LAUNCH OF THE NEW ZEALAND BUSINESS FOR SOCIAL RESPONSIBILITY

I am pleased to have the opportunity to participate in the launch of your new organisation New Zealand Business for Social Responsibility this afternoon.

I want to congratulate Dick Hubbard for his efforts in bringing together this new organisation for business within New Zealand.

Many New Zealanders often underestimate the positive role that business plays in our society. Too often in the past, business has gained negative connotations in the minds of too many New Zealanders who forget that businesses are very much part of our community. Business is very much the creators of wealth from which we are able to achieve and improve the standards in the society in which we live. As the old saying goes, " if you want to spend money you have to earn it first."

The reality is that business needs people just as the people need business. They are interdependent. It is important that we appreciate the roles that everyone plays because business is about people. It is about satisfying shareholders, suppliers, exceeding customers' expectations, providing stimulation for employees and being part of the community. It is about being a good corporate citizen. Just like being a good citizen, a good corporate citizen can also contribute to their community.

Sure business is about profit and making a return on the risks involved. But you can not satisfy your shareholders with a profitable return unless you first satisfy the other groups of people involved. But being an excellent corporate citizen is about going a little bit further in much the same way as being a good citizen is going a little bit further than just living within the community and earning a wage.

The concept of social responsibility is not new and most New Zealand corporates and businesses do contribute back to their community, both directly and indirectly. I am well aware that many of the major corporates very much are involved as good corporate citizens in a variety of ways. It is all about going that little bit further than one is required to.

A couple of examples come to mind. A new chemical manufacturer came into my electorate and spent $100 million on a new chemical plant a few years ago. They stated that it was very easy to meet the environmental standards imposed locally but that was inadequate as far as they were concerned. They wanted world best standards so that the plant being established would be as good as any in the world, far above those required for New Zealand. Good community citizen or just good sense?

I also remember having a discussion with a large multi-national forestry company's director when they made a large investment in New Zealand, about the time the Government was closing the last of the tax loopholes opened up in the 1980's. He said, "our corporate policy is to ensure that our subsidiaries pay the top tax rate and the full taxes as required in the country in which they operate". Again, being a good corporate citizen is very much good sense in business terms.

I have read your pamphlet that invites membership and its description of what socially responsible business is.

You say that socially responsible business is financially responsible, being shown to enhance financial performance by building quality relationships and developing increased commitment and support from employees, shareholders, suppliers, customers and the wider community.

Secondly, your social responsible business is socially responsible, considers all stakeholders including shareholders, employees, customers, suppliers, the community and the environment - all of which are affected by business.

Finally, you state that socially responsible business is environmentally responsible. It manages environmental impact and takes into account long term ecological sustainability.

To me these aims are common sense, and I believe followed by very many of our businesses. So I welcome the setting up of your organisation here in New Zealand. I believe it can only be positive for not only our business community, but the wider community in New Zealand.

You can have a positive impact in a number of ways.

Firstly, as a way of changing the perception and the realisation amongst the wider community of how important business is to New Zealand and its society.

Secondly, in changing some of the negative perceptions that have crept in because of the actions of a few cowboys over the last couple of decades and,

thirdly, encouraging good corporate citizenship helps improve social cohesion which too often is forgotten as being a key role in maintaining a stable society.

I hope also that your organisation will look at some of the challenges that we face in New Zealand's largest business, that of government. There also we do try to adopt both best practices and to be socially responsible. Three quarters of our business is in the area of social responsibility and support. We too look to improve our performance in a socially responsible way and to be a good corporate citizen as the government of the country.

At the same time we would value your organisations independent analysis of the policy issues of the day in a manner similar to that of other groups representing the business sector.

Capital, people and technology can move out of the country at any time in today's world. To retain them society has to provide each with a positive return of some form over time.

If the overall environment created by Government policy is not business friendly, society will suffer over time. You can assist us in creating that environment.

So in conclusion I would just like to wish your organisation all the best. I look forward to its wise counsel and to its comment on the issues of the day. I hope to see it make a very positive contribution to the New Zealand business community and society at large.

I will look forward with interest to your organisation as it participates in our wider society. I would now like to officially launch the New Zealand Business for Social Responsibility organisation.