Companies urged to address poverty

from The New Zealand Herald

Poverty in the Asia-Pacific region will directly threaten companies in Australia, according to a report by the Allen Consulting Group.

The report said global poverty was a direct threat to the prosperity of a range of Australian businesses through the loss of potential markets, damage to foreign affiliates and a greater risk of regional instability.

It urged Australian companies to do more to fight poverty in the Asia-Pacific and deepen their understanding of how they source materials and services.
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The report was commissioned by ANZ Bank, Grey Global Group, IAG, Pfizer and Visy Industries, who have formed the Business for Poverty Relief Alliance which is being facilitated by World Vision.

The alliance aims to have Australian companies put the issues of development, aid and poverty relief on their agenda.

The report found that corporate Australia was generally supportive of social investment, but few companies were tackling poverty in their closest export markets.

If poverty levels were not reduced, markets in the region would not develop as quickly, constraining the growth of companies in Australia.

The report said businesses could develop safe, affordable products for the poor and adhere strictly to human and labour rights policies along their supply chain.

Businesses should also provide "best practice" working conditions for workers in overseas operations and invest in research and development, infrastructure and technology in those countries.

The report said corporate Australia was largely ignorant of the UN Millennium Development Goals, a blueprint for governments, corporates and individuals to halve world poverty by 2015.