Project Title

2018 APEC Business Ethics for SMEs Forum: Leveraging Technologies to Scale Code of Ethics Implementation for Small and Medium Enterprises 

Project Year

2017   

Project Number

SME 03 2017A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

SME 03 2017A 

Project Title

2018 APEC Business Ethics for SMEs Forum: Leveraging Technologies to Scale Code of Ethics Implementation for Small and Medium Enterprises 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: General Fund 

Project Year

2017 

Project Session

Session 1 

APEC Funding

122,410 

Co-funding Amount

1,264,899 

Total Project Value

1,387,309 

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; Indonesia; Japan; Korea; Malaysia; Mexico; Papua New Guinea; Peru; Philippines; Singapore; Chinese Taipei; Thailand; Viet Nam 

Expected Start Date

01/10/2017 

Expected Completion Date

31/12/2018 

Project Proponent Name 1

Lynn Costa 

Job Title 1

Senior Advisor to the US Deputy Assistant Secretary for Asia 

Organization 1

International Trade Administration, US Department of Commerce 

Postal Address 1

1401 Constitution Ave NW, Washington, DC 20230, USA 

Telephone 1

1-202 4825428 

Fax 1

Not Applicable 

Email 1

Lynn.Costa@trade.gov 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Lynn Costa 

Project Summary

The Business Ethics for APEC SMEs Initiative is the world’s largest public-private partnership to strengthen ethical business practices in target sectors, training 1,350+ stakeholders and expanding high-standards to 18,000+ companies (13,000+ SMEs). It also designs and implements model consensus agreements to strengthen ethical business practices across health systems. In 2016, these results were recognized by APEC Leaders, APEC Ministers, APEC SME Ministers, and APEC Ministers Responsible for Trade. The 2018 APEC Business Ethics for SMEs Forum held in Tokyo, Japan will expand this success as the first program to leverage the latest technologies for rapid scale-up in code of ethics implementation for SMEs. With most industry associations across APEC economies having implemented a code aligned with APEC Principles, achieving the Nanjing Declaration’s 2020 commitments at the enterprise-level requires a “train-the-trainer” meeting of principals to build capacity on utilization of these technologies within their home economy. This project aligns with several rank one funding criteria by strengthening MSME innovation capacities and competitiveness, supporting the multilateral trading system, fostering trade facilitation, advancing human development, and supporting the ease of doing business work stream.

Relevance

The success of small and medium enterprises in many industries requires the building and maintaining of trusted collaborations between all stakeholders, including industry, governments, professional groups, research and academic institutions, and consumers. Unethical behavior undermines this trust, leading to significant adverse consequences that impact SME opportunities and overall 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 are unable to compete locally or engage in cross-border trade.

The Business Ethics for APEC SMEs Initiative is the world’s largest public-private partnership to strengthen ethical business practices in target sectors. From 2012 to 2016, the initiative more than doubled the number of medical technology and biopharmaceutical industry association codes of ethics – from 37 to 74 – across the APEC region, including within 10 economies where they previously did not exist. This has expanded high-standards to over 18,000 member companies (of which over 13,000 are SMEs). This speed of this achievement is understood when recognizing that the region’s first 37 codes in these sectors took over three decades to develop. Work is underway in 2017 to begin scaling curriculum as well as to facilitate new model consensus frameworks that strengthen ethical practices across entire health systems, building on the first launch of such models in Canada and Peru in 2016.

The 2018 APEC Business Ethics for SMEs Forum will address a major challenge facing SMEs today: seamless identification and cost-effective implementation of the highest standard ethical business practices for their industry. The APEC Nanjing Declaration – endorsed by APEC Ministers and APEC SME Ministers – calls for this project by 2018 to ensure that a majority of member enterprises (within those associations that have adopted the APEC Principles) have likewise adopted a code of ethics or framework aligned with the APEC Principles. This project takes direct aim at this challenge by leveraging the latest technologies to support rapid, scaled implementation across the region. It will also leverage the technological expertise of collaborating partners to support capacity-building for developing APEC member economies. The project also assembles the principals of major stakeholders from each APEC member economy to further design 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 support beyond 2017 for efforts that help SMEs and their associations implement codes and participate in multi-stakeholder ethical collaborations. By supporting this project, APEC demonstrates its commitment to calls by Ministers, SME Ministers and Ministers Responsible for Trade.[2] It also serves as a strong investment through catalyzing significant, continued in-kind contributions from many stakeholders.

