Project Title

2017 APEC Business Ethics for SMEs Forum: Facilitating Multi-Stakeholder Ethical Collaborations for Small and Medium Enterprises 

Project Year

2016   

Project Number

SME 02 2016A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

SME 02 2016A 

Project Title

2017 APEC Business Ethics for SMEs Forum: Facilitating Multi-Stakeholder Ethical Collaborations for Small and Medium Enterprises 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2016 

Project Session

Session 1 

APEC Funding

85,165 

Co-funding Amount

290,823 

Total Project Value

375,988 

Sponsoring Forum

Small and Medium Enterprises Working Group (SMEWG) 

Topics

Small and Medium Enterprises 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; Canada; China; Hong Kong, China; Japan; Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; Russia; Singapore; Chinese Taipei; Thailand; Viet Nam 

Expected Start Date

01/10/2016 

Expected Completion Date

31/12/2017 

Project Proponent Name 1

Patrick Kirwan (new PO wef 26 Feb 2018) 

Job Title 1

Director 

Organization 1

Trade Promotion Coordinating Committee Secretariat, US Department of Commerce 

Postal Address 1

Not Applicable 

Telephone 1

1-202 4825455 

Fax 1

Not Applicable 

Email 1

patrick.kirwan@trade.gov 

Project Proponent Name 2

Tricia Van Orden (new PO wef 26 Feb 2018) 

Job Title 2

Deputy Director 

Organization 2

Trade Promotion Coordinating Committee Secretariat, US Department of Commerce 

Postal Address 2

Not Applicable 

Telephone 2

1-202 4825876 

Fax 2

Not Applicable 

Email 2

tricia.vanorden@trade.gov 

Declaration

Patrick Kirwan and Tricia Van Orden 

Project Summary

The Business Ethics for APEC SMEs Initiative has extended capacity-building training to 1,000+ stakeholders and has more than doubled the number of industry association codes of ethics, expanding high-standards to over 19,000 companies. The 2017 APEC Business Ethics for SMEs Forum will take place in Vietnam and is the first to focus on facilitating multi-stakeholder ethical collaborations, a central provision of the Nanjing Declaration endorsed by APEC Ministers. The event would convene SMEs, their associations and principals from governments, professional and consumer organizations to: (A) design/test scalable ethics curriculum, (B) advance code implementation, and (C) launch several formalized collaborations. This project aligns with several rank one funding criteria by: promoting SME modernization and insertion in global value chains, supporting the multilateral trading system, fostering trade facilitation, and supporting the ease of doing business work stream. The project builds on the Business Ethics for APEC SMEs Initiative, supported by Economic Leaders.

Relevance

Relevance - Region: The success of small and medium enterprises across the Asia-Pacific requires the building and maintaining of trusted collaborations between all stakeholders, including industry, governments, professional groups, research and academic institutions, and consumers. The presence of unethical behavior undermines this trust, leading to significant adverse consequences that hinder SME opportunities as well as economic growth. These consequences include elevated consumer distrust, unfair business conditions and/or inaccessible market opportunities, burdensome regulations, and non-harmonized standards across borders leading to elevated business costs and legal risks. As a result, many SMEs cannot compete or engage in cross-border trade.

The Business Ethics for APEC SMEs Initiative serves as one of the world’s most comprehensive programs to strengthen ethical business practices, having made significant improvements through expanding the number of codes of ethics aligned with APEC Principles in key sectors (endorsed by Economic Leaders and Ministers). From 2012 to 2015, the Initiative has more than doubled the number of medical device and biopharmaceutical industry association codes of ethics – from 33 to 68 – across 10 economies where they previously did not exist, expanding high-standards to nearly 19,000 companies (of which over 11,000 are SMEs). Work is underway in 2016 to expand the number of codes and support their implementation, with a keen focus on facilitating best practices between Eastern and Western Hemisphere economies.      

