Full text of G-8 Summit Declaration issued Thursday -3-

Japan Policy & Politics, June 11, 2007

HEILIGENDAMM, Germany, June 7 Kyodo

Investment and responsibility - the social dimension of globalization

21. Globalization and technological progress have resulted in rapid structural change in many regions and economic sectors. We acknowledge that structural change is the inevitable result of progress and that it brings dislocations along with opportunities. Open markets rest on political acceptance, social inclusion, gender equality and the integration of traditionally under-represented groups such as older workers, youth, immigrants and persons with disabilities. In order to address the social dimension of the globalization process, we identify the four following areas of action.

22. Promoting and further developing social standards: We are convinced that a globalization that is complemented with social progress will bring sustainable benefits to both industrial and developing countries. We recognize our responsibility for an active contribution towards this objective. Therefore, we support the International Labour Organization's (ILO) Decent Work Agenda with its four pillars of equal importance: the effective implementation of labour standards, especially the ILO core labour standards, the creation of more productive employment, further development of inclusive social protection systems and the support of social dialogue between the different stakeholders.

23. While stressing that labour standards should not be used for protectionist purposes, we invite the WTO members and interested international organizations, in close collaboration with the ILO, to promote the observance of internationally recognized core labour standards as reflected in the ILO declaration on Fundamental Principles and Rights and its follow-up. We also commit to promoting decent work and respect for the fundamental principles in the ILO Declaration in bilateral trade agreements and multilateral fora.

24. Strengthening the principles of Corporate Social Responsibility: In this respect, we commit ourselves to promote actively internationally agreed corporate social responsibility and labour standards (such as the OECD Guidelines for Multinational Enterprises and the ILO Tripartite Declaration), high environmental standards and better governance through OECD Guidelines' National Contact Points. We call on private corporations and business organizations to adhere to the principles in the OECD Guidelines for Multinational Enterprises. We encourage the emerging economies as well as developing countries to associate themselves with the values and standards contained in these guidelines and we will invite major emerging economies to a High Level Dialogue on corporate social responsibility issues using the OECD as a platform.

25. We stress in particular the UN Global Compact as an important CSR initiative; we invite corporations from the G8 countries, emerging nations and developing countries to participate actively in the Global Compact and to support the worldwide dissemination of this initiative.

26. In order to strengthen the voluntary approach of CSR, we encourage the improvement of the transparency of private companies' performances with respect to CSR, and clarification of the numerous standards and principles issued in this area by many different public and private actors. We invite the companies listed on our Stock Markets to assess, in their annual reports, the way they comply with CSR standards and principles.

We ask the OECD, in cooperation with the Global Compact and the ILO, to compile the most relevant CSR standards in order to give more visibility and more clarity to the various standards and principles.

27. Reinforcing Corporate Governance: Corporate governance is a key element in improving economic efficiency and growth as well as enhancing investor confidence. Good corporate governance provides proper incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders and facilitates effective monitoring and surveillance. While corporate governance challenges are present everywhere, they are particularly acute in emerging economies. We encourage the widest adherence to the OECD Corporate Governance Principles and support the continuation of the work of the OECD / World Bank Regional Corporate Governance Roundtables.

28. Investing in social protection systems: Social protection is an investment in a country's economic future and a cost-effective way of fighting poverty. It includes appropriate protection against life's major risks and appropriate coverage for everyone, aiming at improved education and health. Social protection has the capacity to contribute to individual employability and to ensure that those who can work obtain adequate support to find employment and to obtain skills demanded by the labour market.

29. Social protection systems contain some universal elements and should be based on values such as social equity, fairness, and justice in order to promote equal opportunities and participation. We believe that social security systems require further development and extension of coverage taking into account nations' abilities to provide such coverage given their varying states of economic growth and recognizing the fact that there can be no one size fits all model of social protection. We agree to keep this issue on our development policy agenda, encouraging relevant international organizations to work in close cooperation on this issue. We recognize that in conjunction with economic growth and active labour market policies, social security is an instrument for sustainable social and economic development.