to fulfilthe role of government, but of asking business topromote human rights in its own competence."

UNESCO. 1999. 160 EX/40: Private SectorInvolvement and Cooperation with United NationsSystem. UNESCO Joint Inspection Unit, JIU/Rep/99/6

4. Tu Weiming in Family, Nation, and the World: TheGlobal Ethic as a Modern Confucian Quest, CarfartPublishing Ltd., Social Semiotics, Vol. 8, Nos 2/3(1998), wrote:

"The modern West's dichotomous mode of thinking(spirit/matter, mind/body, physical/mental,sacred/profane, creator/creature, God/man, sub-ject/object) is diametrically opposed to Chinesehabits of the heart.

[…]

The possibility of a radically different ethic or a newvalue system separated from and independent of theEnlightenment mentality is not realistic. It may evenappear to be either cynical or hypercritical. We needto explore the spiritual resources that may help us tobroaden the scope of the Enlightenment project,deepen its moral sensitivity, and, if necessary, cre-atively transform its genetic constraints in order torealize fully its potential as a worldview for thehuman community as a whole.

A key to the success of this intellectual joint ventureis to recognize the conspicuous absence of the ideaof community, let alone the global community, in theEnlightenment project. Fraternity, a functional equiv-alent of community in the three cardinal virtues ofthe French Revolution, has received scanty attentionin modern Western economic, political and socialthought. Willingness to tolerate inequality, faith inthe salvific power of self-interest, and unbridled affir-mation of aggressive egoism have greatly poisonedthe good well of progress, reason, and individualism.The need to express a universal intent for the forma-tion of a 'global village' and to articulate a possiblelink between the fragmented world we experience inour ordinary daily existence and the imagined com-munity for the human species as a whole is deeplyfelt by an increasing number of concerned intellectu-als. Understandably, the basic unit in any society,past and present, namely the family, looms large in

7. End Notes

contemporary political discourse. The idea of globalstewardship implicit in this line of thinking demandsa new ethic significantly different from theEnlightenment mentality."

There is much work to be done to increase the uni-versality of the Universal Declaration of HumanRights to better embrace all cultures. See Franck,Thomas M. Jan./Feb. 2001. Are Human RightsUniversal? New York, Council on Foreign Relations,Foreign Affairs.

5. Benedict, Ruth. 1950. Pattern of Culture, An Analysisof Our Social Structure as Related to PrimitiveCivilizations. Mentor Book. The author demonstratesthat in primitive societies truth and virtue dependupon the culture of the society. One poor cultureseemed to produce a less ethical society if viewedfrom western culture.

François de Bernard in his contribution toDictionnaire critique de la mondialisation, GERM,Editions Le pré aux clercs, on cultural diversity, sug-gests that globalization, which is above all the impo-sition of the economic laws upon all other activities,can only bring a matrix to other activities by makingthem efficient. Globalization, he describes as animmoral mother who conceives and raises her chil-dren only to collect their income. She is possessiveand selfish. However, he notes there should also bea globalization of cultures, i.e. making available formore people to discover, exchange and share theinfinite variety of cultures in the world.

6. Camdessus, Michel. 2001. "La réduction de la pauvretédans le monde : un devoir international ?". In Rapportmoral sur l'argent dans le monde en 2000. Paris,Caisse des dépôts et consignations & Association d'é-conomie financière, pp. 97-104. Also see in the samepublication Join-Lambert, Marie-Thérèse. 2001. "Lapauvreté en France et en Europe". p.443.

7. Fortunately, many leading educational and researchorganizations have recognized the need for interna-tional interdisciplinary (pluridisciplinaire) education.The University of Paris Dauphine<http://www.dauphine.fr/> combines courses inmanagement, applied economics, information tech-nology relating to management, applied mathemat-ics, sociology of organizations and law. A leadingexample of an interdisciplinary organization in theUnited States is the Santa Fe Institute<http://www.santafe.edu/>, where interdisciplinaryconferences and courses are given including a sum-mer school on complexity.

8. Also see Simon, Herbert A. 1994. The Architecture ofComplexity in the Sciences of the Artificial. MIT Press,2nd Edition, Chapter 7.

9. International Olympic Committee. 2000. "OlympicMarketing Revenue Distribution". In Olympic factsand figures. <http://www.olympic.org/ioc/e/facts/

marketing/mark_intro_e.html> (viewed June 2001).Funds from Private Sources such as broadcast rightsfees, sponsorships, supplierships, licensing, ticketrevenue, coin and philatelic programs were budget-ed to generate in excess of USD 3.5 billion for theOlympic quadrennum 1997-2000 and 3.7 billion forthe years 2001-2004 (32% sponsorship, 55% televi-sion, 10% tickets and hospitality, 2% licensing, 1%others).

10. Dodd Jr., E. Merrick. 1932. For Whom are CorporateManagers Trustees? Harvard Law Review, XLV No.7,pp.1146-1163. He expresses the view that publicopinion ultimately makes law and a corporation is aninstitution with social service as well as profit-makingfunctions.

11. The author is indebted to United States lawyersGerald L. Maatman Jr., and David Hackett, toAustralian lawyer Martijn Wilder, to British barristerJames Cameron (professor at College of Europe,Bruges, Belgium), and to Swedish lawyer ClaesCronstedt, who provided most of the information inthis section (vi), the previous one (v), and a portionof the next section (vii). They specialize in corporatesocial responsibility issues, i.e. human rights,employment law, natural resources, trade, and envi-ronmental law.

See also Litigation Against Multinational Companiesis Increasing, an article in which Claes Cronstedtpoints out that parent companies are being subjectedto litigation for wrongs committed by their sub-sidiaries or companies they allegedly control (jointventures). He notes that in January 1999 theEuropean Parliament voted to create a legally bind-ing set of regulations for European multinationalcompanies in developing countries which wouldclarify what rules should apply. Presumably existinginternational standards such as ILO's regulations,OECD's guidelines for multinational companies andthe fundamental rules on human rights in the UNDeclaration of Human Rights will be taken intoaccount. Mr. Cronstedt believes courts, especiallythose in common law countries, will further acceler-ate the trend toward more active enforcement of cor-porate social responsibility rules.

Claes Cronstedt is a member of the Board of theSwedish Amnesty International Business Group[<http://www.amnesty.se/business> (viewed1/1/2002)], and a member of the Board ofInternational Alert [<http://www.international-alert.org> (viewed 1/1/2002)], an organization whichworks with conflict prevention in developing coun-tries. He also played a leading role in initiating theWallenberg litigation in the United States against theSoviet Union requesting millions of dollars in dam-ages to force this country to release RaoulWallenberg, if alive, or to give information relating tohis death. Mr. Wallenberg, a Swedish diplomat,helped many Jews escape from Nazi authorities inHungary during World War II.


52

In a recent article, A Tainted Trademark. A Hard-Earned Lesson, a private paper, Claes Cronstedtpoints out that a company's unethical social behav-iour can cause massive damage to its trademark andreputation, so a careful review of a company's cor-porate social responsibility policies is a necessity toprevent such damage.

In a recent private paper by James Cameron, entitledAccess to Justice and Litigation Involving MultilateralCorporations, the author notes that Article 6 of theEuropean Convention on Human Rights can serve asa basis – an implied right to sue – for human rightsviolation in British courts. It is possible that othermember states will follow the same tendency. Healso notes that the defense of forum non conveniensmay not require litigation take place outside ofBritish courts where a British parent company is con-cerned even if the alleged wrongful action occurredin a foreign country. British courts have exhibited anincreasing desire to protect plaintiffs' rights in threecases. The conclusion that Barrister Cameron drawsis that it is increasingly difficult for parent companiesin the United Kingdom to argue that they are notresponsible for activities of their subsidiaries whenworkers are injured or the environment is damaged.

Mr. Cameron concludes that "our society has notedthe shift in power to private corporations" and "thereis now an expectation that responsibility will comewith that power". International legal experts mayattempt to propose legislation or a treaty to set outgeneral rules of court jurisdiction.

It is noteworthy that the World Bank allows NGOs toparticipate in proceedings before its Inspectors' Panelbrought to hold it accountable for non-compliancewith is own "operational policies and procedures".

So far, NGOs are not allowed to bring an actionbefore international courts and become third partiesin international judicial proceedings but they canclaim human rights violations provided they are vic-tims. There is a question whether they can file anamicus curiae brief in international judicial proceed-ings. NGOs participation is crucial, not only at theproject level but also in the Global EnvironmentalFacilities policy-making.

NGOs can also make submissions to the Secretariatof the Commission for Environmental Cooperation ofthe North American Agreemnt on EnvironmentalCooperation. [See Beyerlin, Ulrich. 2001. The Role ofNGOs in International Environmental Litigation. TLACommittee in Transnational Enforcement ofEnvironmental Law, Washington Meeting].

12. Edgar Morin, a leading French sociologist, expressesa similar view. He believes that economic develop-ment, even if sustainable, leads to an ethical and spir-itual underdevelopment. He believes that, unfortu-nately, world governance, with politics gearedtoward humanity and civilization, is not possible at

present and its birth, if it is not to be aborted, will belong time in coming. He calls for world citizenship, aworld civil society and a strengthening of the UnitedNations (Edgar Morin. 26 Mar. 2002. Une mondiali-sation plurielle. Le Monde, pp. 1, 19).

