Ethiopian Review

Corporate social responsibility (CSR) or corporate citizenship, or how a company’s business activities are in line with broader economic, social, or environmental goals, is not a new concept, but how CSR may be applied is continually being shaped by changing world events. Late last month, the Swiss pharmaceutical giant Novartis, through the Novartis Foundation for Sustainable Development, held a symposium on “new world economic ethics” to examine the implications of the global financial and economic crisis on business ethics and practices. The symposium follows the presentation of a new manifesto, the Global Economic Ethic–Consequences for Global Businesses, at the United Nations (UN) in October, signaling another phase in CSR.

The UN symposium at which the manifesto was presented was hosted by the UN Global Compact, the Swiss Mission to the United Nations, the Global Ethic Foundation, and the Novartis Foundation for Sustainable Development, a nonprofit organization within Novartis focusing on CSR. The manifesto was developed by the Swiss-German theologian Hans Küng, president of the Global Ethic Foundation, to put forth a “common fundamental vision of what is legitimate, just, and fair” in economic activities, according to an Oct. 6. 2009 UN press release. The manifesto outlines five major values: the principle of humanity; nonviolence and respect for life; justice and solidarity; honesty and tolerance; and mutual esteem and partnership. In identifying those principles, the manifesto seeks to provide a guide to responsible corporate conduct and business activities by suggesting ethical principles for individuals to follow in their day-to-day business decisions and conduct, according to the UN release.

Some of the signatories of the manifesto included: the former President of Ireland and former UN Human Rights Commissioner Mary Robinson; Jeffrey Sachs, professor and director of the Earth Institute at Columbia University; Nobel Peace Prize Laureate Desmond Tutu, and Daniel Vasella, chairman and CEO of Novartis. The manifesto is open globally for signatures of individuals who commit to be guided by both the letter and spirit of the manifesto.

“No company acts only as an abstract legal institution, but always through the many different people working at different levels of the hierarchy,” said Klaus Leisinger, CEO of the Novartis Foundation for Sustainable Development, in the UN release. “This is the reason why social systems such as companies per se can only be moral or immoral to a limited extent: morality—or lack of morality—is introduced to a social system by the people, their values, and level of integrity.”

Novartis followed up with its own symposium in late November to present the UN manifesto in Europe and to gain input from a variety of experts on business ethics and their implications, including their impact on the developing world. Participating in the discussion were: the theologian Hans Küng; the business ethicist Josef Wieland; Sarah Cook, director of the UN Research Institute for Social Development; the Turkish human-rights activist and philosopher Ioanna Kuçuradi; Donald Kaberuka, president of the African Development Bank; Deepa Narayan, senior advisor at the World Bank; and Peter Niggli from Alliance Sud, the Swiss Alliance of Development Organizations.

The pharmaceutical industry, like all sectors of the economy, has been affected by the global financial crisis either through the broader macroeconomic downturn or the financing volatility in the small-to emerging life-sciences sector. As companies deal with these repercussions, it is encouraging to see individuals, experts, and companies making the effort to broach dialogue and seek meaningful participation over ways to foster, implement, and emphasize global business ethics as part of a larger societal obligation.

- Patricia Van Arnum