Statssekretær Leiv Lunde

Bjørnsonfestivalen / The Norwegian Festival of International Literature

Seminar om handel og etikk, Molde, 9. august 1999

“Human dignity, human rights –
the social responsibility challenge”

Introduction

Ladies and gentlemen,

Some of you may find the choice of the topic “Trade and ethics” a surprising one at a festival like this. I think it is both appropriate and stimulating. This festival is in honour of a Norwegian writer who was well known for his passionate social commitment. Furthermore, Bjørnson recognized the necessity of maintaining a balance between the liberty of the individual and the needs of society as a whole.

Thus, this is a good opportunity to discuss a topic that is being raised more and more frequently in public debate: the internationalization of involvement of the Norwegian business community, the consequences this may have for human rights, and the standards we should set for Norwegian companies.

The Government’s efforts to ensure that the private sector recognizes its ethical responsibilities are part of a wide-ranging human rights policy. Internationally, more and more demands are being made on the private sector with regard to ethical awareness and social responsibility.

We all know about the case of Shell in Nigeria, the public reaction to the use of child labour, and the international labour movement’s response to breaches of trade union rights in developing countries. This means that international companies, including Norwegian companies abroad, are having to deal with a new reality.

My own involvement stems from my belief that we have a joint responsibility to enhance respect for human rights throughout the world.

This is a question of credibility - and of global accountability. This is a question of political will and a question of ability.

I do not intend to discuss the various individual human rights here, as I am sure most of you are familiar with the Universal Declaration. Many of you are writers and artists, and as such you are concerned with freedom of expression.

Freedom of expression is a fundamental right because it is not only important in itself, it is also essential for the implementation of other rights.

It is difficult to imagine freedom of belief without freedom of expression. Without freedom of expression, it is impossible to criticize rulers who will not allow their people to share in the resources and opportunities offered by their country. Freedom of expression is the basis for freedom of assembly and association, and for participation in elections.

Freedom of expression is necessary for cultural diversity, for the right to an education. Supporting freedom of expression means supporting other people’s right to hold different opinions. It involves tolerance and respect for others.

Yet, freedom of expression is severely limited for the illiterate, for the impoverished, for the physically weak and for other marginalised groups.

Thus, freedom of expression illustrates how interlinked and interdependent human rights are.

What has freedom of expression to do with trade and ethics? Because freedom of expression is closely linked to today’s rapid spread of information, information on the behaviour of Norwegian-owned and other companies in far-off countries is readily available. Internet is one important way of spreading the word. The information is up to date, and mercilessly exposes any company, wherever it is, whose activities are making it more difficult for the local population to exercise their rights. This is one of the advantages of a more transparent world.

Other trends are more of a mixed blessing. Market forces and other international conditions have an increasing impact on people’s everyday life – and myself as a politician I see how the scope of action of governments are reduced.

I would like to come back to what the Minister for Human Rights and International Development said in her opening speech yesterday: For people in too many countries around the world, freedom of expression is a matter of life or death. They risk their very lives to tell us about injustice, cruelty, torture, tyranny. About assaults on human dignity. We must listen to these voices, we must let them be heard. And we must act on their message.

Norway was one of the first countries to look systematically at the links between human rights and global social responsibility. My government has established a consultative forum for business, human rights organizations, trade unions, research institutions and government, ‘KOMpakt’. I will revert to this later.

But Norway is by no means the only country that is taking this issue seriously:

The UK recently announced that the involvement of the business community abroad will have a central role in what is now called the “ethical dimension” of foreign policy. In Germany these issues are the subject of discussion between companies and government. In the US attention is shifting from government-imposed sanctions to consumer power. Even France recently held a high-level symposium on this topic, and Thailand’s strategy for facing the current economic crisis in Asia takes human rights and business ethics into account.

I believe that human rights and ethical issues are becoming as important as the environment and gender equality have been for the past 20-30 years - and this is happening fast, in keeping with the rapid flow of information.

The Government’s human rights policy

Before I talk more specifically about ethics and the private sector, I would like to say a few words about the Norwegian Government’s policy and achievements in the field of human rights, because our efforts vis-à-vis the private sector are part of a wider picture.