The project falls under five Rank 1 APEC Funding Criteria:

1. Strengthening MSME innovation capacities and competitiveness – The project fosters an external business environment and strengthens internal company capacities 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 MSMEs.

2. Supporting the multilateral trading system – The project addresses a major vulnerability in the multilateral trading system for SMEs. According to the World Bank, $1 trillion is lost in the private sector annually as a result of corruption. SMEs suffer the greatest impact, with up to 25% of annual operating capital lost to unethical practices in transition economies.

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 with cross-border compliance risk, catalysing trade and investment.

4. Human development – This project supports key implementation provisions of the APEC Strategic Plan on Capacity Building to Promote Trade and Investment, including integrated and multi-faceted capacity-building based on demonstrated needs and mobilizing greater external resources to facilitate human development.

5. Ease of doing business – Through the rapid development of scalable ethics training and model consensus frameworks for health systems, 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.



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

Objectives

This project facilitates enterprise-level implementation of codes of ethics by bringing together SMEs and principals from their industry associations, governments, professional and consumer groups operating within member economies to:

1) facilitate the adoption of best practices outlined in the APEC Principles,

2) implement scalable ethics training curriculum through leveraging the latest technologies, such as virtual (online), multi-lingual modules and other media platforms;

3) address cultural nuances and emerging ethical challenges; and

4) advance full implementation of the Nanjing Declaration’s 2020 commitments. This includes the adoption of multi-stakeholder, consensus-based ethical frameworks for health systems within each APEC member economy.

Alignment

This project supports calls by APEC Leaders, APEC Ministers, APEC SME Ministers and APEC Ministers Responsible for Trade in 2016 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 for SMEs. Visit http://mcprinciples.apec.org to view these recommendations. 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 to 2020. This project champions these efforts in 2017. 

The project is directly aligned with the SME Working Group Strategic Plan, which has the vision of promoting competitive, sustainable growth of SMEs and a mission of “enabling policy, business, and regulatory environment for SMEs and MEs” and “strengthening the participation and access to global markets for SMEs and MEs.” Unethical business practices serve as a detrimental barrier to achieving this vision for SMEs. APEC SME Ministers have 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. This project will ensure further advances for APEC’s proven ability to address this harmful barrier.

TILF/ASF Justification

This project enhances the capacity-building support extended to developing economies to strengthen ethical business practices in sectors dominated by SMEs as well as that are essential to public health and safety. It convenes leading experts in ethics and compliance to assist developing member economy governments, industries, and civil society groups with: 

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

B) Addressing new and emerging business ethics challenges; and

C) Implementing best practices that strengthen local training activities. 

The project will also serve as APEC’s first capacity-building program focused on the utilization of digital technologies to strengthen ethical business practices, deploying a train-the-trainer approach to strengthen reach to thousands of SMEs via association attendees from developing economies. Multiple stakeholders from all APEC developing economies will be engaged for direct participation in the project. This includes governments, industry and civil society organizations. The project’s network of over 1,000 organizations throughout all 21 APEC economies ensures widespread engagement before, during and after the Forum.

Beneficiaries and Outputs

Outputs: The project will have several outputs (immediate deliverables) in accordance with the APEC Nanjing Declaration that are of great importance to SMEs in strengthening ethical business practices across all APEC economies. These include:

1)  Digital ethics training and compliance resources/curriculum for SMEs will be prepared on an in-kind basis by the initiative’s mentor network and delivered during the event (using a train-the-trainer approach) as well as uploaded to the initiative’s web-based platforms for rapid dissemination of digital resources directly to local enterprises following association codes of ethics;

2)  Workshop sessions for all sectors and stakeholder attendees dedicated to addressing new and emerging business ethics challenges facing SMEs and developing APEC economies. These session will develop new strategies to address these challengers locally for the benefit of SMEs;

3)  The release of additional consensus framework agreements for ethical collaboration between industry, professional organizations, and other health system stakeholders;

4) Plenary session to provide updates on major multi-stakeholder partnerships (within and between member economies) as called for in the Nanjing Declaration;

5)  New strategies to advance implementation of the APEC Guidance on Third Party Intermediaries throughout the region will be discussed and refined by leading stakeholders during the event’s plenary session, including an assessment of lessons learned since their launch in 2017; and

6) Further calls by APEC governments for continued regional action through APEC to advance ethical business practices among all stakeholders on a sectoral basis.

