Doing Business in a Multicultural World

Doing Business in a Multicultural World: challenges and opportunities

A Joint Report by The United Nations Alliance of Civilizations The United Nations Global Compact Office Published by:

UN Alliance of Civilizations Secretariat 866 UN Plaza, Suite 300 New York, NY 10017, USA www.unaoc.org

UN Global Compact Office United Nations New York, NY 10017, USA www.unglobalcompact.org

Printed in United Nations, New York Design and Layout: Hedie Joulaee Copy-editing: Mitch Broder

Disclaimer:

The United Nations Alliance of Civilizations and the United Nations Global Compact Office make no representation concerning, and do not guarantee, the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice or opinion contained within this report. This report is intended strictly as a learning document. The inclusion of examples of company experience does not in any way constitute an endorsement of the individual companies by the United Nations Alliance of Civilizations and the United Nations Global Compact Office. The material in this publication may be quoted and used provided there is proper attribution.

Foreword 5

Executive Summary 8

Part I Intercultural Dialogue and Understanding: The Stake and Role of Business 14 Part II Examples of Good Practices and Lessons Learned: How Business Can Promote Intercultural Dialogue and Understanding 24 The Workplace 24 The Marketplace 42 The Community 55 Part III Conclusions and Looking Forward 64 Acknowledgements and About the Author 65 4 5

Foreword

As business has gone global over the past few decades, its role in spread- ing values has gained importance. Through commerce, trade and investment, and the exchange of ideas and knowledge, business has become a major actor across cultures and people.

Business success today has much to do with a company’s ability to understand and respect the communities in which it operates. This is reflected in cultural initiatives, partnerships with communities, greater emphasis on “conflict- sensitive” business practices and celebration of diversity in the workplace.

There are more than 6,000 participants from over 130 countries in the United Nations Global Compact. All of them aspire to embrace universal values while respecting cultural diversity. Many have programmes to support cultural understanding and dialogue, as well as multicultural management teams and workplaces.

Business is often at the forefront of creating space where people from different cultures meet and cooperate. The process of learning to work together is not always free of tensions, and mistakes are made. But overall, business has become a critical force in support of cultural understanding, building bridges between cultures and people by offering the prospect of economic opportunity.

The mission of the United Nations Alliance of Civilizations and the role of business in supporting this agenda are even more important as economic decline increases social tensions. The risk that the current decline will undo progress is real and worrisome. We need to redouble our efforts and to build on our progress. Business has a major role in this.

We very much hope that with this publication we give impetus to the idea of supporting cross-cultural understanding, inspire other businesses to scale up efforts and provide the foundation for new activities.

Mr. Marc Scheuer, Mr. Georg Kell, Director Executive Director UN Alliance of Civilizations Secretariat UN Global Compact Office 6

“Bridging divides helps keep the peace. It also gives the economy a boost by making societies more stable for investors. That is why the Alliance is working with the UN Global Compact to help corporations foster tolerance. Businesses know that in today’s globalized world, they have to be able to compete in multicultural environments.”

—H.E. Mr. Ban Ki-moon, United Nations Secretary-General 7 8

Executive Summary

One of the most remarkable aspects of The Report global economic integration is the rapidly For these reasons, a group of senior business growing interaction among people and leaders, together with NGOs and government communities around the world. In some representatives, met in a corporate work- ways, this interconnectedness has brought ing session at the First Forum of the United us closer together and diminished our dif- Nations Alliance of Civilizations, held in Ma- ferences. But it has also heightened aware- drid in January 2008, to consider the role of ness of our differences, and in some cases the private sector in promoting intercultural created opportunities for political conflict understanding and dialogue. Participants of in which cultural differences are used to the session agreed that business is an impor- divide and polarize populations. tant actor for promoting intercultural under- As a key player in global economic inte- standing, dialogue, and cooperation, which gration, business has an important stake contribute to stability and growth, and they in facilitating cooperative relations among called on companies and governments to col- peoples. Growing tensions and polarization laborate to explore these issues. along cultural, religious and ethnic lines A survey of UN Global Compact signatory undermine stable, sustainable business companies conducted in June 2008 on the environments, and can be targeted directly subject of Business and Peace underlined the at companies. At the same time, success- view that companies recognize the impor- fully managing diversity – among employ- tance of the proactive contribution they can ees, customers and other stakeholders – is make to peace and development. increasingly recognized as an imperative Based on these interactions with the for business success. private sector, it became clear that there was Businesses also have a vital role to play a need for additional guidance regarding the in fostering intercultural understanding potential role of business in this area and and dialogue, given their role in building the kinds of activities that companies should economies, their position as places of shared undertake. purpose and identity, and their pioneering The UN Alliance of Civilizations and the work in cross-cultural management, moti- UN Global Compact Office have therefore vated by a “bottom-line” need to understand developed this report in order to provide and leverage the diverse perspectives of their companies and others with a useful tool to: stakeholders. Through these efforts, business can actively contribute to promoting peace. • Explore the cross-cultural challenges that The stake and the role of business in companies are facing in an increasingly fostering intercultural understanding globalized world, and understand why and dialogue can be seen in a variety of intercultural relations are important for concrete, innovative actions that compa- business. nies have taken to manage cross-cultural diversity issues in the workplace, the mar- • Highlight good practices and lessons ketplace and communities. In some cases, learned by companies, as well as by busi- civil society organizations have facilitated ness associations and non-governmental the role of business in building cooperative organizations (NGOs), in which business intercultural relations. has played a constructive role in foster- These examples suggest that business, ing intercultural understanding, mutual governments and civil society have a com- respect and cooperative relations. mon interest in promoting intercultural understanding and dialogue, and that busi- • Stimulate ideas about opportunities for ness and society would benefit from shar- practical, collaborative initiatives that ing experiences, good practices and lessons could be undertaken. learned in the private sector. 9

The question is this: How can business, as a key player in the process of global economic integration, which has brought individuals and cultures into unprecedented proximity, contribute to cultures of understanding, respect and cooperation? This report represents a first foray into this subject. It is exploratory, not comprehensive. It reviews a wide spectrum of private sector activities, to uncover areas of shared concern and possible collaboration. In this way, it is an initial step in a process of engaging the private sector and of identifying ways that collaboration with the Alliance and the Global Compact can help companies address the cross-cultural issues facing their business and contribute to intercultural undertanding in ways that benefit business and society. 10 11

“The private sector has a vital role in generating new ideas that address intercultural issues. Think of SILATECH, take the case of “Dialogue Café” as true examples of crucibles for progress, innovation and greater connectedness amongst people which is what the Alliance is all about.”

—H.E. Mr. Jorge Sampaio, the UN High Representative for the Alliance of Civilizations, former President of Portugal 12

“Every time I open a newspaper, I am reminded that we live in a world where we can no longer afford not to know our neighbours.”

—Yo-Yo Ma, Artistic Director and Founder, The Silk Road Project

To inform the report, the partners reached tive relations among communities across out to companies from around the world, cultures and religions and, in the process, including Global Compact participants and its to help counter the forces that fuel polariza- Local Networks, informing them of the out- tion and extremism. comes of the joint working session at the UN The first phase of the Alliance started Alliance of Civilizations Forum in Madrid and with the creation by the UN Secretary- inviting them to submit input on company General of a High-level Group of 20 eminent experience with cross-cultural challenges personalities mandated to produce a report and examples of “good practice” in promoting exploring the roots of polarization between intercultural understanding. cultures and societies worldwide and propos- Additionally, contact was made with a ing practical recommendations to address number of business organizations, NGOs, this growing trend. The High-level Group academic institutions and intergovernmental presented its Report to Secretary-General organizations, including United Nations Edu- Kofi Annan in November 2006. cational, Scientific and Cultural Organization In April 2007, UN Secretary-General Ban (UNESCO), Office of the High Commissioner Ki-moon appointed Jorge Sampaio, former for Human Rights (OHCHR), and the Interna- President of Portugal, as High Representative tional Labour Organization, working in the for the Alliance. This marked the beginning related areas of sustainability, human rights, of the second phase of the Alliance of Civili- diversity and business and peace, in order to zations, with the development of an action- explore aspects of their activities that relate to oriented implementation plan focusing on promoting intercultural understanding. initiatives and projects in the areas of youth, The report was presented at a special work- media, education and migration. ing session of the UN Alliance of Civilizations Since then, the Alliance has launched a Second Forum in Istanbul in April 2009, number of programmes aimed at building where companies, government representatives bridges across cultural divides, including, a) and civil sector organizations explored how a youth initiative that provides seed funding they could cooperate to further their mutual to outstanding youth-led projects aiming to interest in positive intercultural relations. enhance intercultural and inter-religious dialogue; b) a Rapid Response Media Mecha- nism initiative, which includes an online re- The Partners source for journalists covering stories about The UN Alliance of Civilizations (AoC) was cultural, religious and political tensions established in 2005, at the initiative of the between communities, and across borders Governments of Spain and Turkey, under (www.globalexpertfinder.org); c) an online the auspices of the United Nations. It aims clearinghouse of best practices, policies and to improve understanding and coopera- 13

resources to support efforts in media literacy and teaching about religions and beliefs. The Alliance benefits from the backing of a Group of Friends – a community of over 100 countries and multilateral organizations – which support the Alliance in its actions and objectives, and engage in the Alliance by developing and implementing their National Strategies for Cross-Cultural Dialogue. Launched in 2000, the United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, the environment and anti-corruption. Business simply cannot thrive if society fails. Proactive policies and practices that respect human rights and ensure safe and decent workplace conditions, environmental protection and good corporate governance are creating sustainable value and benefits for companies, workers, communities, investors and society at large. They also are enabling business to attract and retain skilled workers, save costs, enhance productivity, create trust and build brands. Increasingly, business executives understand that the moral case for corporate responsibility has been complemented by a strong business case. Environmental and social issues are material to a company’s long-term performance, and the Global Compact provides a unique strategic platform for business to address these and advance their commitments to sustainability and corporate citizenship. With these complementary objectives in This understanding is reflected in the mind, the Global Compact has shaped an ini- growth of the Global Compact, which today tiative that provides collaborative solutions stands as the largest corporate citizenship to the most fundamental challenges facing and sustainability initiative in the world, business and society. with over 6,000 corporate participants Intercultural understanding is key to a and stakeholders from over 130 countries. number of Global Compact principles, in- Approximately half of Global Compact’s par- cluding, but not limited to, its human rights ticipants stem from developing countries and principles (Principles 1 and 2), which ask over half of the Compact’s business partici- business to respect and support the protec- pants are small and medium-sized enterpris- tion of internationally proclaimed human es (SMEs) with less than 250 employees. rights, and Principle 6, which is focused on the elimination of discrimination in respect The UN Global Compact has two objectives: of employment and occupation. The UN Global Compact has also been leading efforts • Mainstream the 10 principles in business to foster constructive dialogue between busi- activities around the world ness and other stakeholders on issues related to business and peace and has developed • Catalyze actions in support of broader UN practical resources to support participating goals, including the Millennium Develop- companies in adopting and implementing ment Goals (MDGs) conflict-sensitive business practices. 14

“Off went his ambassadors to every corner of the Mediterranean where the green banner of the Prophet flew…Emir after emir received them with courtesy and accepted their proposals. Agreement after agreement was brought back with pride and satisfaction to the Doge. His imperial neighbours to the East and West…might accuse him of treachery to the Faith. But for Pietro, true Venetian that he was, commerce was always preferable to bloodshed – and a good deal more profitable as well.”

—On Pietro Orseolo II, Doge of Venice (991-1008 C.E.) A History of Venice, John Julius Norwich, 1982

Part I Intercultural Dialogue and Understanding: The Stake and Role of Business

As one of the main ways that people inter- global exchange of scientific and cultural act across national, cultural and religious traditions, the “Internet of antiquity”. “Re- lines, and as a key player in the process of sources, information and innovations were global economic integration, business has an exchanged between so many cultures over so important stake and role in fostering positive many hundreds of years that it is now often cross-cultural relations. difficult to identify the origins of numerous Throughout history, doing business has traditions that our respective cultures take been a principal motivation for people to for granted.” Today, the current wave of eco- interact across borders and cultures. Before nomic globalization, powered by the actual people began to travel for leisure in the late Internet, has made the business world more 19th century, they travelled primarily in interconnected than ever and, at the same two capacities – as religious pilgrims and as time, brought individuals all over the world commercial traders. into unprecedented proximity. From the ancient trading routes of the The world economy is continually becom- Silk Road that traversed more than 8,000 ing more interconnected. One indication is kilometres across central Asia from China the growing diversification in the direction to India, the Middle East and Europe, to the of global foreign direct investment flows. Fif- explorations of Arab merchants in Africa ty years ago, flows were almost entirely from and Asia in the 11th century, to the trad- the developed to the developing world. By ing empire of the Venetian Republic, to the contrast, the 2006 World Investment Report communities of African entrepreneurs that by the UN Conference on Trade and Develop- have boomed in southeast China during the ment (UNCTAD) focuses on “the rise of for- first decade of this century – to name just a eign direct investment (FDI) by transnational few examples – commerce has consistently corporations (TNCs) from developing and resulted in the interaction of people and cul- transition economies.” As noted by UNCTAD, tures from every corner of the world. While “This phenomenon has been particularly warfare and colonization have sometimes marked in the past ten years, and a growing been the means or result of these encounters, number of TNCs from these economies are international commerce has historically emerging as major regional – or sometimes been characterized by peaceful interaction, even global – players. The new links these constructive exchange and cross-fertilization [companies] are forging with the rest of the of cultures and ideas that have given human- world will have far-reaching repercussions in ity some of its most enduring achievements. shaping the global economic landscape of the Yo-Yo Ma has called the Silk Road trading coming decades” [UNCTAD World Investment routes, which resulted in perhaps the first Report 2006]. 15

The diversification of global economic and nearly 250 million households have activity has been accompanied by unprec- high-speed connections, with Latin America edented levels of international travel and the fastest-growing market for broadband Internet connections. In 2008 there were services [bizinformer.com]. As the Internet more than 924 million international tourist “becomes truly ubiquitous and the number arrivals, a 50 per cent increase from 610 of mobile users continues to soar”, it “has million a decade earlier. The number is ex- also become more deeply integrated into the pected to reach 1.6 billion by 2020 [UNWTO fabric of many users’ personal and profes- World Tourism Barometer, January 2009]. It is sional lives”, with Web searches, e-mail and estimated that in 2008, nearly one quarter participation in online communities among of the world’s population, about 1.4 billion the most popular Internet activities [John people, used the Internet on a regular basis. Gantz, chief research officer at IDC, IDC press By 2012, this number is expected to reach release, June 25, 2008]. more than 1.9 billion, or 30 per cent of the As a result of these developments, in today’s world’s population. China surpassed the world we are each likely to encounter people US in 2007 to become the country with the and cultures that we would never have encoun- largest number of Internet users [IDC Digital tered a generation or even a decade ago. Marketplace Model and Forecast, 2008]. Nearly This increasing global interconnectedness 85 per cent of Internet users use it regularly, has several implications for business. 16