Building on this momentum, the 2017 APEC Business Ethics for SMEs Forum will address two challenges: (A) bringing ethics capacity-building training to scale and (B) facilitating formalized, multi-stakeholder ethical collaborations relevant to each member economy. These challenges directly impact SMEs, which otherwise cannot access training or independently convene formalized ethics collaborations. The APEC Nanjing Declaration – endorsed by APEC Ministers and APEC SME Ministers – calls for this project in 2017 to resolve such challenges. The project will convene top ethics thought leaders and other experts to prepare scalable curriculum (digital modules) for region-wide implementation. It was also assemble the leaders of major stakeholders from each APEC member economy to design formalized ethics collaborations that support SMEs and are aligned with the APEC Guide to Implement Multi-Stakeholder Ethical Collaborations.[1] Feedback from member governments, industry and other stakeholders reveals strong need for APEC’s continued support in 2017 for efforts that help SMEs and their associations to implement codes and participate in multi-stakeholder ethical collaborations. By supporting this project, APEC demonstrates its commitment to the latest calls by Ministers, SME Ministers and Ministers Responsible for Trade.[2]

Relevance - Rank: The project falls under four Rank 1 APEC Funding Criteria:

1) SME Modernization and Insertion in Global Value Chains: The project fosters an external business environment and internal company practices that permit SMEs to operate on a sustainable basis and serve as global suppliers. This project is called for in the Boracay Action Agenda to Globalize SMEs.

2) Supporting the Multilateral Trading System: The project addresses a major vulnerability in the multilateral trading system for SMEs. According to the World Bank, US$1 trillion is lost in the private sector each year as a result of corruption. SMEs suffer the greatest impact, with up to 25% of their annual operating capital lost to unethical practices.

3) Trade and Investment Facilitation and Liberalization: The project facilitates the development / alignment of codes of ethics and multi-stakeholder ethical collaborations to high standards, both within and beyond member economies where SMEs seek to conduct business. For SMEs, regional convergence to high standards clarifies ethics rules and significantly reduces costs associated with cross-border compliance and legal risk, catalysing the facilitation of trade and investment.

4) Ease of doing business: Through the rapid elaboration of multi-stakeholder ethical collaborations, formalized on an economy-by-economy basis, the project seeks to reduce the substantial resources that are lost or diverted by enterprises, especially SMEs, to unethical business practices.

The project’s contribution to the underlying objectives for each of these Rank 1 criteria is significant, furthering APEC’s fundamental goal of economic integration via free and open trade and investment. The project is also linked to two Rank 2 APEC Funding Criteria (“Anti-corruption, good governance and transparency” and “health and health systems”) through its active inclusion of APEC governments and related stakeholders, including those shaping health systems, in support of advancing an ethical business environment for SMEs. This directly supports the APEC Strategy for Strengthening Quality Growth.


[1] APEC Guide to Implement Multi-Stakeholder Ethical Collaborations: http://mcprinciples.org/CMFiles/Resources%202015/GuidetoImplementMulti-StakeholderEthicalCollaborations.pdf

[2] 2015 APEC Ministerial Statements: http://mcprinciples.org/view.asp?ccid=462

Objectives

This project facilitates the implementation of codes of ethics and formal ethical collaborations among key stakeholders within target sectors by bringing together SMEs, their industry associations, governments, professional and consumer groups operating within member economies to:

1) adopt the provisions outlined in the APEC Principles;

2) develop scalable ethics training curriculum;

3) address cultural nuances and emerging ethical challenges; and

4) advance full implementation of the Nanjing Declaration to Promote Ethical Business Environments in the Medical Device and Biopharmaceutical Sectors.

Alignment

This project supports calls by APEC SME Ministers (2015), APEC Ministers Responsible for Trade (2015 & 2016), and APEC Ministers (2015) to (A) strengthen SME cooperation in the promotion of ethical practices that empower their ability to operate in the international marketplace and (B) to advance implementation of the Nanjing Declaration and create ethical environments that support innovation and sustainable growth, especially for SMEs. Please visit http://mcprinciples.apec.org to review Ministers’ calls to action. The APEC Business Advisory Council (ABAC) has also called for the continued strengthening of ethical practices by convening the APEC Business Ethics for SMEs Forum on an annual basis through 2020. This project champions these efforts in 2017.

The project directly aligns with the SME Working Group Strategic Plan 2013 – 2016, which has the vision of promoting competitive, sustainable growth of SMEs and a mission of “enabling policy, business, and regulatory environment for SMEs” and “strengthening the participation and access to global markets for SMEs.” Unethical business practices serve as a detrimental barrier for SMEs in achieving this vision. APEC SME Ministers have also called for the convening of the APEC Business Ethics for SMEs Forum on an annual basis through 2020 to strengthen the ethical business environment for small and medium enterprises, including through the elaboration of multi-stakeholder ethical collaborations. This project advances APEC’s proven efforts to help SMEs overcome this harmful barrier in target sectors.