George Soros, an astute financier who made a largefortune in world financial markets has expressed sim-ilar sentiments when he said "I'm very critical of mar-ket fundamentalism -- the belief you can leave every-thing to markets. Markets are eminently suitable forwealth creation, the allocation of resources amongprivate needs. But they are really not designed totake care of social objectives, collective or commonobjectives. […] It is generally acknowledged that thegap between the haves and the have nots is gettingwider, and that is a basis for growing disenchantmentand distress. […] There needs to be a parallel trackthat seeks to improve the economic and politicalconditions in the world. Without it, the world isgoing to get more and more polarized. That, in away, serves to accomplish the purpose of the terror-ists. […] I'd like to make it clear that entrepreneurs,and the private sector generally, have something veryvaluable to contribute, but it cannot be counted onto bring systemic improvement." He added that thereis growing awareness on the part of corporations that'public goods' are a precondition for economicgrowth. "But one has to recognize that particularlycorporations -- their objective is to make a profit.Therefore, whatever philanthropy they engage in ...is definitely subject to this constraint of serving inter-ests of the donor first and the recipient second. It'sbuilt into corporate philanthropy." (See David Bank.14 Mar. 2002. Soros Insists Government Funding MustRaise Philanthropy for Gains. Wall Street Journal,p.2)

13. Putnam, Robert. 1993. Making Democracy Work:Civic Traditions in Modern Italy. Princeton UniversityPress. The author describes social capital in someItalian municipalities made up of networks, normsand trust that facilitates cooperation and has madesome municipalities function better and becomewealthier than others where there is unco-operativeand unethical behaviour.

14. Dent Jr., George W. Nov. 2001. Gap Fillers andFiduciary Duties in Strategic Alliances. In TheBusiness Lawyer, Vol. 57, No.1, American BarAssociation.

In the United States, care should be exercised bynon-profit corporations which joint-venture with for-profit corporations to be sure the former reserve fullmanagement control, otherwise the non-profit cor-porations will not secure tax exempt status. RedlandsSurgical Services v. Commissioner, 242 F.3d 904 (9th

Cir. 2001) and Plumstead Theatre Society, Inc. v.Commissioner, 675 F.2d 244 (9th Cir. 1982) cited inStephen M. Albrecht M.P.H., "Note - Joint VenturesBetween Non-Profit and For-Profit HealthcareProviders: Redlands Surgical Services v.

End Notes

53


54

Commissioner", Tax Lawyer , Vol. 55, No. 1, Fall2001, pp. 309-318.

15. As a result of a conference held in Evian in 1969, theInternational Standing Conference on Philanthropy(Geneva) (Interphil) was formed. It asked M. B.Ludwig, a Swiss lawyer, to draft a EuropeanConvention on the Tax Treatment in Respect ofCertain Non-Profit Organizations. This draft was dis-cussed in November of 1970 at the Secretariat of theCouncil of Europe. The Commission of the EuropeanCommunities requested and had a report on this con-vention prepared by Professor Claeys Bonnaert, aBelgian lawyer. The draft was revised by a commit-tee of experts and a report prepared by J. van HoornJr., a Dutch tax expert. The Council of Europe, basedon the report of the Legal Affairs CommitteeDoc.3052, recommended (Recommendation 656) in1972 that the Parliament Assembly's Recommen-dations "Invite the member governments to study thepossibility of removing the juridical and fiscal obsta-cles to an increase in international activities by non-profit organizations with a view to promoting greaterEuropean Solidarity" and "examine the possibility ofconcluding a European agreement in this field." Seealso <http://www.nonprofits. org/npofaq/12/08.html> (viewed 1/1/2002) for a list of non-profitorganizations active internationally except those inthe United States and Canada. Unfortunately, com-ments of the governments and the OECD did notfavor such a tax treaty because it was said that thedeductibility provisions in each country are all differ-ent. If European tax harmonization occurs, then thissubject can be re-examined and decisions taken, so

there is a common market in philanthropic gifts aswell as in commerce. See Parliamentary Assembly ofthe Council of Europe. 3 Jan. 1976. Recommendation656: on tax treatment of non-profit organisations. InStatutory Report. Communication on the activities ofthe Committee of Ministers. Third part of the 27th

Ordinary Session of the Assembly (January 1976).Doc. 3707, pp.5-6.

16. UNESCO's work on these problems began in 1947when Julian Huxley, UNESCO's Director sent thepoet Archibald MacLeish to the Human Rights meet-ing in the United States to apprise the Commission ofUNESCO's interest in their work. This "philosophers'group" was a committee on the Theoretical Bases ofHuman Rights, for whom Jacques Maritain was itsmost active member. The committee sent a question-naire to statesmen and scholars around the worldincluding such notables as Mohandas Gandhi, PierreTeilhard de Chardin, Benedetto Croce, AldousHuxley, and Salvador de Madariaga soliciting theirviews on the idea of a universal declaration ofhuman rights. This vitally important work undertak-en by UNESCO is described in a new book by Mary-Ann Glendon, A World Made New, Eleanor Rooseveltand The Universal Declaration of Human Rights,Chapter 5 "A Philosophical Investigation", New York:Random House (2001) pp.73-78.

17. See Promoting Corporate Opportunities for Businessand Civil Society Engagement, Civicus, WorldAlliance for Citizen Participation (1999) andSustaining Civil Society, Strategies for ResourceMobilization, Civicus (1997).

Annex I

ANNEXES TO THE REPORT


56

(a) The Global Compact

On January 31, 1999 at Davos, the UNSecretary-General Kofi Annan initiated a newpolicy in challenging and inviting world busi-ness leaders to "embrace and enact" theGlobal Compact in their companies and tosupport appropriate public policy to ensure itsacceptance. This Compact with the privatesector would bind the latter to respect humanrights, follow fair labour practices and actresponsibly to safeguard the environment bypromoting sustainable growth. The Compactwas designed to meet two goals: safeguardopen markets and underpin them with socialvalues. As a result, businesses are invited tointegrate the aims of the Global Compact intotheir business strategies in addition to makinga profit. On another occasion, Kofi Annannoted that most businessmen justifiably thinkthey have helped to make this world better,safer and happier since it is primarily businessenterprise that has created and continues tocreate wealth. Wealth has been an indispensa-ble tool to reaching a higher standard of liv-ing, better education and a higher quality oflife for many millions of people. Unfortunatelybillions of humans alive today are unable toshare in this wealth. [See <http://www.un.org/partners/business/cases.htm> for casesummaries describing private sector partner-ships from fifteen different organizations inthe UN system].

Referring to the United Nations Fund forInternational Partnerships (UNFIP) set up in1998, the public charity in the United Statesresponsible for channeling the USD 1 billioncontribution in support of UN causes made byTed Turner, Kofi Annan stated "This successfulpartnership serves as a model to demonstratemy commitment to engage the private sector

in a concrete manner. Jointly, we can worktogether in addressing the world's problems."[see <http://www.un.org/unfip/>, and <http://www.unfoundation.org/> and <http://www.unfoundation.org/grants/index_ women.asp>].

(b) The Secretary-General's Report on Co-operation between the UN and all relevant partners, in particular with the private sector (28 August 2001)

This report gives a clear picture of views ofthe member states and others of the differenttypes of co-operation with the private sectori.e. Policy dialogue, Advocacy, MobilizingPrivate Funds, Information and Learning,and Operational Delivery. It also reviews theGlobal Compact which is described as a multi-stakeholder learning, dialogue and action net-work that embraces several types of co-opera-tion mentioned above and gives backgroundas to the UN units which participated in agree-ing to the nine principles set forth in theGlobal Compact. Several hundred companiesare currently engaged in the network two-thirds of which are from more than a dozendeveloping countries.

The Global Compact is "based on the convic-tion that weaving universal social and envi-ronmental values into the fabric of existingeconomic rules, global markets, and corporatepractices will help advance broader societalgoals and address some of the downsides ofglobalization while supporting open markets.The Global Compact is not intended as a cor-porate code of conduct […] rather it should beviewed as a values platform and learning net-work". The compact has a "three-prongedimplementation strategy: learning, dialogue,and action".

ANNEX I

Overview of Present UN Partnerships with the Private Sector

This report continues with a section on man-aging co-operation with the private sectorwhich includes sections on guidelines andmodalities, management structures and capac-ities and involvement of the private sectorfrom developing countries to adequatelyreflect UNESCO membership and the potentialrole of the private sector.

The contents of the important MillenniumDeclaration are also discussed, which includereaching peace, security and disarmament,development and poverty eradication, protect-ing our common environment, human rights,democracy, and good governance, protectingthe vulnerable in responding to the particularneeds of Africa, the growth of micro-enterpris-es and the empowerment of women.

In the conclusion of this report, note is takenof the number, diversity, and influence of non-state actors which has "grown dramatically inthe last ten years […]" who are "engaged to anunprecedented degree in most areas of theUnited Nations endeavour".

Annex 1 defines the private sector as individu-als in business, commercial enterprises, busi-ness associations and coalitions but excludescorporate philanthropic organizations sincethey operate with complete independence fromthe governance structures of any corporations.

Annex II gives fifty-six examples of existingpartnerships and divides them into the follow-ing categories :

A. Global public policy networks such asGlobal Alliance for Vaccines and Immuniza-tions.

B. Voluntary standard initiatives on sustainabledevelopment such as the Global ReportingInitiative and the Tour Operators Initiative forsustainable development (tourism is thelargest industry in the world).

C. Advocacy and Fund Raising Partnershipssuch as UNICEF. The Netaid Foundation is

another. This is a partnership with CISCOSystems, UNICEF, UNDP and the UnitedNations University founded by the ListwinFamily Foundation, an online community withthe mission of informing people regardingpoverty issues and empowering them by link-ing volunteers to take action through onlinevolunteering or donations on the internet.

D. Partnerships to facilitate private investmentsuch as Microstart, a global pilot initiative toidentify and build a new generation of reliablemicro-finance institutions. This is managed bythe UNDP.

E. Global Knowledge and Learning Networkswhich include the World Bank Group’sBusiness Partners for Development. TheGlobal Water Partnership is also included inthis category. It shares experience in sustain-able management of water resources and hasbuilt up a network of regional technical com-mittees.

F. Operational delivery partnerships whichinclude the Refugee Registration Project withsupport of the Gates Foundation to design anddeploy a refugee registration system. Anotheris the joint UN Programme Tackling AIDS inAfrica with Coca Cola and its local bottlingentities as a partner, the largest private sectoremployer in Africa.

G. Country level co-operation which has beenorganized to carry on work controlling malar-ia in Azerbaijan and on reducing child labourin garment manufacturing elsewhere.

