LAC Regional Round Table Competitiveness with Social Responsibility CSR: The role of the private sector in sustainable industrial development

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1 i UNITED NATIONS INDUSTIAL DEVELOPMENT ORGANIZATION AIDE MEMOIRE LAC Regional Round Table Competitiveness with Social Responsibility CSR: The role of the private sector in sustainable industrial development 5 December :00 to 17:00 Austria Centre Vienna (ACV) Hall B Vienna, Austria

2 2 BACKGROUND THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION (UNIDO) UNIDO is the specialized agency of the United Nations system dedicated to industrial development in the developing countries and economies in transition, and international industrial cooperation. UNIDO provides a variety of technical cooperation services, and acts as a global forum for the accumulation, analysis and dissemination of knowledge in the field of industrial development. The Strategic Long-term Vision Statement of the Organization, adopted by its Member States at the 11th session of the General Conference in December 2005, groups these activities into three thematic priority areas: Poverty Reduction through Productive Activities, Trade Capacity-building, and Energy and Environment. In addition, it provides for UNIDO to offer support in the broader fields of human security and South-South cooperation. THE LAC REGIONAL ROUND TABLE The LAC Regional Round Table is an integral event of the biennial General Conference of UNIDO, the supreme legislative body of the Organization, which comprises all 172 of its Member States. High-level representatives of the Member States, including Heads of State, Ministers and other senior Government officials, usually attend it. The LAC Regional Round Table is a side event of the General Conference, with the objective of providing a high-level platform for informal dialogue on the role of industrial development in the achievement of broader social and economic development goals. Stakeholders from the private sector and Government will have the opportunity to review best practices from Europe and LAC; deliberate on potential strategies for the region and review the options and instruments available to promote the social and environmentally sustainable development of LAC. This discussion is relevant for the Latin America Region, despite the increasing economic growth experienced in recent years, has been unable to resolve the problems of exclusion and marginalization of large segments of its population. The need for economic growth to be transformed into socially and environmentally sustainable development is still a challenge for most of the Governments in the Region. A number of initiatives are being introduced to create productive employment and to enhance the social responsibility of the private sector at national and international levels. Corporate Social Responsibility is a concept that encourages the private sector to integrate sustainable development 1 into its corporate strategy. It is a programme 1 Sustainable Development is understood as a concept that ensures the integrated, well-balanced and equal treatment of the three dimensions, namely the economy, society and environment: Prospering economic development will only be possible in the long term if social cohesion is safeguarded and the environment is preserved Improved social standards, social security and reduction of disparities between regions in different stages of economic development can build on the foundation of a prospering economy and equitable development The opportunity for a sustainable solution to environmental problems mainly exists if the economy flourishes and if poverty is reduced at local and global levels

3 3 whereby the private sector integrates social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The European Commission in its Green Paper of 2001, in its efforts for promoting CSR in Europe, stated CSR is not a human or social program, but a management approach that considers social and environmental responsibility to be a concrete part of the corporate strategy in addition to economic reasoning: because socially responsible behaviour results in sustained business success. During the upcoming 12th Session of the General Conference, the LAC Programme intends to take advantage of the experience and expertise of representatives from Latin America and the Caribbean region attending the General Conference, to organize a high-level Round Table to discuss global trends for sustainable and corporate development, and how they are shaping the regulatory, business and consumer environment. It will also explore 'responsible competitiveness': the concept that national economic competitiveness will increasingly be determined by how well countries integrate superior standards in relation to environmental, social, and governance issues; and what this may mean for the LAC countries. Against this background, the Round Table will be addressing topics related to the global efforts to achieve competitiveness with social responsibility and strength the role of the private sector in sustainable industrial development. A high-level group of experts from Latin America and Europe will be considering and presenting leading initiatives for creating the appropriate regulatory framework and corporate strategies to promote socially and environmentally sustainable growth. DATE AND VENUE The LAC Round Table will be held from 3.00 p.m. to 5.00 p.m. on Wednesday, 5 December 2007, in Hall B of the Austria Centre Vienna, in Vienna, Austria. LANGUAGES The languages will be Spanish and English with simultaneous interpretation. OBJECTIVE To encourage the exchange of expertise for promoting and implementing CSR initiatives at the country and regional levels, based on best corporate and good governance practices. EXPECTED RESULTS OF THE LAC ROUND TABLE The results of the discussions are expected to increase the awareness among the stakeholders of the region on opportunities for promoting sustainable development in the LAC region. They will constitute a basis for interaction with Member States in the design of national, sub-regional and regional cooperation programmes in the coming years.