1. The Business Stake in Intercultural dialogue and Understanding

Globalization of business operations and the nity can be a source of wasted talent, missed interconnectedness of people around the world market opportunities, failed business deals – including a company’s employees, custom- and a reduced “license to operate” in the ers, investors, governmental and NGO net- community. works, and other stakeholders – give business As a result, cross-cultural understand- a stake in the state of cross-cultural relations. ing is at a premium for many businesses. Significant resources are spent on market A. Managing Cultural Diversity research to understand the needs and pref- as a Business Imperative erences of increasingly segmented groups First, to be successful in an inter-connected of consumers from different countries and world, businesses of all sizes and in every cultures. Cross-cultural training for manag- country must be able to compete effectively in ers is widespread. And developing a new diverse, multicultural environments. generation of corporate leaders with global As a result, business is at the forefront of perspective and understanding is identified dealing with the many and complex cross- by the world’s largest companies as one of cultural challenges of operating in a global their leading challenges. environment. Companies must manage di- One trend that reflects the growing need verse workplaces, appeal to a wide range of di- to effectively manage diversity is the emerg- verse and increasingly demanding customers ing concept of “inclusion”. With the aim of and consumers in the marketplace, manage creating more effective, high-performing international supply and distribution chains organizations, more and more companies are and business partnerships, and maintain rela- focusing on creating “inclusive” workplaces, tionships with governmental authorities and in which the diverse skills and perspectives community groups from every country where of all their people are recognized and valued they do business. as a source of business insight and creativity. The ability to manage this diversity is (See Workplace section for further discussion increasingly recognized by companies as a of the concept of inclusion.) business imperative for a number of reasons, Beyond the workplace, there is grow- inter alia: ing interest in how inclusive attitudes and behaviours can affect business competitive- • Creating a diverse and inclusive workplace ness more broadly. In this view, a company’s can determine a company’s ability to at- success depends on its ability to effectively tract, retain and motivate the best talent, manage all its relationships with the diverse helping to ensure that each person can array of stakeholders on which the business contribute his or her skills, knowledge and depends – customers, employees, business perspective to the success of the business. partners and the communities in which it operates. Establishing business relationships • A capacity to recognize and respond to the based on understanding, respect, trust and diverse and changing needs of customers dialogue will better enable a company to in the marketplace is fundamental to the respond intelligently and flexibly to change creativity and flexibility that fuel innova- and diversity in the global business environ- tion, ensuring continued demand for a ment. Seen from this perspective, inclu- company’s products and services. siveness is not a “nice to do” but a concept fundamental to business success. • The ability to manage critical relationships with government authorities and local B. The Impact of Polarization on communities is necessary to ensure that the Business Environment the company has a “license to operate” in Second, business operates best in an environ- diverse markets around the world. ment of social stability. Heightened tensions along cultural, religious or ethnic lines, The failure to recognize, respect and ef- like most conflict, is bad for business. Such fectively reflect cultural differences in the tensions can increase uncertainty, impede workplace, the marketplace or the commu- operations, limit growth opportunities 17

and intensify risk and its associated costs. causes of conflict” [The Business of Peace, Inter- Moreover, when a society is in conflict, a national Business Leaders Forum, 2000]. company’s reputation and ability to operate The rise in this type of “identity conflict” can quickly be undermined if the company can also be seen at a broader, international is seen to identify with or favor one group to level. This is in part as a reaction to global- the exclusion of others – among its employ- ization itself, and it potentially undermines ees, consumers or other stakeholders. an open global business environment. Conflicts are exacerbated when poten- Many fear that economic integration tially negotiable disputes over resources or – carrying with it Western culture, the political control are exacerbated by “identity material values of the marketplace and im- politics” – when leaders or radical groups, personal bureaucracy – threatens to destroy supported by the media, paint polarized local cultures and traditional values and images of society with one group histori- ways of life. These fears cannot be ignored. cally and inevitably pitted against another, They have contributed to a rise in ethnic creating seemingly intractable, identity- conflicts within countries and to growing based conflicts that take hold of the popular nationalism. They have also contributed to a imagination. “The stark and tragic images resurgence of religious fundamentalism in of ‘ethnic cleansing’ in places as different as various forms, including Islamic, Christian Central Africa and the Balkans have placed and Hindu fundamentalism. In this environ- identity at the heart of today’s debate on the ment, the idea of a “clash of civilizations” 18

– the notion that the world is composed of In another example, when the Torch distinct, mutually exclusive cultures that are Relay running up to the 2008 Beijing Sum- on a collision course – has become a widely mer Olympic Games (with the theme of accepted, if distorted, explanation for the “one world, one dream”) was interrupted by challenges facing the world. These trends protesters representing a range of political is- have fueled a rise in extremism that has sues – including particularly visible attacks significantly affected the environment for in France that led Chinese security officials business and economic growth. to extinguish the torch several times in Paris The global threat of violent extremism, or – large-scale counter-protests in China and terrorism, has resulted in the imposition of elsewhere were accompanied by a campaign a myriad of rules by national governments to boycott French firms in China. and international organizations such as the In Mexico, the Zapatista National Libera- Organization for Economic Cooperation and tion Army declared in 1994 that NAFTA is a Development (OECD) restricting the move- “death sentence” for the indigenous popula- ment of people, the import and export of tion, demanding that fertile lands be re- goods and production inputs, and the trans- turned to the indigenous and poor campesi- fer of funds through the financial markets, nos as the material basis for organizing their which, while often necessary, can be costly lives and culture. and disruptive for business. In some sectors, Situations like those cited above testify to increased visa controls reduce access to high- the conclusion of the report by the High-level ly skilled migrant workers. And increased Group of the UN Alliance of Civilizations security measures to protect employees and that tensions across cultures have spread facilities, along with high insurance premi- beyond the political level into the hearts and ums, also impose new costs and complexi- minds of populations. ties. All of these considerations and measures Such events are not likely to disappear. In have made doing business more complicated response to events in Gaza in early 2009, the than ever, potentially affecting productivity. head of the Association of Muslim Restaurant Violent events can also, at least temporarily, Operators in Malaysia told reporters at the affect consumer and investor confidence. country’s National Mosque, “This is… a small Moreover, companies can themselves wave, but we expect it to become a tsunami become targets, especially when the general later on. We need to keep up the pressure mood of a host population is negative toward until these… companies go bankrupt. We the country or culture associated with the will boycott until a solution is found.” company. And through the Internet, issues These tensions do not bode well for the spread rapidly, have no borders and can business environment. Growing resentments influence individuals’ beliefs and actions on among people can fuel political conflict, a wide scale. as well as government and popular action For example, during each period of against business as a means of protest. heightened conflict in the Middle East, such Business therefore has a vital interest as in Occupied Palestine Territory and Iraq, in combating polarization and supporting there have been repeated calls by Muslim peaceful cross-cultural relations – in local consumer groups in countries around the markets and internationally – to help en- world for boycotts of the products of US- and sure an open global business environment. Europe-based companies, as a protest against US and other governments’ foreign policy in the region. 19 20

“The world of business provides an ideal setting for building strong bridges of understanding between countries and cultures.”

—Keith Reinhard, President, Business for Diplomatic Action

2. The Role of Business in fostering Intercultural dialogue and Understanding

Business also has a role to play in promoting Last, as discussed above, because suc- dialogue and fostering intercultural under- cessfully managing diversity is a modern standing. business imperative and because companies First, to the extent that conflicts and are at the forefront of dealing with cross- resentments are fueled by economic depriva- cultural issues globally – in the workplace, tion and inequality, business investment and the marketplace and communities – com- the economic activity, jobs, income and op- panies have potentially relevant experience, portunities that it generates can make a vital expertise and tools for helping to foster inter- contribution to creating an environment of cultural understanding. stability and peaceful relations among cul- In summary, because of their role in tural, ethnic or religious groups in a society. building economies, their position as places Second, doing business can also be a pow- of shared purpose, identity and coopera- erful incentive for bringing people together tion to achieve common goals, and their across national and cultural lines, creating pioneering work in cross-cultural manage- relationships based on a shared sense of iden- ment motivated by the business imperative tity and purpose, overcoming differences to operate effectively in a diverse global that, in the wider society, are more difficult environment, companies have a potentially to surmount. We will look at cases in which significant contribution to make in helping the workplace is used to educate and to en- to build intercultural understanding in the courage dialogue and understanding among broader society. employees of various religious and cultural They also have a choice. A company’s backgrounds. We will also look at the work impact on cross-cultural relations can be of several organizations that actively forge positive or negative, depending on how it business links across communities on either manages these relationships in the business side of the divide in areas of conflict as a environment. As employers of people from means of building peaceful relations over the various cultural and religious groups, as long-term. 21

marketers to customers of various cultural to positive intercultural relations through backgrounds and as members of culturally efforts to support diversity in the workplace, diverse communities, companies have the responsible approaches to marketing, and choice either to exacerbate cross-cultural support of community projects that encour- tensions or to help reduce them by encourage tolerance in the wider society [The Busi- aging diversity and tolerance. A company ness of Peace, IBLF, 2000]. can intensify cross-cultural tensions if, for So companies have a responsibility to example, it discriminates in the workplace, manage the cross-cultural diversity chal- shows lack of respect for indigenous com- lenges they encounter in ways that foster munities, markets products or services understanding and cooperative relations – that undermine local cultures, or conducts for their own benefit and that of society. community programmes that exclude a particular group. Companies can contribute

3. intercultural understanding and sustainability

In response to the challenges of globaliza- understanding, respect and cooperation, under- tion, many businesses recognize the need to mining the stereotypes that deepen patterns collaborate with international actors in the of hostility and mistrust among societies, current global context, where social, political is an increasingly pressing aspect of the global and economic challenges (and opportunities) sustainability challenge. – whether at home or in other regions – As discussed above, business has both a affect companies as never before. Common stake and a role to play in helping to address goals, such as building markets, combating this challenge. Polarization and cross-cultural corruption, safeguarding the environment tensions can raise barriers to business opera- and ensuring social inclusion, have resulted tions and are a growing threat to an open in unprecedented partnerships and openness global business environment. At the same among business, government, civil society, time, because companies operate increasingly labour and the United Nations. in a global arena, they have had to learn to Indeed, more and more companies are manage cultural diversity as a competitive embedding corporate social responsibil- imperative. As a result, companies have devel- ity into their policies and processes based oped skills and tools that are highly relevant on the conviction that the environmental, for fostering cross-cultural understanding. economic and social sustainability of com- So for their own success and to help munities are part of ensuring long-term ensure the sustainability of the wider com- business sustainability. munities and world in which they operate, In an interconnected world, in which we companies have an interest in supporting are increasingly aware of our differences, it efforts to promote intercultural understand- could perhaps be said that building cultures of ing, tolerance and cooperative relations.

4. relevant principles and areas of activity

If fostering intercultural understanding is and sustainability evaluation and reporting indeed part of a sustainable approach to do- frameworks. ing business, to what extent is this reflected On one hand, these principles and activi- in existing efforts to promote sustainable ties form the foundation for business initia- business practices? tives to promote intercultural understand- The topic of doing business in a way that ing. On the other hand, they do not directly reflects and promotes intercultural under- address or encourage business activity in this standing and respect touches on several area. As a result, while many companies are existing principles and areas of work relative active in all of these areas, they might not to corporate responsibility and sustainabil- have considered how fostering intercultural ity – including human rights, workplace understanding could be part of their sustain- rights and diversity, business and peace, ability vision and programmes. 22

1 For a plain language description A. Sustainability Reporting range of internationally proclaimed human of the relevance for business Frameworks rights1. The best way to become aware of of the human rights in the Most frameworks for evaluating and report- and avoid the risk of interfering with hu- International Covenant on ing corporate sustainability performance man rights and to identify opportunities to Civil and Political Rights and include principles and indicators for business support human rights is to undertake due the International Covenant on practices that are environmentally, economi- diligence2. Due diligence includes such steps Economic, Social and Cultural cally and socially sustainable. For example, as having a policy commitment to human Rights see Human Rights the Global Reporting Initiative’s Standard rights, undertaking training of employees on Translated, A Business Disclosure includes 79 performance indi- human rights, undertaking risk and impact Reference Guide (Monash cators on human rights, labour practices, assessments, having an effective grievance University Castan Centre for society, product responsibility and economic mechanism to handle human rights dis- Human Rights Law, International impacts. None of these, however, directly ad- putes, and reporting on progress in imple- Business Leaders Forum, Office dresses issues surrounding cultural rights or menting human rights. Human rights can be of the UN High Commissioner for cross-cultural tolerance and dialogue. relevant for business in the workplace (safety Human Rights, and the UN Global This raises two possible areas for further work: and health, freedom of association, forced Compact, 2008). labour, non-discrimination, and access to • How can companies be encouraged to con- basic health, education and housing), in the 2 For guidance on how companies sider cross-cultural relations issues as they marketplace (labour standards in the supply can systematically address review their business activities to ensure chain, product safety, use and misuse of human rights issues from a sustainability relevant principles and indi- products), and in the community (preventing management perspective, see cators for inclusion in existing definitions forcible displacement, protecting livelihoods, Integrating Human Rights of and frameworks for sustainability? contributing to public debate, use of force in into Business Management security measures). (Business Leaders Initiative • One way that business might promote Culture is also an aspect of human rights. on Human Rights, UN Global cross-cultural understanding is by ensur- The UDHR refers to the right of everyone (Ar- Compact, and Office of the UN ing that its CSR programmes are them- ticle 22) to realize his “economic, social and High Commissioner for Human selves relevant and appropriate in various cultural rights indispensable for his dignity Rights) and A Human Rights cultural contexts. Work is already being and the free development of his personality” Management Framework done in this area, for example, by the Caux and his right (Article 27) “freely to partici- (Business Leaders Initiative on Roundtable. The Caux Roundtable is an pate in the cultural life of the community”. Human Rights, International international network of business leaders In November 2001, shortly after the Business Leaders Forum, UN who work with business and governments events of 9/11, the Universal Declaration Global Compact, and Office of to affirm the necessity of moral values on Cultural Diversity was adopted by 185 the UN High Commissioner for in business decision-making to achieve a Member States of UNESCO. Referring to the Human Rights). sustainable world community. Through UDHR, it asserts that intercultural dialogue its Principles for Business and its pro- and respect for cultural diversity and toler- grammes, the Caux Roundtable draws on ance are an “ethical imperative, inseparable the ethical ideals of world traditions, to from respect for human dignity”. It states effectively communicate and promote ethi- that cultural diversity is the “wellspring of cal business practices. creativity” and “one of the roots of development”, and that “Policies for the inclusion B. Human Rights and participation of all citizens are guaran- There is a rapidly growing body of work that tees of social cohesion, the vitality of civil so- addresses business’ role in respecting and ciety and peace.” UNESCO Secretary-General supporting human rights, in the workplace, Koïchiro Matsuura noted the view of many in the marketplace and in the broader countries that, in a troubled global context, society. Among the core values that Global the Declaration is a vital ethical framework Compact signatory companies are asked to “at a time when it is more urgent than ever embrace, enact and support is the protection to assert the equal dignity of all cultures” and promotion of human rights, as reflected [Preface, “Cultural Diversity: Common Heritage, in the Universal Declaration on Human Plural Identities”, UNESCO, 2002]. Rights (UDHR). It is interesting to note that some of the The Global Compact points out that ideas expressed in the Universal Declaration companies have the potential to impact, on Cultural Diversity are echoed in corpo- positively or negatively, virtually the full rate diversity policies, where diversity and 23

