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Companies, it’s often said, take more notice of corporate social
responsibility once their reputations have taken a serious knock. So
now that Britain’s Foreign and Commonwealth Office has produced a CSR
strategy, cynics are wondering aloud whether it might have something to
do with the UK’s poor record on reining in alleged corrupt practices.
As recently as January, the UK government suffered the indignity of a
formal diplomatic protest from the US over its decision to drop a fraud
investigation into alleged bribery by a UK company operating overseas.
Looked at another way, the Foreign Office’s desire to embrace CSR is timely, not opportunistic. Its policy is well thought out, with clear targets making it possible to assess progress (see page one), and makes considerable play of the business case for CSR.
The notion that there should be an ethical dimension to foreign policy, first introduced by Robin Cook when he was foreign secretary, always had something of the hair shirt about it and left the impression that the government was more interested in proscribing certain actions than encouraging best practice, at least as far as companies were concerned. This new approach should attract fewer accusations of hypocrisy and support improvements in the ethical performance of UK companies overseas.
With only a handful of staff to do this work, the focus has to be on areas most likely to produce results. Oil, gas and mining are obvious candidates; Foreign Office diplomacy already supports the Extractive Industries Transparency Initiative, which directly concerns relations with other governments, especially of developing countries. The finance industry is another. The Foreign Office has close ties to businesses in these sectors. In others, especially construction and tourism, it needs to strengthen links.
The strategy’s publication is timely in other ways, as there will be a new prime minister shortly, and the need to restore the UK’s international reputation will be near the top of Downing Street’s in-tray. Some SRI funds now shun UK Treasury bonds on account of the government’s weak stance on corruption; this puts no dent in government finances, but looks bad. The new strategy specifically links CSR goals with the need to preserve the country’s reputation, offering the incoming prime minister a start-point in this area.
In contrast to companies, the Foreign Office can further the ethical and public interest case for CSR at least as much as the business case. This will not always be easy. Many countries with the greatest impacts are among the least susceptible to influence. Even so, furthering the UK’s interests by promoting responsible business practice adds a fresh dimension to Foreign Office policy. Many of the companies that initially embraced CSR to guard their reputations have ended up in the vanguard of responsible business practice. The Foreign Office can make the same journey.
Looked at another way, the Foreign Office’s desire to embrace CSR is timely, not opportunistic. Its policy is well thought out, with clear targets making it possible to assess progress (see page one), and makes considerable play of the business case for CSR.
The notion that there should be an ethical dimension to foreign policy, first introduced by Robin Cook when he was foreign secretary, always had something of the hair shirt about it and left the impression that the government was more interested in proscribing certain actions than encouraging best practice, at least as far as companies were concerned. This new approach should attract fewer accusations of hypocrisy and support improvements in the ethical performance of UK companies overseas.
With only a handful of staff to do this work, the focus has to be on areas most likely to produce results. Oil, gas and mining are obvious candidates; Foreign Office diplomacy already supports the Extractive Industries Transparency Initiative, which directly concerns relations with other governments, especially of developing countries. The finance industry is another. The Foreign Office has close ties to businesses in these sectors. In others, especially construction and tourism, it needs to strengthen links.
The strategy’s publication is timely in other ways, as there will be a new prime minister shortly, and the need to restore the UK’s international reputation will be near the top of Downing Street’s in-tray. Some SRI funds now shun UK Treasury bonds on account of the government’s weak stance on corruption; this puts no dent in government finances, but looks bad. The new strategy specifically links CSR goals with the need to preserve the country’s reputation, offering the incoming prime minister a start-point in this area.
In contrast to companies, the Foreign Office can further the ethical and public interest case for CSR at least as much as the business case. This will not always be easy. Many countries with the greatest impacts are among the least susceptible to influence. Even so, furthering the UK’s interests by promoting responsible business practice adds a fresh dimension to Foreign Office policy. Many of the companies that initially embraced CSR to guard their reputations have ended up in the vanguard of responsible business practice. The Foreign Office can make the same journey.
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