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Additional remarks by Senator Andrew Murray, Australian Democrats Senator for Western Australia
1.1
The Australian Democrats support the Report of the
Parliamentary Joint Committee on Corporations and Financial Services: Corporate responsibility: Managing risk and
creating value. The Report,
including the Supplementary Report of the Labor members of the Committee,
significantly advances parliamentary understanding of the Corporate
Responsibility issues, and the recommendations of the Committee will assist considerably
in Australian corporate entities 'lifting their game' in corporate
responsibility reporting.
1.2
The Report recommendations, and the additional
recommendations offered by Labor, deserve a serious and early response from the
Government, the Australian Securities and Investments Commission, and the
corporate and professional community.
1.3
During the hearings and in the submissions from the
corporate sector, it appeared that many companies and directors were taking
their corporate social responsibilities seriously and including them in their
decision making.
1.4
I take the view that at the stage Corporate
Responsibility reporting is in at present, it is not appropriate to introduce a
mandatory code into Corporations Law in relation to corporate social responsibility.
1.5
Not every corporate is convinced of the value of the
Corporate Responsibility concept. It was
clear from many of the submissions and the hearings that a number of companies
and directors were often motivated by the belief that they needed to address
concerns of corporate social responsibility because of the impact on their
reputation if they did not do so.
1.6
Many corporations and directors do not appear to
embrace the concept itself, but by including these considerations in their
decision making are attempting either to circumvent circumstances which might
give rise to expensive litigation, or to avoid community agitation.
1.7
Such motives are not typical of leading companies and
directors, who have recognised the significant and material contribution Corporate
Responsibility reporting can make to the long-term health of the corporation.
1.8
However, the steps that have been taken so far by many
large corporations need to be monitored.
The obligations of corporate social responsibility also need to be
monitored in relation to many medium and small companies whose actions and
production methods can have an impact on their workers and the environment in
ways similar to their larger counterparts.
1.9
The need for further progress has of necessity to focus
on the laggards as well as the leaders.
If there is no ongoing improvement across all sectors in the next three
to five years, at least to the level of comparable advanced OECD countries,
then in the view of the Democrats it will be essential to re-visit the need for
a mandatory code. Therefore I agree with
Recommendation 4 of Labor’s Supplementary Report that
...if directors do not actively consider legitimate environmental
and social risks in determining the interest of the company, it will be
necessary for the Parliament to provide a clearer articulation of this
interpretation within the Corporations Act.
1.10
I agree with Labor's Supplementary Report that:
...In order to increase the number of corporate, non-government
and government organisations that deeply integrate sustainable and responsible
activities over the medium term (5 – 10) years, government must play a more
engaged and strategic role now.
1.11
I was particularly attracted to Labor's notion that
mandating Corporate Responsibility reporting in the federal public sector, in
large and relevant agencies, would usefully advance the cause. Such action in the public sector may need to
follow, not precede, the identification of appropriate reporting and
benchmarking frameworks. I am referring of course to Labor's Supplementary
Report Recommendation 3 that states:
...The Australian Government make reporting against
sustainability targets mandatory for Australian Government agencies. This reporting should include:
- Performance against sustainability targets set
by the National Sustainability Council regarding water, energy, waste,
vehicles, general procurement and other applicable targets;
- Progress achieved on meeting the targets if they
are not met and strategies to ensure that targets are met in the future.
1.12
I also support Recommendation 10 of Labor’s
Supplementary Report regarding the UN Convention Against Corruption and the
OECD Anti-Bribery Convention and look forward to the early introduction of
amending legislation to address the concerns raised in the OECD Report about
shortcomings in Australia’s
adoption in the Criminal Code, of aspects of its Anti-Bribery Convention.[504]
Senator Andrew Murray
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