The Round Table was founded in 1986 by Frederik Philips, former President of Philips Electronics, and Olivier Giscard d'Estaing, ViceChairman of INSEAD, as a means of reducing escalating trade tensions. It is concerned with the development of constructive economic and social relationships between the participants' countries, and with their urgent joint responsibilities towards the rest of the world. 

At the urging of Ryuzaburo Kaku, Chairman of Canon Inc. the Round Table has focused attention on the importance of global corporate responsibility in reducing social and economic threats to world peace and stability. The Round Table recognizes that shared leadership is indispensable to a revitalized and more harmonious world. It emphasizes the development of continuing friendship, understanding and cooperation, based on a common respect for the highest moral values and on responsible action by individuals in their own spheres of influence. 

These principles are rooted in two basic ethical ideals: kyosei and human dignity. The Japanese concept of kyosei means living and working together for the common good enabling cooperation and mutual prosperity to coexist with healthy and fair competition. Human dignity refers to the sacredness or value of each person as an end, not simply as a means to the fulfilment of others' purposes or even majority prescription. 

The general principles in section 2 seek to clarify the spirit of kyosei and human dignity, while the specific stakeholder principles in section 3 are concerned with their practical application. 

In its language and form, the document owes a substantial debt to the Minnesota principles, a statement of business behaviour developed by the Minnesota Center for Corporate Responsibility. The Center hosted and chaired the drafting committee, which included Japanese, European, and US representative

Business behaviour can affect relationships among nations and the prosperity and well-being of us all. Business is often the first contact between nations and, by the way in which it causes social and economic changes, has a significant impact on the level of fear or confidence felt by people worldwide. Members of the Caux Round Table place their first emphasis on putting one's own house in order, and on seeking to establish what is right rather than who is right. 

Laws and market forces are necessary but insufficient guides for conduct.

Responsibility for the policies and actions of business and respect for the dignity and interests of its stakeholders are fundamental. 

Shared values,, including a commitment to shared prosperity, are as important for a global community as for communities of smaller scale. 

For these reasons, and because business can be a powerful agent of positive social change, we offer the following principles as a foundation for dialogue and action by business leaders in search of business responsibility. In so doing, we affirm the necessity for moral values in business decision making. Without them, stable business relationships and a sustainable world community are impossible. 

Businesses have a role to play in improving the lives of all their customers, employees, and shareholders by sharing with them the wealth they have created. Suppliers and competitors as well should expect businesses to honor their obligations in a spirit of honesty and fairness. As responsible citizens of the local, national, regional and global communities in which they operate, businesses share a part in shaping the future of those communities.. 

Principle 2. The economic and social impact of business: towards innovation, justice and world community.
Businesses established in foreign countries to develop, produce or sell should also contribute to the social advancement of those countries by creating productive employment and helping to raise the purchasing power of their citizens. Businesses also should contribute to human rights, education, welfare, and vitalization of the countries in which they operate. 

Businesses should contribute to economic and social development not only in the countries in which they operate, but also in the world community at large, through effective and prudent use of resources, free and fair competition, and emphasis upon innovation in technology, production methods, marketing and communications. 

Principle 3. Business behaviour: beyond the letter of law, towards a spirit of trust.
While accepting the legitimacy of trade secrets, businesses should recognize that sincerity, candour, truthfulness, the keeping of promises, and transparency contribute not only to their own credibility and stability but also to the smoothness and efficiency of business transactions, particularly on the international level. 

Principle 4. Respect for rules.
To avoid trade frictions and to promote freer trade equal conditions for competition, and fair and equitable treatment for ail participants, businesses should respect international and domestic rules In addition, they should recognize that some behaviour, although legal, may still have adverse consequences.

Principle 5. Support for multilateral trade.
Business should support the multilateral trade systems of the GATT/World Trade Organization and similar international agreements. They should cooperate in efforts to promote the progressive and judicious liberalization of trade and to relax those domestic measures that unreasonably hinder global commerce, while giving due respect to national policy objectives. 

