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PrintEngagement with the private sector
Policy Serial No: POS 2.3.4
Date of adoption: 25 February 2006
The Issue:
Oxfam Australia observes that:
Ethical, productive and environmentally sustainable private sector investment can be an important force for poverty reduction and human development around the world. Conversely, private sector investment can sometimes undermine the fundamental rights of poor and vulnerable people. Oxfam works with many people affected in this way.
Given our mission to eliminate poverty and injustice, our engagement with the private sector is a key activity. Oxfam Australia seeks to do so in a positive spirit of open collaboration, to assist business to work in ways which enable people to realise their rights. Equally Oxfam Australia will challenge actions that threaten the rights and well-being of poor and vulnerable people and communities, and will campaign to influence private sector policies and practices to ensure these do not undermine the rights of poor and marginalised people.
Parts of the private sector actively support the work of Oxfam Australia through financial or in-kind support. More broadly, the private sector represents a significant source of funds to assist Oxfam Australia in our work, in overcoming poverty and social injustice. We welcome and value such support and will work closely with appropriate companies in the private sector to optimise the support Oxfam Australia receives.
Oxfam Australia’s goals in engaging with the private sector are to:
- Influence the understanding, policies and practices of the private sector bring about concrete, long-term and sustainable gains for people living in poverty and affected by injustice.
- Promote the development of standards and regulations that improve the social and environmental performance of the private sector. These may be multilateral or national regulations, as well as codes of conduct – where these do not undermine more formal regulation.
- Secure financial and other support from the private sector to increase our ability to provide lasting support to those communities with whom we work.
- Improve opportunities for us or our partners to access the private sector, governments or key alliances and undertake positive engagements.
- Improve our understanding of the private sector through our experience or research.
This policy is consistent with Oxfam International policies and principles on private sector interaction, and sets out principles as they apply to Oxfam Australia.
Oxfam Australia Principles:
Our view is:
- The private sector can generate resources, employment and access to markets which can assist people to attain sustainable livelihoods.
- Governments, civil society, the private sector and international institutions share a responsibility for ensuring that social and economic development is based on pro-poor policy decisions and is not left solely to the competing forces of the marketplace.
- A framework of Corporate Social Responsibility is an essential part of good business. Private sector operations should adhere to internationally accepted social, environmental and labour standards and should not exploit or disadvantage affected communities.
Oxfam Australia takes a multi-faceted approach to interaction with the private sector, depending on the business sector, the company, and the issue. Approaches include cooperative work on the design, implementation and monitoring of improved corporate conduct and standards, marketing relationships, financial or non-financial support, private lobbying and where necessary to bring about change, public criticism.
Oxfam Australia will base its engagements with the private sector on the following principles:
- Impact – tour engagement will contribute to achieving positive and sustainable change in people’s lives – both for the communities we seek to assist and other stakeholders.
- Involvement of stakeholders - Appropriate involvement of partners and other stakeholders will be considered in the negotiation, design and implementation of engagement with the private sector.
- Ethics – We will act ethically and in accordance with our Vision and Ends policies. We will also expect partners in the engagement to adhere to agreed principles in actions associated with the engagement.
- Integrity – Our capacity to speak out with authority and fairness on issues of poverty, distress, suffering and injustice will not be compromised by acceptance of funds or other relationships with companies.
- Due diligence – We will apply due diligence in managing the risks related to interactions with companies. Risks include those associated with acceptance or refusal of funds, sponsorship or in kind support, as well as risks arising from critical advocacy and the supply of goods and services. We will consider the risk that our engagement with a company might enhance that company's public image in a manner which undermines attempts by other organisations to persuade that company (or industry) to reduce the harm it is causing to poor people and their environments.
- Consistency - We will be consistent across the organisation and hence will aim to meet the same social, labour and environmental standards as we demand of corporations.
- Transparency – We will maintain transparency and clarity with relevant partners, affected communities, NGOs, trade unions and our supporters about our private sector engagement. In specific circumstances, we may judge that closed-door, candid discussions with a company are necessary to achieve ultimately favourable outcomes for all parties. This approach will be used in clearly defined and exceptional cases only. In circumstances where sharing information will endanger the livelihood, safety or well-being of particular individuals or organisations, we will not share that information without the permission of those organisations or individuals.
- Objective measures – We will consider and continually evaluate all engagements on their merits, to ensure consistency with our vision, Ends policies and this position policy.
Consequently, Oxfam Australia calls for:
- Commitment by the private sector to upholding international laws and standards such as the United Nations Norms for Transnational Corporations, UNEP Finance Initiative and International Labour Organisation conventions, recognising the effects of corporate conduct on the lives of people, communities and their environments.
- Further evaluation of private sector activities against standards for Corporate Social Responsibility. Examples include the initiatives of the Fairwear Foundation ( Netherlands) and Workers Rights Consortium (US).
- Extraterritorial regulation of Australian private sector companies with significant offshore operations in developing countries requiring such companies’ operations to meet internationally accepted human rights, labour, social and environmental norms.
- Commitment by governments to regulate the activities of the private sector, to ensure equity and concentration on positive, sustainable outcomes for the most disadvantaged groups in the society.
- Policy development and initiatives by governments in the more developed economies, to recognise and account for the effects of the private sector across the globe, whether those effects be economic, social or environmental.
- Recognition that professionals in many spheres, from engineering and the sciences to finance and agriculture, need to understand the social and ethical issues involved in transnational trade. As one way to develop this, we call for the inclusion of educational courses on Corporate Social Responsibility and community development in Australian tertiary institutions.