Brussels, 23/06/2014 (Agence Europe) - Yes to reinforcing the role of the private sector in fighting poverty in the developing partner countries of the EU, as long as the private sector respects human rights and employment law. This is the message sent out by the Council of the EU in Luxembourg on Monday 23 June. In unanimous conclusions adopted without debate on the sidelines of the meeting of the foreign affairs ministers, the Council subscribes to the priorities laid down by the European Commission in its new communication on the private sector, which it presented on 13 May to offer the EU a strategic framework for action in this area (see EUROPE 11079).
The ministers said that they are convinced that the private sector is the vital driving force behind employment, growth, investment, trade and innovation and that it has a central part to play in reducing poverty and boosting sustainable development and inclusive growth. However, they stress, activities related to investment, trade and business should respect human rights and employment law, protect the rights of the child, promote decent work and sustainable development and work towards the economic and social emancipation of young people and the poorest and most vulnerable members of society, particularly women and children. These activities should also promote social dialogue and abide by the principles of corporate social responsibility, budgetary and environmental responsibility, transparency and empowerment.
The Council therefore calls on the Commission to draft a post-2014 strategy on corporate social responsibility, with a view to increasing the external dimension. It also stresses the importance of fighting tax evasion and corporate tax fraud and promoting fair and ethical trade.
In the Council's view, the essential elements for creating an environment and institutions which are conducive to sustainable investment under conditions of fair competition are: good governance, the rule of law and transparency, the fight against corruption and illegal financial flows, legal and regulatory reforms, the administrative capacity of the local and national authorities, particularly in matters of trade, investment and taxation, as well as the capacity to enforce ownership and property rights. The EU's development policy must therefore aim to support these. The Council also wishes greater emphasis to be laid on support for micro-companies and SMEs, as well as social businesses and cooperatives, both in the formal and the informal sectors. (AN)