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As UN Global Compact Lauds Sri Lanka's Hayleys Group, Cigarette Filter Production Deemed Not Serious

 

By: Matthew Russell Lee of Inner City Press at the UN

19-03-2007

UNITED NATIONS, March 19 -- The UN Global Compact, a corporate initiative of Kofi Annan, on Monday held its first press conference at UN Headquarters since Ban Ki-moon took over. The Hayleys Group, a Sri Lankan conglomerate involved among other things in textiles, teas and "activated carbon" used in cigarette filters, received a plaque for a program in which it will insert a Global Compact flier in every tea container, and devote 1.5 cents per sale to housing for the workers on what it calls its plantations.

The Global Compact's self-description is that it "catalyzes actions in support of UN goals." The UN's World Health Organization helped organize in 2003 the Framework Convention on Tobacco Control, since ratified by nearly all UN member states. At Monday's press conference, Inner City Press asked Hayley's Group chairman N.G. Wickremeratne about the cigarette filters as well as how the Group deals with the 20-year conflict in the country. Video here, from Minute 27:54.

Of cigarette filters, Mr. Wickremeratne said that "if someone wants to buy our product, unless we know for certain.... we would not not sell." He added that if asked, "We will produce a better quality filter" for cigarettes.

But how does this relate to the Global Compact, and to the UN's Framework Convention on Tobacco Control? Inner City Press asked the two questions, conflict and tobacco, to Global Compact head, Goerg Kell. On the first, Mr. Kell spoke of how business can foster islands of stability. He did not, in this first crack at it, address the tobacco issue. When Inner City Press followed-up, Mr. Kell said, "I don't believe it is a very serious issue," and called it a third-level issue. We are here to talk about tea, he said, noting that there is "no explicit prohibition" against tobacco and that it is a "fully legal product." He concluded, "We do not see this as an ethical issue." Many in the responsible investment community see it differently. And the Global Compact's own website touts its co-hosting of dialogues to "promote sustainable lifestyles." Smoking, it seems clear, not only does not represent a sustainable lifestyle, it does not sustain life, much less style.

 
  Global Compact beams tea at UN HQ on Monday  

Sri Lanka is a signatory to the UN's Framework Convention on Tobacco Control. On Monday, Sri Lanka's Ambassador to the United States, Bernard Goonetilleke, responded to Inner City Press' question about business in conflict areas, but not on the question of cigarettes and filters. Ambassador Goonetilleke emphasized that cease fires are arranged, even in areas controlled by the Tamil Tigers, to arrange for the vaccination of children, and that the central government pays for schooling in those areas. A similar point, regarding the country's rules against child labor, was made by Ravi Fernando, who along with being the Global Compact's "focal point" in Sri Lanka also works for garment manufacturer MAS Holdings, one of the products of which is described as "the ethical bra." Beyond Sri Lanka, MAS has factories in India, Maldives and Vietnam.

Relatedly, Mr. Kell indicated that his office and experts will be providing information from its "work stream" on the relation between the Compact and conflict prevention, or as Inner City Press put it, peace and security. The connections and disconnections between the evolving principles and methods of the Global Compact and the wider "community" of socially responsible investment is a topic deserving of more coverage. What, for example, is the Global Compact's view of predatory lending? Would the Global Compact say that climate change and standardless greenhouse gas emissions, like tobacco and the production of cigarette paraphernalia, is not "an ethical issue," not even " a very serious issue?" We will continue to cover the Compact.

     
 

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