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  • Firm whistle-blower rules pressed
    By Cai U. Ordinario
    Reporter

    THE recently released 2007 Global Accountability Report (GAR) urged multinational companies, multilateral institutions and international non-government organizations (NGOs) to adopt nontraditional means to improve accountability and transparency policies and systems.

    “Accountability is not an end state. Having good accountability capabilities in place creates an environment in which accountability can be exercised in a consistent and coherent way,” the report stated.

    The 2007 GAR is the second report made by One World Trust, an NGO in Special Consultative Status with the Economic and Social Council (Esosoc) of the United Nations.

    The report surveyed 30 multinational companies, multilateral institutions and international NGOs. One World Trust projects manager Leticia Labre said in a talk with journalists that the 30 institutions evaluated this year will be reassessed in 2010.

    She said that among the nontraditional policies and systems set in place by high performers in the report included whistle-blower policies common among NGOs and multilateral institutions, and the adoption of the United States Sarbanes-Oxley Act or the Public Company Accounting Reform and Investor Protection Act of 2002.

    The latter mandates internal-complaint procedures for all companies registered on United States stock exchanges, where multinationals are usually listed.

    “We urge organizations to adopt these policies and other nontraditional systems to improve accountability and transparency. But, accountability is not an end state. The global challenge right now is the need to listen to people on the ground,” said Labre.

    The overall top five performers among multinationals were the American firms General Electric Co. and GlaxoSmithKline, TATA Group of India, the Coca-Cola Co. of the US, and Brazil’s Petrobras, which is a new entrant in the list of those evaluated.

    Among multinationals, the five top performers were the United Nations Development Programme (UNDP), Asian Development Bank (ADB), United Nations Environment Programme (Unep), World Food Programme (WFP), and Inter-American Development Bank (IDB).

    The top five performers among international NGOs were Christian Aid, International Accounting Standards Board (IASB), Int’l Save the Children Alliance, Aga Khan Foundation and Human Rights Watch.

    The laggards among multinationals were Google, which refused to participate in the report and PricewaterhouseCoopers International Ltd.; while those who got the lowest scores among multilaterals were the Organization for Security and Co-operation in Europe (OSCE) and Interpol.

    The lowest scores among NGOs were received by the Federation Internationale de Football Association (Fifa) and Greenpeace International.

    On average, the report stated that multinational corporations scored the highest for complaint handling with 50 percent; multilaterals score 48 percent, and international NGOs, 42 percent.

    Across all sectors, internal complaint policies such as whistleblower policies are of consistently high quality. The UNDP, Unep and WFP meet all good practice principles, such as nonretaliation and confidentiality. Internal complaints handling systems are also well-developed with 20 out of the 30 organizations scoring above 70 percent.

    However, Labre conceded there is still a lot of room for improvement in the report. She said that One World Trust is already in the process of including a country assessment of all organizations included in the report.

    Labre said that by providing country assessments it would help improve these organizations’ chances of getting a high score in the report. This extension of the report is, however, still awaiting additional funding. She added the Ford Foundation funded the report.

    One World Trust aims to ensure that accountability happens in practice, requires constant vigilance translating policy commitments into action, and embedding accountability principles into the culture of the organization and into all relationships with stakeholders.          

    The One World Trust promotes education and research into the changes required within global organizations in order to achieve the eradication of poverty, injustice  and war.

    The Trust conducts research on practical ways to make global organizations more responsive to the people they affect, and on how the rule of law can be applied equally to all. It educates political leaders and opinion-makers about the findings of its research.

    One World Trust was founded in 1951 by the All-Party Parliamentary Group (APPG) for World Government that, in turn, was founded in 1945 by Henry Usborne, Member of Parliament for Labour in Britain. Reflecting the changing nature of global governance and the increasing importance of nonstate actors in it, the Group recently changed its name to APPG for World Governance.

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