The Caux Round Table
In a world which is experiencing profound transformations, the Caux Round Table of business leaders from Europe, Japan and the United States is committed to energizing the role of business and industry as a vital force for innovative global change.
The Round Table was founded in 1986 by Frederik Philips, former President of Philips Electronics, and Olivier Giscard d'Estaing, Vice-Chairman of INSEAD, as a means of reducing escalating trade tensions. It is concerned with the development of constructive
economic and social relationships between the participants'countries, and with their urgent joint responsibilities toward the rest of the world. At the urging of Ryuzaburo Kaku, Chairman of Canon Inc., the Round Table has focused attention on the
importance of global corporate responsibility in reducing social and economic threats to world peace and stability.
The Round Table recognizes that shared leadership is indispensable to a revitalized and more harmonious world. It emphasizes the development of continuing friendship, understanding and cooperation, based on a common respect for the highest moral values
and on responsible action by individuals in their own spheres of influence.
Introduction
The Caux Round Table believes that the world business community should
play an important role in improving economic and social conditions. As a
statement of aspirations, this document aims to express a world standard
against which business behavior can be measured. We seek to begin a
process that identifies shared values, reconciles differing values, and thereby
develops a shared perspective on business behavior acceptable to and
honored by all.
These principles are rooted in two basic ethical ideals: kyosei and human
dignity. The Japanese concept of kyosei means living and working together
for the common good - enabling cooperation and mutual prosperity to
coexist with healthy and fair competition. "Human dignity" refers to the
sacredness or value of each person as an end, not simply as a means to the
fulfillment of others'purposes or even majority prescription.
The General Principles in Section 2 seek to clarify the spirit of kyosei and
"human dignity," while the specific Stakeholder Principles in Section 3 are
concerned with their practical application.
In its language and form, the document owes a substantial debt to The
Minnesota Prineゆles, a statement of business behavior developed by the
Minnesota Center for Corporate Responsibility. The Center hosted and
chaired the drafting committee, which included Japanese, European, and U.S.
representatives.
Business behavior can affect relationships among nations and the prosperity
and well-being of us all. Business is often the first contact between nations
and, by the way in which it causes social and economic changes, has a
significant impact on the level of fear or confidence felt by people
worldwide. Members of the Caux Round Table place their first emphasis on
putting one's own house in order, and on seeking to establish what is right
rather than who is right.
Section 1 • Preamble
The mobility of employment, capital, products and technology is making
business increasingly global in its transactions and its effects.
Laws and market forces are necessary but insufficient guides for conduct.
Responsibility for the policies and actions of business and respect for the
dignity and interests of its stakeholders are fundamental.
Shared values, including a commitment to shared prosperity, are as important
for a global community as for communities of smaller scale.
For these reasons, and because business can be a powerful agent of positive
social change, we offer the following principles as a foundation for dialogue
and action by business leaders in search of business responsibility. In so
doing, we affirm the necessity for moral values in business decision making.
Without them, stable business relationships and a sustainable world
community are impossible.
Section 2. General Principles
Principle 1. The Responsibilities Of Businesses:
Beyond Shareholders Toward Stakeholders
The value of a business to society is the wealth and employment it creates
and the marketable products and services it provides to consumers at a
reasonable price commensurate with quality. To create such value, a business
must maintain its own economic health and viability, but survival is not a
sufficient goal.
Businesses have a role to play in improving the lives of all their customers,
employees, and shareholders by sharing with them the wealth they have
created. Suppliers and competitors as well should expect businesses to
honor their obligations in a spirit of honesty and fairness. As responsible
citizens of the local, national, regional and global communities in which they
operate, businesses share a part in shaping the future of those communities.
Principle 2. The Economic and Social Impact of Business: Toward Innovation, Justice and World Community
Businesses established in foreign countries to develop, produce or sell should
also contribute to the social advancement of those countries by creating
productive employment and helping to raise the purchasing power of their
citizens. Businesses also should contribute to human rights, education,
welfare, and vitalization of the countries in which they operate.
Businesses should contribute to economic and social development not only
in the countries in which they operate, but also in the world community at
large, through effective and prudent use of resources, free and fair
competition, and emphasis upon innovation in technology, production
methods, marketing and communications.
Principle 3. Business Behavior:
Beyond the Letter of Law Toward a Spirit of Trust
While accepting the legitimacy of trade secrets, businesses should recognize
that sincerity, candor, truthfulness, the keeping of promises, and
transparency contribute not only to their own credibility and stability but
also to the smoothness and efficiency of business transactions, particularly
on the international level.
Principle 4. Respect for Rules
To avoid trade frictions and to promote freer trade, equal conditions for
competition, and fair and equitable treatment for all participants , businesses
should respect international and domestic rules. In addition , they should
recognize that some behavior, although legal, may still have adverse
consequences.
