sune skadegaard thorsen, global csr: tax & cr
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TAX & CR
21 June 2012
Sune Skadegaard Thorsen
GLOBAL CSR
www.global-csr.com
www.learnCSR.com
www.MorgendagensVirskomheder.dk
•
What is CR / CSR?
Social Sustainability Environmental Sustainability Economic
Sustainability People Planet
Profit
CR and the Triple Bottom Line
CSR is how corporations take responsibility
for
contributingwhile not becoming a
barrier
to
sustainable social,
environmental and
economic development
What is CR / CSR / Corporate Sustainability / Corporate Citizenship - the concept
10 Internationally Recognised Principles for Corporate Responsibility
1. Support and respect the protection of internationally proclaimed human rights
2. Make sure that you are not complicit in human rights abuses
3. Uphold the freedom of association and the effective recognition of the right to collective bargaining
4. Uphold the elimination of all forms of forced and compulsory labour
5. Uphold the effective abolition of child labour
6. Uphold the elimination of discrimination in respect of employment and occupation
1. Support and respect the protection of internationally proclaimed human rights
2. Make sure that you are not complicit in human rights abuses
3. Uphold the freedom of association and the effective recognition of the right to collective bargaining
4. Uphold the elimination of all forms of forced and compulsory labour
5. Uphold the effective abolition of child labour
6. Uphold the elimination of discrimination in respect of employment and occupation
7. Support a precautionary approach to environmental challenges
8. Undertake initiatives to promote greater environmental responsibility
9. Encourage the development and diffusion of environmentally friendly technologies
10. Work against all forms of corruption in all its forms, including extortion and bribery
Ec. Sust.
Env. Sust.
Soc. Sust.
Corporate Social Responsibility
(People) (Planet) (Profit) Social Sust. Environmental S. Economic Sust.
…
The International Bill of Human RightsIncluding the International Labour Organisation’s Declaration on Fundamental Labour Rights
…
Kyoto Protokol
Johannesburg Action Plan
Rio Declaration
The UN Biodiversity Convention
…
Taxes
Anti-trust
UN Anti-Corruption Convention
International Accounting/Audi-ting Standards
The Core International Principles for sustainable development in the UNGC
Tax: a CR Issue?
NO!
Q: Why not?
A: Taxes are regulated by law and therefore not CR (which is voluntary).
A: Taxes are just another cost. Costs are not considered CR!
Tax: a CR Issue?
Qualifier – impacts on society
Q: Are corporate payments of taxes important for sustainable development?
A: With global market economies payment of corporate taxes is crucial to the economic sustainability of any Country.
It is essential to the development of sustainable economies in emerging markets.
Tax: a CR Issue?
Core CR vs. non-core CR
Q: Did we establish internationally agreed norms for this impact on economic sustainability?
A: No internationally (UN) agreed norms for payments of taxes non-core CR
p
Core principles addressed
6 on
Human Rights
3 on
Environ-ment
1 on
Corrup-tion
Other Risks & Opportunities
UN Global Compact
Cradle to
cradle
Biodiversty
Climate
Animal welfare
De-forestation
Fraud
Taxes
Traditional Corp. Gov.
issues
Profit - Accounting
Money-laundering
Anti-trust
Stakeholder engagement
Employee welfare
Donations Sponsorships
MDGs
GMOs
Poverty
Lobbying
Supply Chain Management
Community involvement
Internal review
Country Risk Analyses
Impact Assessments
Due diligence
Investments
Lean processes
Quality
Accountability
Mediation
Compliance
Human Resources
ProcurementPartnerships
Whistle-blower
Marketing & PR
SalesTraining
Issues ManagementReporting
Research & Development
Communication Branding
Production
Corporate governance
Corporate Strategy
Balanced Scorecard
General Management
Corporate Operations
Taxes
Tax becoming a part of the CSR agenda – EU Developments
• CSR definition - October 2011 EU CSR communiqué:
“the responsibility of enterprises for their impact on society”
• The EU has issued many documents on good tax governance
OECD, examples:
The Global Forum on Transparency and Exchange of Information for Tax Purposes
The Centre for Tax Policy and Administration
Guidelines for Multinational Enterprises
Transfer Pricing Guidelines
OECD Model Tax Convention
Tax becoming a part of the CSR agenda – OECD Developments
Other actors are becoming more engaged
•Corporate Citizenship
•Action Aid
•Christian Aid
•Tax Justice Network
•KPMG
The business case for corporations to participate
1. Demonstrating leadership (provided that core CR issues are dealt
with diligently)
2. Participate in defining the core principles for tax payment
3. Creating a universal level playing field for a considerable cost (both
monetary, management time and human resources)
THANK YOU
Management principles for Corporate Responsibility on Tax
Session II
UN Guiding Principles; a possible governance system for responsible tax behaviour
UN Guiding Principles on Business
and Human Rights
unanimously adopted June 2011
Part of UN, OECD, IFC, EU CSR
policy frameworks
”The Guiding Principles is the
authoritative global reference
point for business and human
rights”
John Ruggie – June 2011
Moving from
”Naming and shaming”
To
”Knowing and showing”
Three Components of the Corporate Responsibility to Respect
POLICY COMMITMENT
PROCESS
Identification
Prevention
Mitigation
Accounting
REMEDIATION
Due Diligence Process
p
Core principles addressed
6 on
Human Rights
3 on
Environ-ment
1 on
Corrup-tion
Other Risks & Opportunities
UN Global Compact
Cradle to
cradle
Biodiversty
Climate
Animal welfare
De-forestation
Fraud
Taxes
Traditional Corp. Gov.
issues
Profit - Accounting
Money-laundering
Anti-trust
Stakeholder engagement
Employee welfare
Donations Sponsorships
MDGs
GMOs
Poverty
Lobbying
Supply Chain Management
Community involvement
Internal review
Country Risk Analyses
Impact Assessments
Due diligence
Investments
Lean processes
Quality
Accountability
Mediation
Compliance
Human Resources
ProcurementPartnerships
Whistle-blower
Marketing & PR
SalesTraining
Issues ManagementReporting
Research & Development
Communication Branding
Production
Corporate governance
Corporate Strategy
Balanced Scorecard
General Management
Corporate Operations
Core principles
6 on Human Rights 3 on Environment 1 on Corruption
UN Global Compact
Cradle to cradle
Biodiversty
Climate
Animal welfare
De-forestation Fraud
Taxes
Trad. Corp. Gov. Iss.
Profit - Accounting
Money-laundering
Anti-trust
Stakeholder eng.
Employee welfare
Donations/Sponsorships
MDGs
GMOs
Poverty
LobbyingSCM
Community inv.
Internal review
Risk Analyses Impact Assessments
Due diligence
InvestmentsLeanQuality Accountability
Mediation
Compliance
HR
Procurement
Partnerships
Whistle-blower
Marketing & PR Sales
Training
Issues Management
Reporting
R & D
Communication
Branding
Production
Corporate governance Corporate Strategy
Balanced Scorecard
General Management
People Planet Profit
Corporate Operations
Blue Ocean
REMEDIATIONDUE DILIGENCE PROCESS
POLICY COMMITMENT
THANK YOU