Code of ethics plan may cause stir

By Mark Reynolds

New Zealand business people are championing what is expected to be a controversial proposal to establish a code of commercial responsibility for companies in Apec-member countries.

The proposal, to be discussed at a summit of CEOs that is running in conjunction with the Apec economic leaders meeting, is seen as a chance to establish a standard of ethics for companies operating within the Apec region.

The idea is controversial because it will mean acknowledging that company governance, transparency and compliance standards are slack in some of the 21 economies within the Apec bloc.

"It is a suggestion that is being looked at carefully," said one delegate to the CEO Summit, who did not want to be identified.

Some New Zealand executives see the need for common standards of business practice as an integral part of increasing the regionalisation and indeed the globalisation of business. There is a perceived need for harmonisation for regulatory regimes at least within Apec countries and some business leaders believe companies can lead the way for politicians by having common principles in the way they operate with each other.

Eric Barratt, group managing director for fishing company Sanford, said any initiative that opened up opportunities for businesses in the region to be more interactive should be looked at.

"But the structure of Apec might make it difficult to push the barrow particularly hard," he said, noting that the organisation tended to adopt policy stances well ahead of its regular meetings.

David Truscott, president of the New Zealand Chambers of Commerce, said he expected local executives to highlight the benefits of the business conventions we have here.

He said: "It helps for New Zealand to give the message rather than another country because we have a level of acceptance by not being a threat in the region."