Constructive Capitalism is the Antidote to UN-Led Global Socialism
ECONOMICS, CORPORATE CITIZENSHIP
Wednesday, January 6, 2010
The United Nations General Assembly recently adopted a resolution calling for the implementation of global socialism. The resolution evidences the widely-held anti-capitalism view of political leaders, academics, and social activists in most of the world's developing nations. Only by embracing a constructive capitalism that, in addition to focusing on increasing shareholder value, promotes improvement and development, both internally within businesses and externally within society, can transnational businesses avoid becoming the global ATM for expensive social transformations.
On November 19, 2009, in a 121-54-5 vote, the Third Committee of the UN General Assembly , responsible for social, cultural, and humanitarian affairs, adopted a resolution titled "Promotion of a democratic and equitable international order" (the "Resolution"). The primary sponsors of the Resolution included Angola, Bangladesh, Belarus, Benin, Bolivia, Burundi, Cameroon, China, Cuba, Ecuador, El Salvador, Eritrea, Hondurus, Iran, Lybia, Nicaragua, Nigeria, Russian Federation, Sudan, Venezuela, Viet Nam, and Zimbabwe. Those voting against the Resolution included the United States of America, the EU member states, Australia, and most other developed nations.
After claiming to have "listened to the peoples of the world," and recognizing their aspirations to justice, equality, human rights, peace, and "equal participation without discrimination in economic, social, cultural, civil and political life," the Resolution affirms that everyone is entitled to a democratic and equitable international order that, among other things, requires:
• the realization of the right of every human person and all peoples to development;
• the right to an international economic order based on equal participation in the decision-making process, interdependence, mutual interest, solidarity and cooperation among all States;
• the right to equitable participation of all, without any discrimination, in domestic and global decision-making; the promotion of a free, just, effective and balanced international information and communications order;
• the promotion of equitable access to benefits from the international distribution of wealth through enhanced international cooperation, in particular in economic, commercial and financial international relations; and
• the shared responsibility of nations for managing worldwide economic and social development
In its clearest articulation of global socialism, the Resolution:
Reaffirms the need to continue working urgently for the establishment of an international economic order based on equity, sovereign equality, interdependence, common interest and cooperation among all States, irrespective of their economic and social systems, which shall correct inequalities and redress existing injustices, make it possible to eliminate the widening gap between the developed and the developing countries, and ensure steadily accelerating economic and social development and peace and justice for present and future generations. (emphasis added).
The Resolution closes by requesting the UN Human Rights Council, UN human rights treaty bodies, and the Office of the UN High Commissioner for Human Rights to pay due attention to the Resolution and make contributions towards its implementation. In adopting the Resolution, the UN General Assembly empowers the various UN human rights agencies and their non-governmental and civil society partners around the world to apply maximum pressure on States and transnational businesses to place the highest priority on cooperating with the UN to "correct inequalities and redress injustices" so as to eliminate disparities in relative wealth among developed and developing nations.
Aside from any practical effect of the Resolution's call for UN human rights bodies to pay attention to the promotion of a democratic and equitable international order, the Resolution advances the socialist mindset among developing nations and, long-term, undermines capitalism⎯the very engine of economic growth that, for decades, has improved the material well-being of all people throughout the world. Unfotunately, with negative public perception of modern capitalism stemming from the global economic downturn and ample support from the UN and its NGO networks, the global socialist impulse is growing stronger. To counter this trend and the mindset that buttresses it, transnational businesses need to embrace what this author refers to as a "constructive capitalism."
Constructive capitalism is capitalism that, in addition to focusing on increasing shareholder value, promotes improvement and development, both internally within businesses and externally within society. The seven phases of constructive capitalism include:
• Attitude. Corporate leaders must be willing to operate their businesses in a manner that satisfies not only minimum legal requirements; but, also, established basic human rights within their reasonable sphere of influence.
• Awareness. Corporate leaders must secure a basic understanding of those human rights.
• Assessments. Corporate leaders must conduct human rights impact assessments to gauge how their business practices are impacting established basic human rights.
• Acknowledgement. Corporate leaders must acknowledge their shortcomings in regards to the protection and promotion of those human rights for which they are legally and ethically responsible.
• Alliances. Corporate leaders need to locate and cooperate with those business and civil society allies who will facilitate the realization of the human rights for which they are collectively interested and/or responsible.
• Adjustments. Corporate leaders must make those adjustments to their business practices that will facilitate the realization of the established basic human rights for which they are legally and ethically responsible.
• Advocacy. Corporate leaders need to be prepared to advocate for the advancement of human rights and to resist efforts by others to expand their human rights responsibilitites beyond that for which they can reasonably be held accountable.
Jim Kelly is the President of Solidarity Center for Law and Justice, P.C., a public interest civil and human rights law firm based in Atlanta, Georgia. The opinions expressed herein are his own.
A JOINT PROGRAM OF
