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 inclu- sion 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. Copyright (c) 2009 United Nations Alliance of Civilizations and United Nations Global Compact Table of Contents 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 invest- ment, 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 al- ways 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 comprehen- sive. 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 pro- cess 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 inter- cultural 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