The project team is confident that these outputs will not only be absorbed by all developing APEC economies, but that they will continue to generate significant positive change to the benefit of thousands of local SMEs. There is a strong system in place to ensure the sustainability of project outputs. 

Outcomes: The project team expects this project’s outputs will have an immediate impact on the implementation of industry, professional organization and related codes of ethics aligned with the APEC Principles and in accordance with the Nanjing and Manila Declarations. We have already witnessed the elaboration of new codes from previous event outputs through (A) holding capacity-building programs, providing greater accessibility to organizations unable to attend previous events and (B) the initiative’s impressive focus on translating these outputs into concrete results through concerted follow-up. Since 2012, initiative events have fostered the development of 37 new industry association codes. Now is the time to leverage digital technologies to realize the successful implementation of these codes of ethics across thousands of enterprises in every APEC member economy. 

This outcome will strengthen ethical business environments across APEC economies. The project team also anticipates the project’s positive outcomes will extend beyond APEC, with the initiative increasingly viewed as a model in non-member economies (e.g., Colombia, Brazil, India, Saudi Arabia, among others). We also expect several new consensus frameworks and public-private partnerships to emerge from this event that will also have a major local and regional impact on strengthening ethical practices. As the first APEC ethics capacity-building program focused on the scale-up through the deployment of digital technologies, the project team anticipates new collaborations (between industry associations and their SME members), elaborating best practices and facilitating cross-border trade. 

This event will also serve as a continued opportunity to identify the positive roles APEC governments serve in supporting the implementation of high-standard, voluntary codes of business ethics. Since 2014, the Business Ethics for APEC SMEs Initiative has seen a significant uptake in actions by APEC member governments as partners with industry to strengthen local business practices in accordance with APEC Principles. There remains an immediate need for implementation of best practices in this area, as APEC governments are just beginning to realize the huge advantage of serving as a proactive facilitator of voluntary ethical collaboration (not just an enforcer of anti-corruption laws). 

Beneficiaries: The Business Ethics for APEC SMEs Initiative collaborates with each member economy to encourage participation from the leaders of industry associations with direct linkages to over ten thousand SMEs as well as all other key stakeholders relevant to SMEs in each focus sector (this includes health and infrastructure regulatory authorities, trade and economic authorities, anti-corruption authorities, professional organizations, and patient/consumer groups). Hundreds of invitations will be extended to senior-level attendees from these groups across all 21 APEC economies. We anticipate 350 or more attendees from all 21 APEC member economies will participate. Among these, we anticipate significant local and region-wide participation of SMEs within each target sector. Not only will SME participants and their industry associations benefit (for reasons already detailed) but so will all other relevant stakeholders with whom SMEs and industry interact. As the driving force behind SMEs in the APEC region, enhanced ethical business practices greatly benefit female entrepreneurs as well as female leaders from all affected stakeholders. Female leaders have served as the primary champions of APEC’s efforts to strengthen ethical practices since 2010 and will continue to do so under this project. The SMEWG, LSIF, HWG, ACT, and ABAC are all involved and/or supportive in the event’s recruitment of participants. 

The project’s outputs will have many beneficiaries, both Forum attendees and non-attendees, including:

1) APEC industry association attendees and the thousands of small and medium enterprise member companies they represent in nearly all APEC member economies. Many of these industry association attendees also work for an SME. They will benefit from enhanced support by the region’s leading ethics and compliance experts through use of digital technologies in the implementation of codes of ethics and guidance to address new and emerging challenges in business ethics. While all APEC member economies will be well represented, this event will serve as the first APEC capacity-building opportunity for many SMEs and other organizations across the region to leverage digital technologies in local capacity-building activities;

2) APEC governments through an expanded effort to confront corruption challenges in key sectors through the implementation of codes of ethics and heightened focus on emerging ethical issues;

3) Professional organizations through the continued elaboration of new – and implementation of recently adopted – consensus frameworks with industry associations and SMEs; and

4) Civil society and academia from expanded engagement with industry and government stakeholders to address shared challenges on business ethics issues (patients, caregivers, consumers, etc.)