inclusiveness are seen as keys to creativity Conclusion and innovation, long-term business growth, Promoting dialogue and understanding and a company’s ability to operate success- among cultures, nations and religions has fully in society. always been a challenge to our society. Given Perhaps intercultural understanding is an our rapidly growing global interconnected- area where business objectives and interna- ness, this is truer today than it has ever been. tional ideals meet, and where there might The challenge is even more urgent in the be room for greater cooperation between the current context of a global financial crisis public and private sectors to promote this and economic downturn, in which cross- aspect of human rights. cultural polarization could fuel the resentments that feed conflict. In an article calling C. Workplace Diversity and for global economic cooperation to avoid Inclusion conflicts, Felix Rohatyn and Allison Stanger Workplace diversity is a highly developed argue, “The globalization of finance, technol- field within the corporate human resources ogy and information mean that the fates of discipline in many countries, one that is countries and of individuals are interwoven shaped in part by national legislation and in- in unprecedented fashion. The unraveling of ternational guidelines on fair treatment and those connections could be more disruptive non-discrimination in the workplace. This and more devastating, and on a more mas- report does not aim to describe or address sive scale, than anything we have ever collec- this extensive body of work. tively experienced” [IHT, October 24, 2008]. Rather, the report will highlight diver- Today’s global companies were built and sity issues emerging from global economic will continue to depend on an open global integration, e.g. with regard to religion and economic environment. It is therefore in the immigration, and how evolving company interest of international business to promote responses to these diversity challenges – in- the impulses for tomorrow’s open society, cluding the growing concept of inclusion – and to foster the understanding, respect and might offer opportunities and new approach- dialogue among peoples that will help to es for fostering intercultural understanding give globalization “a human face”. in the wider society. As companies formulate the sustainability vision and programmes that are most relevant D. Business and Peace for their business, they might therefore con- Business and peace is also a growing field. sider what stake and role they have in helping As a voluntary initiative, the United Nations to meet the global challenge of fostering inter- Global Compact has a long record of advo- cultural understanding and dialogue. cacy and engagement on the role of business The next section of this report takes a look in conflict resolution and peacebuilding. at some concrete examples of cross-cultural Since 2001, the UN Global Compact Office challenges companies are facing and how has been leading efforts to foster construc- they have played a positive role in fostering tive dialogue between business and other intercultural understanding – in the work- stakeholders on these issues. It has developed place, the marketplace and communities. a number of practical resources including Business Guide to Conflict Impact Assessment and Risk Management, Conflict Prevention and Revenue- Sharing Regime, and Enabling Econo- mies of Peace: Public Policy for Conflict-Sensitive Business Practice. These resources support companies in developing and implementing conflict-sensitive business practices. This report is focused on one particular aspect of this field – the “relational” issues that underlie conflict and peacebuilding, and how business can play a role in building trust and a shared sense of identity and purpose among communities in conflict or tension. 24

Part II Examples of Good Practices and Lessons Learned: How Business Can Promote Intercultural Dialogue and Understanding

The aim of this section is to present some examples of cross-cultural issues business is facing and to highlight some concrete, innovative initiatives by companies, as well as by business associations and NGOs, aimed at fostering intercultural understanding through business. This section presents a number of examples of good practice and lessons learned that were submitted. It does not represent a comprehensive review of all relevant issues encountered by business or of company initiatives undertaken. There are no doubt numerous business initiatives to promote intercultural understanding that have not been captured in this report. Identifying more of these is one possible area of future work. Through the examples presented here, the partners intend to identify some key issues, areas for further investigation, and possible opportunities for collaboration between companies, international organizations, NGOs and governments. Structure Scope The examples of good practices and les- • Actors: The examples below include sons learned are organized into three broad activities by individual companies – categories, each addressing an aspect of the multinational and local – as well as by business environment in which cross-cultur- business associations and NGOs facilitat- al issues arise, and in which companies and ing business action in this field. Collective other organizations have taken initiatives to groups often provide impetus or context foster intercultural understanding through for business action. business. Clearly, these areas are not mutually exclusive and a number of examples touch • Activities: A number of examples touch on more than one. on business activities in the related areas of human rights, conflict resolution and • Workplace: Employees diversity management. The aim is not to reiterate existing work in these areas but • Marketplace: Business networks and to identify aspects of this work that relate customers/consumers specifically to promoting understanding and respect among diverse cultures. • Community: Local communities and the broader society where companies operate

The Workplace: Cultivating Understanding among Employees and in Leadership

Managing diversity in the workplace is a If not well-managed, these issues can result well-developed business discipline in the in costly losses in productivity; damage to field of human resources. It is not the task of a reputation as a good place to work, affect- this report to restate all of the valuable work ing a company’s ability to recruit, retain and already done in this area. However, the grow- motivate talent; and a reduced “license to ing globalization of the workplace is posing operate” in society, potentially exposing a new management challenges for businesses. company to regulation and legal action. On one hand, companies are facing in- On the other hand, a diverse workplace is creased risk of conflict in the workforce due increasingly seen by international companies to, inter alia, the influx of new immigrant as an opportunity – a critical competitive communities, growing religious conscious- asset for business leadership in the global ness in the workplace, and the act of doing marketplace. business in conflict or post-conflict areas. 25

First, a diverse workforce is increasingly Workplace diversity is also a growing seen as a necessary condition for understand- expectation of shareholders and regula- ing and responding effectively to a diverse tors. Activist shareholder groups are creat- marketplace, a source of vital market insight ing pressure for companies to include the into the needs and preferences of diverse cus- demographics of a company’s employee base, tomers. Second, evidence has also shown that senior management and board of directors diverse teams enhance creativity and innova- as part of company financial reporting. In tion; they outperform less diverse teams and the US, the 2009 administration is being are better at problem-solving. A diverse work- lobbied to include this information as part of place is also an increasingly important asset the information that companies are legally for attracting the best new talent. Finally, the required to file with the U.S. Securities and need for global companies to conduct rela- Exchange Commission. tions with a wide and growing array of stake- In response to these risks, opportunities holders – including governments and civil and expectations, individual companies and society organizations at the local, regional the discipline of diversity management itself and global levels – increasingly means that are evolving and developing new practices they require business leaders with the ability and principles to manage new intercultural to work with people from various countries, challenges in the global workplace. backgrounds and cultures.

1. dealing with workplace challenges

Religion in the Workplace • Globalization of operations is creating Religion is a major component of what we situations in which corporate employee consider our culture, and religious diversity policies and practices developed in the and expression in the workplace is a growing religious context of the company’s home intercultural-relations issue for companies, market (e.g. with regard to gender equality driven by several trends in demography and or holiday schedules) might run contrary to public life: religious requirements in other markets.

• Demographics: Increasing levels of migra- • The Internet and outsourcing have increas- tion, much of it to seek work opportunities, ingly connected employees with shared, are bringing religious diversity to societies including religious, interests globally. that might previously have had a sense of religious homogeneity – from Charis- As a result of these trends, religious dis- matic Christians migrating to the US from crimination in the workplace is an emerg- Latin America, to Buddhists from East Asia ing area of concern and action, both for working in the Middle East, to Muslims employees and for regulators. from North Africa and Turkey working and In Europe, an EU Directive adopted in living in France and Germany. At the same 2000 directs member states to enact, by 2003, time, a growing percentage of the global legislation prohibiting, inter alia, religious talent pool is from developing countries. discrimination in employment. The UK was one of the first to enact relevant legislation, • The increasing role of religion in public and several lawsuits have been filed under it. life is reflected in the workplace. “Religion In the US, this area is governed by Title and spirituality, for many employees, are VII of the Civil Rights Act, which prohibits no longer a part of their lives that they discrimination on the basis of religion and leave at home…for these employees [it] is a requires companies to make “reasonable way of life – their religion and spirituality accommodation” for the religious practices define who they are” [SHRM, Religion and and beliefs of employees. In 2007, the Equal Corporate Culture, 2008]. This includes more Employment Opportunity Commission and more young talent. As a result, reli- (EEOC) received 2,880 charges of religious gious inclusiveness is becoming a growing discrimination under Title VII, up from factor in employee recruitment, retention, 1,709 charges in 1997. It reported resolving productivity and satisfaction. 26

2,525 charges, recovering $6.4 million in Somali refugees fleeing civil war have settled benefits for charging parties. in the US since the 1990s, with a large con- Studies conducted in the US have also centration in the Midwest. shown a marked discrepancy between the At the same time, Muslim workers at a views of employers and employees on this poultry company in Minnesota sued and issue. A 1999 survey of employees conducted by won the right to have prayer time and not to the Tanenbaum Center for Interreligious Un- handle pork products. And in August 2008, derstanding found that a significant number the Retail, Wholesale and Department Store of religious persons felt that their workplaces Union negotiated a new five-year contract were hostile or at least unaccommodating at a Tyson Foods poultry-processing plant in to their religions. By contrast, a 2001 study Tennessee in which Labour Day was replaced of company HR professionals conducted by Eid al-Fitr as one of its members’ eight an- by Tanenbaum and the Society for Human nual paid holidays; following some contro- Resource Management (SHRM) found that versy prompted by the decision, the contract employers generally believe that there is little was amended to also include Labour Day. religious discrimination in the workplace and that they are doing a good job of accommo- The Tanenbaum Center for Interreligious dating religious workers. A follow-up study by Understanding: supporting good work- SHRM in 2008 revealed that this discrepancy place practice on religion still exists and that HR professionals are still grappling with identifying religious-diversity “When we talked to companies in the late issues and how to address them. 1990s, they said that religion wasn’t an issue,” A 2001 literature review by the Interna- says Dr. Georgette Bennett, President of the tional Labour Organization (ILO) recorded Board of Directors at the Tanenbaum Center anecdotal information on religious discrimi- for Interreligious Understanding, a secular, nation in the workplace around the world, non-sectarian organization dedicated to while noting (with the exception of Northern “preventing the violence perpetrated in the Ireland) a general lack of systematic data on name of religion…and overcoming religious this subject. It recommended more thorough intolerance in workplaces and schools”. “Now study of experience globally, as a basis for it’s a hot topic for business,” she continues. making recommendations to governments Tanenbaum provides advice and tools on how to combat religious discrimination at to help corporate human resources depart- work [Literature Review for Religious Discrimina- ments manage this “neglected” aspect of di- tion in the Workplace by Morris Lipson, In Focus versity and create religiously inclusive work Programme on the Promotion of the Declaration on environments. It has a long list of corporate Fundamental Principles and Rights at Work, ILO, clients, including Fortune 500 companies Geneva, 2001]. such as American Express, BP, CitiGroup, Several recent cases of employee disputes General Motors, IBM, Merck & Co., PriceWa- in meat-processing facilities in the US illus- terhouseCoopers and Shell Oil. trate the kinds of issues a company can face. The Center cites several examples of issues In October 2008, The New York Times that companies face and possible options for carried a front-page article about a Brazilian responding: meat-processing company, JBS, with facili- • Creating a written company policy ties in Nebraska and Colorado, that ran into regarding religion in the workplace. In trouble when an influx of workers from the 1999 US employee survey conducted Somalia led to disputes among management, by Tanenbaum (cited above), 60 per cent the new Somali workers and the existing of religious workers surveyed said they Latino workforce over how to accommodate felt their employer discriminated on the prayer time for Muslim employees without basis of religion, 20 per cent felt that they disadvantaging other employees or slowing or someone they knew had been directly production. Following protests, walkouts and affected, 47 per cent of these were con- firings, the issues remain unresolved “Somali[ sidering leaving their job and 50 per cent Influx Unsettles Latino Meatpackers”, Kirk Semple, said it affected their productivity. In this The New York Times, October 16, 2008]. The environment, the existence of a written workplace disputes echoed friction in local policy can go a long way in establishing a communities, where tens of thousands of sense of trust. 27

“The important thing is to create a safe space where people can discuss religious issues, because the issues are there. Open dialogue demystifies these issues, diffuses tensions and allows employees to bond over these basic human questions. Through measures like these, I believe that business can become a model of inclusivity and mutual respect that can impact the wider community.”

—Dr. Georgette Bennett, President, Board of Directors, Tanenbaum Center for Interreligious Understanding 28

“A person’s work life, like their culture, is fundamental to their human dignity. Through these programmes to help integrate refugees into the local world of work, Manpower believes that it is creating economic opportunity for both refugees and employers while fostering the mutual understanding and respect that will enrich the work and lives of all those involved.”

—Charles Bartels, Director, Global Social Responsibility, Manpower Inc.

• Religious holidays: Institute “floating” of understanding about appealing to that holidays or holiday-swapping among em- religious group in the market. ployees, or assign general holidays on the basis of annual employee polls to deter- One company that has taken several innova- mine which are the most important. tive initiatives to ensure a religiously inclusive workplace is IBM, the world’s largest • Creating flexible break times for reli- information technology company offering gious observance. Experience has shown hardware, software, IT services and business that time taken out for prayer and medita- consulting. One of its initiatives involved tion is typically quite short. security procedures for veiled Muslim female employees, who were allowed to have two • Setting up prayer rooms: This can be a identity cards – one for most day-to-day helpful initiative but it must be done the security purposes, bearing a photograph right way. The rooms should be designated of them veiled, and one in which they are in a way that is friendly for all religious or unveiled — that would be taken by a female spiritual uses (e.g. as a “room for medita- photographer and shown only to female tion, reflection and prayer”). It is also security guards. important to communicate openly about In another example, General Motors, their establishment, using it as an op- which is one of the world’s largest automak- portunity to educate employees about the ers, manufacturing cars and trucks in 34 groups that might want to use it. countries, decided to conduct a forum on religion for employees. A panel with one em- • Employee “network” or “affinity” groups ployee from each religious group represented based on religion – as for any group in in the workplace discussed what their experi- the workplace – can be very useful as a ence had been in practicing their beliefs in forum to identify and discuss workplace the workplace. The session had a very high issues, a recruitment attraction, and a pool level of attendance and active participation in 29

discussion. Reaction following the session was Examples of good practice in managing the highly positive, with many employees express- cultural integration of immigrant workers: ing gratitude and relief that they had been given the chance to explain their perspectives Manpower Inc.: creating opportunity for or to better understand those of others. refugee immigrants