TILF/ASF Justification

This project greatly enhances the capacity building support extended to developing economies under the Business Ethics for APEC SMEs Initiative in the following ways: 

A) Convening relevant stakeholders in each target sector under a neutral platform to formalize Consensus Frameworks for Multi-Stakeholder Ethical Collaboration, laying the foundation for a comprehensive ethical ecosystem based on trust and open communication;

B) Advancing implementation of codes of ethics aligned with the high-standard APEC principles;

B) Addressing new and emerging business ethics challenges, such as third party relationships; and

C) Implementing best practices that strengthen local ethics training capabilities.

The project will also serve as APEC’s first capacity-building program hosted to specifically advance the launch of Consensus Frameworks for Multi-Stakeholder Ethical Collaborations for each APEC member, with priority emphasis on support for developing economies. Multiple stakeholders from all APEC developing economies will be engaged for direct participation. This includes industry associations and enterprises, professional and consumer groups, governments, and civil society. The project’s extensive network of over 1,000 contributors throughout all 21 APEC economies and beyond ensures widespread engagement (before, during and after the project) as mentors, speakers and active participants.

Beneficiaries and Outputs

Outputs: The project will have several immediate outputs (deliverables) in accordance with the APEC Nanjing Declaration (2014) and APEC Guide to Implement Multi-Stakeholder Ethical Collaborations (2015) that are of great importance to SMEs in strengthening ethical business practices. These include:

· Expanded digital training curriculum (modules) and compliance tools will be prepared and made available on an in-kind basis by the initiative’s mentor network;

·  Deliver training curriculum on an in-kind basis during Forum workshops to hundreds of stakeholders, strengthening their capacity to implement the APEC Principles;

·  2016-2017 Code of Ethics Survey of Medical Device and Biopharmaceutical Industry Associations as well as 2017 APEC Business Ethics Progress Report. These items will assess and demonstrate what progress APEC economies are making to implement the specified goals and activities indicated in the Nanjing Declaration;

·  Template Document – Consensus Framework for Multi-Stakeholder Ethical Collaborations in the Medical Device and Biopharmaceutical Sectors. Base the template on the APEC Guide as well as test models in Canada, Peru and other economies; and

·  High-Level Plenary Dialogue to announce and/or facilitate new, multi-stakeholder collaborations and partnerships (within and between member economies) as called for in the Nanjing Declarations.

The project team is confident that these outputs will generate significant positive change to benefit thousands of SMEs. The Business Ethics for APEC SMEs Initiative has a strong surveillance system in place to ensure the success and sustainability of project outputs. 

Outcomes: The project team expects this event’s outputs will have significant, immediate impact in advancing the envisaged outcomes from the Nanjing Declaration and APEC Guide. These include:

· Further adoption and implementation of industry association codes of ethics aligned with the APEC Principles, closing in on universal code adoption in key sectors by 2020;

· Rapid launch of Consensus Frameworks for Multi-Stakeholder Ethical Collaboration in the Medical Device and Biopharmaceutical Sectors within at least five APEC economies by the end of 2017, building off the initial progress made by Canada, Peru and other members. These frameworks will include signatories from each economy’s industry, health care professional, patient, and government constituencies. They are anticipated to result in four major changes to each economy’s respective policies, processes and behaviors: (1) establish a platform of mutual trust and open communication, (2) commitment toward the development and alignment of common codes of ethics across stakeholders, (3) commitment to shared capacity-building and training activities, and (4) the creation of early warning system(s) among signatories that mitigate crises resulting from unethical business practices. The initiative aims to achieve comprehensive multi-stakeholder collaborations in all APEC member economies by 2020.

These outcomes will have a direct benefit on strengthening the ethical business environment across the region. The project team expects the event will also continue to serve as a model outside the APEC region, with economies across Latin America, Africa, the Middle East and elsewhere continuing the follow APEC’s lead in the adoption/implementation of industry association codes of ethics as well as in the launch of Consensus Frameworks.