Dissemination

Participation in and outcomes from the 2018 APEC Business Ethics for SMEs Forum will be communicated within APEC through in-person and electronic reports to the SMEWG and SME Ministers, ABAC, Life Sciences Innovation Forum (LSIF), Health Working Group (HWG), and Anti-Corruption & Transparency Working Group (ACT). Outside of APEC, electronic and in-person communications will be disseminated to over a thousand stakeholders identified as critical to fostering ethical business environments. These include: 

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

Industry – Associations and their member enterprises in target sectors; and

Other key stakeholders - In the case of the medical device and biopharmaceutical sectors, which constitute the largest sectorial programs under this initiative, the leaders of hospital, pharmacy, insurance and other payers, healthcare professional, and patient/consumer groups. 

The project team utilizes satellite websites established in 2015 to further enhance dissemination of project outputs and other resources for stakeholders in each covered sector. These satellite websites are supported in-kind by stakeholders and serve as an on-going communication platform. An informal network of hundreds of local ethics champions and trainers contributing to this project from throughout the region also continue to play a key role in the local dissemination of results/outputs. 

As with previous APEC Business Ethics Forums, we believe this project will receive significant mass media attention as an important mechanism of disseminating project impact. In particular, the gathering of senior government leaders envisioned on the plenary session issuing a statement on key progress and advising on next steps to strengthen ethical business practices will likely draw significant interest. The project team will coordinate with the APEC Public Affairs team, host economy, and other stakeholders to appropriately disseminate project outputs through the media in 2018.

Gender

We will proactively seek balanced representation by men and women in the project’s agenda, among target Forum attendees, and in those leveraging the project’s outputs within each member economy. This includes taking an equitable approach to the selection of mentorships and speakers as well as during the recruitment process. This approach has enable APEC’s 14 business ethics programs thus far to achieve near gender balance. We are confident there will be robust participation by both genders in the event, particularly those leading industry and government organizations of great importance to SMEs. Women play a particularly important role in the success of APEC SMEs and their associations. They also benefit from the project’s efforts to strengthen ethical business practices within and between APEC member economies. 

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, Indonesia, Korea, Malaysia, Mexico, New Zealand, Peru, Philippines, Thailand, United States and Vietnam to government leaders supporting SMEs in all 21 APEC economies. It should be noted that the Project Overseer is a woman, as are the lead industry coordinators for both the medical device and biopharmaceutical sector programs. The Government Co-Chair of the APEC Biopharmaceutical Working Group on Ethics – and lead champion of the world’s first economy-level consensus framework agreement in Peru – is also 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 2017

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

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

January 2018

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 2018

By Project Overseer

United States

N/A

N/A

Identify target attendees and circulate save-the-dates.

February-March 2018

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

April 2018

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

Refine Forum Agenda, Secure Technology Resources, and Recruit Attendees

May-June 2018

By Project Overseer & Multi-Sectoral Support Team

Multi-sectoral representatives from many APEC economies

N/A

Others to provide inputs

Hold 2018 APEC Business Ethics for SMEs Forum

July 2018

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

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

August-October 2018

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 Tokyo, Japan or venue-related logistical challenges

Project team has already begun to assess venue options far in advance of 2018. While costs are significantly above average, several partners will support the management team to secure a venue within budget.

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. Tokyo is a very central location with direct flights to most APEC capitals.

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.

Monitoring and Evaluation

The Business Ethics for APEC SMEs Initiative has an extensive monitoring and evaluation program in place and that will continue to expand beyond the life of this project to ensure objectives are met. Key indicators of the initiative’s success include:

A) the number of scalable, virtual ethics training modules launched,

B) the number of local follow-on virtual trainings held and the number of enterprises reached through these efforts, and

C) specified benchmarks advanced under the Nanjing Declaration. As this project carries these same objectives, they will serve as our key indicators of success.

However, as this work builds on previous efforts, there are several additional indicators that will confirm this project is tracking well and meeting its objectives. This includes:

A) the development, endorsement and local implementation of new consensus frameworks for ethical collaboration,

B) an improved understanding of new and emerging issues in business ethics,

C) heightened collaboration on these emerging issues after the event, and

D) expanded engagement from new government, health care professional and civil society stakeholders.

The initiative will also continue to develop indicators (best practice models) on how APEC governments can positively support the elaboration of codes of ethics as well as how each sector is effectively managing ethical relationships with third party intermediaries. Assessment for all of these indicators through regular surveys will include gender impact. 