Principle 6. Respect for the environment.
A business should protect and, where possible, improve the environment, promote sustainable development, and prevent the wasteful use of natural resources.. 

Principle 7. Avoidance of illicit operations.
A business should not participate in or condone bribery money laundering, or other corrupt practices: indeed, it should seek cooperation with others to eliminate them. It should not trade in arms or other materials used for terrorist activities, drug traffic or other organized crime. 

Customers

provide our customers with the highest quality products and services consistent with their requirements; 

treat our customers fairly in all aspects of our business transactions, including a high level of service and remedies for their dissatisfaction;

make every effort to ensure that the health and safety of our customers, as well as the quality of their environment, will be sustained or enhanced by our products and service;

assure respect for human dignity in products offered, marketing, and advertising; and 

respect the integrity of the culture of our customers. 

Employees

provide jobs and compensation that improve workers' living conditions;

provide working conditions that respect each employee's health and dignity; 

be honest in communications with employees and open in sharing information, limited only by legal and competitive constraints; 

listen to and, where possible, act on employee suggestions, ideas, requests and complaints; 

engage in good faith negotiations when conflict arises; 

avoid discriminatory practices and guarantee equal treatment and opportunity in areas such as gender, age, race and religion; 

promote in the business itself the employment of differently abled people in places of work where they can be genuinely useful; 

protect employees from avoidable injury and illness in the workplace;

encourage and assist employees in developing relevant and transferable skills and knowledge; and 

be sensitive to the serious unemployment problems frequently associated with business decision, and work with governments, employee groups, other agencies and each other in addressing these dislocations. 

Owners / investors

apply professional and diligent management in order to secure a fair and competitive return on our owners' investment 

disclose relevant information to owner/investors subject only to legal requirements and competitive constraints; 

conserve, protect and increase the owners/investors' assets; and 

respect owner/investors' requests, suggestions, complaints, and formal resolutions. 

Suppliers

seek fairness and truthfulness in all our activities, including pricing, licensing, and rights to sell; 

ensure that our business activities are free from coercion and unnecessary litigation; 

foster long-term stability in the supplier relationship in return for value, quality, competitiveness and reliability; 

share information with suppliers and integrate them into our planning processes; 

pay suppliers on time and in accordance with agreed terms of trade, and 

seek, encourage and prefer suppliers and subcontractors whose employment practices respect human dignity. 

Competitors 

foster open markets for trade and investment; 

promote competitive behaviour that is socially and environmentally beneficial and demonstrates mutual respect among competitors; 

refrain from either seeking or participating in questionable payments or favours to secure competitive advantages; 

respect both tangible and intellectual property rights; and 

refuse to acquire commercial information by dishonest or unethical means, such as industrial espionage. 

Communities

support peace, security, diversity and social integration; 

respect the integrity of local cultures; and 

be a good corporate citizen through charitable donations, educational and cultural contributions, and employee participation in community and civic affairs. 

Caux Round Table Steering Committee: Friedrich Baur, President, MST GmbH, Germany; John Charlton, Managing Director, The Chase Manhattan Bank, USA; Nivelli Cooper, Chairman, The Top Management Partnership, Ltd. UK; Charles M Denny, Jr, Formerly Chairman and CEO, ADC Tele communications, Inc. USA; Jean-Loup Dherse, (Chairman, CRII Consultant, Formerly vice President, World Bank, France, Walter E Hoadley, Senior Research Fellow, Hoover institution, USA, Ryuzaburo Kaku, Chairman, Canon inc. Japan, Morihisa Kaneko, Assistant Senior Counsellor, Matsushita Electric Industrial Co Ltd. Japan; Toshiaki Ogasawara, President Nifco, Inc. Japan. 

Information: For copies of the Principles for Business or further information, please contact 
the Caux Round Table Secretariat 1156 Fifteenth Street NW, Suite 910, Washington, DC 200051704, USA 
Tel: + 1 202 872 9077; fax: + 1 202 872 9137). 
 

Originally posted in different form by Lawren Bale 06-07-97
Revised and reposted by Ingrid Shafer 22 April 1999