The project will also serve as an opportunity to identify the emerging roles APEC governments can serve in supporting ethical business environments and the elaboration of high-standard, voluntary codes of business ethics. There remains an important need for the identification of best practices in this area, particularly given the different roles APEC governments serve in their respective societies. 

Beneficiaries: We anticipate upwards of 300 senior-level participants from every member economy will participate in the 2017 APEC Business Ethics for SMEs Forum. This includes significant participation of SMEs within target sectors, especially the principals of industry associations that represent them. Examples include GP Farmasi (Indonesia) and CCCMHPIE (China), each of which has thousands of SME members. We also expect hundreds of additional stakeholders to directly engage in the project remotely. This includes health regulatory authorities, trade and economic authorities, anti-corruption authorities, health care professional organizations, patient/consumer groups, and academic institutions. Female leaders have served as the primary champions of APEC’s efforts to strengthen ethical practices since 2010, within each stakeholder group, and will continue to do so under this project. The SMEWG, LSIF, ACTWG, and ABAC are all involved and/or supportive in the event’s recruitment of participants. 

The project’s outputs will have many beneficiaries, including:

- APEC industry association attendees and the thousands of small and medium enterprise member companies they represent in every APEC member economy. Many of the industry association attendees work directly for an SME. They will benefit from enhanced support by the region’s leading ethics and compliance experts in the implementation of codes of ethics and guidance to address new and emerging challenges. They will also benefit from the launch of comprehensive Consensus Frameworks through APEC, which would otherwise be unachievable; 

- APEC governments through an expanded effort to confront corruption challenges through the elaboration of codes of ethics in the medical device and biopharmaceutical sectors and heightened focus on emerging ethical issues; and 

- Professional organizations, academic institutions, and patient/consumer organizations through the elaboration of Consensus Frameworks on an economy-by-economy basis.

Dissemination

Outcomes from this project will be communicated within APEC through in-person and electronic reports to the SMEWG and SME Ministers, ABAC, Life Sciences Innovation Forum (LSIF), and Anti-Corruption & Transparency Working Group (ACT). Outside of APEC, electronic and in-person communications will be disseminated directly by the initiative to hundreds of key stakeholders identified as critical to fostering ethical business environments. These include: 

Governments: Officials responsible for anti-corruption and health, relevant regulators;

Industries: Associations and their member companies in target sectors where APEC has initiated business ethics work and additional sectors where the Forum may initiate new work streams; and 

Other key stakeholders: In the case of the medical device and biopharmaceutical sectors, this includes hospital, health care professional, pharmacy, patient/consumer groups, and academic institutions. 

The objectives and results of the program are expected to reach over a thousand additional stakeholders who are connected to the initiative’s key stakeholders, primarily through local networks. The APEC initiative captures the dissemination of information across the region through a monitoring and surveillance program. 

The project team will continue to update and expand the Business Ethics for APEC SMEs Initiative’s satellite websites established in 2015 to enhance dissemination of project outputs and other resources for stakeholders. These websites are supported in-kind by stakeholders and serve as a crucial and widely utilized communication platform. Finally, a network of hundreds of local ethics champions and trainers contributing from within and outside the APEC region will continue to play a key role in the dissemination of this project’s results and outputs. 

As with previous APEC Business Ethics Forums (2014-2016), we believe this project is worthy of significant media attention. In particular, the gathering of senior government leaders envisioned on the plenary session issuing a statement on progress and advising on next steps to strengthen ethical business practices will draw strong interest. The project team will coordinate with the APEC Public Affairs team, host economy (Vietnam), and other stakeholders to appropriately disseminate project outputs through the media.

Gender

The project team is expert in proactively securing balanced representation by men and women in both the project’s agenda and among target Forum attendees. This includes taking an equitable approach to the selection of mentorships and speakers as well as during the participant recruitment process. This approach has enabled the Business Ethics for APEC SMEs Initiative’s projects to achieve gender balance each year since 2010. We are confident there will be robust participation by both genders in the event, with minimum thresholds to be determined, particularly those leading industry and government organizations of great importance to SMEs. Women play a vitally important role in the success of APEC SMEs and benefit tremendously from the project’s efforts to strengthen ethical business practices within and between APEC member economies. For two of the target sectors – medical device and biopharmaceutical – it is also the case that ethical business practices lead to improved health systems, which serves as a vital need for women across the APEC region. 

