Ladies and gentlemen,

It is a pleasure to see so many of you here today. As you know, this meeting takes place within a bi-annual framework where the Minister for Foreign Affairs meets with Icelandic businesses in order to discuss matters of common interest. At our last meeting, we discussed Iceland’s image abroad. Today’s topic is of different nature, but equal importance: Corporate social responsibility.

This time around we Icelanders are not alone; on our impressive list of speakers we are privileged to have high-profile participants from international organisations and Nordic companies. We also have a large group of representatives from many of the leading Nordic companies present here today.

Dear guests from abroad.

Allow me to welcome you warmly to Iceland. I am confident that your views and experience on how to attain more ethical and sustainable business practices will be an important input into our discussion today on corporate social responsibility.

Icelandic firms are relative newcomers in the internationalized business community. In a time span of only few years, they have gone from being local firms to large international players, operating in countries all around the world. In fact, Icelandic companies employ approximately as many people abroad as here in Iceland. This rapid expansion has radicalized the Icelandic business environment, and created new opportunities and new global challenges.

As most of the Nordic firms present here today, Icelandic companies are a part of a global reality in their daily activities, and need to consider global issues such as human rights, the protection of the environment and various ethical questions that come up when doing business in different countries and distant cultures. Ethics are deeply rooted in Nordic business culture and Nordic companies are at the forefront in maintaining a high standard in their business practices. But there is always room for improvement.

For many years – Corporate social responsibility (CSR) was suspected of being primarily a public-relations tool and high-profile philanthropy. This doubt has been overcome. Today, CSR is widely recognized as a successful business strategy and an efficient way to manage risks within the business world, the international community and governments. CSR has become more and more integrated into core business practices. That is indeed a very positive development, because CSR draws its strength from being voluntary and business driven.

But if CSR is business driven, what is the role of governments in promoting ethical and environmentally sustainable business practices in the private sector? In my opinion, governments have a crucial role to play in promoting these issues and encouraging their companies to take them seriously.

Our responsibility becomes even more important in times of crisis. Let us take for example the current global food shortage. This crisis has to be taken seriously and resolved in co-operation between the public and the private sector. Business actors need to shoulder their responsibility and act in a sustainable manner. The fight against global warming is another example. Governments need to act as a catalyst for change, and encourage and support companies to take full responsibility for their actions.

The Ministry for Foreign Affairs has always had good relations with the Icelandic business community and made an effort to support it in the process of globalization. The Icelandic government has for example, in close co-operation with local business organizations and the companies themselves, worked towards increasing awareness and information about the fundamental strength of the Icelandic economy. One way to further solidify Iceland’s image internationally is to encourage Icelandic companies to take the lead in corporate citizenship and one of our duties here at the Ministry is to inform about guidelines from the international community.

That is why the ministry for foreign affairs works towards enhancing good business practices in co-operation with international organisations. The ministry is currently working with the United Nations Development Program (UNDP) on promoting several international initiatives on corporate social responsibility and development. Global Compact is the best known UN initiative and is well known to many of you. In that context we are privileged to have here with us today Mr. Mads Øvlisen, a member of the Global Compact Board.

Another UN initiative that is perhaps very interesting for the financial sector is the Principle for Responsible Investment (PRI), which is an initiative designed particularly for individual and institutional investors. It was designed by a group of international investors in co-operation with the UN and is, similarly to Global Compact, based on voluntary signature. The PRI provides for a framework for investors to include environmental, social and corporate governance concerns in their investments. Iceland is rich of investors in terms of per capita numbers, and I encourage them to study this initiative carefully.

The third initiative that the ministry is currently working on is a co-operation program with UNDP, the Nordic Business Outreach. Iceland's development co-operation efforts have increased in scope and volume in recent years, emphasizing on education, health, gender equality and sustainable development. The Nordic Business Outreach has the objective to add the Icelandic private sector to the equation. The project harnesses the power, capacity, innovation and resources of the private sector for development purposes. It furthermore utilises the legitimacy, convening power and network of the United Nations. By combining these two forces, it is possible to create synergies and achieve greater results than each actor could reach by himself.

The overall objective of the Nordic Business Outreach program is to contribute to the UN Millenium Development Goals: eradicate extreme poverty, reduce child mortality and secure environmental sustainability for the year 2015. Denmark joined the project in 2003, Norway in 2005 and Iceland in 2007. I am proud to say that Icelandic companies have met ideas of partnerships for development with an open mind. The Ministry has already engaged in promising discussions on actual partnerships.

The Ministry for Foreign Affairs is by no means the only actor in Iceland when it comes to promoting discussion and action on corporate social responsibility. Icelandic firms have joined hands with Reykjavik University and created a Centre for Corporate Social Responsibility, with the participation of the Ministry for Foreign Affairs though. I have the privilege to announce that the centre will be launched here today. In my view, this is truly an encouraging step. Private actors benefit greatly from discussing the challenges and opportunities of being responsible citizens in a globalized world. The fact that the Icelandic Centre for Corporate Social Responsibility is driven by Icelandic businesses is indeed very promising for the future of good business practices in Iceland and abroad.

Dear guests,

It is my hope that this meeting will act as an inspiration. I am confident that Icelandic companies will from now on increasingly follow the lead of their Nordic peers, and apply innovative mindset to create sustainable and socially responsible business models. That would truly be in our common global benefit.

Thank you.