FGG MD ToC 1: Improved Corporate Conduct

FGG’s goal is to ensure that improved corporate conduct advances social justice and environmental sustainability. Like Minister Ploumen, we believe that corporations, including private banks, have a role in and responsibility for fighting poverty and injustice and promoting inclusive and sustainable development. This includes - but goes beyond - a ‘business-as-usual’ approach to corporate accountability. It requires a fundamental change in corporate conduct, including changes to basic decisions about investment, buying practices and sourcing. Not just on paper, but in practice. Although progress has been made, evidence that corporations are eschewing their social and environmental responsibility is abundant and affirmed by FGG partners. Massive infrastructure and extractives projects have destroyed and damaged ecosystems and the natural resources that communities rely upon, and forced people from their land, as well as emitting climate damaging greenhouse gases. Key sectors responsible include the extractive industry and agribusiness, including their financiers and purchasers. When abuses are revealed, corporations often withdraw, leaving affected communities deprived of livelihoods. Those adversely affected by corporate conduct rarely see remedy. Through globalisation, companies have acquired greater power and legal rights without a parallel increase in accountability. Acting within complex transnational structures, networks of business relationships, financing arrangements, and global supply chains, companies can avoid responsibility for their conduct. We believe this corporate ‘governance gap’ must be closed for social justice, and environmental sustainability to prevail. This requires rules, regulations and enforcement, and improvements in corporate governance, business models and business practices, including the active promotion of sustainability, and fostering local, vibrant, small-scale and sustainable businesses. It also requires creating an enabling environment in which human rights are respected.