Workshop on Sustainable Enterprises and Social Responsibility in Business Education A Dialogue with Business Schools The Decent Work Agenda and Sustainable Enterprises Sustainable Enterprises José Manuel Salazar-Xirinachs Executive Director, Employment Sector International Labour Organisation Geneva, Switzerland 23 February-2009
Objectives of this workshop • Raise awareness of ILO’s work on promoting sustainable enterprises in the context of our Decent Work Agenda, • Share information on how business schools are incorporating concepts of sustainable enterprises and social responsibility into your teaching and research agendas • Identify ways in which ILO and business schools can collaborate in this area, for instance: collaborate in this area, for instance: – Development of teaching materials – Organization of knowledge-sharing platforms and events – Participation of ILO in academic conferences and increased participation of academics in ILO events – Formation of consultative network between the ILO and business schools – Joint research activities – Others, as raised during discussion
Objectives of this presentation � Clarify why we want to talk to you and work with you � � Introduce the ILO to you and begin to Introduce the ILO to you and begin to establish a common language � Persuade you that it is important for you to talk to us and that there are important opportunities for win-win colaboration
Content I. The ILO Mission: Social Justice, Fair Globalization and the Decent Work Agenda II. Business Schools: How to you deal with the role of the entrepreneur in society? How does this of the entrepreneur in society? How does this relate to Social Justice, Fair Globalization and Decent Work? III. The ILO approach to the role of the entrepreneur in society and the promotion of sustainable enterprises.
I. The ILO Mission Promoting Social Justice and Fair Globalization through Decent Work
Constitutional Mandates and Mission 1919: Promote Social Justice (Preamble of the 1919 Constitution) • – « Whereas conditions of labour exist involving such injustice, hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required »… – « as for example: by the regulations of the hours of work,… the prevention of unemployment,…the provision of an adequate living wage, the protection of the worker against sickness, disease and injury…, the protection of children, young persons and women, provision for old age, …recognition of the principle of freedom of association, the organization of vocational and tecnical education. » 1944 Declaration concerning the aims and purposes of the ILO (Philadelphia) 1944 Declaration concerning the aims and purposes of the ILO (Philadelphia) • • – Labour is not a commodity – Poverty anywhere constitutes a dange to prosperity everywhere – Lasting peace can be established only if it is based on social justice – All human beings … have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity – It is the responsibility of the ILO to examine and consider all international economic and financial policies and measures in the light of this fundamental objective – It is a solemn obligation of the ILO to further programmes among the nations of the world which will achieve: • Full employment and raising standards of living • Facilities for training • Policies in regard to wages and earnings and other conditions of work • The effective recognition of the right to collective bargaining, the cooperation of management and labour in the continuous improvement of productivity • The extension of social security
Constitutional mandates and mission • The 1998 Declaration on Fundamental Principles and Rights at Work – Freedom of association and the effective recognition of the right to collective bargaining – Elimination of all forms of forced or compulsory labour – Effective abolition of child labour – Effective abolition of child labour – Elimination of discrimination in respect of employment and occupation • Decent work – 1999 – Definition: “Opportunities for women and men to obtain productive work in conditions of freedom, equity, security and human dignity.”
Decent Work has gained support and has been adopten by the international community. • At the 2005 United Nations World Summit, heads of state and government declared, – “We strongly support a fair globalization and resolve to make the goals of full and productive employment and Decent Work for all, including for young people, a central objective of our national and international macroeconomic policies as well as poverty reduction strategies.” • In 2006 and again in 2007, the ECOSOC Ministerial Declaration called for the mainstreaming of Decent Work throughout the UN system.
ILO Decent Work Agenda: An operational framework to promote social justice and fair globalization Social Protection Employment Inclusive-Job Rich Growth Links Social Protection- Policies to influence the demand-side Economic and Social Policies Skills and employability Global Expansion of Social Security Initiatives Enterprise development Improved conditions of work and Safer working environments Labour Market Institutions and Policies Regulating Labour Migration Informal Economy Strengthening the response to HIV/AIDS Target groups: youth, women, vulnerable National Policy National Policy through the workplace through the workplace Decent Work Country Programmes (DWCPs) Frameworks/ DWCPs Standards Policy Integrated approach to promoting good governance Strengthening Labour administration Fundamental principles and rights at work Strengthening employers’ organizations Elimination of Child Labour Regional Agendas/ Strengthening workers’ organizations Improved application of Int’l Labour Standards Platforms Improved ratification and supervision of Int’l Labour Conventions Social Dialogue Standards and rights
2008 Declaration on Social Justice for Fair Globalization • Another landmark in the work of the ILO • Expresses the contemporary vision of the ILO mandate for the 21st Century – – particularly relevant in the present financial, economic and jobs crisis - a crisis of globalization? • Raises the concept of Decent Work to constitutional level: – “ the commitments and efforts of Members and the Organization – “ the commitments and efforts of Members and the Organization to implement the ILO’s constitutional mandate, including through international labour standards, and to place full and productive employment and decent work at the centre of economic and social policies, should be based on the four equally important strategic objectives of the ILO, through which the Decent Work Agenda is expressed… ”. – “The four strategic objectives of the ILO are inseparable, interrelated and mutually supportive” . • Provides a blueprint to make the ILO more effective in responding to Members needs and realities.
ILO Means of action • Tripartism • Standard Setting • Promotion and supervision of compliance with standards • Research • • Diagnostic tools to identify policy priorities Diagnostic tools to identify policy priorities • Policy advise • Capacity building • Monitor trends • Evaluation of policy impacts • Integrated approaches • Technical cooperation
II. Business Schools How to you deal with the role of the entrepreneur in society? How does this relate to Social Justice, Fair Globalization and Decent Work?
What is the proper role of business? The CEO & business school views High Integrity High Performance • Strong, sustained growth • Adherence to the spirit and the letter of the formal rules (financial, legal, • Competitiveness social) • Superior products and services • Voluntary adoption of ethical and other • Durable benefits to… global standards (Codes of conduct) – Shareholders • Management and employee – Other stakeholders – Other stakeholders commitment to core values . (What commitment to core values . (What values?) • High performance put pressures on • Laws, regulations, stakeholder employees to increase income, cash expectations, media scrutiny can make flow, stock price. major integrity lapses not just • These pressures can cause corruption damaging but devastating, with CEOs when unconstrained by high integrity. fired in disgrace. • Combining HP with HI also has positive benefits: trust, reputation Profit People Planet
Debates you probably teach in your courses • The Corporate Governance Debate • The Pay-for-performance debate • The maximize shareholder value vs CSR debate – Good Corporate Citizenship debate – Good Corporate Citizenship synthesis • The business ethics debate • The management of supply chains debate
III. A 21st Century vision from the ILO on the promotion of enterprises and development enterprises and development The Promotion of Sustainable Enterprises
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