To ensure the project is successful in all of these efforts, extensive online and phone surveys are conducted with all associations partners before and after the event. Post-event evaluations are also conducted onsite by participants. There will also 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 of hundreds of ethics champions (operating within and between all APEC member economies) will ensure sustained local and multi-lateral capacity building irrespective of the project team’s efforts. The project team plans to continue sustained monitoring and evaluation in collaboration with the self-sufficient network of ethics champions. We do not anticipate a reduction in sustained follow-on efforts after this project concludes.

Linkages

Since 2010, the Business Ethics for APEC SMEs Initiative has enjoyed strong support and involvement from many fora beyond the SME Working Group. This includes the APEC Business Advisory Council (ABAC), Life Sciences Innovation Forum (LSIF), Health Working Group (HWG) and 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 closely coordinate with them in 2018. This project will also leverage hundreds of organizations already engaged with the APEC ethics initiative 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 18,000 large, medium and small enterprise member companies) and hundreds of professional and civil society organizations (ranging from academic institutions to healthcare professional and hospital associations). The project will support the continued involvement of these entities as well as engage with dozens of new organizations.

This project builds on the significant advances achieved under the multi-year Business Ethics for APEC SMEs Initiative, as well as the 2014-2017 APEC Business Ethics for SMEs Forums, while maintaining its own specific objectives and deliverables. The business ethics work to-date has focused on (A) establishing APEC Principles for voluntary codes of ethics in sectors of key importance to SMEs, (B) supporting SME industry groups to create codes of ethics for the first time in alignment with APEC Principles, and (C) to provide training to local ethics champions via a train-the-trainer program establishing a network of ethics champions. Feedback from all key stakeholders contributing to or benefiting from this multi-year project, especially SME industry groups, indicates that scaled, virtual (digital) training will be essential to widespread code of ethics implementation. And that continued guidance from APEC’s expert networks is crucial to raising awareness around emerging issues in ethical business practices. This project also advances the Nanjing Declaration, endorsed by APEC Ministers and APEC SME Ministers in 2014, by supporting the achievement of their multi-year commitments. This includes a central recommendation to hold an annual APEC Business Ethics for SMEs Forum within the APEC host economy through 2020.

A highly coordinated effort among over a thousand stakeholders throughout APEC’s 21 member economies ensures there is no duplication between this project and other APEC activities. There is no other innovative project like this occurring in the region – or anywhere in the world – so there is minimal risk of duplicating the efforts of non-APEC fora. APEC remains the most suitable home for this project as evidenced by the successes achieved to-date. APEC is unmatched in its ability to convene stakeholders on sensitive subjects, like business ethics, and to provide an effective, nimble platform for the harmonization of high-standard principles that advance mutual economic interests. There remains no better home to build upon the successes achieved from previous APEC Business Ethics for SMEs Forums or to confront emerging business ethics issues for the region’s leading stakeholders. APEC is also an effective platform to capture unique cultural approaches and to convene economies in different stages of developing initiatives that strengthen ethical business practices. Rapid diffusion of best practices ensures that no APEC member economy is left beyond as capacities are enhanced.

Sustainability

APEC’s activities to strengthen ethical business practices have, and will continue to have, a major impact on member economies beyond 2018. Upon this project’s completion, after APEC’s allotted funding is utilized, the positive impacts will be observed in several ways:

1) Utilization of new digital technologies through industry associations with over 18,000 member enterprises will support the elaboration of ethics trainings to advance code implementation across all 21 APEC member economies, having a lasting impact on thousands of the region’s SMEs by removing key barriers generated by unethical business practices.

2) The elaboration of new “consensus frameworks” for ethical collaboration across APEC member economies as well as the effective implementation of newly adopted frameworks. This will be led by key stakeholders within each economy to implement an agreement that utilizes the APEC model while customizing to the appropriate local environment. Such frameworks are viewed as “game changers” to strengthening the long-term ethical business environment for health systems.