Principle 5. Support for Multilateral Trade
Businesses should support the multilateral trade systems of the GATT /World
Trade Organization and similar international agreements. They should
cooperate in efforts to promote the progressive and judicious liberalization of
trade and to relax those domestic measures that unreasonably hinder global
commerce, while giving due respect to national policy objectives.
Principle 6. Respect for the Environment
A business should protect and, where possible, improve the environment,
promote sustainable development, and prevent the wasteful use of natural
resources.
Principle 7. Avoidance of Illicit Operations
A business should not participate in or condone bribery, money laundering,
or other corrupt practices: indeed, it should seek cooperation with others to
eliminate them. It should not trade in arms or other materials used for
terrorist activities, drug traffic or other organized crime.
Section 3. Stakeholder Principles
Customers
We believe in treating all customers with dignity, irrespective of whether
they purchase our products and services directly from us or otherwise
acquire them in the market. We therefore have a responsibility to:
◆ provide our customers with the highest quality products and services
consistent with their requirements;
◆ treat our customers fairly in all aspects of our business transactions,
including a high level of service and remedies for their dissatisfaction;
make every effort to ensure that the health and safety of our
customers, as well as the quality of their environment, will be
sustained or enhanced by our products and services;
◆ assure respect for human dignity in products offered, marketing, and
advertising; and
◆ respect the integrity of the culture of our customers.
Employees
We believe in the dignity of every employee and in taking employee
interests seriously. We therefore have a responsibility to:
• provide jobs and compensation that improve workers'living
conditions;
◆ provide working conditions that respect each employee's health
and dignity;
◆ be honest in communications with employees and open in sharing
information, limited only by legal and competitive constraints;
• listen to and, where possible, act on employee suggestions, ideas,
requests and complaints;
◆ engage in good faith negotiations when conflict arises;
◆ avoid discriminatory practices and guarantee equal treatment and
opportunity in areas such as gender, age, race and religion;
• promote in the business itself the employment of differently abled
people in places of work where they can be genuinely useful;
protect employees from avoidable injury and illness in the
workplace;
◆ encourage and assist employees in developing relevant and transferable
skills and knowledge; and
◆ be sensitive to the serious unemployment problems frequently
associated with business decisions, and work with governments,
employee groups, other agencies and each other in addressing these
dislocations.
Owners / Investors
We believe in honoring the trust our investors place in us. We therefore have a
responsibility to:
◆ apply professional and diligent management in order to secure a fair and
competitive return on our owners'investment;
◆ disclose relevant information to owners/investors subject only to legal
requirements and competitive constraints;
◆ conserve , protect and increase the owners/investors'assets; and
• respect owners/investors 'requests, suggestions, complaints, and
formal resolutions.
Suppliers
Our relationship with suppliers and subcontractors must be based on mutual
respect. We therefore have a responsibility to:
• seek fairness and truthfulness in all our activities, including pricing,
licensing , and rights to sell;
◆ ensure that our business activities are free from coercion and
unnecessary litigation;
foster long-term stability in the supplier relationship in return for
value, quality, competitiveness and reliability;
• share information with suppliers and integrate them into our
planning processes;
• pay suppliers on time and in accordance with agreed terms of
trade; and
◆ seek, encourage and prefer suppliers and subcontractors whose
employment practices respect human dignity.
Competitors
We believe that fair economic competition is one of the basic requirements
for increasing the wealth of nations and ultimately for making possible the
just distribution of goods and services. We therefore have a responsibility to:
◆ foster open markets for trade and investment;
◆ promote competitive behavior that is socially and environmentally
beneficial and demonstrates mutual respect among competitors;
◆ refrain from either seeking or participating in questionable payments
or favors to secure competitive advantages;
◆ respect both tangible and intellectual property rights; and
◆ refuse to acquire commercial information by dishonest or unethical
means, such as industrial espionage.
Communities
We believe that as global corporate citizens we can contribute to such forces
of reform and human rights as are at work in the communities in which we
operate. We therefore have a responsibility in those communities to:
◆ respect human rights and democratic institutions, and promote them
wherever practicable;
recognize government's legitimate obligation to the society at large
and support public policies and practices that promote human
development through harmonious relations between business and
other segments of society;
◆ collaborate with those forces in the community dedicated to raising
standards of health, education, workplace safety and economic
well-being;
◆ promote and stimulate sustainable development and play a leading
role in preserving and enhancing the physical environment and
conserving the earth's resources;
• support peace, security, diversity and social integration;
• respect the integrity of local cultures; and
◆ be a good corporate citizen through charitable donations, educational
and cultural contributions, and employee participation in community
and civic affairs.