Immigration Manpower Inc. is a leading global employment People of all backgrounds are becoming services company with a network of 4,500 of- increasingly mobile and seeking economic fices in 80 countries. Each year, it assists some opportunity in other countries. According to 400,000 businesses of all sizes with perma- the International Organization for Migra- nent, temporary and contract recruitment, tion (IOM), “Migration is one of the defin- training, outplacement and outsourcing. ing issues of the twenty-first century.” The Recognizing the need for diversity as a IOM’s report World Migration 2008: Managing catalyst for creativity, business success and Labour Mobility in the Evolving Global Economy sustainable communities, the company ac- examines how globalization is creating an tively attracts workers from all backgrounds “unprecedented context in which human and works with individuals to explore their mobility seeks to find expression on a genu- capabilities and potential. inely global scale”, and seeks to identify poli- As part of its commitment to developing cies and strategies that “might better match socially inclusive work environment, the demand for migrant workers with supply in company undertakes programmes to provide safe, humane and orderly ways”. a “bridge” to employment for many who Migrant workers are a growing category would otherwise be unemployed, includ- of employees in many countries and are a ing refugee immigrants. According to the vital resource for many businesses, provid- company’s website, tens of millions of people ing needed labour and skills. But integrating are identified as refugees, forced far from individuals from new immigrant groups into their homes without any opportunity to earn the workplace can also pose challenges, espe- a living and support their families. cially when they represent ethnic, religious To help address this challenge, Manpower or cultural backgrounds that are not well partners with businesses, governments and understood in the host community. NGOs to help provide refugee immigrants with direct work opportunities and access to 30

employment services, and undertakes special The success of these programmes has led to initiatives to foster cooperation, acceptance their expansion. For example, a new two- and tolerance among cultural, ethnic, reli- year programme in Stockholm will help an gious and other groups in the workplace. additional 360 refugees, and the US pro- At the global level, Manpower has joined gramme has led at least one major corporate with a number of companies in support of the client to initiate its own recruitment and UN High Commission for Refugees (UNHCR) development programmes for Iraqi refugees. Ninemillion.org campaign to provide education and skills to the world’s refugee children. Business in the Community: managing Below are some examples of related initia- the “new” diversity in Northern Ireland tives at the national level: – integrating workers immigrating from Central and Eastern Europe • In Argentina, when the Buenos Aires municipal government launched a pro- Business in the Community is a membership gramme to become the first city in Latin organization in the UK that engages member America to provide formal support to companies in programmes to improve their refugees, Manpower helped by developing positive impact on society. BITC Northern and implementing strategies to integrate Ireland (BITC NI) has 240 member companies. refugees into the city’s workforce. Com- BITC NI states, “The single greatest impact pany volunteers worked with refugees on the Northern Ireland economy and labour from Colombia, Cuba, Senegal, Nigeria, market in the past ten years has undoubtedly Eritrea, Guinea and Pakistan. A number of been the arrival of migrant workers from these underwent inter-personal skills as- Central and Eastern Europe. These workers sessments and interview-training sessions, have provided a massive boost to local em- with some going on to find jobs through ployers as they are generally perceived to be Manpower, including positions as sales hard working, reliable and they help to cover representatives, call-center operators and the shortages of the local labour markets. hotel employees. However, employing migrant workers brings with it a new set of challenges.” • In Sweden, Manpower works with the To increase awareness and understand- local government in Stockholm on a ing of these issues and to help businesses programme to integrate refugees, espe- deal with them, Business in the Community cially those from the Middle East and East Northern Ireland has published a Voluntary Africa, into the Swedish world of work. Code of Practice and an Employer’s Guide on Participants in the programme receive Employing Migrant/Overseas Workers, and Swedish-as-a-second-language training provides a platform for issues to be raised and are placed with a local employer for and dealt with. The Voluntary Code recom- an “internship” that provides practical vo- mends, inter alia, that employers ensure that cational experience and a low-risk oppor- migrants’ “basic cultural needs” are met, by tunity to learn about the world of work in taking measures to help existing staff better the local culture. In two years, 300 people understand the cultures of migrant workers, have participated in the programmes with to increase all employees’ skills in dealing a post-programme employment success with cultural differences through “cultural rate of 60 to 80 per cent. diversity awareness” training, and to provide mechanisms and opportunities for ongoing • In the US, Manpower partnered with two support and dialogue, including the appoint- non-profit organizations, Upwardly Global ment of a liaison. and The List Project, to connect Iraqi refu- As a result, a number of leading employ- gees to professional jobs in the US, offering ers have signed up to the Voluntary Code a first-of-its-kind career orientation and which is viewed as a set of tangible actions networking workshop in Washington, D.C., that employers can take to make a real dif- and working with employers to help them ference. The Code has also been adopted in discover and understand the wealth of England as a standard for employers in rural experience and skills that the immigrants communities who face similar issues. bring to the local labour market. 31

Going into New Markets As noted in Part I of this report, one aspect of global economic integration is the continual rise in foreign direct investment and merger and acquisition activity, and the fact that the sources and direction of FDI are diversifying. As a result, more and more companies are facing situations where they are immigrating into a community.

Sabanci – Kordsa Global: communicating global business standards across cultures

Founded in 1973 in Izmit, Turkey, Kordsa Global is the world’s largest supplier of nylon and polyester industrial yarn, fabrics and single-end-cord, serving primarily the tire and mechanical rubber goods markets. It operates 10 manufacturing facilities in nine countries on five continents, serving customers worldwide. Over the past 35 years, Kordsa Global has expanded through strategic acquisitions and joint ventures, including, for example, partnerships with DuPont in the US and Latin American, and the acquisition of several production enterprises in China, Indonesia and Thailand in 2007. As operations have globalized, the company has taken care to introduce its business strategies in a manner that is sensitive to local cultures. Nonetheless, it has found that cultural differences can create barriers to change as the company attempts to communicate and implement its business strategies, policies and standards with local teams. Particularly in Asia, cultural and linguistic differences meant that it was difficult to establish trust and open communications, leading to issues with executing policies for – in which employees from every site are quality assurance, continuous improvement regularly connected to exchange their expe- and customer service. rience, ideas and questions. At the local level, In order to overcome these challenges, regular employee meetings and locally adapt- the company took a series of actions at the ed communications, training and awards corporate and local levels as part of a Global programmes all helped to build a common Integration Plan. At the corporate level, all basis for understanding and trust. In the expatriate and executive managers went marketplace, more frequent customer visits through cross-cultural management training with more tailored messaging helped to com- at leading universities in Turkey and Eu- municate the company’s commitment to be- rope. It also established employee exchange ing a reliable supplier of the highest quality. programmes between headquarters and Local community projects also demonstrate subsidiary companies, and created global how its presence can benefit everyone. “networks” for various processes – includ- As a result of these actions, local teams ing Safety and Health, Sales and Operations became more receptive to learning and Planning, Production and Human Resources more focused on personal and professional 32

development, quality standards were more the world. TAQA provided the following pro- easily implemented, customer relationships grammes to fully implement the company’s improved, and the company increased its commitment to diversity and inclusion. global management capabilities. The company learned that understanding • Training and Events: All managers and and respect for local cultures must be a pri- relevant employees receive training to ority for a global company, and that the only help them understand the diversity and way to implement change is to demonstrate inclusion policy and comply with the its benefits while listening to, and learning global best practice people management from, your audience. standards. TAQA also provides training for all employees to help raise awareness The Abu Dhabi National Energy Company of diversity and inclusion issues while (TAQA): mainstreaming inclusion and managers and leaders will also be provided diversity with tailored training programmes and practical “how to” guides for managing The Abu Dhabi National Energy Company diversity and inclusion. TAQA offers a se- (TAQA) was founded in 2005 with the ob- ries of workshops to increase knowledge of jective of becoming a global leader in the other cultures and to better address nega- energy sector. As of February 2009, with 2,800 tive stereotypes existing around employees employees representing 41 nationalities, the from certain groups. company is operating in 14 markets across the world, from India to Canada, Ghana to Mo- • Confidential Hotline: TAQA is creating a rocco, and Abu Dhabi to the United Kingdom. confidential hotline to enable employees Recognizing that the company’s success is to access support and guidance if they are dependent on the efficient management of its experiencing bullying and harassment. diverse workforce, TAQA has developed a comprehensive policy that promotes diversity and • Communications: E-forums and intranet inclusion throughout its operations around sites are used to facilitate global discussion 33

“Infosys was founded to leverage the power of globalization in the flat world. As a global corporation operating in multiple geographies, diversity will enable us to build confidence and trust in the mind of our employees and customers.”

—N.R. Narayana Murthy, Chief Mentor, Infosys

on a range of diversity and inclusion topics community development programmes. This and share feedback, knowledge and experi- programme was built on 17 years of best ence. A mechanism to provide anonymous practices and was aimed at empowering feedback is also being set up. Discussion women in the workplace and beyond. By far forums on a global and local basis have pro- the majority—92 percent of MAS employees vided a further means of communications are female, just as in the apparel industry as and employees enjoy the opportunity on an a whole. annual basis to provide feedback through The major beneficiaries of these pro- CSR audits with results being used to assess grammes are women from predominantly progress, identify new development priori- rural backgrounds between the ages of 18 and ties and recognize successes. 28 who are employed by MAS’ Apparel Manu- facturing Units. Many have limited knowl- MAS Holdings: managing diverse work- edge about important issues such as sexually force through gender empowerment transmitted diseases. A large number of these women do not recognize their own impor- Founded in 1986 and headquartered in tance to the sustenance of their families, the Colombo, Sri Lanka, MAS Holdings (MAS) company and their country. “Go Beyond” operates 29 intimate and active apparel, strives to give them this knowledge through fabric and accessories plants in seven coun- various means, and to empower them to “go tries including China, Vietnam, Indonesia, beyond” the traditional limits placed on them. Mexico, India and Sri Lanka and employs In addition to eradicating rural poverty 40,000 people worldwide. Starting in 2003, through empowerment of its female em- MAS introduced the Go Beyond programme ployees, the Go Beyond programme made at apparel plants in Sri Lanka, India and some other important contributions. First, Vietnam to provide its seamstresses with before the Go Beyond programme, the variety career development opportunities, health and funding of trainings and community and lifestyle education, awards and local participation were at each plant manager’s 34

discretion. Go Beyond created a framework to All employees are trained in Infosys core standardize, improve and track the results of values and in diversity management. They the employee programmes at each plant, with are encouraged to focus on commonalities a particular focus on women’s issues. Second, and to leverage differences toward produc- the empowerment of women in the workplace tive teamwork. They also learn how preju- has further strengthened Mas Holding’s effi- dices can block professional success and are cient management of its diverse workforce. By given principles and techniques for helping participating in the Go Beyond programme, to break down barriers that arise. Affinity female workers from different communities networks among employees of various back- (both in India and Sri Lanka) have learned to grounds are also encouraged. And manage- appreciate each other’s culture. ment is held accountable for success in this area; recruiting and retaining a diverse, multicultural workforce is an important ele- Infosys: building trust with diversity in ment in a CEO’s performance “scorecard”, as a virtual workplace is the creation of an inclusive work environment. The company has even developed its Founded in 1981, Infosys Technologies is a own patented “inclusivity index” to measure leading global provider of IT consulting and performance on this indicator. software services, based in Bangalore, India, Infosys believes that this focus on diver- with more than 50 offices and development sity and inclusion is one of the main reasons centers around the world and 106,000 em- for its high rate of customer satisfaction, ployees comprising 70 nationalities. Infosys with 97 per cent of its business coming from pioneered the Global Delivery Model (GDM), existing customers. which led to the rise and success of offshore outsourcing of IT services from India. The Workplace in Areas of Conflict The GDM business model is based on the When a company works in an area of con- principle of taking work to the location where flict, it must often manage a workforce that the best talent is available, where it makes the reflects the divisions in the broader com- best economic sense with the least amount of munity. Below are examples of challenges acceptable risk. This means working without that companies in this situation have faced borders. In developing and delivering an IT and how they have created workplaces where solution to a client, some 70 per cent of the people from different sides of these divides work is typically conducted away from the can work productively together – ensuring client’s location in Infosys offices in differ- that the company can continue to operate, ent parts of the world, wherever the greatest and contributing to better understanding in competencies are located. As a result, teams the wider community. are continually working across locations and cultures, in a “virtual” space with each other Newmont: building trust within a and with the client, to provide cutting-edge diverse workforce and community at a technology solutions and 24/7 service. mine in Indonesia In this virtual work environment, where success is data- and innovation-driven, two PT Newmont Nusa Tenggara is the Indone- things are essential: first, to recruit and sian subsidiary of US-based Newmont min- retain the most competitive talent from the ing company. Newmont operates the Batu widest possible diversity of backgrounds; and Hijau copper/gold mine in Sumbawa, Indo- second, to establish a strong sense of trust – nesia. The mine employs 7,000 national and among employees, as well as with clients and expatriate employees and is culturally, reli- all stakeholders. giously and ethnically very diverse. Expatri- To meet these challenges, Infosys places a ate employees represent approximately 3 high priority on an organization-wide com- per cent of the total workforce, originating mitment to a core set of values – openness, from the US, Australia, New Zealand, Japan honesty, fairness and transparency. It also and South Africa. Most national employees actively fosters the creation of an inclusive are Muslims but with various cultural and workplace, where each employee has the op- ethnic backgrounds since they come from portunity to make a valued contribution. different parts of Indonesia. The majority 35

are from the host Sumbawa ethnic group, As a result of these actions, conflicts followed by Sasak, Bima, Dompu, Javanese, and tensions dropped dramatically. “We Sulawesi and others. now rarely have religious or cultural issues This diversity has created challenges for among our employees,” states Leigh Taylor, the company and the workforce. Tensions Batu Hijau General Manager. rooted in cultural misunderstandings, reli- The company testifies that this experi- gious differences and ethnic rivalries have ence was a lesson in the vital importance of led to incidents between national employees cross-cultural relations. “Doing business in and expatriate employees, between local a multicultural setting requires willingness employees and national employees, and be- from all parties to coexist, that is, to accept tween employees and the local community. and respect cultural differences and expecta- To improve the situation, the company tions, and share common interests. Cross- undertook a variety of initiatives to improve cultural training should be an important understanding and cooperation, including: component of all pre-employment induction encouraging interaction at cultural events; programmes.” instituting a non-segregated housing complex and encouraging employees to live outside the company’s housing; conducting cross-cultural understanding (CCU) training for expatriate employees and dependents; conducting local language courses for national employees; providing mosques for Muslims and a community hall for Christians; and organizing mine tours to increase community understanding about the mine and its diverse workforce. 36

“The Strategic Professional Development (SPD) programme of Deloitte LLP (“Deloitte U.S.”) provides a platform for aspiring bilingual professionals to excel while utilizing their cultural and language capabilities. It helps them go beyond their daily activities and become a differentiating factor for Deloitte and its subsidiaries. In the past three years, this programme has grown from 24 professionals to over 450, helping to shape the next generation of leaders.”