4 MODALITY OF THE ROUND TABLE 4 Leading practitioners from the private sector and Government from Europe and Latin America will present in a Round Table their experience in introducing regulatory and corporate initiatives to promote industrial competitiveness as well as socially, environmentally sustainable development. a) Key Speaker: Mr. Paul Hohnen International Expert in Sustainability Strategies, Australia b) Moderator: Mr. W. Tertschnig Chair, of ESDN (European Sustainable Development Network), Coordinator of the "Austrian Strategy for Sustainable Development", Austria c) Participants at the Round Table: Ms. Adrien López Coordinator of Social Responsibility, Ministry for Labour and Social Affairs, Chile Ms. Luz Maria de la Mora Head of Economic Relations and Industrial Cooperation Ministry of Foreign Affairs, Mexico Mr. Melanio Paredes Minister, Ministry of Trade and Industry, the Dominican Republic Mr. Jorge Lepra Minister, Ministry of Industry, Energy and Mining Industry, Uruguay Mr. Manfred Schekulin Chair, OECD Investment Committee, Federal Ministry of Economics and Labour, Austria Mr. Leonardo Cárdenas Chair, Government Stakeholder Group within ISO Working Group Social Responsibility, Mexico Mr. Peter Oswald CEO of Mondi Packaging and President of Respact, Austria Mr. Robert Gordon Head of US and Japan Research, Ethical Investment Research Services (EIRIS), United Kingdom

5 5 OTHER PARTICIPANTS Leading authorities in Environment/Industry (e.g. Brazil, Colombia, Dominican Republic, Mexico, Peru, Paraguay and Uruguay) Representatives from Regional Groups: e.g. CARICOM MERCOSUR and SIECA Selected Regional Organizations: CAF, ECLAC, OPEC Fund Permanent Missions based in Vienna High-level Experts and Representatives from the Private Sector in LAC Countries Representatives from R&D, Universities and National Institutions from Austria Authorities of the Ministry of Foreign Affairs from Austria SUPPORT DOCUMENTS UNIDO Publication: Building Linkages for Competitive and Responsible Entrepreneurship, Vienna, DIRECTIONS TO THE AUSTRIA CENTRE VIENNA The LAC Regional Round Table will take place in Hall B of the Austria Centre Vienna (ACV). The subway station for the ACV is Kaisermühlen/Vienna International Centre. Participants arriving at this station from the centre of Vienna should take the exit Schüttaustrasse at the end of the train from the station platform to reach the ACV. Downstairs at the exit of the station, kindly turn right, cross over a little square with the bus station and follow a walkway (next to a church) going slightly uphill, which is protected against possible rain under a semi-roof. This walkway leads directly to the ACV. Participants staying at the Hotel ARCOTEL Kaiserwasser can gain access to the ACV by using the tunnel underneath the Wagramer Strasse and proceeding past the subway and the bus station. Please follow the signs leading to the ACV. ACCESS TO THE VIENNA INTERNATIONAL CENTRE (VIC) FROM ACV A direct internal access from the ACV to the UNIDO Secretariat in the Vienna International Centre (VIC) will open on 3 December, which would allow participants to reach the VIC catering facilities (cafeteria and restaurant) as well as the bank or a travel agent, all situated on the same hallway connecting the ACV to the VIC. A plan showing the layout of the ACV/VIC buildings will be included in the welcome kit. REGISTRATION Everyone entering the ACV must have a conference badge, if they do not already have a Vienna International Centre (VIC) grounds pass. Conference badges will be issued at the front entrance of the ACV and will be valid for both the ACV and the VIC. Passes must be worn visibly at all times in the ACV and VIC. The loss of a conference pass must be reported immediately to Security, who will issue a duplicate pass.

6 CONTACT DETAILS OF THE COORDINATORS 6 Mr. Gustavo Aishemberg, Director, Regional and Field Coordination Branch, Mr. Víctor Hinojosa-Barragán, Chief, Latin America and the Caribbean Programme (LAC), and Mr. Carlos Chanduvi, Field Industrial Officer, Latin America and the Caribbean Programme (LAC), have been designated to be the coordinators of the LAC Regional Round Table. Their contact details are: Mr. Gustavo Aishemberg Director Regional and Field Coordination Branch UNIDO Vienna, Austria Tel: (+43-1) Fax: (+43-1) g.aishemberg@unido.org Mr. Victor Hinojosa Chief LAC Programme UNIDO/PCF/RFC/LAC Vienna, Austria Tel: (+43-1) Fax: (+43-1) vhinojosa@unido.org Mr. Carlos Chanduvi-Suárez Field Operations Officer LAC Programme UNIDO Vienna, Austria Tel: (+43-1) Fax: (+43-1) c.chanduvi-suarez@unido.org