H. Building partnerships, i.e. building capacityin developing countries as does Empretecwhich assists and trains personnel in promis-ing small and medium-sized enterprises indeveloping and transition economies helpingthem to grow, internationalize and form suc-cessful joint-ventures and other business link-ages with transnational corporations.

I. Partnerships to Address Global Health Issuessuch as the Global Polio Eradication Initiative,

Annex I

57

a partnership with WHO and UNICEF, RotaryInternational (1. 2 million business and pro-fessional leaders in 163 countries), and theInternational Partnership Against AIDS inAfrica, a coalition of African governments, theUN, donors and the private and communitysectors.

J. Partnerships to address global environmen-tal issues such as the Global EnvironmentalFacility, an innovative institutional mechanismfacilitating inter-agency cooperation and hun-dreds of consultations and partnerships withdonor and recipient governments, develop-ment banks, the scientific and technical com-munity, non-governmental organizations andthe private sector. It finances and supportsmore than one hundred and fifty projects car-rying out practical actions in the followingareas: biodiversity, atmosphere, climatechange and ozone depletion, internationalwaters and land degradation. The PrototypeCarbon Fund falls into this category of part-nerships. It is a public-private partnership sup-ported by governments and the private sectorset up to "show how project-based emission-reduction transactions can promote […] sus-tainable development" and to "learn by doingand develop a knowledge-base of processesand practices that facilitate climate-friendlyinvestment". Another partnership listed in thiscategory of partnerships is the Clean AirInitiative to improve air quality in cities.

This report ends with Annex III UN Guidelinesfor Partnerships with the Business Community.Appendix II sets forth rules for use of theUnited Nations name and emblem by the busi-ness community.

This document gives a full report on the path-breaking activities of the UN in mobilizing theprivate sector to carry out its mission, oftenwith the public sector and other partners. Anobvious conclusion is that, to do this, the UNagency concerned, (in this case UNESCO)needs to work on building up its capacity todesign, organize and manage such partner-ships which are often complex arrangements.

(c) Private sector involvement and co-operation with the United NationsSystem (JUI/REP/99/6, Geneva, 1999)

Convincing arguments are made by theauthors, Francesco Mezzalama and Louis-Dominique Quedraogo, as to why the UN sys-tem should strengthen its partnerships withthe private sector. This report was forwardedto the Executive Board of UNESCO on August22, 2000 with the Director-General'sfavourable recommendations for action.

This Joint Inspection Unit points out that theUN system and the Development Banksalready have enormous connections with thebusiness community. It is estimated that thevalue of opportunities arising for businessapproach USD 30 billion annually. Thus strongrelationships with business already exist.

The private sector has had a close co-opera-tion with the UN and the EconomicCommission for Europe (ECE). The UnitedNations Conference on Trade andDevelopment (UNCTAD) relies on the privatesector to provide an international standard foraccounting and reporting. The oil, chemicaland shipping industries contribute to the reg-ulatory work of the International MarineOrganization (IMO) in the field of maritimesafety and marine environment protection.The same is true for the work of the Food andAgriculture Organization (FAO) in producingnormative programs (Codex Alimentarius).This agency has also prepared a strategic doc-ument, Strategy for FAO/Private SectorPartnership to Achieve Food Security, to pro-vide a framework for action with the privatesector. The World Intellectual PropertyOrganization (WIPO) has worked closely withthe private sector for over a century develop-ing norms for intellectual property.

Small and medium-sized enterprises (SMEs) indeveloping countries have been the mainclients of UN programmes. The InternationalTrade Centre (ITC) focuses on SMEs as themain target of its trade promotion, advice on


58

product development, marketing, and train-ing.

The International Labour Office (ILO) esti-mates that it has trained 100,000 entrepreneursin more than seventy countries. The UnitedNations Industrial Development Organization(UNIDO) estimates it has helped 22,000 SMEsand has set up information networks to helpbusinesses succeed.

The Joint Inspection Unit underlines a newattitude in the UN "to embrace the private sec-tor and cooperate with business rather thanconfront it".

The Secretary-General, as early as 1998, spokeof the UN and the private sector overcoming alegacy of suspicion and bridging their differ-ences and by working together to become astronger force. The UN has evolved in its atti-tude toward the private sector.

Business in turn has changed its attitude torealize how important are adequate institu-tional frameworks provided by governmentsand that a strong UN is good for business.

UN leaders have also stressed that the primaryobjective of private business partnerships withthe UN was not fund-raising but to espousethe values of the UN, channeling investmentstoward the least developed countries and cer-tain socio-economic sectors and to build astrong new constituency for the UnitedNations organization as a whole, i.e. not onlyhas the UN been supported by governmentsbut by the growing powers of the private sec-tor in skills and other resources, includingfinancial. In other words, the United Nations isnot "simply after the private sector's money". Itneeds a much closer, creative, fertile and rich-er network of relationships which will benefitthe private sector as much as it will UNESCO,a real and successful relationship of co-opera-tion and partnership.

The JIU report noted that UNEP has succeed-ed in working very closely with commercial

banks and investments and insurance compa-nies to encourage the incorporation of envi-ronmental concerns into their business priori-ties and their core business operations, whichhas had a large ripple effect throughout theeconomy. UNEP is also doing this in otherbusiness sectors aimed at promoting responsi-ble entrepreneurship in environmental mat-ters.

The report states that it is imperative to informand highlight to the private sector all benefits,direct and indirect, that accrue to it from thework with the United Nations. This has result-ed in the development of a most informativewebsite <http://www.un.org/partners>.

In addition the authors of this report note thatall focal points in all UN agencies, funds andprogrammes should be created and staffedwith appropriately trained officials, who canreceive training at the UN Staff College, todevelop a cadre of "partnership brokers"whose Consultative Committee on Programmeand Operational Questions (CCPOQ) buildscore competencies for effective partnershipsbetween the UN, business and civil society.

It is stated that the UN should assist in bridg-ing the differences between NGOs and busi-ness without harming its relations with eithergroup, because these efforts have proved tobe win/win situations for all partners. NGOsmay also be helpful in assessing the value ofthe UN's cooperation with certain businesses.

Mezzalama and Quedraogo ask for a recom-mitment by Member States to developthrough multilateral channels, the normative,economic and technical infrastructure thatfacilitates prosperity for business at the inter-national level. Governments must provide thefavorable environment, including enforcingrespect for human rights and institutions –judicial, executive, and legislative – in orderfor business to flourish, facilitating privatiza-tion where appropriate, and to be efficient asone of the motors in society creating wealthfor all.

Annex I

59

Chapter III entitled "A Rewarding but ComplexRelationship" in Section A. (a) "MobilizingPrivate Sector's Resources for UNProgrammes" describes how resources havebeen mobilized from the private sector in thepast.

The JIU report notes on Page 8 that UNESCOonly receives 2 to 4 % of its overall extra-budgetary resources over recent years fromthe private sector. It might be concluded thatsuch a small amount indicates a lack of inter-est, lack of know-how and a lack of under-standing of how much the private sector couldleverage UNESCO's actions through activepartnerships. However, there may be massivepotential in the long run in the private sectorfor funding, provided conditions are right andreal partnerships are built.

Other agencies have done better. The World'sHealth Organization has been promised a sub-stantial private donation by a mining and trad-ing company to fund National ImmunizationDays in Angola and to assist WHO in polioeradication in that country. Presumably, anyemployer will benefit from his employees'good health.

UNICEF has raised over USD 18 million withthe help of airlines in collecting leftover cur-rency from passengers. The EconomicCommission for Europe raised USD 1. 5 mil-lion from the private sector.

With regard to in-kind contributions, the JIUreport cites a number of examples as follows:

- During the Kosovo refugees' crisis, a lead-ing computer software company providedcomputer support to the United NationsHigh Commission for Refugees (UNHCR),which included registration kits, comput-ers, digital cameras and specialized ID cardprinters.

- A pharmaceutical company donated drugsover a long period of time to combat riverblindness.

- One hundred and twenty-six enterprisesprovide assistance to United NationsPopulation Fund in AIDS prevention.Other companies lend technical experts.

- Making staff available to UN offices isanother possible way to cooperatealthough it needs to be carefully done toavoid many practical and ethical difficul-ties.

- The Economic Commission for Europe has3. 5 % of its personnel in the Secretariat onloan from the private sector.

- It notes that the loan of personnel oftenbrings expertise to specific sectors (steel,chemicals, gas, etc.). These people oftenbring a more practical approach to theissues addressed and their companies ben-efit by acquiring a broader view of theproblems of their sector. UNEP is fully infavour or this practice.

- Nowhere has this system been developedto the extent of the World Bank through itswell established Staff ExchangeProgramme, which takes employees fromprimarily large companies for two years.The companies hope to develop long-last-ing relationships, cultural exchanges andenhance their skills – all of which shouldbe of benefit to them.

- Some companies finance research projects.

- Others help with advertising, marketing,public advertising and communications,and Internet expertise to raise the profileof certain UN operations and to makeother programmes more effective. SuperiorInternet expertise is clearly in the privatesector. Reaching out to young people iscritical in the fight against the AIDS epi-demic.

- The report noted that it would be impossi-ble to prepare an exhaustive list of projectsundertaken by UN agencies, funds and


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programs, but it notes that strong technicalexpertise and practical concrete objectivesare the precious elements brought to theUN organizations by the private sector.The report gives an impressive summary ofsuch partnerships on page 10. The diversi-ty of these projects is astounding.

- The UN organizations also play an impor-tant role in encouraging private invest-ments in critical development areas –micro-finance sometimes referred to as"the next emerging market".

- Not only is the UN involving private enter-prise in the operational level but also inthe policy-making level as the ILO hasdone for many years with representativesof the employers and employees.

- More recently this is occurring in thetelecommunications, environmental, mete-orological services, intellectual property orother technical and scientific fields particu-larly where new knowledge is emerging.

- The International TelecommunicationsUnion with its 188 member state membersalso has 580 "Sector Members" which comelargely from the private sector. They par-ticipate in the policy guidelines. The ITUhopes to increase the number of SectorMembers to 1000 by 2002.

