Executive Summary

The Case For The Caux Round Table
Principles for Business

Harry A. Hammerly
Director of 3M & Recently Retired Executive Vice President

October 1995

The Caux Round Table (CRT) of business leaders from Europe, Japan and the United States is committed to energizing the role of business and industry as a vital force for innovative global changes. CRT has focused attention on the importance of global corporate responsibility in reducing social and economic threats to world peace and stability. The activity of CRT is based on a common respect for the highest moral values and on responsible action by individuals in their own sphere of influence.

CRT's Principles for Business, an international statements of shared business values, are offered as a foundation for dialogue and action by business leaders in search of business responsibility. Each organization must develop and implement its own policies. It is the hope of CRT that these will be consistent with the substance and intent of the CRT Principles for Business.

It Is Good for Business

A Fortune Magazine/Yankelovich 1993 study found that a good name can be a company's most valuable and enduring asset. Eight corporate attributes were determined to be most powerful in driving behavior supportive of the company. Three of these, conducts business in a human and caring way, is a company you can trust and sets an example of how major corporations should be run, are related to corporate responsibility and ethical business conduct. These three attributes were found to drive the following support for the company:

• Likely to believe the company

• Likely to recommend the company as a place to work

• Likely to recommend the company as a joint venture partner

• Likely to recommend the company's products

Customers like to buy from companies they can trust and which will be there for the long run. Employees are likely to be supportive and more productive in an open environment where they can be proud of the company and certain of the company's policy on business conduct. Business's long term acceptance by public opinion is critical to success and sustainability. Ethical business conduct and demonstration of corporate responsibility to the community builds support.

It Is Good For Global Harmony

We are truly in a global economy. Interdependence between nations is ever increasing at a rapid rate. Conflict between these trends and the narrow self interest of individual nations is a reality and inevitable. These trends won't change soon. More and better coordination and cooperation is needed to avoid serious negative consequences.

Add to this the current problems of overpopulation, environmental degradation and imbalances of wealth between nations, and some are concerned that mankind may not survive without greater trust and commitment to working and living together for the common good.

Business is in a good position to contribute to building this trust and commitment. Businessmen from every county have a lot in common. Many good personal relationships already exist across borders. Transparency in business dealings, equal treatment for competing parties and consideration for customers, investors, suppliers, employees and communities in implementing sound codes of business conduct can go a long way toward contributing to global harmony, economic growth and prosperity.

It Is The Right Thing To Do

No society can operate without agreed upon rules of behavior. What applies to society at large applies as well to the institutions within society. Moral values in all societies worldwide are consistent with ethical business practices.

The value of a business to society is the wealth and employment it creates and the products and services it provides. Business has a role in meeting other societal needs as well. It is the right thing to do, and it is in business's self interest to do so.

Center for Ethical Business Cultures

1000 LaSalle Avenue, TMH 331 ▪ Minneapolis, MN 55403-2005 ▪ USA

Phone: 651 962 4120 or 800 328 6819 Ext. 2-4120 ▪ Facsimile: 651 962 4042

Email: mail@cebcglobal.org

© 1978-2008 Center for Ethical Business Cultures. All Rights Reserved.

Business Partnering with the University of St. Thomas - Minnesota