—Clarence Kwan, National Managing Partner, U.S. Chinese Services Group - Deloitte LLP 37

2. Capacity-Building: Shaping a new generation of business leaders

Intercultural Skills Development partners from around the world, and in a for Businesspeople Leadership Development Programme for As companies attempt to address the chal- experienced partners. More than half of lenges of diversity in the business environ- 10,000 member firm partners worldwide ment, cross-cultural awareness, understand- have attended the workshop. ing and skills are increasingly recognized by companies as critical management In these programmes, Deloitte member capabilities and vital to ensuring the future firm partners assess and discuss their own of their businesses. In response to practical cultural orientations using a tool called business needs, intercultural training is a the Cultural Perspectives Questionnaire growing phenomenon, including specialized (CPQ), which reveals the range of dif- programmes developed by or in partnership ferences that can exist in their cultural with leading schools of management. orientations regarding the environment, relationships, activity, human nature and Several examples of innovative programmes time. They then identify actual cultural are described below: challenges faced in their business and practice applying a practical framework – Deloitte Touche Tohmatsu (DTT): the Map-Bridge-Integrate (MBI) approach strength from cultural diversity – for managing these challenges, bridging differences in values and orientations to Deloitte Touche Tohmatsu and its member optimize team performance. firms are one of the “big four”1 – the four 1 Deloitte refers to one or more of largest international accountancy and profes- The tools have been developed by the Deloitte Touche Tohmatsu, a Swiss sional services organizations. It operates as a international management school IMD, in Verein, and its network of member global network of member firms in 140 coun- Lausanne, Switzerland, and the workshop firms, each of which is a legally tries providing audit, consulting, financial was presented as a leading practice to separate and independent entity. advisory, risk management and tax services. members of the IMD Corporate Learning In order to bind its extensive network of Network at a recent conference. independent member firms, the company has developed a set of four global shared val- According to DTT’s global leadership devel- ues, one of which is “strength from cultural opment director, Dr. Dan Kerr, a variety of diversity”. As an organization that serves tools exists for cross-cultural training, but clients in every part of the world, relying on the critical factors, and what distinguishes the insights of a global network of profes- the Deloitte approach, are: first, a commit- sionals, Deloitte believes that an inclusive ment to building on the ideas of diverse col- culture is fundamental to its business. leagues throughout the organization; and Managers are measured for performance second, providing practical tools to help on this principle, and one of the ways that it member firm partners apply the cross-cul- is implemented is through cultural aware- tural insights to actual business problems. ness and networking programmes designed to build cross-cultural understanding, skills • Chinese Services Group: In 2006, the and exchange among its teams. Two of these Chinese Services Group (“CSG”) of Delo- programmes are described below: itte U.S. which co-ordinates with Deloitte China and subsidiaries of Deloitte U.S. to • Global cross-cultural training for assist US companies investing and operat- Deloitte member firm partners: DTT ing in China, created a Strategic Profes- has developed a specialized training sional Development (SPD) programme to workshop in cross-cultural management build and highlight the professional and for the organization’s most senior mem- cross-cultural skills of its Chinese-English ber firm management worldwide. The bilingual professionals. Over the course of training is provided both in the Global one year, they are exposed to the range of New Partner Programme, which annually business services of Deloitte U.S. subsidiar- brings together 500 new member firm ies and given cross-cultural training skills 38

“Working in tune with people from other parts of the world is not something that most people have been prepared and developed for.”

—Dr. Mansour Javidan, Dean of Research at Thunderbird School of Global Management and President and CEO of the GLOBE Foundation

that they can then use with clients. For work across diverse cultures. The workshop Deloitte U.S. and its subsidiaries, this is an draws on in-depth cross-cultural analysis investment in the future of their organi- conducted by the GLOBE (Global Leadership zation, developing the next generation of and Organizational Behavioral Effective- leaders, who combine first-hand business ness) research programme of the Thunder- experience with cross-cultural skills. bird School of Global Management. GLOBE identified nine cultural attributes that have Deloitte U.S. believes that its commitment to important managerial implications (such creating diverse teams that can work collab- as assertiveness and future orientation) and oratively has helped the organization to suc- collected data on these attributes through ceed in the marketplace, by better enabling surveys of and interviews with 17,000 man- its subsidiaries to address its clients’ complex agers in 62 countries. The data was cross- business issues. referenced to reveal potential challenges and opportunities when dealing among Business for Diplomatic Action: Culture- any of the cultures studied. The workshop Span workshop has been used by a number of companies as well as by governmental organizations. Business for Diplomatic Action (BDA) is It has been used to enhance the success of a non-partisan, non-profit organization expatriate assignments, international joint established in 2002 to help improve relations ventures, employee team-building efforts between Americans and people from other and global marketing programmes. cultures, supporting business-led initiatives Dr. Mansour Javidan, dean of research designed to build bridges of cooperation, re- at Thunderbird and president and CEO of spect and mutual understanding across cul- the GLOBE Foundation, says that the GLOBE tures and borders. The BDA board includes research distinguishes the CultureSpan global companies such as American Airlines, workshop because it is based on systematical- Hilton, McDonald’s, Microsoft, PepsiCo and ly collected data on different cultures, rather Time Warner. than on anecdotal information and personal One of the BDA signature programmes experience. is the CultureSpan workshop – an inten- Dr. Javidan believes that business could sive one-day “cultural fluency” course that collaborate with governments and NGOs on helps executives to develop a global mindset the development of cross-cultural educa- based on a deep, fact-based understanding tional programmes. “Most citizens grow up of cultural similarities and differences, as uni-cultural people. As adults, they are giving them tools to build effective global then put in environments where they have teams and to make global decisions that to work with people from different cultures, 39

often driven by business. Stress and stereo- structure, undermined development and typing can be among the natural human imposed a deep sense of marginalization. reactions to this situation. International One component of the programme is the businesses, which have long had to address Young Muslim Professionals for Business cross-cultural issues as a practical matter, and Peace internship initiative, or YuP- could make a useful contribution to the Peace, in which company internships are development of cross-cultural education for provided each year for young Muslim profes- young people.” sionals from business, government and community organizations in the ARMM. Current- Inspiring Understanding Through ly, 12 companies participate, including global Young Professionals companies HSBC, Unilever, Nestle and Shell. Companies are also participating in ex- The internships enhance the skills of the change programmes that build intercul- interns, build the competitiveness of Muslim tural understanding and skills for young businesses and help the host companies professionals, while building bridges to new create a culturally diversified workplace and markets. A couple of innovative examples are greater cultural understanding and sensitiv- described below. ity in management practices and policies. Examples include: an intern from a Philippines Business for Social Progress: hardware and construction supply company ‘YuPPeace’—young Muslim professionals in Cotabato City who served as an intern in for business and peace the human resources function of Unilever Philippines; an intern from a family tele- Philippines Business for Social Progress communications business in Tawi-Tawi who (PBSP), founded in 1970, is the largest worked as a telemarketer in Nestle Philip- corporate-led non-profit social development pines; and a community banking officer foundation in the Philippines, with more who interned at HSBC, acquiring a range of than 200 corporate members. The PBSP Busi- banking-system skills. ness and Peace Programme enlists business Host companies report that the pro- support for peacebuilding initiatives in the gramme has demonstrated the value of Autonomous Region in Muslim Mindanao reflecting the diversity of society in the (ARMM), to help improve the lives of people workplace. Not only did the interns show where ongoing conflict has destroyed infra- tremendous commitment to the business, 40

“What we know is that people everywhere want to feel that their backgrounds and perspectives and cultures are being respected and valued. Building inclusive mindsets should be a part of every aspect of our lives; we must think more inclusively about strategies for our companies, our communities and our society.”

—Effenus Henderson, Chief Diversity Officer, Weyerhaeuser Company

but it helped to break down barriers and which informed opinions and knowledge misunderstandings about doing business in flow in both directions. Mindanao. They also made real contributions In 2008, 22 young Arab and American ex- to corporate projects. The intern-sending ecutives travelled for three weeks to gain ex- organizations in Mindanao, found that the posure to the business practices, culture and rewards in terms of new skills and practices way of life in the US and several Arab coun- were valuable to their operations. tries of the Middle East/North Africa region Interns have testified that the programme respectively. They visited leading companies, has given them new opportunities, skills and schools and universities, non-profit organiza- confidence that they can contribute to devel- tions and local media. They also took part opment and peace in the region. in cultural activities and had the chance to exchange personal views and impressions Arab-American Business Fellowships: with each other and with the leadership and young professional exchange for employees of visited organizations. understanding Participating companies and organizations included, inter alia, The Dow Chemical Compa- The Arab American Fellowship Programme ny (a lead sponsor of the programme), Sesame (AABF) – a joint initiative of Young Arab Workshop, Bloomberg LP, Boeing, Microsoft, Leaders (YAL) and Business for Diplomatic MidAmerican Energy and Rudin Management Action (BDA) launched in 2007 – is an and Related Companies in the US, Tatweer annual exchange programme designed to and Dow Chemical IMEA in Dubai, and Global expose young professionals to one an- Investment House in Kuwait. other’s cultural and business environments For lead sponsor Dow Chemical, the Fel- in order to foster mutual understanding, lowship programme is an important way to respect and dialogue between Arab and demonstrate commitment to, and to build American societies. Targeting high-po- relationships and understanding in, an tential young executives, the programme important part of the world for its business. encourages the development of a dialogue The Dow Chemical Foundation also provides between business leaders in diverse regions support for the YAL Arab and American Dia- of the world, creating an environment in logue programme. John Dearborn, president 41

of Dow Chemical IMEA says, “As the Middle and providing new, sometimes surpris- East continues to emerge as a dynamic ing insights. Many were surprised by how region, we are delighted to sponsor the AABF much they had in common with their programme, which will allow young Arabs counterparts, including basic values such and Americans to gain insights into the rich, as honesty, hospitality and the importance diverse and evolving business environment of family, and a belief in how business can and culture of the US and the Arab world.” contribute to economic growth and vitality. Fellows from each side said that the They also gained a greater appreciation of experience reshaped their views of the how the US and the Arab world are them- other, breaking previously held stereotypes selves highly diverse.

3. Inclusion: A business approach to diversity that could impact communities

Workplace diversity, as a business manage- has defined 10 “principles of inclusion” that ment field, is changing. As discussed in Part I could be adopted by individuals, organiza- of this report, more and more companies and tions, communities and institutions, locally human resources professionals are targeting and globally. These include, inter alia, com- not just the achievement of a “diverse” work- mitments to: place, where different groups in society are fairly represented in the workforce numeri- • Recognize and broaden the spectrum of cally, but an “inclusive” workplace, in which human differences as a source of strength all employees and the diverse perspectives they bring are recognized, respected and • Enhance individual and collective com- valued for their unique contributions to the petence to collaborate across cultures and organization’s objectives. groups This work is about embedding in the culture and management routines of an organi- • Bring individuals’ talents, skills and zation the attitudes and behaviours that will perspectives together to complement and foster an inclusive way of doing business, in enrich each other order to create more effective, high-performing organizations. Management based on the According to Frederick A. Miller, a leading WHAT IS INCLUSION? principle of inclusion clearly has the potential authority on diversity and inclusion and to enhance the role of companies in fostering co-founder of the Institute for Inclusion, “Inclusion is engaging the understanding, respect and cooperative rela- because of the bottom-line imperative not to talents, beliefs, back- tions across different cultures. waste valuable resources, business is ahead grounds, capabilities and Going further, however, a group of lead- of other sectors in creating cross-culturally ways of living of individuals ing experts in the field of diversity manage- inclusive organizations, where the unique and groups when joined in ment believes that the concept of inclusion contribution of each person is recognized a common endeavour. has relevance far beyond companies – that and valued. “In this environment, compa- the process of building inclusive mindsets nies cannot afford to tolerate prejudices “Inclusion creates a cul- could be a transformative approach to coop- that blind an organization to one or another ture of belonging in which erative endeavours in any organization, and group’s contributions.” similarities and differences a principle of interaction in society. Based on experience with organizations are valued and honored for The Institute for Inclusion was founded across all sectors, Miller’s belief is that the the improvement of our in 2003 as a resource and think tank with work companies are doing to create inclusive enterprises, our society the mission to “impact the world” by “work- environments can provide a model and basis and the world.” ing with organizations across all sectors” for similar work in communities. to make inclusive mindsets and behaviours Institute for Inclusion common practice. (http://www.instituteforin- The Institute is working to develop a clusion.org) common language, framework and set of behaviours and practices that foster an inclusive environment. As an interim step, it 42

The Marketplace: Intercultural Understanding in Relationships With Customers, Suppliers and Business Partners

As in the workplace, companies are increasingly working across cultures in the marketplace: collaborating with international business partners, managing global supply and distribution chains, and marketing their products and services to culturally diverse customers and consumers.

1. Adapting products and services to culturally diverse customers

Global economic integration has led, in part, “vegetarian” French fries were cooked in beef to rising incomes and exposure to globally tallow, which is forbidden for Hindus. available products. As a consequence, people On the other hand, there is a growing in markets around the world, at every stage number of examples of companies and indus- of economic development, are increasingly tries that are actively creating products and sophisticated consumers and customers. services that are not only culturally sensitive Companies must understand and respond to but that proactively cater to the special needs the needs and preferences of an increasingly of cultural and religious groups in society diverse consumer base, making products, and in the markets where they do business. services and marketing campaigns appeal- For companies that undertake such targeted ing, relevant and appropriate to each group activities, they are seen as vital to ensuring in the global marketplace. As a result, com- the continued relevance and appeal of their panies invest millions of dollars in market products and brands to important groups of research alone. customers and to creating goodwill for their There are numerous examples of how businesses. While undertaken for business companies have failed to adapt their prod- reasons, they also benefit society by respect- ucts and marketing to the cultures in which ing and responding to the needs and values they are operating, inadvertently causing of diverse communities. Some examples from offense to their customers or consumers. several industries: In one example, a television advertise- ment by a leading tissue brand for a new Information Technology “anti-viral” tissue showed a Buddhist monk walking through a peaceful park saving Microsoft: preserving language diversity various animals from harm, after which he through information technology blows his nose into a tissue that “kills germs” as a humorous contrast. Many complaints Founded in 1975, Microsoft is a worldwide were lodged by Buddhists, for whom it is leader in information technology, providing offensive to make light of the sacred tenet software, services and IT solutions to busi- of creating “no harm”. In another example, ness, communities and individuals. a leading fashion company produced a line For Microsoft and the entire IT indus- of jeans featuring verses from the Qur’an on try, meeting the needs of a diverse global the back pockets, meaning that people would community is both an opportunity and a sit on them, which is sacrilege to Muslims. challenge. While developments in IT are In response, the company agreed to offer a unlocking powerful economic and educa- worldwide apology, recall the jeans and dis- tional prospects for people in more cultures pose of them, institute changes to their de- and geographies than ever before, there are sign process, and conduct sensitivity training still many people who cannot access IT due to prevent such incidents in the future. In a to language barriers. final example, a leading quick-serve restau- One of the main expressions of culture rant chain issued numerous apologies and is language. There are approximately 6,000 paid out more than $10 million in damages languages and another 5,000 dialects spoken in India when it was discovered that their around the world today. However, if alarm- 43

ing trends continue, scientists predict that working and learning in the language they by the end of this century half of all human are most confident in. languages will face extinction. More than 60 translations have been In 2004 Microsoft launched the Local created under the programme, including 12 Language Programme (LLP), an initiative that in sub-Saharan Africa. In Nigeria, Microsoft allows communities to use globally recog- has supported translations in Hausa, Igbo nized work- and education-enhancing tools and Yoruba, which can be used by more while maintaining the use of traditional than 60 million people across West Africa. languages. When asked about the programme, Micro- Through Community Glossary Projects, soft’s Citizenship Manager for Nigeria, Jum- the company works with governments, mai Umar Ajiojola, commented that it was academia and volunteers to translate Office “just the beginning” for the Local Language and Windows into consistent, culturally Programme and called on stakeholders of appropriate terminology for previously other language groups to take up the chal- under-served language groups. Once com- lenge to preserve and protect their languages. plete, the glossary forms the basis of a In Africa, Microsoft will continue to Language Interface Pack (LIP), which can be use the LLP in combination with other freely downloaded and installed from the developmental initiatives under the global company’s LLP website. For some users, the Unlimited Potential programme to further programme provides access to computers extend digital inclusion, foster much needed for the first time; for others, it is a chance to IT skills and stimulate the growth of local, improve productivity and self-expression by native-language-based IT economies. 44 45