At the Rio Earth Summit in 1992, business-and-industry was identified in Agenda 21 as one ofthe major groups whose participation shouldbe sought by the UN in setting strategies andpolicies for sustainable development. In thisregard, the General Assembly has begun toseek advice from the business community.

After outlining the already important participa-tion of the private sector, the report goes on tolist some of the difficulties encountered:

- Weak normative framework, i.e. no unifor-mity on financial rules, few rules set up forrelations to private sector, the use of the

UN name and emblem need clarification,how donors can be acknowledged, and soon.

- Selection of partners – the exercise of duediligence should be the rule. This is com-plicated by cross-ownership of compa-nies. Most companies have in the pastsometime been subject to some controver-sy and like human beings, they are notalways perfect.

- The need to appropriately acknowledgecontributions and preserve the integrity ofthe UN, The present rules vary greatly. TheUN should avoid favouring one companyover another unfairly and should not pro-mote a company's business, products, orservices.

- Conflicts of interest and undue influence.It is essential that the UN be neutral andnot become a hostage to any private inter-ests due to the economic or financialpower of the business involved.

The report also discusses the dangers of work-ing with the private sector and outlines howeffective tools can be developed to avoidthese. The relationship is complex betweenthe UN and business, due to the different pri-mary aims of each group. Many UN activitiesare more complex and long-term than theimperative goal of business which is to makea profit in the short term. However, the chal-lenge is to identify win/win activities both forthe UN and business. This requires muchimagination and educating both partners inmany cases.

Annex 1 of the report summarizes the guide-lines of several agencies – UNICEF, WHO,FAO, and UNESCO (the latter relating to fund-raising), Annex II lists the current list of focalpoints in each agency.

Annex III is the General Assembly Resolution92I of December 7, 1946 which provides asfollows:

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ANNEX III

Extracts from General Assembly Resolution92(I) of 7 December 1946, Official Seal andEmblem of the United Nations.

The relevant part of the resolution reads asfollows:

"2. Considers that it is necessary to protectthe name of the Organization and its dis-tinctive emblem and official seal;

Recommends, therefore:

(a) That Members of the United Nationsshould take such legislative or otherappropriate measures as are necessaryto prevent the use, without authoriza-tion by the Secretary-General of theUnited Nations, and in particular forcommercial purposes by means oftrade marks or commercial labels, ofthe emblem, the official seal and thename of the United Nations, and of thatname through the use of initial letters;

(b) That the prohibition should take effectas soon as practicable […]."

It allows members of the UN to take measuresnecessary to stop the use of the UN name, andofficial seal of the UN, unless authorized bythe Secretary-General. As we shall see belowin the UN guidelines, each UN agency is invit-ed to make its specific rules subject to theapproval of the Secretary-General.

Annex IV states the UN Staff Rule 101. 6 relat-ing to Outside Activities and Interests whichprovide as follows:

"(a) Staff members shall not engage in anycontinuous or recurring outside occu-pation or employment without theprior approval of the Secretary-General.

(b) No staff member may be actively asso-ciated with the management of, or

hold a financial interest in, any busi-ness concern if it were possible for thestaff member to benefit from suchassociation or financial interest by rea-son of his or her official position withthe United Nations.

(c) A staff member who has occasion todeal in his or her official capacity withany matter involving a business con-cern in which he or she holds a finan-cial concern shall disclose the measureof that interest to the Secretary-General.

(d) The mere holding of shares in a com-pany shall not constitute a financialinterest within the meaning of this ruleunless such holding constitutes a sub-stantial control.

(e) Staff members shall not, except in thenormal course of official duties or withthe prior approval of the Secretary-General, perform any one of the fol-lowing acts, if such acts relate to thepurpose, activities or interests of theUnited Nations:

(i) Issue statements to the press, radioor other agencies of public infor-mation;

(ii) Accept speaking engagements;

(iii) Take part in film, theatre, radio ortelevision production;

(iv) Submit articles, books or othermaterial for publication."

This report on August 12, 2000 was transmit-ted to the Executive Board by the Director-General together with comments by theAdministrative Committee on Coordination(ACC).

The Director-General of UNESCO agrees thatthe nature of the objectives of the partnership


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between the UN System and the Private Sectorneeds to be further clarified in the UN systemitself. He expressed his willingness to shareUNESCO's guidelines for fund-raising and itsguideline for Selecting Partners and the use ofits name and logo with a view to agreeing onsystem-wide guidelines. He further advised ofhis general agreement with the recommenda-tions in the JIU report of 1999 and expressedhis wish to continue his collaboration with theUN system "with the aim of working out suit-able mechanisms for information sharing andbest practices with regard to relations with theprivate sector to insure consistency of policyand harmonization of relevant proceduresthroughout the United Nations System."

(d) Partnerships with The Private Sector- UN Guidelines (17 July 2000)

The Secretary-General, Kofi Annan, has illus-trated his vision by this statement: "Thrivingmarkets and human security go hand in hand;without one, we will not have the other. ”

The guidelines issued for co-operationbetween the UN and the Business Communitycover Background, Purpose and Rationale,Choosing a Partner, General Principles andModalities, Institutional Capacities, FutureReviews Annex 1 (The Global Compact's NinePrinciples) and Annex 2 (ExplanatoryBackground. Note on the Use of the Nameand Emblem).

These guidelines are based on the efforts ofthe Secretary-General to renew and reform theUnited Nations, explaining the emphasis onthe new direction of partnerships with non-state organizations, including the businesscommunity. They should serve as a commonframework for all organizations in the UNproper and also as a framework for otherorganizations of the UN system, such asUNESCO, which are encouraged to developmore specific guidelines in accordance withtheir particular mandates and activities. It isemphasized that co-operation with the busi-ness community can take many forms – advo-

cacy, fund-raising, policy dialogue, humanitar-ian assistance and development co-operation.

Suggestions are made for the use of the UNemblem and name, fund-raising, managementof partnerships without sufficient policy guide-lines in the past, creating a focal point withineach UN organization which should post rele-vant information on the UN/business websiteand exchange experiences on a regular basiswith other UN organizations and build shareddatabanks and problem-solving methodolo-gies.

Since co-operation with the business commu-nity is influenced by changes in the politicaland economic environment, the guidelinesshould receive critical reviews regularly andbe updated.

For example, a commercial entity acting as aprivate partner may be allowed the use of theUN name or that of the UN organization aslong as the principal purpose of such is toshow support for the purposes and activitiesof the UN, including the raising of funds forthe organization, and the generation of profitby the commercial entity is incidental.

In connection with a special event or initiative,including fund-raising for such an event or ini-tiative, the UN emblem or that of a UN organ-ization like UNESCO may be exclusivelyauthorized for use by a limited number ofbusiness entities. Currently the Office of LegalAffects grants such authorization for the UN.

Choice of a private partner should be limitedto those demonstrating responsible citizenshipby supporting UN causes and core values asreflected in the Charter and other relevantconventions and treaties. They should, withintheir sphere of influence, demonstrate a com-mitment to meeting or exceeding the princi-ples of the Compact by translating them intooperational corporate practices.

Businesses that are compliant in human rightsabuses, tolerate forced or compulsory labor or

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child labour or that are involved in the sale ormanufacture of anti-personnel mines or theircomponents, or otherwise do not meet rele-vant obligations or responsibilities of theUnited Nations are not eligible for partnership.(See for the full text II-CCPOQ 17th session /2000 ACC / 2000 / POQ / CRP. 1)

With minor modifications, the above guide-lines could be adapted to fit UNESCO's needs.As previously mentioned, it would be helpfulif gifts and donations could be made toUNESCO in a manner which facilitates taxdeductions.

(e) Partnerships Organized by Other UNAgencies

An overview of other UN agencies seemsappropriate so that the prior experience of theentire the UN system can be taken intoaccount. The question of why and how to co-operate more closely with business in partner-ship has been considered by UN agencies inthe past in various contexts. It will be useful toreview a number of examples of what hasbeen done, because with this backgroundUNESCO can better determine how to organ-ize itself to maximize its performance via newprivate sector partnerships that it may wish tocreate.

(i) International Labour

Organization

The ILO was established by the Treaty ofVersailles in 1919 and in 1946 became theUN's first specialized agency. In 1969 it cele-brated its 50th anniversary and was awardedthe Nobel Peace Prize.

The ILO is far more advanced in having co-operative arrangements or partnerships withbusiness, because representatives of bothbusiness and labour are integrated into itsstructure and form a part of its organization.Workers' and employers' representatives par-ticipate directly in formulating ILO policy andin decision making through the Governing

Body (28 government members: 14 represent-ing workers and 14 representing employers)(executive council) and the InternationalLabour Conference (the General Assembly).These two bodies, with the InternationalLabour Office which serves as its secretariat,operational headquarters, research centre andpublishing entity, all constitute the tripartitestructure. Each of the one hundred and sev-enty-four national delegations to theConference has four members: two govern-ment representatives, one worker delegateand one employer delegate. In 1998-1999 itsbudget was about USD 481 million withUSD 93. 7 million allocated to technical assis-tance.

Since its foundation, it has worked to elabo-rate and adopt international labour standardsrelating to working conditions, human rights,freedom of association, the abolition of forcedlabour and child labour and the elimination ofemployment discrimination.

The ILO, in addition, has a wide range ofactivities, which include promoting basic prin-ciples and rights, technical cooperation activi-ties to raise living standards and to make fullproductive use of human resources, i.e.employment creation and vocational training.

The ILO works actively with governments toset up and implement technical co-operationactivities, but its operational activities nowhave more tripartite participation, whichincreasingly involve not only governmentagencies but workers and employer organiza-tions in project preparation and implementa-tion."Under a policy of active partnership withits constituents, the ILO has established 16multidisciplinary teams of technical specialiststo provide rapid assistance". The major shareof the expenditures goes to Africa, followedby Asia and the Pacific, the Americas, Europeand the Arab States.