It is also important to note that women are vital contributors to the project team as well as the extensive network of ethics champions supporting this effort. Women from all 21 APEC member economies have actively participated in the APEC SME business ethics work to-date and will continue to do so under this project. Many of the most active project contributors are also women; from mentors/leaders within industry groups working with SMEs in Australia; Canada; Chile; China; Hong Kong, China; Indonesia; Korea; Malaysia; Mexico; New Zealand; Peru; The Philippines; Thailand; United States; and Viet Nam to government leaders supporting SMEs in all 21 APEC economies. It should be noted that the Project Overseer since 2010 is a woman.

Work Plan

Objective/Ouputs

Timing

How will be implemented

Member economies involved

Beneficiaries involved

Others involved

Finalize Forum two-day structure

October-December 2016

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

Confirm APEC economies to pursue Consensus Frameworks

December 2016

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

Select APEC economies

Others to provide inputs

Identify leads for working-level sectoral sessions and high-level plenary dialogue

January-February 2017

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

Identified leads for sessions and plenary

Others to provide inputs

Confirm Forum timing and venue

January-February 2017

By Project Overseer and Host Economy

United States and Viet Nam

N/A

N/A

Identify target attendees and circulate save-the-dates

March-April 2017

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

Forum attendees will be identified and receive save-the-date notices

Others to provide inputs

Finalize Key Deliverables for the Forum

May 2017

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

Refine Forum Agenda & Recruit/Finalize Attendees

June-August 2017

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

Hold 2017 APEC Business Ethics for SMEs Forum in Viet Nam

August 2017

By Project Overseer, Host Economy & Multi-Sectoral Support Team

All member economies and relevant stakeholders within each APEC economy

All member economies and relevant stakeholders within each APEC economy

N/A

Dissemination of Forum outputs, including digital curriculum and training resources

September-October 2017

By Project Overseer, Multi-Sectoral Support Team, and Network of Ethics Champions

All member economies and relevant stakeholders within each APEC economy to receive outputs

All member economies and relevant stakeholders within each APEC economy to receive outputs

N/A

Risks

Risk

Management Strategy

Inability to secure host venue for Forum in Viet Nam ahead of SME Ministerial or venue-related logistical challenges

Project team will closely liaise with host economy to pursue ideal scheduling and venue issues. We will identify several partners with capability to host

Lack of interest of target participants from select APEC economies

Project has received overwhelming support from every APEC economy. Strong recruitment will address any gap stemming from limited interest

Schedule conflicts from sought speakers, experts or trainers

Project has a substantial pool of the world’s highest quality speakers, experts and trainers on ethics issues. Enhanced recruitment will overcome scheduling conflicts that arise for target attendees

Program coordination between multiple sectors

The Project Overseer and support team have substantial experience in balancing the needs of multiple sectors to ensure all objectives are met

Challenge to launch Consensus Frameworks for Multi-Stakeholder Ethical Collaboration before or following project

APEC is pioneering the launch of such Consensus Framework’s across the region. Thus, there is no precedent for mitigating challenges that may arise. The project team is expert in the issues at hand and will work diligently with stakeholders in each economy to assist them in working through such issues

Monitoring and Evaluation

The Business Ethics for APEC SMEs Initiative, whose leadership team will manage this project, has an elaborate monitoring and evaluation program in place. In 2012, a baseline survey was disseminated to each prominent healthcare association in each APEC economy. The survey identified the total number of association member companies and the number of member companies that are SMEs within each association. Each respondent was asked to submit a copy of its current code of ethics (if one existed) to determine if the code of ethics included all elements of the Mexico City Principles for the Biopharmaceutical Sector and the KL Principles for the Medical Device Sector. The survey also asked a range of questions regarding existing ethics compliance programs, such as whether the association has a dedicated staff to implement ethics training and how a code was socialized among association member companies. Additionally, since the inception of this initiative, 125 ethics compliance officers from companies and associations who serve as local mentors (compliance experts knowledgeable on ethics laws and regulations within APEC economies and are geographically located within APEC economies) provide the project leadership team with information on code adoption and the implementation progress on a local level. The surveys have been conducted on a quarterly basis since 2012. The survey responses, along with the on-the-ground monitoring by the mentor team, provide the project overseer with an accurate assessment regarding project impact. The results are reported to the SMEWG and SME Ministers via a PowerPoint presentation on an annual basis and are notified to APEC Leaders via the U.S. Department of Commerce Senior Official attending the Concluding Senior Officials’ Meeting. This program will ensure the project is achieving its objectives, both during the execution phases and beyond. Indicators of success include: (A) progress among industry associations to adopt new codes of ethics aligned with APEC Principles, (B) the implementation of existing industry association codes of ethics through APEC-supported and localized training activities, and (C) the continued implementation of strategic goals and activities indicated in the Nanjing Declaration. As this work builds on previous efforts, there are several additional indicators that will confirm this project is meeting its objectives. This includes (A) the development and implementation of new Consensus Frameworks for Ethical Collaboration in multiple APEC economies, (B) expanded local capacity-building to implement codes of ethics on both sides of the Pacific (both the Eastern and Western Hemispheres), and (C) expanded engagement by new, non-industry stakeholders in the project. Assessment for all of these indicators through regular surveys will include gender impact.

