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Sustainable positions?

As the WSSD drew closer, it became apparent that those practices and ideas grouped together as 'corporate citizenship' and 'corporate social responsibility' were now at the epicentre of the tectonic debate about the relationship between business and the state, particularly in the context of international development. On the one hand, business leaders such as BP CEO John Browne emphasised the beneficial role of corporations in poor countries and argued that free trade would benefit them. 36 On the other hand, the UN Conference on Trade and Development (UNCTAD) released a report showing how many lower-income countries had increased their share of world trade without seeing a corresponding rise in income, which suggests 'free trade hurts the poor'. 37 Therefore, it is interesting to note that, according to one source at the negotiations in Bali, the WSSD secretariat rarely called on UN agencies to input their expertise into the process, which surprised and frustrated many delegates.

The issue of water, on the agenda at Johannesburg, was illustrative of the potential conflict between advocates and critics of economic globalisation. Some argued that water privatisation threatens the basic human right of access to affordable potable water and waste-water sanitation. 38 Others pointed to certain best practices that suggested market incentives would encourage greater efficiency in water delivery and waste-water sanitation methods. 39 Therefore, Socialfunds.com reported that 'solving the world's water problems may depend on properly regulated water privatization and corporate initiatives that introduce new technologies and reduce water consumption'. With reports on public–private partnerships to find sustainable solutions to water problems, and an awards programme to recognise corporate development of water and waste-water technologies that improve environmental performance, the WBCSD's 'Access to Water' Council Project supported the latter view. 40

While Johannesburg drew the focus of debates, the ongoing negotiations at the World Trade Organisation (WTO) seemed to have much more of a bearing on the operating environment of companies involved in water services. Leaked documents showed the European Union was 'demanding full-scale privatisation of public monopolies across the world ... Requests for the opening up of sensitive sectors of its trading partners' economies including water, energy, sewerage, telecoms, post and financial services', reported The Guardian. 41 The European Commission denied that its efforts to bring about trade liberalisation would hit state-run services in poor nations. 42

dr supachai panitchpakdi

Nevertheless, in Europe as in the United States, the role of corporate lobbying in shaping domestic and foreign trade policy was beginning to receive the spotlight. In June many observers were surprised when the WTO's Director General designate, Dr Supachai Panitchpakdi, was reported in The Observer to want 'to introduce tough rules to clamp down on any lobbying by multinational companies that is aimed at influencing the world's trading system.' 43

In London Dr Panitchpakdi said he wanted a new code of conduct for multinational firms, 'which is something that I'm not getting support for from countries around the world, particularly some advanced countries'. An inside source at the WTO told JCC that they knew nothing of the proposals and cautioned that 'a director general cannot by himself alter the rules of the WTO; only a consensus of the WTO members can'. The newspaper suggested that the proposals 'will infuriate international businessmen' and said that corporations were already mounting a campaign against the initiative.

What might this mean for corporate citizenship? Would it be consistent for a company that is seeking to demonstrate good corporate citizenship to join a lobby against such proposals? Currently the corporate citizenship agenda, as illustrated by the range of issues covered by the Global Reporting Initiative (GRI), and echoed by debates at the burgeoning number of conferences, has little to say about corporate lobbying. Perhaps it would be consistent with a commitment to transparency for corporations to report on the nature and rationale of their governmental and intergovernmental lobbying activities?

36. www.ethicalcorp.com/NewsTemplate.asp?IDNum=206

37. www.guardian.co.uk/Archive/Article/0,4273,4404211,00.html

38. www.wdm.org.uk/cambriefs/Wto/stopgats.pdf

39. www.wbcsd.org/newscenter/reports/2000/Water%20Partnership%20report.pdf

40. www.wbcsd.org/projects/pr_water.htm

41. www.guardian.co.uk/Archive/Article/0,4273,4395615,00.html

42. www.planetark.org/dailynewsstory.cfm/newsid/15527/story.htm

43. www.observer.co.uk/business/story/0,6903,738106,00.html
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