Monday 28 October - SRI & Corporates in Asia

	Speakers & Presentations
Panel Discussions : Civil Society and Corporate Practice パネル・ディスカッション : 市民社会と企業活動
Chair: Mr. Colin Le Duc, Head of Research Operations, Sustainable Asset Management (SAM) Panel:
Ms. Grace Favila, Adviser to the Board, Philippine Business for the Environment
	49 KB	The Philippine Experience in Socially Responsible Investments
Ms. Yuko Sakita, Journalist, Environment Counselor
	KB	Coming soon
Ms. Charles Secrett, Executive Director, Friends of the Earth UK
Ms. Hiroshi Takahashi, Managing Director, Japanese Trade Union Confederation (RENGO)

Summary
by Mr. Colin Le Duc, Chair

Workshop Objectives:

• Understand the role of civil society in promoting CSR and SRI
  
• Learn from UK experience of NGO role
  
• Understand Japanese current reality with regards role of civil society

Illustrated a historic perspective on how civil society has contributed in the Philippines, in particular with a core focus on the development of social capital

Ms. Favila focused on innovative funding options for civil society, and highlighted particularly 3 areas:

1. Corporate Giving
Major focus on the importance of corporate philanthropic giving. Corporate foundations as a core funding resource. However, the issue of how to remain effective as an advocacy group while being funded by the very institutions that civil society is meant to be focusing on is a challenge for the future.

2. Asian Conservation Company
A further example of innovative funding vehicles for civil society is the Asian Conservation Company - a commercial enterprise set up by civil society members with a focus on environmentally sound businesses. Profit from these businesses helps fund the civil society groups. Two main examples are El Nido Resorts and Stellar Fisheries in the Philippines.

3. Code NGO Network
Coalition of some 2,500 NGO and civil society groups with focus of finding innovative funding routes. Mai example is the launch of the PEACe Bond (Poverty Eradication and Alleviation Certificates), which is a 10 yr zero coupon bond, which funds the Peace and Education Foundation. Using such sophisticated financing is an increasing trend in civil society as these groups understand finance better and better.

Ms. Yuko Sakita - Journalist, Environmental Counsellor

Focus on the individual's role in changing corporate behaviour and promoting SRI.

Ms. Sakita-san focused especially on the historic development of civil society groups in Japan since 1945, including interesting groups such as the Coalition of Housewives and the Japan Consumer Alliance - both, which have over 50,000 members each. Ms. Sakita-san emphasised the importance and prominence of consumer groups as the dominant element of civil society in Japan.

Environmentally, these consumer groups have developed their concerns beyond mere product safety to the wider responsibilities of the organisations producing such goods. The Green consumer movement in Japan is very strong and the potential and reality of a "green premium" is real in Japan - i.e.: consumers will pay more for green goods.
There are currently approximately 4,100 environmental organisations in Japan of which 35% were established during the 1990's. In the future such groups will focus on pollution, air and waste as their key campaigning issues.

Ms. Sakita-san described the organisation that she represents in further detail. GENKIOMKOMI is a consumer organisation focused on recycling, reuse and lowering impact of consumerism through individuals. Established in 1995, this group is a nationwide network of sustainable society citizen groups with over 1,000 members. The organisation aims to support environmentally friendly companies by sharing information, establishing partnerships and raising awareness. Funding is from companies themselves.

Finally, Ms. Sakita-san explained that Japanese civil society's approach to driving change is one of partnership rather than radical opposition. Regarding SRI in Japan, Ms. Sakita-san emphasised that the retail market was not likely to rebound any time soon given the state of the stock markets.

Mr. Charles Secrett - Executive Director, Friends of the Earth UK

Mr. Secrett focused on lessons and approaches from the UK, with particular attention paid to the following:

1. FoE's approach to driving change
2. The types of campaigning activities undertaken by FoE
3. The relationship between NGO's and Companies

FoE's approach to driving change

Mr. Secrett was keen to point out that FoE was in no way funded by corporations, but solely by member fees and voluntary contributions, a critical aspect to FoE being able to maintain genuine independence and credibility.

Change must occur through the market, and FoE aims to alter the boundaries of markets by recognising that no market is truly free - socially license to operate is of critical importance. Altering fiscal and regulatory boundaries is a core role for NGO's. Altering the penalty/reward dynamics of the market is also crucial. Markets must be moral to work effectively. The example used was FoE's impact on Asian Pulp & Paper Company.

The types of campaigning activities undertaken by FoE:

1. Information provision - providing objective evidence to public and policy makers
   
2. Standard setting - influencing the setting of standards
3. Naming & Shaming - focusing on reputation risk of companies
4. Company Specific Focus - targeting one company for numerous issues
5. Tax Campaigns - pressing for Polluter Pays, Credits for clean energy, Other fiscal incentives etc
6. Legal Campaigning - helping shape the regulatory environment, special focus on Pensions Act of 1995 in UK

The relationship between NGO's and Companies:

Mr. Secrett focused on 2 critical elements to ensure an effective relationship between corporations and civil society:

1. Civil society must get its facts right - campaigning loses all credibility if facts are not correct
2. NGO's must work within the mechanisms of democracy - NGO's will not be listened to if they request a total dismantling of the entire economic system

Mr. Hiroshi Takahashi - Managing Director, Japanese Trade Union Confederation (RENGO)

Mr. Takahashi-san represents RENGO, which is Japan's largest trade union confederation with over 2.5 million members. He focused on the role trade unions can play in pushing the CSR agenda.

The members of RENGO play many different roles in society - as trade union members they are also workers, family members and citizens. It is this realization that the members have numerous roles that has determined RENGO's approach to educating its membership in environmental and social responsibility so that they can use the skills in their other walks of life. This is a classic use of the multiplier effect. RENGO therefore takes particular positions on environmental matters and increasingly on social issues as well.

Members have had considerable influence on corporate strategy regarding environmentalism in particular. Notable examples include RENGO members working for the large Japanese auto manufacturers Toyota, Nissan and Honda. All 3 of these organisations have highly sophisticated environmental strategies, most of which has been pushed up from the factory floor by RENGO members.

RENGO's other core role in promoting CSR is with regards its own funds. RENGO's members pay 5,000 Yen per month membership fee, which calculates to an annual income of 150 trillion yen. RENGO is increasingly integrating SRI principles into the management of these funds.