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 strong private-public partnership and network of hundreds of ethics champions covering all 21 APEC economies. Second, it enjoys robust involvement from senior government leaders, industry and civil society. These stakeholders have a strong interest to ensure the 2018 APEC Business Ethics for SMEs Forum meets its objectives and project outputs are deployed within and between each APEC economy. This commitment is demonstrated through the dedication of massive in-kind resources from stakeholders across each member economy, amounting to nearly ten times that which APEC is contributing for this particular project. Third, the initiative’s comprehensive monitoring program will also continue to track efforts that ensure outputs are undergoing implementation an economy-by-economy basis. Lack of progress is reported to APEC governments for localized action.  Fourth, there will be a concerted effort to build upon the project’s outputs through a continued call for regional cooperation to implement the APEC principles, heightened multi-sectoral collaboration, and expanded efforts that address new and emerging issues in business ethics. The project will facilitate APEC’s continued leadership in this effort while implementing the Nanjing Declaration.

There are several next steps to build on project outcomes:

-  Prepare a dedicated, virtual library of multi-lingual digital modules that could be freely circulated from APEC to each association partner, supporting their no-cost, rapid implementation of best practices training to over 18,000 enterprises.

-  Continue to advance implementation of the APEC Principles among all relevant industry associations in the APEC region and work towards a majority of these associations’ member enterprises having implemented a code of ethics before the Forum takes place;

-  Support and monitor progress of local training programs for SME members by each association;

-  Develop additional mechanisms for regional coordination among all stakeholders, including localized training sessions (especially for SMEs), and health and business ethics summits on addressing new and emerging business ethics issues; and

- Continue APEC’s role in serving as ongoing platform for collaboration among all stakeholders to advance ethical business practices in sectors of key importance to SMEs. This includes plans to hold the APEC Business Ethics Forum on an annual basis through 2020. Each meeting will continue to build on progress from the last and report on efforts to implement previous project outputs within all APEC economies.

Project Overseers

The Project Overseer is Ms. Lynn Costa, Senior Advisor to the Deputy Assistant Secretary of Commerce of at the U.S. Department of Commerce. She has served as the leader of the Business Ethics for APEC SMEs Initiative since 2010 and is widely regarded as the principal focal point in APEC’s work to strengthen ethical business practices. She has led the preparation and execution of 14 programs across the region and has engaged with thousands of attendees and other external stakeholders. She is expert in the subject matter of this project and will serve as the main point of contact. Ms. Costa oversees numerous projects that help build open and transparent business climates around the world to facilitate the movement of goods and services between economies. She served as the lead negotiator in the Doha Non-Agricultural Market Access (NAMA) sectoral negotiations in Geneva, Switzerland from 2002-2008 and serves as the senior development specialist for Commerce.  Ms. Costa 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 with foreign and domestic firms. 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

A waiver is requested for business class travel for experts, government or non-government, if the expert required is critical to reaching an optimal outcome or if medically advisable. Business class travel for experts would only be approved on a case-by-case basis by the Program Director during the project’s implementation. This approval will only be issued if the experts travel exceeds 12 hours (airport to airport), there are sufficient funds in the budget, and/or (as appropriate) medical certification is provided by experts claiming it is medically advisable.

2. A waiver is requested for advance payment of travel funds to participants from travel-eligible economies and to expert attendees.

3. A waiver is strongly request for APEC funds to cover simultaneous interpretation expenses, not to exceed $7,500/day ($15,000 total). This waiver is sought under exceptional circumstances since many key speakers, experts and attendees from Japan cannot share world renowned best practices nor can they contribute to exchanges without simultaneous translation capabilities. These individuals are viewed as essential, without alternatives and will help achieve the event’s primary theme of leveraging digital technologies. Furthermore, the benefits of simultaneous translation from Japanese to English will benefit attendees from all 21 APEC economies as best practices are exchanged with clarity. Thus, all attendees from every economy will benefit. We understand that this waiver request is subject to the guidelines set in Paragraph 9-8 of the Guidebook and may be approved only under exceptional circumstances. We believe this is an exceptional case. We hope this waiver request serves as strong justification to the Program Director in charge during the project’s implementation.

4. A wavier is requested that in the event APEC funds are denied to cover simultaneous interpretation expenses, the $15,000 designated for this category be transferred to “Hosting – Room & Equipment Rental” as it is likely the Unit Rate will exceed the $15,000 per day for this category in Tokyo, Japan. Project Overseer has verified this with a sample of local venues.

Are there any supporting document attached?

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Created at 07/07/2017 11:34  by Lucy Phua 
Last modified at 07/07/2017 11:37  by Lucy Phua 
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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

Are there any supporting document attached?

hdFldAdmin

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

Proposal Status

Originating Sub-Forum

Approval Status
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