Financial Services Reflecting the diversity in its global customer base, respect for different points Sharia-compliant banking products of view is central to HSBC’s brand as “the world’s local bank”. Launched in 2002, the Sharia-compliant banking products represent brand was developed following worldwide a rapidly growing segment of the consumer consumer research which found that, while financial industry. According to Standard people appreciate the value of international & Poor’s, Islamic banking has expanded by organizations and services, they question more than 10 per cent annually over the past the prevailing “one size fits all” global mod- decade. The World Bank reports that more el. Consumers want to be treated as individ- than 300 institutions are providing Sharia- uals, and to feel that companies care about compliant financial services. This includes them, recognize their needs and understand global banking groups such as Citigroup, what makes their community unique. HSBC, Deutsche Bank, Standard Chartered In support of its brand theme, HSBC’s and ABN AMRO, which have created Islamic global “Points of View” advertising cam- finance units, some of which, such as HSBC paign is based on recognizing and under- Amanah and Citi Islamic, are separately standing customers’ values and priorities branded. They offer a wide range of prod- in life so that HSBC can better serve them. ucts, such as loans and mortgages, insur- The campaign has evolved over the years, ance, mutual funds and bonds, which help with the most recent advertising focused investors and consumers conform to Islamic on real-life financial decisions that people tenets, including a ban on interest, intended make at key life stages, whether it is mar- to achieve greater social justice. In 2007, Ford riage, buying a first house, or backpacking Motor’s $848 million sale of Aston Martin around the world. to a Kuwait-based bank required Sharia- Another practical way that the bank aims compliant financing, and Caribou Coffee, the to serve the diverse needs of the global mar- second-largest specialty coffee chain in the ketplace is through HSBC Amanah, the global US, is owned by a Sharia-compliant private Islamic financial services division of HSBC, equity firm based in Bahrain. which develops Islamic financial products and Financial products aimed at other tradi- services for retail, corporate, institutional and tions are beginning to appear as well, includ- High Net Worth Individual customers. ing a Dharma Global Index launched in 2008 Reflecting its dedication to serving a and run according to Hindu and Buddhist diverse global customer base, HSBC also has principles, and several Christian-oriented a long-standing commitment to creating a socially responsible investment funds. diverse and inclusive environment in the workplace. In 2007, the bank launched a HSBC: diversity as central to a company’s Global People Survey to measure and track brand and culture employee views on a range of themes. On diversity, the 2008 survey showed that 70 HSBC is one of the largest banking and finan- per cent of employees feel that diverse per- cial services companies in the world, with spectives are valued, exceeding the “Best in more than 10,000 offices and 325,000 employ- Class” benchmark. ees in 86 countries and territories in Europe, An example of this work at the national Asia, the Americas, the Middle East and level is in India where, HSBC achieved a 10 Africa. HSBC offers a comprehensive range of point increase in its Global People Survey financial services to over 100 million per- score for diversity, reaching 77 per cent sonal, commercial, corporate, institutional, which meets the “Best in Class” benchmark. investment and private banking clients. One of the challenges HSBC faces is the With this scale and scope of operation size and reach of its worldwide operations. come cultural differences and geographic By placing respect for diversity at the core of challenges. Promoting intercultural exchange its business, HSBC believes that it is contrib- is therefore a key priority for HSBC. Under- uting both to its own success and that of its standing diverse perspectives is a core ele- customers and employees and the communi- ment of HSBC’s brand, heritage and culture. ties it serves. 46

Consumer Products holidays, the Chinese New Year, or the “iftar” meal during Ramadan. The Coca-Cola Company: marketing For Coca-Cola’s Eurasia and Africa Group, during Ramadan which covers a large number of countries with significant Muslim populations, Ramadan The Coca-Cola Company operates in more than represents a time of connection and optimism, 200 countries and territories with different when people try to live more positively, em- cultures, political systems, religions and his- bracing the human values of support, respect, tories. The company believes that it can only sharing and tolerance. As a result, Coca-Cola’s build a sustainable business if the communi- mainstream advertising and promotional cam- ties in which it operates are sustainable, and it paigns are accompanied by social and com- continually strives to do business in a way that munity activities, along with employee events, furthers multicultural understanding, and reflecting the important Ramadan values of enhances its reputation with all consumers. charity and sharing with family and friends. One of the company’s core beliefs is to add These activities include the organization of value through its brands and its people, and Ramadan evening festivities, the distribu- it puts a strong emphasis on engaging con- tion of gifts to mothers in particular, and the sumers in a way that is culturally-sensitive provision of food and beverages and charitable and that builds trust with the communi- donations (zakaat) for the poor and needy. ties in which it operates. As Ahmet Bozer, the President of the Coca-Cola Company’s Tourism: Facilitating Cross-cultural Eurasia and Africa Group, notes, “success- Experience fully operating in a multicultural way is the In his opening remarks at the International oxygen of our company” Conference on Tourism, Religions and Dia- At Coca-Cola, diversity is a business logue of Cultures, held in Cordoba, Spain, strategy that is a source of innovation and in October 2007, the Secretary-General of creativity. As a consumer facing company, the World Tourism Organization (UNWTO), the diversity of the company’s workforce Francesco Frangialli, spoke of tourism’s has to reflect the diversity of the societies in potential to contribute to mutual respect which it does business. and understanding among peoples. “Like the By way of example, the Eurasia and world’s great religions, tourism carries with Africa Group’s leadership team comprises 17 it the values of exchange… and of tolerance”. managers with 12 different nationalities and He pointed to the Qur’an, which explains a diversity of gender, race and religion. Simi- “how we learn through travel by discovering larly, the company’s Operating Committee the differences that exist between people comprises 10 senior executives with 7 nation- and places, and that in doing so we are able alities. The success of Coca-Cola’s business in to place things into better perspective”. over 200 countries ultimately depends on its Mr. Frangialli suggested that tourism ability to connect with a multitude of com- promotes peace in two ways: first because munities, cultures, geographies, religions “it is impossible to feel enmity for some- and languages. And that is only possible if its one you know personally, or that you have own workforce reflects that diversity. hosted or visited, and whose concerns you From Ahmet Bozer’s perspective, “In order have come to understand through direct to be successful in a multicultural environ- contact” and, second, because tourism busi- ment, you need to demonstrate respect, nesses and destination communities have sensitivity, open mindedness, and a genu- a common interest in shared development ine interest in understanding differences projects that promote economic growth between people”. while preserving the environmental, social The brand values and optimism inherent and cultural values of destination commu- to the brand of Coca-Cola allow the company nities on which the tourism is based. The to work across cultural differences and to role of tourism in promoting international connect meaningfully with consumers. One understanding, peace and prosperity has example of this connection is the celebration also been recognized by the UN General As- of occasions that bring communities togeth- sembly (A/RES/56/212). er, such as the Thanksgiving or Christmas 47 48

Article 1 of the UNWTO Global Code of in advancing UN system goals of sustainable Ethics for Tourism, Tourism (GCET), endorsed development in respect of tourism and prag- by the UNWTO General Assembly in 1999 matically dedicated to helping tour-operating and then officially recognized by the UN businesses design and conduct environmen- General Assembly in 2001, expresses the tally, economically and socially sustainable tourism sector’s adherence to these prin- tours, supporting healthy destination com- ciples: “The understanding and promotion munities, which are critical to their success. of the ethical values common to humanity, Tour operators act as intermediaries with an attitude of tolerance and respect for between visitors and local destination com- the diversity of religious, philosophical and munities and hence have a central role to moral beliefs, are both the foundation and play in fostering informed, respectful and the consequence of responsible tourism.” The mutually beneficial relations between them. Code goes on to call on visitors and host com- The CEO of each TOI member company signs munities to learn about and show respect for a Statement of Commitment to Sustainable each other’s traditions. Tourism Development, which, inter alia, com- The tourism industry has taken some mits members to conserve cultural heritage, steps to put these principles into practice in respect the integrity of local cultures and the context of their sustainability initiatives. collaborate with local communities. Founded in 2000 with the backing of In its projects with destination communi- United Nations Environmental Programme ties, TOI works to: establish close links with (UNEP), UNESCO and UNWTO, which cur- all stakeholders in the community, based on rently hosts the Secretariat, the Tour Op- open and transparent dialogue in which the erators’ Initiative for Sustainable Tourism De- vision of the destination community is the velopment (TOI) is an association of leading primary focus; ensure compliance with all international tour operators fully engaged applicable laws and regulations; combat all il- 49

legal or exploitative forms of tourism; develop TLB Destinations: encouraging travellers awareness and active involvement of visitors to learn about the communities they visit in the protection of the natural, social and cultural environment; and encourage better TLB Destinations, founded in 1996, is a understanding and mutual respect between Lebanon-based tour operator that invites host communities and visitors. travellers to experience the cultural, his- Below are several examples of initiatives torical and natural diversity of the Middle by individual TOI member companies aimed East. The company has a broad approach of at ensuring that their products facilitate ensuring that its activities benefit the local improved cultural understanding between community economically, environmentally, visitors and host communities. socially and culturally. To meet the specific challenge of combat- TUI: building professional relationship ing misperceptions some visitors have about between small local suppliers and visi- the region, the company makes a conscious tors in Sri Lanka effort to build bridges of understanding and cooperation between visitors and local com- TUI Travel PLC is Europe’s largest travel communities. TLB works exclusively and closely pany. TUI UK supports the Travel Founda- with local suppliers, including their tour tion, an independent UK charity that aims to guides, who are from various cultures and help the outbound travel industry manage religions in the destination communities and tourism more sustainably. are trained in how to manage cross-cultural One problem that travellers and local issues. Visitors are encouraged to make communities face is the sometimes negative overnight stays in local homes and to support experience that arises from the interac- local community projects, e.g. through the tion between visitors and local vendors, purchase of local handicrafts from women’s resulting in disrespect and stereotyping on cooperatives in Jordan. They also undertake both sides. To counter this phenomenon educational activities, holding awareness-rais- in Sri Lanka, the Travel Foundation sup- ing events for visitors about local heritage and ports Learning Involving and Nurturing traditions. In these ways, TLB ensures that the Community (LINC) on the LINC Project experience is positive for both sides, increas- Beruwela, where a pilot project at one resort ing mutual understanding and respect. involved 72 micro-enterprise beach opera- This approach has helped TLB ensure that tors and local hotel staff and management it can continue its operations based on positive in a six-month process of trustbuilding relationships with host communities while of- and skills-development. In addition to six fering a unique experience for its customers. months continuous counselling, one month of intensive training was provided for the Kel 12: conducting tours and promoting beach operators in such areas as customer mutual understanding relations and service standards; cross-cultural management; guiding techniques, and Kel 12, based in Italy, was “born” in the Sa- health and safety. hara 25 years ago and is a leading operator of The aims of the project were to improve tours in the Sahara and many other “off-the- the experience of visitors, to eliminate beaten-track” routes around the world from physical and mental barriers that restrict the Middle East to Tibet, South America and opportunities for local communities depen- the Pacific. With the mission of “satisfying dent on tourism, and to establish cordial the curiosity of travelers”, the company is relations based on mutual respect between committed to conducting its tours in a way the formal (local and international) and in- that promotes mutual understanding. Kel formal sector of the tourism industry. As a 12 works with local guides and anthropolo- result of the programme, tourist complaints gists to shape and conduct its tours, and it at the pilot resort are down to zero, the lo- distributes an Ethical Chart to all customers cal beach operators have reported a 20- to along with their travel documents which, 30 per cent rise in income, and a village inter alia, emphasizes the importance of open fund has been set up to provide emergency and respectful attitudes when encountering funds to local families in need. faraway cultures, to ensure that both sides are enriched by the experience. 50

2. Promoting Global Sustainable Business Principles across Cultures

International companies typically have wide- the benefits of adopting sustainable business spread networks of suppliers that are highly practices are not always self-evident. diverse in terms of size and business culture. To address this issue, in 2006, TITAN was Sustainable supplier management includes one of four companies (together with Hewl- promoting supplier diversity and conducting ett Packard, Volkswagen and L’Oreal) that relationships with cultural sensitivity. At the spearheaded the Supply Chain Laboratory, an same time, these relationships present an innovative project aimed at finding practical opportunity to encourage sustainable busi- ways to promote responsible business prac- ness practices, including supplier business’ tices among the companies’ extensive and respect for cultural diversity. As discussed diverse networks of suppliers. in Part I, one cross-cultural challenge for In the first phase of the project (2006- companies is ensuring that its sustainability 2008) TITAN, in collaboration with more principles and programmes are relevant and than 30 other companies around the world, appropriate in various cultural contexts. conducted an investigation of the perspec- Below is an example of an initiative aimed at tives and needs of its suppliers in this area meeting these challenges through culturally- – analyzing supply chain audits and holding sensitive promotion of sustainability in the local workshops and focus groups. They then supply chain. created materials and tools to “translate” global sustainability principles into practi- TITAN Group: promoting global sustain- cal, user-friendly, culturally appropriate and ability principles across a culturally colloquial local language materials and tools diverse supply chain for use by producers and suppliers in working together on these issues. Founded in 1902, TITAN Group is an inde- In December 2008, these materials and pendent multiregional producer of cement tools were launched in a new interactive and other building materials, headquartered web-based Portal for Responsible Supply in Greece, with production and distribution Chain Management (www.csr-supplychain. operations in 12 countries. Committed to org). The Portal will be supplemented by responsible business practices, the company other activities to help ensure local rel- was the first in Greece to sign up to the evance, including: a series of national “road United Nations Global Compact. shows” to help local suppliers identify their One way that international companies can own sustainability priorities and processes, have a positive impact on society is to help a mentoring programme, and a supplier task instill sustainable business practices not just force that will evaluate how the Portal is in their own operations, but also in those of used and recommend future work. their networks of suppliers. The challenge Through this project, TITAN and its is how to make global sustainability prin- partners believe that they are taking an ciples – such as respect for human rights and important step in meeting their companies’ protection of the environment – meaningful sustainability goals by fostering cross-cul- and relevant to the vast array of small- and tural understanding and cooperation with medium-size enterprises (SMEs) in the dif- suppliers around the world on sustainable ferent countries and cultural contexts that business practices. make up these networks. TITAN, for example, has some 10,000 suppliers, mostly SMEs, in countries in Southeast Europe and the Middle East. For these businesses, the global language of “corporate social responsibility” (CSR), and 51

