House of Commons - Trade and Industry

Select Committee on Trade and Industry Ninth Report

2 ECGD's stated business principles

9. Since December 2000, ECGD has been committed to operating in accordance with four basic business principles:[4]

— The promotion of a responsible approach to business, ensuring that ECGD activities take into account the Government's international policies including those on sustainable development, environment, human rights, good governance and trade;

— The provision of a customer oriented, efficient and professional service and commitment to continuous review and improvement;

— Openness and honesty in all business transactions and the expectation of the same standards from others; and

— Wide consultation during the development of services, taking account of the legitimate requirements and expectations of ECGD's customers and other interested parties.

10. These principles are upheld by the development of polices which ECGD has grouped under several generic headings, of which the following are relevant to our inquiry:

ECGD in business

11. ECGD aims to provide an efficient, flexible, and internationally competitive service for customers which focuses on solutions and innovation. It aims to service the widest possible range of markets and customers including smaller firms, whilst complementing, rather than competing with, the private sector. It is committed to the development of multilateral harmonisation of areas of export credit practice where significant differences between export credit agencies can cause distortion of competition, and it works to foster co-operation with export credit agencies and international finance institutions in order to help secure overseas investment and exports for UK based companies.[5]

Sustainable development and human rights

12. The ECGD's statement of business principles commits the Department to consider the underlying quality of the project, including its environmental, social and human rights impacts, as well as the risks associated with repayment, when considering applications for support. In our previous inquiry we were told that, since January 2001, an impact analysis has been part of ECGD's case assessment process to ensure that the environmental, social and human rights aspects of projects ECGD supports are compatible with standards used by multinational financial institutions such as the World Bank. The Department used its own in-house expertise after consultation where necessary with other specialists, and consulting other interested Government departments on cases with significant project impacts.[6]

Business integrity

13. The Department's stated objectives commit it to be objective, consistent, fair and honest in all dealings; to combat corrupt practices; to ensure, as far as is practicable, that its support for projects is predicated on compliance with applicable laws and regulations by all parties benefiting from that support; and to promote the implementation of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.[7]

Transparency

14. ECGD has committed itself to consulting on major issues with all parties with a legitimate interest in its activities and being as open as possible in its operations, having regard to legitimate commercial and personal confidentiality. The Department has said that it will engage with all stakeholders to discuss ECGD's policies, products and practice, and expand the information it publishes regarding its financial performance, business activities and the application of its Business Principles.[8]

4 As set out at www.ecgd.gov.uk/index/pi_home/pi_bp.htm Back

5 As set out at www.ecgd.gov.uk/index/pi_home/pi_bp/pi_ib.htm Back

6 As set out at www.ecgd.gov.uk/index/pi_home/pi_bp/pi_sdhr.htm Back

7 As set out at www.ecgd.gov.uk/index/pi_home/pi_bp/pi_bi.htm Back