We now have a minister explicitly responsible for human rights, whose role is to strengthen human rights measures, coordinate our efforts and make sure that the Government delivers on human rights, at home and abroad.

My own and the Government’s commitment to human rights is based on our conviction that every individual has the same intrinsic worth - on our commitment to human dignity. Every person in the world has the same right to life, to security, to freedom from torture, to freedom of belief, to freedom of expression, to basic health services, to education, to work and to a minimum of welfare, to mention only some of the universal human rights.

The formal responsibility for guaranteeing these rights lies with the individual country’s authorities. But every one of us, individually and jointly, has a moral responsibility to do what we can to ensure that human rights are upheld and to speak out against violations of those rights.

The principles of the Universal Declaration of Human Rights, which was proclaimed 50 years ago last December, are just that - universal. They apply to every single person, regardless of race, religion, sex or ethnic origin. They are internationally recognized - they are principles that every country has undertaken to follow.

These are not “Norwegian” or “Western” ideas that we are trying to force on other people.

This is something we need to make very clear in a discussion of human rights and Norway’s economic involvement abroad. When we refuse for example to accept subcontractors who make widespread use of child labour, this is not on the basis of a “Norwegian way of thinking”. It is on the basis of a universal moral code. Of internationally agreed principles and conventions.

In other words, we have a legitimate and broad-based ethical foundation for our refusal. And we are refusing in order to protect the victims.

Furthermore, the promotion of human rights has a value of its own. We make these efforts out of a simple sense of decency, out of respect for human dignity, for every person whose rights are violated.

The right to life is the most basic human right of all. The Norwegian Government is therefore strongly opposed to capital punishment, in any country and for any crime. Consequently, we deplore the death sentence passed on the leader of the PKK in Turkey, Abdullah Öcalan. Prime Minister Bondevik has written to the Turkish Prime Minister expressing our regret. We have noted that no death sentence has been carried out in Turkey since 1984, and that Turkey has joined in a unanimous pledge in the Council of Europe to abolish the death penalty. As you know, the sentence has been appealed, and we are following developments closely.

Now a few words on our general human rights policy:

The Government has set itself the task of drawing up the first ever overall strategy for Norwegian policy in the field of human rights. (I think it is fair to say in doing this we are writing political history in a Norwegian policy context). This action plan (White Paper) will be submitted to the Storting during the autumn session. It will include a detailed review of the challenges facing us at home and abroad, and of the specific plans and measures we intend to implement over the next five years.

All the members of the Cabinet colleagues are conducting a review of their own spheres of responsibility to see what improvements can be made. Some of the most important areas that will be dealt with in the plan include the use of remand in custody, the use of coercion in mental health care and the prevention of racism and discrimination. Human rights in relation to business and industry will also make up an important chapter.

To make us more aware of human rights issues, and help us deal with them, the Government will be presenting plans for competence-building measures in this field. We must all become more explicitly aware of human rights aspects in our own line of work.

The action plan will naturally also deal with human rights in other countries. It will discuss what measures are most suitable for promoting human rights in a given situation, and will review our experience so far. Under what circumstances should we enter into a dialogue with a government that violates human rights? Will outspoken public criticism have the right effect? What can be achieved through multilateral organizations? These are among the questions the action plan will consider.

The first Annual Report on Norwegian Efforts to Promote Human Rights was presented last autumn. This was the main initiative taken by the Government to celebrate the 50th anniversary of the Universal Declaration of Human Rights. It was the first systematic overview of the Government’s human rights efforts. We intend to present such a report every year.

In our bilateral and multilateral development assistance we give prominence to efforts to promote human rights. The aim of the development assistance budget is to help fulfil economic, social and cultural rights, such as the right to food, education and health. In addition we focus on civil and political rights. We support the building of democratic institutions, the strengthening of NGOs in civil society, election processes and, not least, freedom of the press. The fight against corruption will be intensified.

It is this type of constructive influence that we believe will make a difference in the long run.

Economic, social and cultural rights are just as important as civil and political rights. Indeed, all these rights are interdependent. Fulfilling one set of rights helps ensure respect for the others. We need, and Norway now has, a coherent human rights policy. Promoting human rights and promoting human development are two sides of the same coin.

