The great American economist Milton Friedman who stood for "laissez-faire" capitalism and whose motto "the business of business is business" is world famous, is now being totally contradicted. The UN Global Compact which is taking place in Geneva, Switzerland, and which has assembled over 1000 heads of corporations from all over the world, is only talking about one subject: corporate social responsibility.
One can criticize the UN, and as imperfect as the organization is, it is the sole moral authority that has world-wide credibility. Some will say the the companies present are only trying to spruce up their reputation, and will make all the right noises, but won't implement anything. Others, such as Bernard Kouchner, France's Foreign Minister, are clamoring for regulation so that companies go beyond the voluntary code and actually get controlled and even sanctioned if needed.
For the time being, let's salute this initiative, and its formulated ambitions. It is a huge step in the right direction. There is general agreement, even in developing countries, that something like this needs to be done. And it is happening in Geneva, Switzerland, whose "soft power", i.e. the power to influence, seems to be growing lately.
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