The Decent Work Agenda and Sustainable Enterprises Sustainable - - PowerPoint PPT Presentation

the decent work agenda and sustainable enterprises
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The Decent Work Agenda and Sustainable Enterprises Sustainable - - PowerPoint PPT Presentation

Workshop on Sustainable Enterprises and Social Responsibility in Business Education A Dialogue with Business Schools The Decent Work Agenda and Sustainable Enterprises Sustainable Enterprises Jos Manuel Salazar-Xirinachs Executive Director,


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Workshop on Sustainable Enterprises and Social Responsibility in Business Education A Dialogue with Business Schools

The Decent Work Agenda and Sustainable Enterprises

José Manuel Salazar-Xirinachs Executive Director, Employment Sector International Labour Organisation Geneva, Switzerland 23 February-2009

Sustainable Enterprises

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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

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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

  • pportunities for win-win colaboration
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Content

I. The ILO Mission: Social Justice, Fair Globalization and the Decent Work Agenda II. Business Schools: How to you deal with the role

  • f the entrepreneur in society? How does this
  • f 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.

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  • I. The ILO Mission

Promoting Social Justice and Fair Globalization through Decent Work

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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

  • rganization 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
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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

  • ccupation
  • Decent work – 1999

– Definition: “Opportunities for women and men to obtain productive work in conditions of freedom, equity, security and human dignity.”

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Decent Work has gained support and has been adopten by the international community.

  • At the 2005 United Nations World Summit, heads
  • f 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

  • bjective 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

  • f Decent Work throughout the UN system.
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ILO Decent Work Agenda: An operational framework to promote social justice and fair globalization

National Policy Social Protection Employment

Inclusive-Job Rich Growth Policies to influence the demand-side Skills and employability Enterprise development Labour Market Institutions and Policies Informal Economy Target groups: youth, women, vulnerable Expansion of Social Security Links Social Protection- Economic and Social Policies Improved conditions of work and Safer working environments Regulating Labour Migration Strengthening the response to HIV/AIDS through the workplace

Global Initiatives National Policy Frameworks/ DWCPs Regional Agendas/ Platforms Social Dialogue Standards and rights

Decent Work Country Programmes (DWCPs)

Standards Policy Fundamental principles and rights at work Elimination of Child Labour Improved application of Int’l Labour Standards Improved ratification and supervision

  • f Int’l Labour Conventions

through the workplace Integrated approach to promoting good governance Strengthening Labour administration Strengthening employers’ organizations Strengthening workers’ organizations

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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.

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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
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  • 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?

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What is the proper role of business? The CEO & business school views

  • Strong, sustained growth
  • Competitiveness
  • Superior products and services
  • Durable benefits to…

– Shareholders – Other stakeholders

High Integrity High Performance

  • Adherence to the spirit and the letter of

the formal rules (financial, legal, social)

  • Voluntary adoption of ethical and other

global standards (Codes of conduct)

  • Management and employee

commitment to core values. (What

– Other stakeholders

commitment to core values. (What values?)

  • High performance put pressures on

employees to increase income, cash flow, stock price.

  • These pressures can cause corruption

when unconstrained by high integrity.

Profit People Planet

  • Laws, regulations, stakeholder

expectations, media scrutiny can make major integrity lapses not just damaging but devastating, with CEOs fired in disgrace.

