Big business should impose code of practice, say NGOs

SWITZERLAND: Critics of the World Economic Forum (WEF), which opened yesterday in Davos, Switzerland, appealed to governments…

SWITZERLAND: Critics of the World Economic Forum (WEF), which opened yesterday in Davos, Switzerland, appealed to governments and big business to accept binding rules making them accountable.

Non-governmental organisations taking part in the alternative Public Eye on Davos meeting, just up the road from the WEF's annual meeting, said they wanted politicians to target the worst cases of unethical behaviour.

Mr Klaus Schwab, the founder and president of the WEF, who normally espouses a pro-business line, joined the criticism.

Among examples of improper practice cited by the non-governmental organisations was the failure of US energy giant Enron, which was brought down by alleged accounting fraud.

READ MORE

"We may not agree on who are the better and worst companies, but we do at least agree that there are leaders and laggards," said Mr Tony Juniper, vice-chair of Friends of the Earth International.

Mr Schwab said in an interview with the Swiss newspaper Le Temps: "Company chiefs must understand now that we are entering a period of modesty, and that humility is of growing value.

"One must serve and work for the collective good rather than for shareholders on their own."

The NGOs said voluntary codes were not enough to stop practices which created environmental, social or even financial damage. "It is our contention that the worst performers will never be convinced by friendly persuasion," Mr Schwab said.

Public Eye participants insisted on clear answers and concrete action from the corporate executives taking part in the WEF.

An opinion poll commissioned by the WEF indicated that 91 percent of young people in 33 European countries trusted NGOs to operate in the best interests of society. Global companies came bottom of the ranking

Davos forum warns of further dollar weakness: Business This Week, page 2