I would like to mention briefly some examples of what we are doing to improve the human rights situation abroad:

In Turkey we have been having a human rights dialogue for some time with the authorities. This means that we raise human rights issues in all bilateral contexts. We actively criticize the Turkish government for human rights violations in multilateral organizations. At the same time we support efforts to improve the situation, for example human rights training for police officers, organized through the Council of Europe.

And we support Norwegian human rights organizations cooperating with Turkish partners, such as the Norwegian Forum for Freedom of Expression, the Norwegian Authors’ Union and the Norwegian Bar Association. These organizations are working to achieve greater freedom of expression and respect for the rule of law.

In China we are also conducting an active human rights dialogue with the authorities. On the one hand, we express criticism and protest. On the other we promote measures such as strengthening the rule of law and the judicial system, instruction in the principles of democracy and human rights at university level, support for local democracy and support for the preservation of Tibetan culture.

As you also heard from one of the speakers yesterday, we recently held a seminar on literature attended by authors, critics and publishers from China and Norway. Discussions were open and frank and provided a sound base for further cooperation.

In Indonesia we are supporting human rights organizations and independent media and have embarked on a trilateral cooperation that includes the UN High Commissioner for Human Rights.

In Cuba we have started a dialogue on human rights, democracy and the principles of the rule of law. There are not many countries with which Cuba is willing to engage in a meaningfull discussion on human rights.

These examples show that in our international human rights efforts we always employ a combination of methods. Some are in the nature of incentives and support: in other words, they are “carrot” methods. Others involve explicit criticism: they are “sticks”. Some of the strongest and more rare of the stick methods are economic and other sanctions, which demand strong, international support in order to be effective.

Our strategy is to find the combination of critical engagement and fruitful support that best promotes the cause of human rights in the country concerned. We must always ask what will be best for the people we want to help, put people first. It is the results that count, not necessarily how loudly we speak.

The UN is the most important international forum for taking up violations of human rights. Norway has been a member of the UN Commission on Human Rights since the New Year, and will continue to be a member for the next three years. We make active use of this opportunity for making our voice heard.

Human rights and the Norwegian private sector

So far I have been talking about the Government’s efforts to promote human rights. We, too, must face our part of the global accountability. But what about the Norwegian private sector – or the State-owned industries for that matter?

There are three key international trends in particular that influence the business sector today:

• Firstly, there is the globalization of the world economy. Norwegian companies are forming closer ties with countries we used to have little contact with.
• Secondly, there is generally a greater focus on human rights issues, both in Norway and abroad. Governments that were criticized for their treatment of their own nationals used to claim that this was “internal affairs”, and had nothing to do with outsiders. They cannot do this with credibility today. There is growing recognition, even in these countries, that human rights are legitimate concerns among people and governments.
• Thirdly, companies themselves are increasingly aware of ethical issues. Nowadays companies do not only sell products on the basis of their qualities. They sell them on the basis of the company’s general image. Large sums are spent on marketing companies as environmentally friendly, ethically aware, concerned about their employees’ health and welfare and supportive of culture. No company wants to be known to be exploiting child labour or collaborating with a government that commits gross violations of human rights.

During the World Economic Forum in Davos in February, the UN Secretary-General, Kofi Annan, held a speech in which he appealed to the private sector to cooperate on “core values”: human rights, labour standards and environmental issues.

Why these three areas? Because these are areas where the business world “can make a real difference.” Kofi Annan continued, “You can use these universal values as the cement binding together your global corporations, since they are values people all over the world will recognize as their own.” “We have to choose,” he said, “between a global market driven only by calculations of short-term profit, and the one which has a human face.”

We call on the business world in Norway and abroad to take these words to heart. International corporations must think more about where they choose to invest and how they go about it. In both cases human rights considerations should weigh heavily.

Companies must also think about how they themselves comply with international conventions and standards - on issues such as labour standards, child labour, or health, environment and safety standards for their employees.

1. Norwegian companies’ relationship to the human rights situation in a given country.

Thus, the first point we must consider is: where is it right to invest or trade and how do economic ties influence the human rights situation in a given country?

One of the questions most often debated in the media is whether it is right to trade with a country whose government commits gross violations of human rights. Examples that come to mind are Iran, Indonesia, Burma, Nigeria and China. Now the situation has changed in several of these countries. Fortunately.