To ensure the project is successful in all of these efforts, online and phone surveys will be conducted with all industry associations before and after the event. The monitoring program will also include outreach to non-industry stakeholders. Post-event evaluations are also conducted onsite. There will be significant, ongoing collaboration among the multi-sectoral network of ethics champions, with contributors providing regular status updates to the project overseer on the achievement of key objectives. This network (operating within and between all APEC member economies) will ensure sustained local and multi-lateral capacity building. The project team plans to continue sustained monitoring and evaluation in collaboration with this network of ethics champions. We do not anticipate a reduction in sustained follow-up efforts after the project.

Linkages

The Business Ethics for APEC SMEs Initiative has enjoyed strong support and involvement from numerous APEC fora since 2010, beyond the APEC SME Working Group. This includes the APEC Business Advisory Council (ABAC), APEC Life Sciences Innovation Forum (LSIF), and APEC Anti-Corruption and Transparency Working Group (ACT). Each of these sub-fora has indicated the importance of strengthened business ethics in the APEC region and the project team will continue to coordinate with them closely in 2017.

This project will also leverage more than one thousand organizations already engaged across the region and around the world. This includes multiple government agencies from all 21 APEC economies, over 80 industry associations (who represent more than 19,000 large, medium and small enterprise member companies) and hundreds of professional, patient and civil society organizations. The project will support the continued involvement of these entities as well as engage with dozens of new organizations, including many outside the APEC region that have linked with this Initiative has a model for worldwide replication.

This project will further builds on the significant advances achieved under the Business Ethics for APEC SMEs initiative, as well as the 2014-2016 APEC Business Ethics for SMEs Forums, while maintaining its own specific objectives and deliverables. The project team’s work to-date has focused on (A) establishing APEC Principles for voluntary codes of ethics in sectors of key importance to SMEs (2011), (B) supporting industry associations and their members – including thousands of SMEs – to adopt and implement codes for the first time aligned with APEC Principles (2012-Present), and (C) training to ethics champions via a train-the-trainer program managed by a network of ethics champions (2012-Present). Feedback from all key stakeholders contributing to or benefiting from the Initiative has indicated that further training will be essential to code implementation and that continued guidance remains crucial to emerging issues in ethical business practices. This project will advance the Nanjing Declaration’s crucial 2017 goals, endorsed by APEC Ministers, APEC Trade Ministers and APEC SME Ministers. This includes a central recommendation to hold an annual APEC Business Ethics for SMEs Forum through 2020 as well as the facilitated launch of Consensus Frameworks for Multi-Stakeholder Ethical Collaboration.

A highly coordinated effort among stakeholders throughout APEC’s 21 member economies allows the project team to avoid duplication with other APEC activities. Furthermore, there still remains no other project like this occurring in the region – or anywhere in the world – so there is minimal risk of duplication in non-APEC fora. In fact, many stakeholders outside of the APEC region have sought guidance in duplicating the effort as a model elsewhere, including Latin America, Africa and the Middle East.

