Corporates and Civil Society

Some major developments have taken place in the past two weeks that seem to signify a more effective voice for civil society in matters dealing with the environment and social responsibility of organizations that are the flag bearers of globalisation. Perhaps, the most important of these developments is the agreement that was reached in Bonn at the extended 6th session of the Conference of the Parties to the Framework Convention on Climate Change (FCCC). What was agreed on after intense negotiations and compromises by many is certainly weaker than the original Kyoto Protocol, but the fact that there is agreement at last provides a basis for further global action to mitigate the emissions of greenhouse gases (GHGs) that are contributing to global warming and climate change. What is significant is the fact that finally Japan which had been sensitive to the stance of the US in not supporting the Kyoto Protocol, finally joined hands with Europe and other countries to provide agreement to the Kyoto Protocol in the revised form that emerged after negotiations in Bonn. There is no doubt that much remains to be done in developing the finer details of the Protocol before countries embark on the path of ratification, but it is expected that this will happen at the 7th Conference of the Parties in Marrakech later this year. For the Protocol to come into effect at least 55 countries of the developed world need to ratify this agreement and they must collectively account for 55% of the emissions of GHGs of this entire group at the levels recorded in 1990. The developing countries do not have to take any action to reduce emissions at this stage, but their participation would involve projects under the Clean Development Mechanism (CDM) according to which developed countries can implement projects in the developing countries and receive credits for the emissions reduced as a result. There are still several issues of certification, measurement and monitoring that would have to be spelt out for the CDM and other related provisions in the Kyoto Protocol to take effect, but considerable homework has already been done on this subject to provide hope that the remaining problems will not be insurmountable. Beyond Kyoto While the Kyoto Protocol is significant for two specific reasons, the world now has to look beyond. The first reason why this agreement is significant lies in the fact that for the first time collectively the global community has agreed to take action on a very basic issue that has direct implications on the structure of development and growth in the future. The second reason lies in the fact that the US, which is the only superpower in the world, has been ignored by the rest of the world which has shown its willingness to take action almost defiantly against the objections of the US. This has important implications for the geopolitics of global agreements in the future. Another development of significance in the last two weeks has been the massive demonstrations and protests that took place in Genoa where the meeting of the G8 leaders took place last month. It is unfortunate that the Italian police resorted to brutality of the worst kind in dealing with the protesters, who were largely peaceful and non-violent. The likely effect of this is going to be that such meetings will only draw a larger number into the ranks of protesters and demonstrators in the future. The escalating protests that have taken place since the WTO meeting in Seattle two years ago represent a strengthened expression of disapproval by civil society towards any economic power which appears to ignore the interests and rights of the dispossessed. While this expression of disapproval shown in the streets of Seattle, Washington DC, Prague, Davos and now Genoa relates essentially to social issues, environmental concerns are very much at the core of this phenomenon. Boycotting MNCs In Europe today there is a gathering movement to boycott products sold by Exxon-Mobil, because this company has been identified as the strongest supporter of the current US administration's insensitivity to climate change and its unwillingness to take any action. If such a movement becomes universal, corporate behaviour would be affected deeply, because the medium for protests would be the marketplace and the impact of any boycott would reflect in the bottom line of the targeted company. There are responsible corporate organizations that take some of these signs seriously and have actually adopted a proactive approach in embracing social concerns and considerations in devising their policies and conduct of their operations. These organizations would help in focussing attention on those who are at the other end of the scale, and therefore, pressure on the typical corporation of the 21st century would most likely push it in the direction of greater social responsibility. The achievements of the private sector and global corporations should not be minimized, but in a world where a greater share of economic activity will depend on the actions of business entities, it is important that a new ethic that is based on attention to environmental protection and the growing magnitude of social problems throughout the world should emerge soon. For this reason, the protesters and demonstrators who have occupied centre stage in all these widespread locations including Genoa are undoubtedly performing a service that is in the interests of future generations and a stable social order.