We certainly expect that a Norwegian company should consider the human rights situation in a country carefully before deciding whether to form economic ties – and what kind of economic ties. This applies particularly to investment, which often has a more long-term perspective than trade.

It is therefore important to consider whether it is possible to carry on a business in an ethically justifiable manner under the prevailing conditions. In a country where the regime is responsible for gross, sustained violations of human rights, investment is becoming an increasingly risky affair. This applies for example to Burma, and I will come back to this later.

However, we must also face the fact that violations of fundamental human rights occur in many of the countries we have political and economic ties with. The question that we, the Norwegian authorities, the private sector and NGOs, must ask ourselves is, “What is the best way of influencing other countries and helping to promote greater respect for human rights in these countries?”

In a few cases, the only ethically justifiable answer will be that we should break off or severely limit our economic ties to show our disapproval of the regime and, by doing this, our respect for human dignity. This choice can be made by individual companies, for their own business activities. In some cases it can be done through international sanctions, where governments through the UN make any contact illegal.

These choices are not simple. Breaking off contact may inflict hardship on innocent employees and their families and create more poverty. By maintaining contact with a country, we retain the possibility of influencing conditions in that country, directly or indirectly.

However, in order to realise this type of positive influence companies must be challenged to take a pro-active approach. This is important. Although private companies are not political actors, their involvement has implications. And we see many promising examples today that Norwegian companies are aware of this.

Keeping your own house in order is only the first step. What are the attitudes of company representatives when they are in contact with the authorities? Do they give the impression that the authorities’ violations of human rights are acceptable? Do they pretend not to know what is going on? Or do they express concern?

Do they go along with discriminatory orders issued by the authorities, for example by not employing or not doing business with certain population groups or minorities? Do they react if one of their own employees is arrested for political or trade-union activities?

These are the questions I call on Norwegian companies abroad to ask. Companies should realise that not dealing with these issues can also be seen as a political act.

The local authorities are dependent on foreign investment, and companies should not underestimate their potential for exerting influence.

Companies can also support human rights on the spot by helping to provide educational opportunities and health services for employees and their families and in general improving social conditions in the local community. There may be local organizations that can be used to influence the authorities.

For example, the employers’ organization in Turkey, TUSIAD, has become a staunch advocate of greater respect for human rights in that country. They realize that violations of human rights contribute to a lack of respect for the rule of law, and will frighten investors and consumers away. And they also see that a country where people are free to express themselves, where they do not live in fear of arrest or torture, where there is respect for the rule of law, such a country is actually better for business.

However, in certain cases there is no question of Norwegian companies’ having a positive influence on the authorities. Burma is an example of this. This oppressive regime seems immune to decency and reason. This is why we have taken the step of urging Norwegian companies not to trade with Burma. I am pleased to be able to say that companies and employers’ organizations have responded positively to this appeal, and a number have taken it upon themselves to stop importing goods from Burma. We have also urged Norwegian citizens not to travel to Burma and the tourist industry not to sell holidays to Burma.

2. Companies’ responsibility for their own activities

Another aspect of the relationship between human rights and the private sector concerns how to utilise companies’ presence in ‘problematic’ countries.

In today’s information society customers and consumers are more aware of social issues and expect the goods they purchase to be produced under satisfactory working conditions.

The Norwegian authorities also expect Norwegian companies to take their norms and values with them wherever they go, and to apply them to their own activities regardless of where these are located.

It is important to remember that rights in relation to work are included among the fundamental human rights laid down in the Universal Declaration of Human Rights: freedom from slavery, freedom of assembly and association, freedom of expression, the right to work and the right to free choice of employment.

The Norwegian Government is making active efforts to strengthen workers' rights within the International Labour Organization (ILO), and Norway has also been among those who urge that labour standards should be included on the agenda of the World Trade Organization (WTO).

All companies have to make a profit, but the arithmetic is definitely not as simple as it used to be. More and more business leaders now think in terms of a “triple bottom line”, where environmental accounts and social responsibility are included on a par with financial results. This is indeed a positive development.

Concern with a company’s performance is not restricted to the shareholders. The stakeholders – who include workers, customers, the local community – are an increasingly important component in evaluating a company’s success.