APEC remains the perfect home for this project as evidenced by the successes achieved since 2010. The organization remains unmatched in its convening power, especially on sensitive subjects like business ethics, and to provide a respected platform for the harmonization of high-standard principles that advance mutual economic interests. There also remains no better home to build upon the successes achieved from previous APEC Business Ethics for SMEs Forums or to confront emerging ethics issues for member economies. APEC is also an effective platform to capture unique cultural approaches as well as to convene economies in different stages of developing initiatives that strengthen ethical business practices. In fact, many leading stakeholders have indicated this as a major strength for the Initiative, particularly when it comes to capacity-building approaches.

Sustainability

APEC’s activities to strengthen ethical business practices have, and will continue to have, a major impact on member economies. Upon this project’s completion, after APEC’s allotted funding is utilized, the positive impacts will be observed in several ways: 

1) The installation of Consensus Frameworks across multiple APEC member economies, leading to improved dialogue and localized collaboration among major stakeholders to strengthen ethical business practices in the medical device and biopharmaceutical sectors. These Consensus Frameworks will exist and be sustained despite the APEC project, and will begin to strengthen the ethical landscape within each health system. 

2) Trainings will impart the latest best practices and local strategies to advance code implementation in all economies, having a lasting impact on thousands of the region’s SMEs by removing key barriers generated by unethical business practices. 

3) Continued equitable support for the strengthening the ethical business practices across all member economies, facilitating improved investment and cross-border trade opportunities. When it comes to ethical business practices, it is essential that all economies are elevated together on a sectoral basis.

There is a strong framework in place to ensure stakeholders and beneficiaries are supported to carry forward the results and lessons learned from the project. First, this effort is supported by a robust network of ethics champions covering all 21 APEC economies. Second, it enjoys robust involvement and political support from senior government, industry and civil society leaders. Each of these stakeholders have a strong interest to ensure the 2017 APEC Business Ethics Forum meets its specific objectives and project outputs are realized across the region. This commitment is demonstrated through the dedication of substantial and sustained in-kind resources from so many stakeholders across nearly every member economy. Third, the initiative’s monitoring and evaluation program will continue to track efforts, ensuring project outputs are implemented. This project will ensure APEC continues to serve as a global leader in strengthening ethical business practices, particularly in target sectors, while also implementing the Nanjing Declaration’s 2020 goals.

There will be several next steps to build on project outcomes:

1)  Advance APEC’s role as an ongoing platform for collaboration among all stakeholders to advance ethical business practices in sectors of key importance to SMEs. This includes the launch of Consensus Frameworks within each APEC member economy by 2020;

2) Hold the APEC Business Ethics Forum on an annual basis through 2020, realizing the Nanjing Declaration’s goals. Each meeting will build on progress from the last and report on efforts to implement previous project outputs within all APEC economies;

3) Achieve universal implementation of the APEC Principles among all relevant industry associations in the APEC region by 2020;

4) For those industry associations currently with codes of ethics, working toward a majority of their member enterprises having implemented the code by Q4 2017;

5) Monitor each industry association’s convening of a localized ethics training program; and  

6) Support the further development of mechanisms for regional collaboration among all stakeholders to addressing new and emerging business ethics issues.

Project Overseers

The Project Overseer is Ms. Lynn Costa, Senior Trade Policy Advisor of the International Trade Administration, U.S. Department of Commerce. She will serve as the main point of contact and manager of the project. She has served as the U.S. Government’s focal point for the Business Ethics for APEC SMEs Initiative since 2010. She is expert in the subject matter of this project. 

Ms. Costa oversees projects that build open and transparent business climates around the world to facilitate the movement of goods and services. She served as the lead negotiator in the Doha Non-Agricultural Market Access (NAMA) sectoral negotiations in Geneva, Switzerland from 2002-2008. She has extensive experience in delivering large-scale trade development programs around the world for the Center for International Private Enterprise (CIPE), an affiliate of the U.S. Chamber of Commerce. As CIPE’s Program Officer for Training her work focused on commercial privatization, business association advocacy, corporate governance, economic journalism, women’s’ leadership, corruption, democratic governance and the informal sector/property rights in developing economies.  Lynn has also served as the Senior Government Relations Officer for Princeton Technologies, Inc. where she was instrumental in negotiating large private contracts. Ms. Costa has a Bachelor’s Degree in Political Science from George Mason University and a Masters in International Commerce and Policy from George Mason’s School of Public Policy in Fairfax, Virginia.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
Attachments
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Created at 05/08/2016 10:30  by Lucy Phua 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

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Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

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