July 1994
Caux Round Table Steering Committee:
Friedrich Baur, Pres ident, MST GmbH, Formerl y Member of Executive Board , Siemens AG,Germany; John Charlton, Managing Director,The Chase Manhattan Bank, USA; Neville
Cooper, Chairman, The Top Management Partnership , Ltd., Formerly Executive Director STCand Vice President , ITI (U.K.), United Kingdom; Charles M. Denny, Jr. , Formerly Chairmanand CEO,ADC Telecommunications , Inc., USA; Jean-Loup Dherse, (Chairman, cRn Consult -and , Formerly Vice President , World Bank, France; Olivier Giscard D'Estaing, Vice Chairman, INSEAD, France; Walter E. Hoadley, (P'ast Chairman, CRわSenior Research Fellow, Hoover Institution , Formerly Executive Vice President and Chief Economist, Bank of America ,USA; Ryuz:aburo Kaku, Chairman, Canon Inc. ,Japan; Morihisa Kaneko,Assistant Senior Counsellor, Tokyo Area, Corporate Overseas Management Division , Matsushita Electric Industrial Co. , Ltd. ,Japan; Toshiaki Ogasawara, President Nifco , Inc. , Chairman and Publi sher, The Japan Times,Japan. Other Participants between 1986 and 1994 Include:
From Europe:
Alfredo Ambrosetti, Chairman,Ambrosetti Group ; Maurice Amiel, President, Timken,
(Europe ,Africa & West Asia) ; Richard Burke, President , Canon Foundation Europe; John
Cox, Director General, Chemical Industries Association ; Reinhard Fischer, President ,
BLANCO GmbH & Co. KG*; Sergio Giuliani, Chairman, Ciba Gei~Italy Group; Peter
Huggler, President , Interallianz Bank Zurich AG*; Frederik J. Phi ips , Formerly President ,
Philips Electronics ; Kurt Schips, Member of the Supervisory Board, Robert Bosch GmbH;
Friedrich Schock, President, Schock & Co.; Klaus-Heinrich Standke, President , Ost Wes t
Wirtschafts Akademie; Gerrit A. Wagner, Formerly President , Royal Dutch Petroleum Co.
From Japan:
Gentaro Endo, Chairman, Gunze Limited ; Yoshikaz:u Hanawa, Executive Vice President ,
Nissan Motor Co. ; Shigeichiro Kanamori, President, Kintetsu Corporation ; Saburo
Kawai, Formerly Vice Chairman and President , Keizai Doyukai (Association of Corporate
Executives) ; Hisaya Nara, President, Mitsubishi Research Institute Inc.; Noboru
Okamura, Formerly Chairman, Honda Motor Co. Ltd.; Masanori Oz:eki, President , Railway
Technical Research Institute ; Sakae Shimizu, Senior Advisor, Toshiba Corporation;
Yoshiteru Sumitomo,Advisor, Sumitomo Electric Industries Ltd. ; Setsuya Tabuchi,
Formerly Chairman,The Nomura Securities Co. Ltd. ; Tamotsu Takase, Professor, Facul ty of
Law, Tokai University, Formerly official of GAIT; Yoshio Terasawa, Minister of Stat e, Economic Planning Agency, Formerly Executive Vice President , MIGA (Multilateral Inve stment Guarantee Agency); Toshihiko Yamashita, Executive Advisor & Formerly President,
Matsushita Electric Industrial Co. Ltd.; Kyohei Yokose, Director and Formerly Chairman,
Sumitomo Rubber Industries .
From USA:
Stephen R. Braswell, President, Investment Services Group, Prudential Insurance Company
ofAmerica;Owen B. Butler,Retired Chairman of the Board,The Procter & Gamble Co.*;
Weldon B. Gibson, Sr. , Director, SRI International ; Robert N. Gurnitz, President & CEO,
Northwestern Steel and Wire Co. ; Harry A. Hammerly, Executive Vice President , 3M
Company; Thomas E. Holloran, Professor of Management, University of St . Thomas,
Formerly President , Medtronic , Inc.; Ronald James, Vice President & CEO-Minnesota, US
West Communications; Garnett L. Keith, Jr. , Vice Chairman, Prudential Insurance Company
of America; Robert MacGregor, President , Minnesota Center for Corporate Responsibili ty;
James A.F. Montgomery, Formerly Chairman & CEO, PANAM World Services ; Roger
Parkinson, Publisher and CEO, The Globe and Mail, Formerly President and Publisher,
Minneapolis-St 和ul Star Tribune; William A. Pearce, President & CEO, IDS Mutual Fund
Grout Borge R. Reimer, Executive Vice President, Dana Corporation; Francis X.
Stan ard, Chairman, Chase Manhattan Capital Markets Corporation*; Winston R. Wallin,
Chairman of the Board, Medtronic, Inc.
* Position held at the time of initial participation.