The responsibility for a production process does not begin and end at the factory gate. Subcontractors and customers are also links in the chain.

A large number of Norwegian companies are concerned with these issues. The Confederation of Norwegian Business and Industry (NHO) has done much constructive work here. For example, they have made a checklist for helping companies aiming at international involvement to devise strategies for dealing with human rights. This list was drawn up in cooperation with the Norwegian branch of Amnesty International and is a good example of the useful knowledge possessed by NGOs, and of the mutual benefits of cooperation between human rights organizations and business.

The Norwegian Confederation of Trade Unions (LO) has long been involved at the international level in matters relating to trade union rights, and cooperates with trade unions in many countries on providing support for such measures as the training of union representatives.

A growing number of multinational corporations are preoccupied with these ‘human factors’. And the business community is working out its own response to the need for decent business partners. New quality control systems have now been developed, new international standards for ethical production.

One example is ‘SA 8000’, where SA stands for ‘social accountability’. ‘SA 8000’ lays down fundamental standards for health and safety, use of child labour, forced labour, trade union rights, pay conditions and working hours. These standards are founded on major human rights conventions.

[ + UK: Pension funds / City of London. Financial Times’ story ]

This means that companies are now able to receive certification from an independent body testifying to their compliance with fundamental human rights.

Cooperation between the authorities and the private sector

The Norwegian Government wishes to promote awareness and increase knowledge on all of these issues. We cooperate closely with the private sector and with human rights organizations on strengthening respect for human rights. This cooperation is working well, thanks to the contributions from both the business community and human rights organizations.

The Consultative Body for Human Rights and Norwegian Economic Involvement Abroad (KOMpakt) was set up by the Government to serve as a forum for this cooperation. This body has representatives from the private sector, human rights organizations, solidarity organizations, trade unions, government ministries and research institutions.

KOMpakt is probably one of the most extensive public/private partnership project that has so far been carried out in this area. Its role is to raise awareness concerning human rights and to promote discussion and develop policy on problems facing Norwegian companies abroad. The intention is not to reach agreement on all issues, but to acquire greater insight into how different situations can and should be handled, and of the scope of action and conduct of each stakeholder. The purpose of KOMpakt is to help provide companies with a more human rights-oriented basis for their internationalization strategies and for specific investments.

How can you help to promote human rights?

There are many Norwegian organizations represented here who support colleagues in other countries. I am thinking of the Norwegian Authors’ Union, the Norwegian Forum for Freedom of Expression, teachers’ unions, journalists’ unions, and others. I am impressed by the enthusiasm and competence of these and other organizations who work in close cooperation with their counterparts in the country concerned.

I believe strengthening civil society creates a good base for democracy. Strong local organizations give victims of human rights violations, and those who work to improve human rights, a forum for influencing political developments in their own country. Your knowledge and assistance are of great value to those who are risking their future for human rights.

As consumers, you also have a strong and, in my view, growing influence on working conditions in other countries.

You should make demands on manufacturers and marketers, make certain that goods are not being produced by means of child labour or forced labour, or under untenable working conditions. Manufacturers must be required to document this. It is your responsibility as consumers to ask questions, to show that you care and to react appropriately when a manufacturer fails to convince you.

Conclusion

My conclusion is clear: ethics and trade cannot be separated. And companies are catching on to this.

Consumers demand products that they are not embarrassed to buy. Companies are making it their business to ensure that they can offer such products. Headhunters tell companies that future leaders don’t accept working for unethical business.

Human rights organizations are keeping watch. Their knowledge and experience are invaluable assets. There is a growing realization that we all have a part to play, individually and together.

The Norwegian Government is doing its share by promoting awareness and encouraging cooperation. I urge you, as consumers and concerned individuals, to make it clear that you will not tolerate violations of anyone's human rights.

Yesterday, the Minister recited the words of the poet Mansur Rajih from Yemen, now living in Stavanger. After 15 years in jail, he has a lot to teach us about freedom and oppression. Let me conclude by reminding you of his words (and this is an unofficial translation):

… / Prison has but one door

Freedom has a thousand.

Oppression has but one face

Life has a thousand / …

[ Thank you. ]