In 1999, a major programme review conclud-ed that it was important to take into accountthe concerns of each tripartite constituent


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without detracting from the overall unity ofILO's action. It also noted the importance ofan effective management structure.

Other activities include education, research,information activities and promoting employ-ment and human resource development,improvement of working conditions andenhancing social protection and eliminatingchild labour (IPEC). This is the world's largesttechnical co-operation programme supportedby governments, employers and workersorganizations and intergovernmental and vol-untary organizations. It operates in sixty coun-tries and is expanding rapidly.

ILO's work includes a range of activitiesdesigned to assist in the establishment of inde-pendent and democratic employers' organiza-tions able to play an active role as representa-tive institutions in democratic societies.

Its relations with non-governmental organiza-tions (NGOs) involve:

� the integration of non-governmental socialpartners in the identity of the organizationitself

� the use of consultative status for non-gov-ernmental international organizations thatmeet certain criteria, such as internationalNGOs with an important interest in a wide-range of ILO's activities

� collaboration at the operational level witha variety of international, national andlocal organizations. The choice heredepends upon whether the NGO hasdemonstrated interest in the ILO's meet-ings and activities.

As a tripartite organization, the ILO "doesnot simply collaborate with NGOs butactually integrates civil society with itsstructure". This integration reflects a "con-tinuous and concerted international effortin which the representatives of workersand employers, enjoying equal status with

those of governments, join with them infree discussion and democratic decisionwith a view to the promotion of the com-mon welfare."

The NGOs included are international innature and have aims and objectives inharmony with the spirit, aims and princi-ples of the ILO Constitution and theDeclaration of Philadelphia.

One can draw the following conclusionregarding the ILO. It appears to have inte-grated representatives of civil society,labour and employers into its operatingstructure. As the oldest and most matureUN agency, it has gone beyond simply co-operating or working in partnerships forvarying periods of time with business withits tripartite integrated structure.

(ii) The World Bank Group

The World Bank Group has been subject tocriticism by NGOs and other civil societygroups primarily because its efforts to alleviatepoverty, which was apparently not one of itsoriginal objectives, have too often been per-ceived to be ineffective, if not counterproduc-tive, for the populations concerned. In addi-tion, its close relationship to the internationalfinancial community (banks, etc.) and thelarge multinationals has left some with theimpression that the latter have harvested thebenefits rather than the people whose povertywas supposed to be alleviated. Host countryinefficiencies and poor governance structureshave also contributed to this negative percep-tion.

One area which has provoked a sharp nega-tive reaction is that of the environment wherecertain projects have allegedly caused suffer-ing to local populations. Undoubtedly, theWorld Bank has had to deal with many diffi-cult environmental problems, due to the factthat its projects, often in the past, were ambi-tious and large. More recently, it has beenworking on smaller projects and its many pos-

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itive initiatives in environmental mattersshould not be overlooked.

Its general counsel, Ibrahim F. I. Shihata, haswritten: "[The] World Bank has become a pio-neer in addressing the environmental conse-quences of development activities and a worldleader in the establishment of new environ-mental policies and procedures1."

Some of these initiatives are the Bank's GlobalCarbon Initiative set up in February 1997administered by the Bank. Others are theGlobal Water Partnership [See <http://www.gwp.sida.se/gwp/gwp/welc.html>].

It is also active in the International Union forConservation of Nature and Natural Resources(IUCN) implementing programmes on biolog-ical diversity in fifteen regions of the thirdworld. It is also active with the World WildlifeFund (WWF) in a global alliance for forestconservation and sustainable use, which pro-vides for a network of protected areas, includ-ing, by the year 2000, ten per cent of theworld's major forest types.

The World Bank has broadened the concept ofdevelopment to include sustainable develop-ment. The latter concept was absent fromArticle 1 of the World Bank's articles. TheWorld Bank Group, despite criticism of itsaction, is advancing its agenda in social andenvironmental responsibility in addition to itsagenda for economic development, sincethese concepts are closely linked. (SeeRudolph Dolzer, The World Bank and GlobalEnvironment: Nouvelles Frontières, LiberAmicorum, Ibrahim F. I. Shihata, Kluwer LawInternational, The Hague. London. Boston.New York).

The World Bank itself has made extensiveefforts to take more account of the complexsocial problems faced by local populationsand to better understand the situation of eachcountry. As well, it has enlisted partnersamong the NGOs and private sector to designand realize projects more successfully so thatthese are closer to the ground and to the peo-ple who should benefit from the projects. Thebank's own judgement of successful projectshas ranged from 50% to 75%.

As part of this reform effort, the World Bankconvened a conference on October 3, 1998,chaired by James D. Wolfensohn, with a num-ber of international companies to announcethe Business Partners for Development (BPD)programmes2. Mr. Wolfensohn remarked thatthis was a natural development. He explainedthat there is a recognition shared by civil soci-ety, by international institutions, by the privatesector and by governments themselves that ifthere is to be an effective investment, particu-larly in developing countries, it must embracethe community and have an integratedapproach that cares about social issues andrequires interactive work between the privatesector, government and business. Antagonismsthat have existed between these sectorsshould end and co-operation should becomethe rule.

He noted that the World Bank's work withmore than seventy private sector partners wasin its best interest. He spoke of the OrinocoDelta region and Petrolios de Venezuela, theKalian Mine in Indonesia with Rio Tinto andhow it was appropriate to work with compa-nies in the water business such as CompagnieGénérale des Eaux (Vivendi) and Suez -Lyonnaise des Eaux to insure clean sanitary

1 For an overview of the Bank's role in global environmental politics, see Ibrahim F. I. Shihata, The World Bank'sContribution to Development of International Environmental Law, In Liber Amicorum Professor Ignaz Seidl-Hohenvelden in Honor of his 80th Birthday, page 631 et seq. (Gerhard Hafner et al. Eds. 1998)

2 This section is based on a transcript of a Press Conference on Business Partners for Development. The Tri-partner-ship of business, government, and civil society

water for municipalities. Although the corpo-rate social responsibility of some of thesecompanies has been subject to criticism byNGOs, the World Bank believes they shouldwork together for the common good.

Private sector financing help of USD 20 mil-lion was planned but this had alreadyreached USD 38 million. These projects weredivided into clusters. Each partnershipdesigned its own specific objective and visionfor itself:

Natural Resources: (oil, gas and miningcompanies) to develop guidelines / sys-tems / structures for dealing with commu-nity issues and mitigating risk by optimiz-ing development impact on host commu-nities through tri-sector partnerships. Co-convenors: BP Amoco, WMC Resources Ltd,CARE International and the World BankGroup.

Water and Sanitation: to identify specificlessons learned about partnerships fromexisting projects which are providingresponsive and affordable water servicesto urban poor and to demonstrate thatthese can be replicated and scaled up tonational and regional levels. Co-con-venors: Générale des Eaux (Vivendi),WaterAid and the World Bank Group.

Global Partnership for Youth Develop-ment: to identify and share what works inbuilding successful partnerships for youth,the next generation of laborers and con-sumers. Then to work through existingnational and global infrastructures to mobi-lize significant new resources in order tostrengthen and scale up the best practicesin youth development. Co-convenors:Kellogg's, the International YouthFoundation and the World Bank Group.

Global Road Safety Partnership: to reducedeaths, injuries, disabilities and associatedsocial costs of road traffic crashes throughcollaboration and co-ordination of road

safety activities. Co-convenors: the Interna-tional Federation of Red Cross and RedCrescent Societies and the World BankGroup.

The Knowledge Resource Group (KRG)connects and collects lessons learned ontri-sector partnerships from all clusters. TheKRG is co-convened by the Prince of WalesBusiness Leaders Forum, CIVICUS, which isa worldwide association linking and pro-viding support to NGOs and the WorldBank Group.

Mr. Wolfensohn commented that he was total-ly convinced the World Bank would learn agreat deal working with civil society and busi-ness.

Mr. de Beauce of Vivendi noted that he wasenthusiastic about his initiative becauseVivendi's environmental business is intimatelylinked with the concept of sustainable devel-opment and, therefore, his company is totallycommitted to this initiative. He reported thathis company co-convened a meeting, got asteering committee going and worked to getprojects agreed. He noted that he thought thistype of partnership was appropriate because itposes a question of a balance between eco-nomic and social considerations. He furthernoted it raises the issues of the changing roleof the nation as a framework to integrate theeffectiveness of the private sector and of theneed to involve civil society. He spoke of sev-eral water projects in partnership with govern-ments in South Africa.

Mr. Jaclot, who spoke on behalf of Suez –Lyonnaise des Eaux, outlined the tremendousneed for good water in poor countries – oneperson every eight seconds dies from lack ofadequate sanitation and drinking water andthe urgent necessity to provide water to cus-tomers that matches their needs and means,while progressively modernizing the network.

Mr. Marshall from CARE USA commented thatthe three sectors of society, government, the

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private sector and civil society can no longerafford to promote separate agendas. Eightyper cent of the capital flowing into the devel-oping world is private money and governmentmoney is shrinking.

Civil society is finding its own voice and real-izing its power to engage governments andprivate enterprise to improve peoples' lives ina sustainable fashion.

One purpose of this initiative was to studyhow such partnerships could be protectedfrom being abused and merely remainingrhetorical. Plans should be brought down toreality so that, functionally, there are tangibleresults. USD 30 million was budgeted for thetwenty-five pilot projects chosen to accustomcivil society, business and government toworking for the benefit of the community andfor the benefit of business. Though thisamount is minimal compared with needs,there seemed to be a convergence of interestsreplacing conflict between the private andpublic sectors and the integration of NGOsinto a number of partnerships was noted.

On the World Bank website, one finds on thehome page reference to the Business Partnersfor Development (BPD), "project-based initia-tive that studies, supports and promotes strate-gic examples of partnerships involving busi-ness, civil society and government […]. [TheWorld Bank believes] tri-sector partnershipsbenefit the long-term interests of the businesssector while meeting the social objectives ofcivil society and the state by helping to createstable social and financial environments. [Itbelieves it can demonstrate such partnerships]provide win-win-win benefits to all three par-

ties, can be much more widely used through-out the world and can be scaled up to nation-al and regional levels."