7 Side Event 12 th Session of the General Conference LAC Round Table ACV Vienna, Austria, 5 December 2007 Competitiveness with Social Responsibility CSR: The role of the Private Sector in Sustainable Industrial Development AGENDA 15:00-15:10 Opening ceremony 15:10-15:25 Key speaker: Mr. Paul Hohnen International Expert in Sustainability Strategies 15:25-16:25 Interventions of the Round Table Members Moderator: Dr. W. Tertschnig Chair, of ESDN (European Sustainable Development Network), Coordinator of the "Austrian Strategy for Sustainable Development" Panellists: Ms. Adrien López Coordinator of Social Responsibility, Ministry for Labour and Social Affairs, Chile Ms. Luz Maria de la Mora Head of Economic Relations and International Cooperation Ministry of Foreign Affairs, Mexico Mr. Melanio Paredes Minister, Ministry of Trade and Industry, the Dominican Republic Mr. Jorge Lepra Minister, Ministry of Industry, Energy and Mining Industry, Uruguay Dr. Manfred Schekulin Chair, OECD Investment Committee, Federal Ministry of Economics and Labour, Austria Mr. Leonardo Cárdenas Chair, Government Stakeholder Group within ISO Working Group Social Responsibility, Mexico Mr. Peter Oswald CEO of Mondi Packaging and President of Respact, Austria Mr. Robert Gordon Head of US and Japan Research, Ethical Investment Research Services (EIRIS), United Kingdom 16:25 16:50 General discussion with the plenary 16:50 17:00 Conclusions and remarks by the Round Table Members and Moderator 17:00 Closing Ceremony: H.E. Ramón Quiñones Permanent Representative of Dominican Republic, Chairman of GRULAC Latin American Musical Surprise Other participants: Ms. Leila Nazer (Minister of Industry, Trade and SME, Argentina), Ms. Teresita Vargas (Ministry of Social Development, Argentina), Mr. Valter. De Souza (Electrobras, Brazil), Mr. José L. Machinea (ECLAC, Chile), Mr. Anibal Giménez K. (Ministry of Trade and Industry, Paraguay), Mr. Carlos Ferraro (Ministry of Production, Peru)

8 8 BACKGROUND OF PANELISTS KEY SPEAKER Mr. Paul Hohnen Paul Hohnen has worked intensively since 1975 on a range of global economic, development and environmental issues as a diplomat, international civil servant, Director of Greenpeace International, and Strategic Director of the Global Reporting Initiative (GRI). Now an independent consultant, his clients include governments, intergovernmental agencies, business and non-profit organizations. Trained as an international lawyer, Hohnen worked from 1975 to 1989 as an Australian diplomat at the OECD in Paris, to the EU institutions, and in Fiji and Sri Lanka. He was closely involved in the 1992 and 2002 Earth Summit processes, and has participated in the negotiation of a wide range environmental convention. He has served on the OECD Expert Panel on CSR, and since 2004 has been participating as an expert in the ISO Working Group on Social Responsibility negotiations. MODERATOR Mr. W.Tertschnig Chair, of ESDN (European Sustainable Development Network), Coordinator of the "Austrian Strategy for Sustainable Development" and Head of the Sustainable Development and Environmental Policy Unit at the Ministry for Agriculture, Forestry, Environment and Water Management. Mr. Tertschnig has a PHD in Biology & Psychology. PANELISTS Ms. Adrien López Ms. Lopez works at the Department of Social Security, Ministry of Labour of Chile, and is the Government expert and coordinator for ISO process in Chile. She was involved in the development of Global Compact Guidance CD Tool for businesses in Chile and in the revision of Making the Connection: Using the GRI Guidelines for the Global Compact s Communication on Progress document. Mr. Manfred Schekulin Director for Export and Investment Policy at the Federal Ministry of Economics and Labour of Austria; Chairman of the OECD-Investment Committee; Co-Chairman, South East Europe Compact for Reform, Investment, Integrity and Growth; Lecturer at IMC University of Management Studies, Krems, and at Vienna University of Economics and Business Administration. He is a Doctor of Law, Master of Social and Economic Sciences/Economics (University of Vienna) and MBA (Vienna University of Economics and Business Administration) Mr. Leonardo Cárdenas Is responsible for the activities of quality and social responsibility of the Public Information Access Commission of the State of Nuevo Leon, Mexico. He is professor in CSR at the Universidad Regiomontana, Mexico. He currently chairs the Government Stakeholder Group of ISO's Working Group on Social Responsibility (WGSR) Mr. Cardenas is author of numerous books and articles in the areas of sustainability and environmental management Mr. Peter J. Oswald Chief Executive Officer of Mondi Europe and International with employees mainly in Europe, Russia, Turkey, Mexico and the Middle East. Mondi is a paper and packaging company. Mr. Oswald has degrees in Law and Business Administration. He is president of RESPACT Austrian Business Council for sustainable development and the Austrian platform for companies engaged in CSR and a partner of WBCSD, CSR-Europe and UN Global Compact. Mr. Robert Leslie Gordon Head of US and the Japan Research Team. Robert L. Gordon has researched CSR and sustainability issues at EIRIS since May 2005 as the Head of the US and Japan Research team. Before joining EIRIS Mr. Gordon worked for a consumer market research organization and then a public policy research and consultancy organization, researching issues relating to social exclusion. In addition to managing the research undertaken on Japanese and American companies Bob has recently written an EIRIS publication entitled The State of Responsible Business: Global corporate response to environmental, social and governance (ESG) challenges.

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