3. FOSTERING COLLABORATIVE BUSINESS PARTNERSHIPS IN AREAS OF CONFLICT

In addition to innovative marketing initia- During the period 2000-2002, Mercy tives targeting diverse customers, and cultur- Corps brought Kosovar Serb and Albanian ally sensitive promotion of sustainability businesspeople together in a number of co- principles with diverse suppliers, cooperative operative ventures, with the aim of breaking intercultural relations can also be promoted down the negative stereotypes and preju- in the marketplace through innovative busi- dices that each group had of the other, and of ness partnerships in conflict or post-conflict ensuring that inter-ethnic tolerance and co- situations. Joint business ventures that are operation were integrated into the economic undertaken across conflict divides can serve development process. as bridges between communities that have Projects included, inter alia, assisting otherwise ceased to interact. Sometimes this mills producing animal feed run by Kosovar is the indirect result of business activities Serbs to establish links with buyers and raw undertaken primarily for profit. Sometimes material suppliers run by Kosovar Albanians; entrepreneurial collaboration, or business and facilitating a system for Kosovar Serb dialogue, is deliberately encouraged as a dairy farmers to sell to Kosovar Albanian means of laying the foundations for peace. dairy-processing facilities that both sides felt The NGO International Alert studies and was secure and fair. They also held several supports these activities. International Alert’s three-day conferences of agribusiness and 2006 publication Local Business, Local Peace: the peacebuilding, which included trust- and Peacebuilding Potential of the Private Sector in- confidence-building activities such as active cludes a chapter on “Local business as connec- listening – opportunities to exchange per- tors: rebuilding relationships across conflict sonal experiences of the conflict and social divides”. The text and case studies show how, events in cultural settings, such as an Alba- aside from generating economic growth, joint nian restaurant or an Orthodox monastery. business activity and dialogue across conflict In the view of Mercy Corps, “The re- divides can support the “relational dimension lationship between buyer and seller or of peacebuilding [fostering] peaceful relation- producer and processor all involve human ships and mutual confidence.” interactions that are at the center of the In conflict situations, when reduced so- peacebuilding process.” cial, cultural, economic and political interaction create space for prejudice and mistrust, Business for Peace Alliance: trust-build- business can sometimes be the first to open ing through business dialogue channels for “sustained peaceful interaction with ‘the other side’”, allowing individuals to In addition to business activities themselves, increase their understanding of each other’s trust can be built though business dialogue, perspective and, over the long term, regain as in the context of business associations. confidence and trust in each other. In Sri Lanka in 2002, after lengthy consul- Below are two examples of activities tations and with the support of International profiled by International Alert, in Kosovo Alert and UNDP, business members from and in Sri Lanka, where business ventures regional chambers of commerce across the and business dialogue have fostered peaceful island established a network, the Business for relations across conflict divides. Peace Alliance, to promote trust-building and joint initiatives among Tamil, Sinhalese and Mercy Corps: defusing stereotypes Muslim businesspeople. Regular bimonthly through business cooperation in Kosovo meetings and visits to each other’s chambers created “a strong spirit of fellowship and on- Mercy Corps is an international NGO that going ideas for joint ventures and technology works to alleviate poverty through fair transfer programmes”. socio-economic development. In Kosovo, it Illustrating the impact of this kind of dia- has focused on creating linkages between logue, one member of the group recalled: entrepreneurs to help communities learn to “It took time to understand each other’s experi- coexist by interacting in mutually beneficial ences. We had the feeling that they were terrorists. ways, as they did before the conflict. Their appearance intimidated us. There was a 52

“As groups learn to work together, cultural stereotypes are shattered and the former enemy is demystified and humanized.”

—Daniel Lubetzky, Founder and Chief Executive Officer, PeaceWorks

feeling of anger that these people had caused such PeaceWorks: a ‘not only for profit’ devastation…but then we found that we could sit health food company and talk with them. Within seconds, we realized there were common problems.” Established in 1994, PeaceWorks Holdings From these early beginnings, the Business LLC is a US-based gourmet and healthy foods for Peace Alliance incorporated in 2006 as a company that pursues profit and peace by not-for-profit company owned by 25 regional fostering business ventures between neigh- Chambers of Commerce. Similar groups have bours striving to coexist in conflict regions. been established in other areas, such as the The company creates and purchases from Caucasus Business Development Network in cooperative business ventures between food the South Caucasus. producers and manufacturers operated by Finally, International Alert also records Israelis, Palestinians, Egyptians, Jordanians, how market spaces – typically informal and Turks, Indonesians and Sri Lankans. created spontaneously on borders of a politi- The PeaceWorks website states the idea cal divide as a way of securing a living – that guides it: “Mutually beneficial economic play a vital role in peacebuilding by creating initiatives can create good relations between “neutral spaces” that require predictable and rivaling peoples in the same way that busi- trustworthy behaviour from all participants. ness partners anywhere profit from coopera- For example, in markets in Nigeria and tion in today’s marketplace. In this manner, the Caucasus traders and other businesses cooperative business ventures that capitalize have acted as “connectors”, building social on the strength of each partner can enable capital and networks between ethnic groups, the conditions necessary to achieve long- sometimes over generations. In several lasting cultural understanding.” instances, traders even protected members The company’s flagship joint venture, of rival ethnic groups in the market during which produces a line of tapenades, involves violent outbreaks; the ties that enable this to Israelis, Palestinians, Egyptians and Turks take place starkly contrast with the conflict trading together. It also produces a range of outside the market. sauces that are a cooperative venture among Below are two further examples of how Christians, Buddhists and Muslim producers business can be used to bridge communi- and manufacturers in Indonesia. ties in conflict – one in which a for-profit In 2000, when an outbreak in violence led company has made fostering peace part of to travel restrictions for Israelis to the West its business mission, and one in which a civil Bank, its local joint venture’s trading part- sector organization dedicated to peacebuild- ners who were Palestinian citizens of Israel ing is pursuing this aim in part through acted as aggregators helping to gather olives encouraging entrepreneurial collaboration and olive oil from their Palestinian counter- and capacity-building. 53

parts in the West Bank. Over the course of 15 years, the partners have continued to find ways to preserve their relations, allowing PeaceWorks to stay in business, retain most employees and grow in size, and sustain a long-lasting partnership that has fostered understanding and ties among the people involved. The company believes that this collaboration is a testament to the power of business to forge strong partnerships, and to how workforce diversity can be a great asset in regions with conflict.

The Peres Center for Peace Business and Economics programme: nurturing peaceful relations through cross-border business ventures

The Peres Center for Peace is an independent, non-profit, non-partisan NGO founded in 1996 to build peace through socio-economic cooperation and development, and people- in various sectors that could be unleashed to-people interaction. Believing that business through greater cross-border economic cooperation is a core part of the “infrastruc- cooperation. Such research is presented to ture of peace”, the Peres Center Business and local, regional and international decision- Economics Department works mainly with makers, in order to encourage policy that the Palestinian and Israeli business communi- facilitates better trade conditions. ties, and also with the business communities in Egypt and Jordan, on integrated initiatives • Tourism has a special role to play in con- to foster business links that will contribute tributing to local economic growth and to economic development while advancing cross-border cooperation, and in facilitat- cooperation and mutual understanding. This ing dialogue and intercultural understand- work includes several types of activity: ing. In 2004, the Tourism4Peace Forum was established, with Palestinian, Israeli, • Initiating business-to-business activities, Jordanian and Egyptian tourism profes- bringing Palestinian and Israeli profession- sionals, to discuss common issues and als in specific sectors together (e.g. agricul- cooperate on projects, including the devel- ture, tourism, information technology) in opment of joint marketing activities. fora where they can look at opportunities for working together. The Peres Center has also supported the establishment of the Israeli-Palestinian • Capacity-building and training pro- Chamber of Commerce which held its first grammes, offering skills-building work- conference in early 2009, with the par- shops and seminars that enhance the ticipation of over 60 Israeli and Palestinian capabilities of Palestinian businesspeople. businesspeople. In some cases, support is provided by Through these activities, the Peres Center international companies, as in a training has repeatedly observed that Palestinians workshop conducted by Intel for Palestin- and Israelis are open to working together ian technicians on systems maintenance and, given how the region’s economies are for large institutions such as hospitals. intertwined, that cross-border business and economic activity is mutually beneficial. • Research on economic policy issues affecting the business environment e.g. a study entitled “Untapped Potential”, document- ing the potential business opportunities 54

“Promoting understanding between different cultures, languages, religions and nations has always been a challenge to our society. It will therefore continue to be an important goal for international corporations to encourage individuals and institutions worldwide who provide these impulses towards tomorrow’s open society.”

—Konstanze Carreras, Social Responsibility, Corporate Communications, BMW Group 55

The Community: Actively Promoting Intercultural Understanding in Society

In addition to their business relationships with employees, business partners and customers, companies must manage their relationships with communities and governments and address environmental, economic and social issues of mutual interest. There are several ways that companies can promote intercultural understanding in the wider community: through social investment or philanthropic support for social programmes that target intercultural understanding, through managing the impact of their core business in a way that is sensitive to local cultures, and through advocating with decision-makers for policies that will encourage positive intercultural relations.

1. INTERCULTURAL UNDERSTANDING AS A CORPORATE SOCIAL INVESTMENT PRIORITY

As part of their philanthropic or corporate BMW Group: promoting intercultural responsibility programmes, companies learning create or support programmes aimed at improving the lives of people in communities The BMW Group is a globally leading where they operate. More and more, com- producer of premium automobiles, with a panies are taking a “strategic” approach to worldwide production and marketing net- community giving, making targeted “social work including 17 production facilities in six investments” to address critical community countries. needs that relate to the company’s business Intercultural learning has been an im- and sustainability priorities, and working portant element of the BMW Group’s social in partnership with government and civil activities for more than a decade. society groups. A few companies have made The Group’s activities in this area, tar- intercultural understanding a core theme of geting adults and young people, currently their sustainability or philanthropic vision include two core programmes, launched and programmes. together in 1997: the BMW Group Award for Intercultural Understanding and the LIFE collection of intercultural learning materials. 56

“Through Mondialogo, Daimler is displaying what has been moving its employees for years and what the company really cares about: the dialogue and exchange between cultures for a peaceful future.”

—Dieter Zetsche, CEO, Daimler

The Award for Intercultural Learning cultural learning by scientists and educators, rewards “new ideas and exemplary proj- which is freely available to the public. ects that address these issues and make an The central task of all these programmes innovative contribution to international is to address the challenge of perceiving for- understanding”. The contest is held each eign people and cultures as normal everyday year, with submissions invited from the pub- phenomena in our modern society. lic on a wide range of topics, and proposals The Group believes that the worldwide submitted from around the world. Winners response to the Award, along with the highly are selected by a jury representative from positive response of teachers to the LIFE mate- the fields of science, research and education. rials, testifies to the value of the programme. Below are a few examples of projects which have won the award in recent years: Daimler: ‘Mondialogo’ partnership with UNESCO: promoting intercultural un- • 2004 – The Global Studies Programme: derstanding and exchange among young A project by three professors from Ger- people around the world many, India and South Africa, which gives students a fascinating and highly instruc- Daimler AG is a globally leading producer tive opportunity to develop new perspec- of premium passenger cars and commercial tives through periods of study in different vehicles in the world. The company states: countries. “As a globally operating company with more than 270,000 employees worldwide, Daimler • 2005 – Learning together, Living to- appreciates the importance of open relation- gether: A Pioneer Model for Integrated ships free of prejudices across all language and Arab-Jewish Schools: Unique integrated cultural barriers. Such relationships are crucial bilingual (Hebrew-Arabic) schools which to our business success.” help to overcome the estrangement be- The Mondialogo initiative is a partner- tween the two communities that has built ship with UNESCO that seeks to encourage up over generations. young people everywhere in the world to experience intercultural dialogue as an en- The core of the LIFE program is a continually richment of their lives. The initiative consists updated collection of theoretical and practical of two international competitions for high ideas and materials on the subject of inter- school and college students, as well as an Internet portal in five languages. 57

• The Mondialogo Schools Contest is an • The Mondialogo Internet Portal invites opportunity for high school students to young people to “Join the intercultural learn to work together with students from community” to exchange views and cul- another continent. Schools worldwide are tural insights. The Portal has more than invited to form a team and are assigned 38,000 registered users in 170 countries. a partner team from another country, with whom they work on a project that is The level of participation in these pro- submitted for appraisal by an international grammes and the high quality of the contest jury. Since 2003, the Mondialogo Schools entries are a testament to the power of Contest has involved more than 96,000 fostering global dialogue. Through them, students from 144 countries, making it the Mondialogo represents an important element largest worldwide school contest in sup- of Daimler’s contribution to the UN Millen- port of intercultural dialogue. nium Development Goals.

• The Mondialogo Engineering Award calls CISCO: Dialogue Café on engineering students from developing and industrialized countries to work CISCO – a leading communication and col- together in teams to develop sustainable laboration company is partnering with the project ideas that address the UN Mil- Alliance of Civilizations to launch Dialogue lennium Development Goals. In its third Café. The project is based on a radical but round (2008/2009), the contest has reached a simple idea: ordinary people have more in record number of participants: 932 project common than not and given the opportunity proposals were submitted from 94 coun- they will explore their common interests tries, 123 more submissions than in the even across radical geo-political divides. previous round (2007). 58

“Through media, younger kids can understand another country. They may not be able to pinpoint it on a map, but they understand there is a slightly bigger place than just their block, and that there are other people that are very different sometimes than they themselves may be.”

—Gary E. Knell, President and CEO, Sesame Workshop

1 life-size imaging on high defini- Dialogue Café will link via Telepresence1 Sesame Workshop: Respect & Under- tion video screens, offering both a diverse group of citizens from around the standing Initiative – starting early to the visual and aural impression world, creating a new space for social innova- foster global citizenship that people who may be on the tion and exponentially expanding our ability other side of the world are actu- to solve problems and innovate as a global Sesame Workshop, the non-profit educa- ally sitting in the same room as community. It will help to “change people’s tional organization behind the television each other. perception of each other by providing oppor- show Sesame Street, has aimed to make a tunities to improve understanding of culture meaningful difference in the lives of chil- and between cultures”. dren worldwide by addressing their critical The Dialogue Café development is being developmental needs using media. Sesame supported by an international multi-sector Workshop receives funding from companies consortium of partners, committed to and corporate foundations such as American exploring this new frontier of connectivity Greetings and McDonald’s. and cross-society collaboration, enabled by Respect for cultural diversity has been a cutting-edge technology and most impor- central aspect of Sesame Workshop program- tantly driven by ordinary people. Cafés have ming since it began in 1968. long served as breeding grounds for great In addition to its own “flagship” pro- debate and grand designs. grammes, the organization produces 20 local The Café proof of concept is starting with co-productions around the world that are tai- research on pilot cafes in New York, London, lored to the culture and unique educational Istanbul and the Middle East. needs of the region. 59

One of its featured programming themes is Respect & Understanding. The website introduces this aspect of their programming: “Our world is full of amazing diversity. Trav- el the globe and explore different cultures and traditions, both near and far, that will help your child appreciate and understand the world.” Under this priority, programmes are developed in countries around the world that foster international understanding among children. Some examples:

• In Northern Ireland, Sesame Tree fosters sharing and openness among children, encouraging them to ask questions candidly, even about difficult or sensitive topics.

• In Indonesia, Jalan Sesama brings people together despite their differences, celebrat- ing “unity through diversity”.