"The World Bank convened a range of globalfirms and civil society organizations willing toshare expertise and experience, devoteresources and work alongside governmentsand local community development organiza-tions. [It planned] 29 'focus projects' […] toshare practical experience [in] building part-nerships."

The World Bank is one of the UN agencieswhich recently appears to have attempted todevelop a comprehensive partnership pro-gramme with the private sector. UNESCOshould follow closely the World Bank's initia-tives in order to judge its success, learn fromits experience and adapt and integrate into itsown programme ideas that are appropriate toits mission to the extent that they are applica-ble to UNESCO. An independent review of theresults of World Bank Partnerships is expectedin the near future3.

(iii) The United Nations

Development Programme

(UNDP)

The United Nations Development Programme(UNDP), with forty-three years of experience,is the world's largest multilateral organizationfor grant-based technical co-operation, withone hundred and thirty-five offices located indeveloping countries. It is the chief co-ordina-tor of operations of the entire UN system. Itworks to build developing countries’ capaci-ties for sustainable human development byhelping to alleviate poverty, manage natural

3 See The World Bank Group's website for webpage Home / Business World / Business Partnerships / BusinessPartnership & Outreach Group (BPOG)<http://www. worldbank. org/business/03bpog. html>, and for webpage Home / Business World / BusinessPartnerships / Partnership Guidance & Assessment<http://www. worldbank. org/business/03assessment. html>, where can be found the document: Briefing Notes No. 1 - Business Partnerships: Definition and Approval (November 2000)<http://www. worldbank. org/business/briefings/note1. pdf>.

resources, improve governance. It attempts toharmonize two central themes – sustainabledevelopment and human development.

Real development not only generates growth butdistributes growth's benefits equitably andempowers people rather than marginalizing them.Peoples' choices should be enlarged and oppor-tunities opened. The environment should beregenerated rather than destroyed and citizens'participation should be enhanced in decisionsaffecting their lives. This model of developmentdepends to a large extent on the quality and sus-tainability of the interaction between the threespheres and types of stakeholders that make upsociety: state, civil society and the market.

In order to reach these goals, the organizationorganizes partnerships with governments, civilsociety, grass roots organizations and privatesector institutions.

Its resources average 1. 3 billion a year thatare derived from members of the UnitedNations or its agencies. Its activities stimulateanother USD 9 billion a year in collaborativefunding from public and private sources.

The UNDP has stimulated a debate on how toput people first with the Human DevelopmentReport (HDR), written by independent spe-cialists and published by Oxford Press, whichshows that people are relatively better off incountries that invest more in social sectorssuch as basic health and universal primaryeducation rather than military spending orprestige projects.

The HDR has also developed the HumanDevelopment Index (HDI) to facilitate meas-urement so as to arrive at an aggregate judge-ment on the extent of poverty in a communi-ty based on three basic indicators: a short-life(longevity), lack of basic education and lack ofaccess to public and private resources (bothlead to lack of knowledge).

The HDR introduced two gender specificindices – the Gender-related Development

Index (GDI) takes note of inequality ofachievement in men and women and theGender Empowerment Measure (GEM) whichevaluates progress in advancing women polit-ically and economically.

The UNDP has prepared a fact-sheet describ-ing partnerships with the private and othersectors at <http://intra.undp.org/brsp/fact-sheet_private_sector.htm>, UNDF/CSOPP/IP:Partnerships.

(iv) United Nations Industrial

Development Organization

(UNIDO)

UNIDO has also worked with business part-ners along with civil society organizations anddeveloping countries governments in order toreach the significant benefits which can beobtained from constructive goal-oriented part-nership. Its goal is to contribute to globalindustrial development.

It focuses on the globalization of value chainsto include business from the least developedcountries and the development of advancedinformation and communication technologiesin order to improve the quality, efficiency andinternational competitiveness of small andmedium-size enterprises (SMEs) in developingcountries.

The business community is not "just a cash-cow but […] a provider of highly specializedknowledge and expertise", according toWilfried Luetkenhorst, Director of the UNIDOPrivate Sector Development Branch.

The Global Compact provides a focus for firmsto develop their own activities to enhance cor-porate social responsibility and the multi-sec-tor partnership programme seeks to harnessthe collective resources of business, govern-ment and civil society organizations.

The losers in the globalization process are iso-lated enterprises – the winners are those func-tioning within networks.

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Guidelines are necessary to insure that objec-tives are in accordance with UN principles.UNIDO's draft guidelines were discussed in aVienna conference in October 2000. Mr. JosefSchleischer of Daimler Chrysler stated at thisconference that he believes that partnershipswith businesses and UNIDO are a key tofuture development of developing countries.[see <http://www. unido. org/doc/341403.htmls>]

(v) The United Nations

Environment Programme

(UNEP)

With regard to Corporate Social Responsibility(CSR), activities are summarized in CSR – KeyPlayers – Environment (at <http://www.pwblf.org/csr/csrwebassist.nsf/content/e1g2.html>). UNEP action, including its partnershipprogramme, is described as follows: "TheUnited Nations Environment Programme pro-motes leadership and encourages partner-ships in caring for the environment. Each divi-sion of UNEP works in partnership withindustry and has specific projects of direct rel-evance to industry. The Technology,Economics and Industry Division aims toencourage cleaner, safer industry practices;efficient use of natural resources; environ-mentally sound management of chemicals;and pollution reduction. The SustainableProduction and Consumption Programmehelps companies reduce their consumptionpatterns and to move towards the adoption oflow waste, energy efficient technologies. TheGlobalisation of the Environment programmelooks at the implications of trade liberalisa-tion, uneven application of standards, wide-spread debt and researches the relationshipbetween trade, economic policies and theenvironment. The Global EnvironmentOutlook project's first biennial report looks atthe worldwide environmental assessmentprocess. UNEP's current events calendarincludes: Global 500 awards, Clean up theWorld Day and World Environment Day.UNEP also provides detailed information onenvironmental legal instruments. The UN

website has a page on how business canwork with UNEP giving an overview as wellas contact details."

This listing organized by the Prince of WalesBusiness Leaders Forum cites many other keyplayers in environmental work on its CSRroadmap broken down into media, monitor-ing, management systems, natural resources,policy and research and urban.

(vi) UNICEF

The United Nations Children's Fund (UNICEF)is an example of a UNESCO agency that hasdeveloped a Corporate Partnership ProcedureManual (1994). UNICEF has entered into part-nerships with airlines in its service programme"Change for Good" which pass out envelopeson their flights to passengers leaving onecountry to go to another for the purpose ofcollecting the leftover foreign currency coins.This programme has generated USD 31 millionsince 1991. It is supported by 37 national com-mittees in industrialized countries which helpto raise funds. Its sale of greeting cards since1949 totals more than USD 1 billion.

The manual suggests that a national com-mittee, before proposing a partner, shouldconduct market research to learn moreabout the corporation: "What it does, how itdoes it, its corporate philosophy, how suc-cessful it is, what other cause-related mar-keting activities it has undertaken, […] whoowns it, etc. […] It is extremely importantthat potential partners and the proposedterms be thoroughly screened. […] It isequally important that you be able to clear-ly and convincingly articulate the widerange of UNICEF activities and understandwhat the corporation is seeking byapproaching UNICEF. By matching theseneeds, you will be in a position to determinewhat the partnership can offer.

It has developed forms for screening informa-tion and for determining the scope of the part-nership.


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UNICEF's manual cautions that a pro-activepartnership-seeking strategy should only beundertaken when a national committee hasthe capability of being a strong partner withthe necessary human and other resources tomanage the partnership over time."

A partnership begins with the signing of anagreement; the cultivation process and rela-tionship building with the corporate partnermust be actively pursued to develop, sustain,evaluate and expand the partnership.

The manual also notes that the person respon-sible within the national committee must meetcertain criteria by being intimately familiarwith the business community, ideally have amanagement or marketing background, strongmanagement skills and be well versed in thescope of UNICEF's activities.

As with any relationship, corporate partner-ships need to be nurtured to be carried outeffectively and to continue to grow. Thereshould always be a key contact or "focalpoint" within the national committee whoensures that the corporation's key staff(including the CEO) are appropriate, timely,effective and kept up-to-date as personnel inthe corporation changes.

What is noteworthy in the partnership to col-lect spare coins is the intelligent idea that is atits centre. Passengers are happy to get rid ofextra coins which usually cannot be convertedeasily to another currency. The extra cost ofthis activity to the airlines is negligible. Thecumulative amounts collected are significantfor UNICEF. The airlines participate in anactivity which enhances their prestige andleaves a positive feeling with the passengersabout the airline. The end result is a win/winsituation.


72

(a) The Results of the Report of January 5, 1995 on these activities.

By mid-October 1994, one hundred and sixty-two projects related to private funding wereidentified.

Type I - Substantial projects/programmesentirely determined by UNESCO'sprogram services or commissionsand for which private sector fundinghas been obtained or envisaged.

Type II - Fund-raising projects aimed at sup-porting specific projects / pro-grammes determined by UNESCO(e. g. recruitment of an externalagent to seek private funding for aspecific programme).

Type III - Fund-raising projects with no clearconnection to a specific UNESCOproject / programme (e. g. produc-tion and distribution of UNESCOmedals, telephone cards, etc.)

As is evident from the description of the scopeof the survey, there is little similarity to therecent plans to integrate private sector partici-pation in designing programmes and projectsto carry out UNESCO's mission, where the pri-vate sector is an active participant in the plan-ning, management and execution as envisagedby Kofi Annan to leverage the action of theUN and its agencies by working closely withthe private sector.

