Remarks by UN Resident Coordinator Marc-André Franche at the Ceylon Chamber of Commerce Best Corporate Citizen Sustainability Awards

Good evening,

I am grateful to the Ceylon Chamber of Commerce and to Chairman for the invitation to take part in this wonderful evening honoring the Best Corporate Citizen organized by the for the 20th consecutive year.

As I begin my tenure as UN Resident Coordinator, I’m struck by the strong commitment of Sri Lanka’s private sector towards sustainability and the strength of business groups like the CCC and others dedicated not only in supporting businesses grow but also support the sustainable development of this country and its people.

I recently joined your own, Dilhan Fernando and Radhika de Silva from the UN Global Compact network in Sri Lanka. I was so impressed by the scope and commitment of the private sector for the Sustainable Development Goal, which go well beyond corporate social responability with concrete initiatives to fully integrate the SDGs into their business goals and operations.

The UN supports this commitment in multiple ways, working closely for instance with the banking sector to mobilize climate finance, or helping the government roll out an inclusive and sustainable business strategy.

Our new cooperation framework continues to build these networks and policy initiatives while also investing for example in MSMEs, improving social dialogue with unions and supporting investments on energy transition. We cannot imagine this country’s recovery and prosperity without a strong and dynamic private sector.

Growing and developing sustainably has never been so critical.

This is due to the magnitude and interdependence of our global challenges, like global warming which will requires a fundamental change in our economies and way of life.

It is also due to the erosion of our post-World War II rule-based international order, starting with the violations of the UN charter, which has now sparked an increase of inter-state conflicts. These rules are particularly important to protect smaller countries, like Sri Lanka, from the whims of bigger powers.

And it is due to the inadequacy of our antiquated global financial system, which has been biased against developing countries with higher borrowing costs, greater volatility and limited access to liquidity in times of crisis, causing significant underinvestment in development.

Sustainability needs to be at the heart of every business strategy for a number of important reasons:

First, its obviously good for business. Business cannot thrive in societies that fail.

For businesses to grow we need societies to be just and prosperous. Tackling poverty and inequalities creates a stronger consumer base for businesses. Poverty in Sri Lanka is now at almost 30% and more than half the population is suffering form multidimensional vulnerability, the country and your business have a critical interest in reversing this trend.

Economic growth should always be inclusive growth. There’s little point in growing an economy if it doesn’t lead to better lives for all participants, including women and vulnerable communities.

Business that think long term and think sustainability adapt better, and take better business decisions.

Whether it is reducing your carbon footprint, creating more opportunities for women or supporting livelihoods of neighboring communities, there’s ever-increasing evidence that sustainable business practices, makes essential business sense, especially in the medium to long term.

Second, you serve as more than mere providers of goods and services and employment; you’re also influencers, disruptors and thought leaders. The collective voice of businesses can push societies and authorities to fight corruption, safeguard rights and protect the environment. Business leaders can help politicians see beyond their at times narrow interests and take courageous decisions in the public interest.

Indeed, many country’s stories of transformation include an elite – notably a business elite – which sets aside short term group interest, to work for the greater good of the country.

While Sri Lanka has managed stabilizing its economy, the road ahead will require courage and solidarity. It's not only about raising taxes and fighting corruption.

It is also importantly a commitment to respect and enforce rules – institutions – which are agreed with openness and transparency. If anyone can choose what parts of the constitution it applies, changes the rules to benefits oneself in parliament or elsewhere, or the rules apply differently depending what family one is part of, then it’s really impossible to development and grow sustainably.

Accountability and rule of law are not a foreign demand discussed at the Human Rights Council, they are critical pillars for businesses to operate and proper in a level playing field. In many ways the erosion of the rule of law for any citizen, erodes my own rights and is a fundamental obstacles to growth and sustainable development.

Finally, sustainability requires a respect to democratic process. Your businesses and your interest will benefit in the long term from vibrant and open processes to formulate legislation and regulations.

Laws that are developed in the dark and rammed through parliament are not only going to face serious implementation issues, because of their lack of buy in but thew will also usually be bad laws because the democratic process add substantive value.

Moreover, when laws are developed with limited consultation and consensus, this contributes to fragmentation which means other interest than those of Sri Lanka may prevail. The best way to work for Sri Lanka and protect its interest is to invest in robust democratic processes.

Sri Lanka has a strong culture of giving back. Our giving back should build institutions and strengthen systems that promote inclusivity and transparency that helps build a state more effective and accountable to its people.

I applaud the business leaders who have taken bold steps to develop their businesses with a purpose that goes beyond mere short-term profit maximization to deliver value to all stakeholders.

More and more business leaders worldwide understand that there’s no making profits in the long-term by ignoring your impact and your responsibility towards societies and the environment.

I encourage all of you who are leading by example, to positively influence not only your industries and your value chains but also the broader society, so we build together a country that works for all of us.

My sincere appreciation goes also to the panels of judges and evaluators, as well as the Ceylon Chamber of Commerce for their efforts in recognizing and promoting best practices sustainable business in Sri Lanka.

Thank you.