• In Mexico and much of Central and South America, Plaza Sésamo introduces children to the many thriving cultures of Latin America.

• In India, Galli Galli Sim Sim builds bridges across varied religions and socio-economic levels.

In 2004, Sesame Workshop and the Merrill Lynch Foundation joined forces to address the fact that there were “very little media available to children that would help them make sense of our ever-changing world”, by launching a project to develop a programme that would “answer the need for a child- oriented global awareness curriculum”. The result was Panwapa, a multimedia initiative that helps children “gain empathy for others while encouraging a broader international perspective”. Offered in five languages, the Panwapa website lets children create custom avatars and safely “travel” to visit other Panwapa Kids around the world, as well as watch interactive movies, learn words in other languages and go on international treasure hunts. Based on the enthusiastic response to the program from teachers, Sesame Workshop has developed a set of curriculum materials to help them incorporate it into classroom lessons. 60

“Every view of the world that becomes extinct, every culture that disappears, diminishes a possibility of life.”

—Octavio Paz, winner of Nobel Prize in Literature, 1914-1998

American Express Partners in Preser- the world by funding conservation while vation: preserving the world’s diverse promoting sustainable tourism practices: cultural heritage opening up newly restored historic areas; improving movement and overcrowding at sites; American Express is a leading global pay- studying the impact of tourism on communi- ments network and travel company, founded ties; creating new visitor centers with high- in 1850. tech educational facilities; and implementing As one of the world’s largest travel environmentally responsible projects. companies, American Express realizes the The company also supports organizations importance of preserving cultural heritage and projects that preserve or rediscover im- and historic sites for future generations. portant cultural and artistic works – from Cultural heritage forms our individual, local dance, theater, music, film and the visual and national identities, and shapes relation- arts – in order to provide access and enjoy- ships with our neighbours and communities ment for current and future audiences. The around the world. Historic preservation has emphasis is placed on preserving works that therefore been a cornerstone giving theme represent a range of diverse cultures. of the company since the early 1980s, with One example is the company’s support for more than $10 million contributed over the the Associacion Civil RESPONDE in Buenos past 10 years to help preserve more than 100 Aires, Argentina. In Argentina, 40 per cent historic sites in 62 countries. of small rural towns are in danger of disap- With heritage sites receiving more visitors pearing due to the migration of their inhab- than ever, tourism has become the lifeblood itants to urban areas in search of work. The of many iconic sites around the world and programme works to slow and reverse this of the communities where they are located. trend by encouraging economic and social Enhancing the visitor experience at these development within rural towns. Under the sites while protecting and preserving them is programme, a Socioeconomic-Cultural Cen- critical for their survival. ter is set up in each selected town and the Therefore, in 2006, the company extended community is organized in the development its historic preservation efforts by partner- of sustainable rural tourism programmes. ing with the World Monuments Fund on the The aim is to create new economic drivers Partners in Preservation programme. The pro- that will revitalize and preserve each village gramme helps preserve historic sites around for generations to come. 61

Silk Road Project: intercultural under- also conducts residencies with leading standing through artistic exchange universities and museums to promote cross- cultural and interdisciplinary interaction The Silk Road Project is a not-for-profit with students and faculty. Its overall vision artistic, cultural and educational organiza- is to “connect the world’s neighbourhoods tion founded in 1998 by the cellist Yo-Yo by bringing together artists and audiences Ma. The Project takes its inspiration from around the globe”. the historic Silk Road trading route network The Project’s activities encompass artistic that stretched from the Mediterranean to collaboration, performance and education. the Pacific from the first millennium B.C.E. The Silk Road Ensemble is a collective of in- through the middle of the second millenni- ternationally renowned musicians, compos- um C.E., linking diverse cultures and peoples ers, arrangers, visual artists and storytellers and promoting an unprecedented sharing of who collaborate on a diverse range of musi- ideas, art, science and innovations. cal and multimedia projects, and present Inspired by this age-old tradition of innovative performances. cross-cultural exchange, the Project pres- In addition to support from individuals ents musical performances, leads workshops and foundations, the Silk Road Project has for students and develops new musical and worked with corporations including The Ford multimedia works by composers and ar- Motor Company, American Express, Mikimo- rangers from around the world. The project to, and Morgan Stanley. 62

2. Building Trust with Local Communities

Another way that a company can promote Nation that outlined principles governing intercultural understanding in society is by the relationship, including trust and respect managing the impact of its core business in a for the Wabigoon culture. This has, in turn, way that is sensitive to local cultures. led to a growth in the community’s logging initiatives, the provision of seedlings for the Weyerhaeuser: building long-term rela- company’s forest renewal programme, and tionships with Aboriginal communities the development of a local supply distribu- in Canada tion company that provides it with cleaning products. Weyerhaeuser Company is one of the world’s largest forest products companies, with offic- Endesa S.A.: Pehuén Foundation – foster- es or operations in 13 countries and custom- ing social development based on respect ers worldwide. To carry out its business, the for local culture in Chile company operates mills, develops products, manages forests and conducts trade. Endesa is Spain’s largest electric utility and Canada is a very important market for the leading international private electricity Weyerhaeuser, and Aboriginal communi- company in Latin America. The company’s ties are an integral part of the communities approach to sustainability in its Latin Amer- where it operates. Weyerhaeuser harvests a ica operations is based on an awareness of significant portion of the annual allowable their responsibility to provide a basic public cut in Canada, much of which is from public service in ways that are creatively and sensi- land and in areas where Aboriginal groups tively adapted to meet local needs. assert they have rights or title. In addition, Following extensive stakeholder consul- the company draws on these communities tation, Endesa has identified integration (or for employees, suppliers, customers and “rooting”) of the company into the fabric of contractors. local communities as one of two main chal- Recognizing that the needs and perspec- lenges, together with combating climate tives of Aboriginal people are therefore change, facing the company over the next relevant to many of the company’s decisions, five-year strategic planning period (2008- the company has adopted a policy and series 2012). of initiatives designed to build long-term One programme designed to meet this positive relations with these communities. challenge is located in Chile. In 1992, Ende- A critical element of the policy is to sa began construction of the Pangue hydro- “acknowledge Aboriginal cultures, heritages electric facility in the Alto Bio-Bio region of and traditions, respect their rights and un- Chile. To help ensure that the local indige- derstand Aboriginal points of view”. Initia- nous Pehuenche community can participate tives undertaken include increasing direct in the benefits of the project, the company employment and retention of Aboriginal established the Pehuén Foundation, led by a peoples in the workforce, supporting con- consultative board of representatives from tract opportunities and purchasing a level of the company, community leaders and other goods and services from Aboriginal busi- local stakeholders, to help provide the com- nesses, investing in education and training, munity with tools for economic, social and enhancing interaction with local commu- cultural development. Along with assistance nity groups and leaders to promote mutual and training in the areas of infrastructure respect, and inviting Aboriginal input into micro-enterprises, education, agriculture business plans. and tourism, the Foundations helps to The programme has helped to establish support the community’s cultural identity mutually beneficial cooperation between and build capacity in the area of cultural the company and Aboriginal communities heritage management. in Canada. Several years ago, in Western Activities include, for example, the build- Ontario, for example, Weyerhaeuser signed ing of a traditional Pehuén home where a letter of intent with the Wabigoon First people can appreciate and learn traditional 63

construction and social customs, and the publishing of books of traditional stories. Training is also offered to develop bilingual teachers of Pehuén culture, and funding is provided for creating traditional clothes and musical instruments. In this region, where natural and cultural heritage are deeply linked, the Foundation also supports the development of sensitive tourism, providing tourists with camping areas that allow them to experience both the natural and the cultural richness of the region, supporting respectful contact with Pehuenche’s communities and their traditional rituals and customs, and providing training for local tourist guides. The company believes that by supporting local economic and social development that is based on respect for the local culture, it has itself gained the respect of the local community, contributing to the long-term sustainability of its operations and achievement of its business objectives.

3. Advocacy: Engaging in Policy Dialogue to Encourage Intercultural Understanding

While this is a sensitive and more limited statements to media and political leaders area of activity, in some cases companies also that became very influential and strength- engage individually or collectively in policy ened pro-settlement political forces. In post- dialogue and advocacy with governments to conflict situations, the private sector has also address issues that threaten the society and supported, with varying degrees of success, business environment. truth and reconciliation commissions in There are a number of examples of how South Africa, Chile and Guatemala. the private sector has advocated for the In one example that does not relate to a peace and improvement of relations between specific violent conflict, Business for Dip- communities in conflict. In the Middle East, lomatic Action – whose aim is to help im- the Peres Center for Peace lobbies decision- prove relations between Americans and the makers for the creation of a more open re- rest of the world – has presented business gime for trade, investment and movement of community perspectives on public diplomacy people in the region to support cross-border issues to the US government and is support- business and development. In Sri Lanka, the ing a study by the Brookings Institution to Business for Peace Alliance also advocates plan for a public-private interagency public with political leaders for peacebuilding diplomacy center. measures. In Cyprus in the late 1990s and If cross-cultural polarization is an impor- early 2000s, the Brussels Business Group tant challenge facing society and business, the – a group of high-level Greek and Turkish private sector has an opportunity to use its Cypriot businesspeople who gathered to dis- cross-cultural experience to advocate for and cuss issues of shared concern pertaining to collaborate with governments on initiatives to the Cyprus conflict – made a series of joint promote intercultural understanding. 64

Part III Conclusions and Looking Forward

Valuable feedback on the report was received and inclusion in their business operations. To from companies, intergovernmental orga- promote these issues in the marketplace, some nizations and civil society organizations, companies have already utilized their core as well as discussions from a special work- competencies. Contributions from business ing session organized during the Alliance in improving stakeholder relations through of Civilizations Second Forum in Istanbul culturally sensitive marketing practices and (April 2009). It appears that businesses are dialogues have proven to be successful at the grappling with the same cross-cultural community level. challenges that governments and society are Business representatives, the UN Alliance facing. To face these challenges, a number of Civilizations and the UN Global Compact of companies are developing concrete, in- recommend seizing the opportunity to pro- novative responses to meet these challenges mote intercultural understanding and dia- and to foster understanding and coopera- logue on the sustainability agenda. This will tive intercultural relations in the business improve collaboration among governments, environment. They are working to create business and civil society, in addressing envi- inclusive environments in the workplace, to ronmental, economic and social challenges. understand diverse customers, to cooperate There is also a need to identify best practices more effectively with suppliers and venture in fostering intercultural understanding partners in different markets, and to reflect and dialogue and sharing those practices the cultural values of communities in which among a wide range of companies across the they operate. A few companies have even globe. In addition, business representatives made intercultural understanding a theme of recognising the critical role of education sug- their sustainability vision and social invest- gested that governments and academia could ment programmes. support better educational programmes for Some common themes emerge about the cross-cultural learning as well as exchange role of business in promoting intercultural programmes for young people. understanding. Because of its bottom-line im- The UN Alliance of Civilizations and the perative to bring people together to achieve a UN Global Compact were inspired by the common goal, business can act as an impor- business community’s interest and support tant “connector” across divides, providing a in establishing an affinity group composed of forum for overcoming stereotypes, “demysti- business, civil society organizations, and busi- fying” the other through dialogue, building ness associations. This group would provide trust and creating a sense of common pur- partners with a platform for discussing rel- pose. Because of the growing need to manage evant private sector activities, opportunities diversity in a globally interconnected world, for partnerships, and sharing best practices. business is in some cases leading the way in learning to value difference and to create inclusive mindsets that reflect the perspectives of its diverse employees, customers and other stakeholders in society. As highlighted during the Istanbul Forum, a number of companies provide cross-cultural training programmes and develop human resources policies in order to integrate diversity 65

Acknowledgements

This report would not have been possible without the valuable contribution of many individuals who provided input and feedback. We would especially like to thank the representatives of the companies and organizations whose examples are featured.

On behalf of the United Nations Alliance of Civilizations, Jean-Christophe Bas, Strategic Partner- ships Manager, and Anna Pavlyuchenko, Projects Support Officer, were the main contributors.

On behalf of the United Nations Global Compact, Melissa Powell, Head of the Strategy and Partnerships, and Da Woon (Donna) Chung, Issue Analyst, were the main contributors.

The report was made possible by the support of the United Nations Alliance of Civilizations and the United Nations Global Compact. The United Nations Global Compact wishes to acknowledge the financial contribution of the Foundation for the Global Compact.

About the Author

Cly Wallace Aramian is a London-based consultant in strategic communications. Over the past 20 years she has been helping a wide variety of companies to formulate and execute public affairs and sustainability programmes internationally, including in the consumer goods, energy and tourism sectors. She has a strong background in international public policy and cultural heritage conservation issues and a special interest in public-private partnerships to promote cross-cultural exchange and understanding. 66 67

PHOTO CREDITS Cover photos (from left to right) © Ryan Heffer- nan / © Manoocher Deghati/IRIN / provided by Endesa / © Christopher Herwig Page 4 © Joao Araujo Pinto (top image) Page 4 © Christopher Herwig (bottom right image) Page 7 © EFE/JJ Guillén Page 9 © EFE/JJ Guillén (both images) Page 10 © UN Alliance of Civilizations (both images) Page 13 © Jennifer Taylor Page 15 © David O’Connor Page 17 © Sarah Hunter Page 19 © Manoocher Deghati/IRIN Page 27 provided by Tanenbaum Institute Page 29 provided by Manpower Inc. Page 31 © Christopher Herwig Page 32 provided by TAQA Page 35 provided by Newmont Page 36 provided by Deloitte Touche Tohmatsu Page 39 provided by PBSP Page 43 provided by Microsoft Page 44 provided by HSBC Page 47 provided by Coca-Cola (both images) Page 48 provided by TUI Page 53 provided by The Peres Center for Peace Page 55 provided by BMW Page 57 provided by Daimler/Mondialogo Page 59 © Ryan Heffernan Page 61 © David O’Connor Page 63 provided by Endesa The ten principles of the United Nations Global Compact

Human rights

Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2 make sure that they are not complicit in human rights abuses.

Labour

Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4 the elimination of all forms of forced and compulsory labour; Principle 5 the effective abolition of child labour; and Principle 6 the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7 Businesses are asked to support a precautionary approach to environmental challenges; Principle 8 undertake initiatives to promote greater environmental responsibility; and Principle 9 encourage the development and diffusion of environmentally friendly technologies

Anti-corruption

Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.

About the UN Global Compact Launched in 2000, the UN Global Compact is a both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. As a multi-stakeholder leadership initiative, it seeks to align business operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption and to catalyze actions in support of broader UN goals. It is the world’s largest voluntary corporate citizenship initiative, with over 5,000 signato- ries based in more than 130 countries. For more information, please visit www.unglobalcompact.org.

About the UN Alliance of Civilizations The Alliance of Civilizations seeks to reduce tensions across cultural divides that threaten to inflame existing political conflicts or trigger new ones. Working with its global network of government partners, the Alliance promotes policies and initiatives aimed at improving relations between diverse cultural groups. It also works at grassroots level, promoting innovative projects in education, youth, media and migration in order to build trust, reconciliation and mutual respect among diverse communities. For more information, please visit www.unaoc.org.