In the past, the private sector seems to havebeen treated more as a "cash cow" to pas-sively be milked for UNESCO projects andprogrammes. Occasionally, the opposite hasoccurred, the private sector partner delivered

relatively little funding to UNESCO but profit-ed greatly by the association with UNESCO. Itis now realized that the private sector needsto be much more deeply engaged in UNESCOactivities to obtain more effective action. Suchsupport can be multiplied many times over ifsuch partners are active and are convincedthat the project is worthwhile and if they areproud to be a part of a prestigious partner-ship or take an active part in a worldrenowned program or project. By their moreactive participation, they should benefit morethemselves producing a strong win/win situa-tion.

Other UN organizations, as we have seen inthe previous chapter, are far ahead ofUNESCO in developing these relationships notonly with the private sector but also with theleading actors in civil society and NGOs.

The report noted that, out of the one hundredand sixty-two projects, sixty-one "successfulprojects "obtained funding from one or sever-al private donors – a success rate of 38%.

French and other European donors were thepreferred targets. Since UNESCO is in Europe,this may seem natural, but there are manyother outstanding candidates who should bepursued in the Americas and Asia through thenetwork of Field Offices. Partnerships couldbe national, regional or worldwide to meet theneeds of the new decentralization process.

The report goes into great detail in analyzingvarious types of fund-raising and is brokendown by country, region, list of projects / pro-grammes, sector of activity of fund-raisingsource, charities, social, culture, foundationand industry sectors, and provides a list offunding sources and amounts.

ANNEX II

Overview of UNESCO Private Sector Partnerships which

have been mostly limited to fund-raising

This report noted the following problems,identified by Programme Services:

(i) the absence of an overall strategy formobilizing private corporate and indi-vidual donors;

(ii) the absence of a framework of tax-deduction facilities for private sectorcontributions in all relevant countries;

(iii) the lack of information about potentialdonors from the private sector, theirinterest and requirements;

(iv) the concern about the protection ofthe Organization's dignity and of the"values it upholds", in particular withregard to "unscrupulous partners".

The report had the following observations andrecommendations:

(i) Private sector funding sources willplay an increasingly important role forextra-budgetary funding of UNESCO'sactivities in all sectors;

(ii) Each sector should undertake its ownspecific approach to private sectorfund-raising; several sectors have dele-gated this task to experts recruitedinternally and externally;

(iii) Private sector fund-raising should beproject led; the approach to privatesector fund-raising should be chosenon a case by case basis;

(iv) Personal contacts are a key factor forthe success of private sector fund-rais-ing initiatives.

An autonomous approach to private sectorfund-raising by each programme service, whichoften prevailed in the past, has the advantageof flexibility and freedom but has the weaknessof not drawing enough on the strengths of theorganization as a whole, and the fact that more

and more the initiatives can overlap, effect oneanother and are sometimes interdependent,puts a premium on prior planning. This aspectof the problems has been identified and sug-gestions in this respect include:

(i) project sectors: private funding to cer-tain project sectors (education, sci-ence, social science, communication)may be increased by creating intersec-tional 'packages' of projects or by 'pig-gybacking' specific projects to attrac-tive initiatives (combination of culturalprojects with others);

(ii) project regions: private funding to cer-tain project regions (Asia and Pacific,Africa, Arab States) may be increasedby creating interregional or global'packages' or projects or by 'twinning'projects in specific 'difficult' regionswith other projects in more 'attractive'regions;

(iii) sectors of activity of private fundingsources: whereas the number of con-tacts should be increased with fundingsources of the first group (social, cul-tural, NGOs, private foundations,UNESCO Associations), the successrate (quality) rather than the numberof contacts with companies of theother, more commercial groups shouldbe increased;

(iv) origin of funding sources: whereas thenumber of contacts should beincreased with funding sources inGermany, Italy, Japan, the United Statesof America and in the Middle East, thesuccess rate (quality) of contacts withfunding sources in Europe and espe-cially in France should be improved.

(b) UNESCO's internal guidelines for pri-vate sector fund-raising (April 1997)

UNESCO has its own Guidelines for Fund-Raising (Private Sector Fund-Raising in

Annex II

73

Favour of UNESCO, Private Funding Section -April 1997).

The fund-raising covered in this document ismore limited than that described in the UNguidelines which appear to apply to moreactive new partnerships. However, some ofthe provisions in this document could also beadapted for use in new more active partner-ships. Nevertheless, this document doesrequire a clear indication of other supports(contribution in kind, provision of expertise,training) which should be provided by therecipient of the funding.

The draft contract annexed to the documentprovides that a working group should beformed with three representatives of each ofthe parties to monitor the execution of the rel-evant project – a more limited function thanpotentially more active new partnershipsmight have.

(c) UNESCO - Guidelines for selecting partners and use of name and emblem(159 EX/30)

The purpose of this document is to initiate aprocess aimed at stricter application of exist-ing regulations and the adoption of aUNESCO Partnerships Policy attuned to cur-rent trends.

This document collects and provides anoverview of rules and regulations relatingto the organizations of partnerships withgovernments, national commissions, theUnited Nations, other intergovernmentalorganizations and non-governmental organ-izations. It also notes "Director-Generalmay accept voluntary contributions, gifts,bequests, and subventions, associationsand private person" [Article IX UNESCOConstitution].

On Page 3 of this document there is a shortparagraph "other Private Sector Partners" asfollows:

"Other private sector partners

10. UNESCO's co-operation with theprivate sector ("world of business")has become far more intense andvaried in recent years. In somerespects it could therefore beregarded as a new form of partner-ship. Nor is cooperation with theprivate sector limited to partner-ships aimed at obtaining funds butfor many years has also been con-cerned with the implementation ofactivities in all the Organization'sfield of competence. For example,in its relations with publishers andaudiovisual companies, theSecretariat must both scrutinize theintellectual content of the projectand check that the contractor isreliable and financially sound."

Document 159 EX/30 then goes on to outlinecurrent problems as follows:

(i) Harmonization of Rules

There is a need to have an overall harmoniza-tion of the regulatory framework which some-times distinguishes between partners in mem-ber states and international partners, andsometimes upon dividing up partnershipsdepending on their legal status or their func-tions, i.e. NGOs, foundations or private extra-budgetary funding sources. Some are too spe-cific and others too general.

(ii) Need for a Guide for Partners

There is no general guide for partners toenhance the existing network of partners tomake available a general institutional intro-duction stating the objectives, prospects, andconditions of partnership, and to establish theethical framework for them.

The Administrative Committee on Co-ordina-tion (ACC), which brings together under theChairmanship of the Secretary General of the


74

Annex II

75

United Nations the heads of all the organiza-tions of the UN system, will intensify consul-tation and exchanges of information on exist-ing and currently developing practices withregard to partnerships, even though eachorganization may have specific needs. The<http://www. un. org/partners> website hasbegun to do this. With a view to preparing aguide, the Secretariat will consult with the dis-tinctive nature of its unique network of nation-al commissions.

(iii) Enforcement of Rules

Failure to respect rules relates mainly to use ofUNESCO's name and/or emblem and co-oper-ation with National Commissions.

(iv) Priority Measures

This document then sets out the Director-General's principal measures to strengthenUNESCO's partnership policy in twostages:

"A. Identification of national and internationalpartnership priorities for UNESCO and itsprogrammes by:

- identification of the advantages forUNESCO offered by potential partner-ships, not only in terms of mobilizingresources but also in terms of enhanc-ing its image

- identification of the advantages forpotential partners offered by UNESCO

- formulation of a coherent partnershipconcept and a classification system

B. Development of an appropriate frameworkfor the implementation of partnerships by:

- preparation of a handbook for part-ners

- identification of the relevant capacitiesfor the evaluation, establishment,supervision, co-ordination and imple-mentation of partnerships

- improvement of the regulatory frame-work concerning all forms of partner-ships and all types of current andpotential partners

- adaptation in the longer term of therelevant provisions of the UNESCOManual."

As an immediate measure, the Secretariat hasalready established a Working Group to pre-pare a short guide relating to decisions grant-ing or withdrawing patronage and ensuringthe rights and obligations of beneficiaries.

The working group established by theDirector-General on visibility will look intoforms of partnership in the specific field ofcommunication.

An annex gives an overview of the internalUNESCO regulatory framework governing itspartnerships, but barely touches on partnershipswith businesses except to suggest that specialrules may be required by the normal functionsand activities of businesses and the need toinsure that useful synergies can be mobilized.

(v) Cumbersome Nature of UN

Regulations and Procedures

Bureaucratic procedures can be a majorimpediment to efficiently working with busi-ness, long delays discourage private businesswhich sometimes can and needs to makequick decisions.


76

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Extracts and notes on Education and Cultural Rights:

the UNESCO Constitution, the Universal Declaration of Human Rights,

the International Covenant on Economic, Social and Cultural Rights,

Extracts from UNESCO's Guide to Human Rights, Institutions, Standards, Procedures relating to Cultural Rights,

Universal Declaration on Cultural Diversity

Extracts Education and Cultural Rights

81

UNESCO CONSTITUTION

That since wars begin in the minds of men, it is in the minds of men thatdefenses of peace must be constructed.

The States, Parties to this Constitution, believing in full and equal opportuni-ty for education for all, in the unrestricted pursuit of objective truth*, and thefree exchange of ideas and knowledge, are agreed and determined to devel-op and to increase the means of communication between their peoples andto employ these means of the purposes of mutual understanding and a truerand more perfect knowledge of each other's lives.

ARTICLE 1

PURPOSES AND FUNCTIONS

The purpose of the Organization is to contribute to peace and security bypromoting collaboration among the nations† through education, science andculture in order to further universal respect for justice, for the rule of the lawand for the human rights and fundamental freedoms (ethics) which areaffirmed for the peoples of the world, without distinction of race, sex, lan-guage or religion by the Charter of the United Nations.

* The "unrestricted pursuit of objective truth" is a noble objective, but it should be borne inmind that successive scientific revolutions have demonstrated that accepted scientific truthsare often proved wrong or outdated as new ways to explain the nature of the physicalworld are discovered. In the social sciences, philosophy, ethics, religion and other fields,where culture and values play an important role objective truth and virtue vary dependingupon the historical, cultural and other conditions, which account for differences in per-ceptions. Many conflicts arise in the world today, at least in part, because of different opin-ions on these issues. This means that tolerance, or better yet, friendship and love are essen-tial to keep peace among people of different cultures.

