Corporate Accountability & the Johannesburg Earth Summit
   

· Earth Summit 101

· Corporate Failure Since Rio

· Six Reasons for Accountability

· Accountability vs Responsibility

· Rules for Big Business

· FoEI's Position Paper

· Type 2 Outcomes - Voluntary Partnerships

· The Bush Administration and the Earth Summit

Corporate Impacts Issue Briefs: Water, Biodiversity

Polluted Profits
· Bush's First Year in Office
· Environmental Rollbacks
· Accounting Tricks
· Corporate Veil of Secrecy
· Paying Polluters

Case Studies of
Corporate Irresponsibility

· AES
· Doe Run
· Enron
· ExxonMobil
· Monsanto
· Newmont
· Nike
· Unocal
· Suez-Lyonnaise
· Vivendi


Type 2 Outcomes - Voluntary Partnerships

“What is new and worrying with the Johannesburg Type 1/Type 2 dynamic is it appears that governments are on the verge of abdicating their own responsibilities to deliver on their political commitments to voluntary initiatives.

Type 2 outcomes could, in many cases, also result in “greenwash” by polluting companies wanting to divert criticism.

Friends of the Earth's concerns are further accentuated by the fact that key accountability measures have yet to be agreed in the draft Plan of Implementation - a Type 1 outcome.

The Bush Administration and Type 2 Outcomes
Type 2 is No Substitute for Type 1
Business and "Greenwash" Potential

At the Johannesburg Earth Summit, there will be two types of official outcomes - known as Types 1 and 2. The Plan of Implementation, a "Type 1" outcome, is negotiated and agreed to by all governments. This document will in effect be the "directions" on how to overcome the "implementation crisis" since Rio. There will also be a Political Declaration, also a "Type 1" outcome that is negotiated and agreed to by all governments.

"Type 2" outcomes are voluntary "Partnerships" between (any combination of) business, communities, governments and NGOs that are not negotiated by governments.

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The Bush Administration and Type 2 Outcomes

The Bush Administration has been a strong proponent of Partnerships throughout the preparatory process. The negotiation tactics of the United States during Prepcom 4 in Bali, Indonesia confirmed that the administration see these voluntary partnerships as an alternative rather than a compliment to binding intergovernmental commitments.

Secretary of State Colin Powell, in his July 12 speech, encapsulated the US' approach when he said, "Partnerships are key, and we are already deploying the power of partnerships… Our vision for Johannesburg is to build on these three messages: commitment, good policies, and partnerships. We will build on these three messages by inviting developed and developing nations to join us in opening economies and societies to growth. For growth, growth, growth is the key to raising people out of poverty."

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Type 2 is No Substitute for Type 1

Type 2 threatens to mask the failure of governments to agree on meaningful action, resulting in the "privatisation of sustainable development," as UNEP Executive Director Klaus Töpfer has warned.

Friends of the Earth views the primary summit mandate is for governments to agree to action-oriented, time-bound measures that will help deliver lasting poverty eradication and ecosystem security.

FoE's concerns are further accentuated by the fact that governments have not yet agreed to two key accountability measures within the draft Plan of Implementation: one setting out a legal framework for corporate accountability, another ensuring access to information and decision-making (as prescribed by Principle 10 of the Rio Declaration, which states: “States shall develop national law regarding liability and compensation for the victims of pollution and other environmental damage. States shall also cooperate in an expeditious and more determined manner to develop further international law regarding liability and compensation for adverse effects of environmental damage caused by activities within their jurisdiction or control to areas beyond their jurisdiction.”).

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Business and "Greenwash" Potential

What is new and worrying with the Johannesburg Type 1/Type 2 dynamic is it appears that governments are on the verge of abdicating their own responsibilities to deliver on their political commitments to voluntary initiatives.

Type 2 outcomes could, in many cases, also result in "greenwash" by polluting companies wanting to divert criticism. Leaving social and environmental concerns to the good intentions of the corporations will, in a competitive market, reward those who dodge their responsibilities, except when compliance is cost-free or brings compensating publicity. This is why self-regulation of each partnership is not good enough.

In this era of corporate scandals, such as Enron and WorldCom, real accountability, transparency and regulation are needed. In this, governments have their due role to play.

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