  • Combining HP with HI also has

positive benefits: trust, reputation

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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
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  • 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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Sustainable Enterprises as a source of Decent Work

  • Recognizing that the private sector is

the principal source of growth, wealth creation, and productive jobs, the ILO constituents decided to have the constituents decided to have the following subject for the general discussion at the International Labour Conference (2007):

  • “Promotion of Sustainable

Enterprises”

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ILO Approach to the Promotion of Sustainable Enterprises

  • Political: Peace and political stability,

Respect for universal human rights, Good governance, Social dialogue

  • Economic: Sound and stable

macroeconomic policy, Trade and economic integration, Enabling legal environment, Rule of law and secure

External conditions: Enabling environment Internal (Enterprise Level) Conditions and principles

  • Social Dialogue and Good

Industrial Relations

  • Human resource development
  • Good conditions of work
  • Fair benefits for workers in

terms of productivity, wages and shared benefits

environment, Rule of law and secure property rights, Fair competition, Access to financial services, Physical infrastructure, Information and Communication Technologies

  • Social: Social justice & social

inclusion, Education, training and lifelong learning, Entrepreneurial culture, Adequate social protection

  • Environmental: Responsible

stewardship of the environment

terms of productivity, wages and shared benefits

  • Use of Corporate Social

Responsibility

  • Good Corporate Governance

Sustainable Development

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Enterprise-level principles for responsibility 1) Social Dialogue and Good Industrial Relations 2) Human resource development 3) Good conditions of work 4) Fair benefits for workers in terms of productivity, wages and shared benefits 5) Use of Corporate Social Responsibility 6) Good Corporate Governance

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What do ILO constituents mean by a Sustainable Enterprise?

  • At the enterprise level, sustainability

means:

  • perating a business so as to grow and earn profit,

while

  • recognizing the economic and social aspirations of
  • recognizing the economic and social aspirations of

people inside and outside the organization

  • Long-term viability implies that the

management of enterprises should be based on the three pillars of sustainability: economic, social and environmental.

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Key objectives:

  • 1. Enhance job creation potential of enterprises
  • 2. Improve the quality of the jobs

Four major levels:

Enterprise Development Programme

Four major levels:

– National: Policies and regulation for an enabling business environment – Sectoral: Methodologies for upgrading value chains and clusters – Local, regional: Methods and tools for local development – Enterprise: Promoting productive and decent work place practices Target groups: MSMEs, MNEs, COOPs, IE units

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ILO approach and tools

Business Environment (BE)

  • Advice and training on why and how to reform the BE

– Support for mapping and assessing the BE – Strengthen small business associations to identify, prioritize and influence areas for reform – Facilitate dialogue with government on these issues

  • Some key concerns:
  • Some key concerns:

– Ensure that reforms support formalization of enterprises – Create a level playing field for cooperative enterprises – Reduce regulatory barriers to women’s entrepreneurship – Balance the need to reduce regulatory burden on MSEs with protection of workers

  • Promote enterprise culture and entrepreneurship in education and

training systems

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Labour standards and high performance

  • Enterprises that achieved positive results usually applied a

mix of workplace practices in the fields of:

– employee involvement – compensation – working time and work-family balance policies – training and development – training and development – employee well-being programmes – equity and non-discrimination – occupational safety and health – job security

  • International Labour standards provide a foundation for

developing these practices but they need to be embedded in the management practices within the enterprise. Thus we increasingly see reference to ILS in codes of practice and in company competitive strategies.

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  • Main instrument: Tripartite Declaration of Principles on MNEs and

Social Policy – 1977), framework for contribution of MNEs to:

– General economic and social policies – Employment – Training – Conditions of work

Multinational Enterprises (MNEs) ILO approach and tools, including CSR

– Conditions of work – Industrial relations

  • Main areas of work:

– Promote the Declaration – Inform of good practice: cases and surveys on Declaration follow-up – Research: Key sectors, monitoring and reporting systems – Good practices on CSR

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To Conclude…

  • The ILC conclusions on the promotion of sustainable

enterprises are forward looking, drawing on the latest thinking on sustainable development, entrepreneurship promotion and good corporate citizenship. They provide a powerful 21st century vision from the ILO on enterprise and development. development.

  • A key challenge for you as business educators is how to

prepare your students to be responsible future managers and entrepreneurs.

  • Through this workshop, the ILO wants to develop a common

vision with you on how we can work with your to meet this challenge and identify opportunities for win-win colaboration