Report says Australian business benefits from helping Asia's poor - Singapore's Online Community

**toh_3312** · 30-04-2007, 06:28 AM

SYDNEY : A report commissioned by some of Australia's leading companies argues there is a strong business case for private enterprise here to help alleviate poverty in the Asia-Pacific region.

The report says helping overcome poverty in the world's fastest-growing economic region could improve the long-term bottom line of Australian companies, as well as addressing humanitarian issues.

The report, commissioned by a World Vision-backed group called the Business for Poverty Relief Alliance, said Australian business could help bring stability to the region, creating new markets for its products in the process.

It also warned Australian companies must carefully source materials and services in the Asia-Pacific region to avoid the "sweat-shop" controversies that have plagued major sportswear and retailing multinationals.

The recently-formed business alliance involves major Australian companies such as ANZ Bank, Grey Global Group, IAG, Pfizer and Visy Industries.

It commissioned the report from Melbourne-based private enterprise policy group Allen Consulting to examine the pros and cons of companies becoming involved in attempts to reduce poverty, particularly in the Asia-Pacific area.

The conclusion was that companies in one of the region's richest economies had much to gain by promoting development among their neighbours.

"There is a strong business case for Australian companies to focus on, and to do more to address, the plight of the poor in developing nations," the report concluded.

"Global poverty represents a direct threat to the current and future prosperity of a range of Australian businesses through loss of potential markets, damage to foreign affiliates and a greater risk of regional instability.

"In addition, contributing to the development of poor countries by generating income, creating jobs and investing in local businesses and skills can present Australian firms with the opportunities of new markets."

The report found few Australian firms were acting to tackle poverty in their closest export markets, even though more than 25 percent of the nations trade was with low-income countries such as China, Thailand, India, Indonesia.

"Australian island geography creates an illusion of isolation from the worlds poor," it said.

"In fact, the opposite is true - as an island nation, Australia is highly integrated with the world economy, including numerous developing countries."

World Vision Australia chief executive Tim Costello said corporate Australia needed to be more socially aware and follow the example set by some of America's business leaders.

"In the US, the work of Bill Gates and Warren Buffett has made corporations aware of how fundamental it is for them to be involved," he said.

The report called for Australian companies to increase investment in poverty relief initiatives, ensure Asian workers were not exploited and lobby for Canberra to increase its international aid program.

It also said the Asia-Pacific Economic Cooperation (APEC) leaders' summit in Sydney in September provided an excellent opportunity for business leaders to encourage governments to address the issue of poverty reduction. - AFP/de