In addition it might be more productive to pursue useful knowledge for the purpose ofbenefiting mankind rather than the more abstract idea of "objective truth".

† Channeling all UNESCO's actions through national governments, although they are themajor if not the only channel to education for all in most cases, is not sufficient to reachmaximum excellence in education or UNESCO's other priorities. UNESCO also needs towork with individuals, associations, businesses, churches, local, regional and national gov-ernments, non-governmental entities, universities, and others within each nation andbetween different nationalities. All sectors in society must participate in this effort to accel-erate improvement in public and private educational systems and help accomplish otherUNESCO priorities in each country. Partnerships with businesses, schools, universities,NGOs, civil society entities and others can make progress in this way. Ethics relating toScience and Technology and the relationship between ethics and business (economics)should also be a priority of UNESCO.


82

UNIVERSAL DECLARATION OF HUMAN

RIGHTS

This universal declaration of human rights as a common standard of achieve-ment for all peoples and all nations, to the end that every individual andevery organ of society, keeping this Declaration constantly in mind, shallstrive by teaching and education to promote respect for these rights and free-doms.

Article 26

(1) Everyone has the right to education. Education shall be free, atleast in the elementary and fundamental states. Elementary education shall becompulsory. Technical and professional education shall be made generallyavailable and higher education shall be equally accessible to all on the basisof merit.

(2) Education shall be directed to the full development of the humanpersonality and to the strengthening of respect for human rights and funda-mental freedoms. It shall promote understanding, tolerance, friendshipamong all nations, racial or religions groups, and shall further the activities ofthe United Nations for the maintenance of peace.

(3) Parents shall have the right to choose the kind of education thatshall be given to their children†.

Article 27

(1) Everyone has the right freely to participate in the cultural life ofthe community, to enjoy the arts and to share in scientific advancement andits benefits.

† This apparently reflects a fear that a nation or state, or other type of organization teachinghatred or violence will indoctrinate children with racial or ethnic hatred, nationalism, intol-erance, racial superiority, or terrorism, that will lead to more wars. The family was thoughtto be a more natural and less dangerous framework for education subject to the children'schoice to choose upon maturity. However, recent history has taught us that parents inextremist sects and some intolerant countries can also teach their children to continue theirown hatreds and prejudices through many generations. It is also often the case that chil-dren reject their parents' teaching and embrace a way of life dangerous to others. Thenature and quality of the education given is obviously critical in fulfilling UNESCO's mis-sion regardless of who educates the children and the young people.

INTERNATIONAL COVENANTON ECONOMIC, SOCIAL AND CULTURAL RIGHTS

PREAMBLE

The States Parties to the present Covenant,

[…]

Recognizing that in accordance with the Universal Declaration on HumanRights, the ideal of free human beings enjoying freedom from fear and wantcan only be achieved if conditions are created whereby everyone may enjoyhis economic, social and cultural rights.

Article 13

1. The States Parties to the present Covenant recognize the right of everyoneto education. They agree that education shall be directed to the full devel-opment of the human personality and the sense of its dignity, and shallstrengthen the respect for human rights and fundamental freedoms. They fur-ther agree that education shall enable all persons to participate effectively ina free society, promote understanding, tolerance and friendship among allnations and all racial, ethnic or religious groups, and further the activities ofthe United Nations for the maintenance of peace.

2. The States Parties to the present Covenant recognize that, with a view toachieving the full realization of this right:

(a) Primary education shall be compulsory and available free to all;(b) Secondary education in its different forms, including technical and voca-

tional secondary education, shall be made generally available and acces-sible to all by every appropriate means, and in particular by the progres-sive introduction of free education;

(c) Higher education shall be made equally accessible to all, on the basis ofcapacity, by every appropriate means, and in particular by the progressiveintroduction of free education;

(d) Fundamental education shall be encouraged or intensified as far as pos-sible for those persons who have not received or completed the wholeperiod of their primary education;

(e) The development of a system of schools at all levels shall be actively pur-sued, an adequate fellowship system shall be established, and the mate-rial conditions of teaching staff shall be continuously improved.

Article 15

1. The State Parties to the present Covenant recognize the right of everyone:

(a) To take part in cultural life


83

EXTRACT FROM UNESCO'SGUIDE TO HUMAN RIGHTS, INSTITUTIONS,

STANDARDS, PROCEDURES

Dedicated to the 35th anniversary of the adoption of the International Covenant on

Human Rights (1966)and the International Year of Mobilization againstRacism, Racial Discrimination, Xenophobia and

Related Intolerance (2001)

Cultural rights are specified in several human rights instruments including: theUniversal Declaration of Human Rights (1948); the international Covenant onCivil and Political Rights (1966); the Declaration of the Principles ofInternational Cultural Co-operation (1966); and the Universal CopyrightConvention (1952), as revised in 1971. Mention should also be made of theRecommendation on the Status of Scientific Researchers (1*974), theConvention of the Hague for the Protection of Cultural property in the Eventof Armed Conflict (1954), and the Recommendation on Participation by thePeople at Large in Cultural Life and their Contribution to It (1976).

During the last decade of the 20th century, cultural rights have receivedincreasing attention from international governmental and non-governmentalorganizations as well as from human rights specialists. Among the manifoldreasons for which they have become a subject of international debates anddiscussions, there is no doubt an acknowledgement of the fact that the cul-tural factor can be found among the most important sources of internal con-flicts. Violations of cultural rights of various groups, rejection of the right tobe different, to have different cultural identities have become very dangerouspathologies which fuel aggressive ethno-nationalism, xenophobia, racism andanti-semitism. Therefore culture and respect of cultural rights have also beenrecognized as an essential element in the prevention and resolution of con-flicts. This resulted in increased attention paid to the elaboration of andrespect for the cultural rights of persons belonging to minorities, indigenouspeople and other vulnerable groups.

By the end of the 20th century there is also a full recognition of the impor-tance of culture for the development not only in its economic dimension butalso for "human development" understood by the World Summit for SocialDevelopment (Copenhagen 1995) as the social and cultural fulfillment of theindividual. Without the implementation of cultural rights – the right to edu-cation, the right to take part in cultural life, without the freedom of artistic,scientific and intellectual activities and pursuits, human development isimpossible. The observance of cultural rights, in particular the right to culturalidentification, is seen now as a constitutive element of the respect of humandignity.


84

EXTRACT FROM UNESCO'SUNIVERSAL DECLARATION ON

CULTURAL DIVERSITY

IDENTITY, DIVERSITY AND PLURALISM

Article 1 – Cultural diversity: the common heritage of humanity

Culture takes diverse forms across time and space. This diversity is embod-ied in the uniqueness and plurality of the identities of the groups and soci-eties making up humankind. As a source of exchange, innovation and cre-ativity, cultural diversity is as necessary for humankind as biodiversity isfor nature. In this sense, it is the common heritage of humanity and shouldbe recognized and affirmed for the benefit of present and future genera-tions.

Article 2 – From cultural diversity to cultural pluralism

In our increasingly diverse societies, it is essential to ensure harmoniousinteraction among people and groups with plural, varied and dynamic cul-tural identities as well as their willingness to live together. Policies for theinclusion and participation of all citizens are guarantees of social cohesion,the vitality of civil society and peace. Thus defined, cultural pluralism givespolicy expression to the reality of cultural diversity. Indissociable from a dem-ocratic framework, cultural pluralism is conducive to cultural exchange andto the flourishing of creative capacities that sustain public life.

Article 3 – Cultural diversity as a factor in development

Cultural diversity widens the range of options open to everyone; it is one ofthe roots of development, understood not simply in terms of economicgrowth, but also as a means to achieve a more satisfactory intellectual, emo-tional, moral and spiritual existence.

CULTURAL DIVERSITY AND HUMAN RIGHTS

Article 4 – Human rights as guarantees of cultural diversity

The defence of cultural diversity is an ethical imperative, inseparable fromrespect for human dignity. It implies a commitment to human rights and fun-damental freedoms, in particular the rights of persons belonging to minoritiesand those of indigenous peoples. No one may invoke cultural diversity toinfringe upon human rights guaranteed by international law, nor to limit theirscope.


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Article 5 – Cultural rights as an enabling environment for cultural diversity

Cultural rights are an integral part of human rights, which are universal, indi-visible and interdependent. The flourishing of creative diversity requires thefull implementation of cultural rights as defined in Article 27 of the UniversalDeclaration of Human Rights and in Articles 13 and 15 of the InternationalCovenant on Economic, Social and cultural Rights. All persons should there-fore be able to express themselves and to create and disseminate their workin the language of their choice, and particularly in their mother tongue; allpersons should be entitled to quality education and training that fully respecttheir cultural identity; and all persons should be able to participate in the cul-tural life of their choice and conduct their own cultural practices, subject torespect for human rights and fundamental freedoms.

Article 6 – Towards access for all to cultural diversity

While ensuring the free flow of ideas by word and image care should beexercised that all cultures can express themselves and make themselvesknown. Freedom of expression, media pluralism, multilingualism, equalaccess to art and to scientific and technological knowledge, including in dig-ital form, and the possibility for all cultures to have access to the means ofexpression and dissemination are the guarantees of cultural diversity.

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CULTURAL DIVERSITY AND INTERNATIONAL SOLIDARITY

Article 10 – Strengthening capacities for creation and dissemination worldwide

In the face of current imbalances in flows and exchanges of cultural goodsand services at the global level, it is necessary to reinforce international coop-eration and solidarity aimed at enabling all countries, especially developingcountries and countries in transition, to establish cultural industries that areviable and competitive at national and international level.

Article 11 – Building partnerships between thepublic sector, the private sector and civil society

Market forces alone cannot guarantee the preservation and promotion of cul-tural diversity, which is the key to sustainable human development. From thisperspective, the pre-eminence of public policy, in partnership with the pri-vate sector and civil society, must be reaffirmed.


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a personal contribution from a private sector...

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