Communications in Business Report Letter to Executive of Local Network

| March 31, 2017

Question
Communications in Business

Report

Letter to Executive of Local Network

I.X. Elle

98765432

Semester Two 2010

Bentley Campus

Tutor: Novita Ikasari

Ms I.X.Elle

Director of Corporate Communications

Bayer Western Australia

GPO Box 6789

Perth WA 6001

October 2, 2010

Ms Novita Ikasari

Executive of the Australasian Local Network

PO Box 123

Bentley WA 6004

Dear Ms Ikasari

This letter contains our recommendations to the Local Network to encourage compliance with Global Compact principle one, which states “Businesses should support and respect the protection of proclaimed human rights”, and principle nine “Businesses should encourage the development and diffusion of environmentally friendly technologies”.

At Bayer we believe in doing the right thing by our stakeholders. Bayer is a founding member of the United Nations (UN) Global Compact and has supported the ten principles since inception. We are proactive in pioneering new ideas and concepts to facilitate compliance to the principles. Our long history in many of the countries in which we operate, ensures that we are well placed to make recommendations to the Australasian Local Network.

Bayer’s support of its host communities throughout the world complies with the business practices of the Global Compact. Our performance report is available on the Bayer website and includes the extent to which human rights and environmental issues are addressed. These business policies are consistent with those of the Organisation for Economic Co-operation and Development (OECD), the International Labour Organisation (ILO) and meet the definitions outlined on the UN website under Agenda 21 (Bayer 2010). The recommendations are:

1. Introduce promotion of human rights records on product labelling.

a. Consumers can make purchase choices based on their values about human rights.

b. Employees in the country of origin benefit because their treatment “goes on the record”.

2. Improve technologies to reduce or eliminate stockpiles of toxic, dangerous and unstable substances.

a. Environmental risks are reduced, due to the reduction of volatile substances.

b. Workers face fewer occupational hazards.

c. The concerns of communities and special interest groups are reduced.

Bayer’s stand on human rights was challenged in 2002 when we acquired an Indian company which used child labour. A comprehensive program ensued to educate families and communities about the negative effects of child labour, and vocational and educational programs were introduced into the community (Bayer 2010).

Bayer has paid heed to lessons learnt in the past (see The Bhopal Medical Appeal n.d.) and voluntarily taken steps to cease production of products that require dangerous chemicals (US Chemical Safety Board 2009), thus reducing the amount stockpiled and in some cases eliminating stockpiles altogether. In doing so, the concerns of communities and special interest groups are addressed. In order for a community to benefit from the presence of a multinational organisation within its region it is crucial that any potential risk to the community and the surrounding environment is acknowledged and precautions are taken to minimise any potential threats.

Members of the Local Network can reap benefits from the labelling of products. The products will be differentiated from those of competitors who do not comply to the same human rights standards as those outlined by the Global Compact, and using labelling as a forum to outline this compliance gives the end user, the opportunity to make an ethical choice about the purchase of one product over another. In providing this information a link is established between the customer and the workers involved in the producing the product, both major stakeholders of the company. At Bayer we understand that different countries have differing standards on human rights and environmental issues, so compliance to the Global Compact provides a means of measuring our performance, and negotiating with different cultures and political systems. Compliance to principle nine ensures active pursuit of environmentally friendly technologies, with the environment and communities being the beneficiaries. Both recommendations can result in positive publicity spin offs due to compliance.

There will be consumers, who choose not to buy from suppliers that recognise human rights, but consumers are becoming increasingly keen to make ethical purchase choices when given information about production processes, and label information is a way of increasing awareness. The voluntary nature of Global Compact membership means organisations are not policed on their ability to fulfil obligations to the ten principles, but the positive effects of implementing these recommendations can and will flow from the Local Network back to the workers who produce the products and subsequently to the companies themselves..

Local Network members will face challenges in implementing practices to reduce stockpiles of dangerous goods, but striving to achieve this recommendation can lead to new innovations and practices to meet these challenges. Closely aligning raw material needs with production requirements has economic benefits for a company, and in the case of toxic substances, it has ethical benefits because the company is doing the right thing by the community.

Leonard and Mc Adam’s article espouses corporate social responsibility (CSR) being incorporated into an organisation to achieve ethical business practices and making a contribution to consumer confidence. At Bayer we work hard to embrace the ideas contained in CSR and view it as being linked to the principles of the Global Compact. Increasing compliance can contribute to Local Network members having influence on practices in other networks, thus benefitting all stakeholders in the value chain of a product.

Ms I.X. Elle

Director of Corporate Communications

References

Bayer. 2010. .bayer.com/”>http://www.bayer.com/ (accessed September 1, 2010).

The Bhopal Medical Appeal. n.d. .bhopal.org/”> http://www.bhopal.org/ (accessed September 2, 2010).

Leonard, D, and R. McAdam. 2003. Corporate social responsibility. Quality Progress 36, no. 10, (October 1): 27-32. Proquest. http://www.proquest.com.dbgw.lis.curtin.edu.au/ (accessed September 3, 2010).

International Labour Organisation. 2010. .ilo.org/global/lang–en/index.htm”>http://www.ilo.org/global/lang–en/index.htm (accessed October 1, 2010).

OECD. n.d. Guidelines for Multinational Enterprises. .oecd.org/dataoecd/56/36/1922428.pdf”>www.oecd.org/dataoecd/56/36/1922428.pdf (accessed October 1, 2010).

Strategic Approach to International Chemicals Management. n.d..saicm.org/”>http://www.saicm.org/ (accessed October 1, 2010).

United Nations. n.d..un.org/en/”>http://www.un.org/en/ (accessed October1, 2010).

United Nations Global Compact. 2010..unglobalcompact.org/index.htm”>http://www.unglobalcompact.org/index.htm (accessed September 1, 2010).

US Chemical Safety Board. 2009. Statement from CSB Chairman John Bresland on Bayer CropScience Announcement Concerning Methyl Isocyanate. .csb.gov/newsroom/detail.aspx?nid=278″>http://www.csb.gov/newsroom/detail.aspx?nid=278 (accessed September 3, 2010).

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