Q&A about DanWatch
What Is DanWatch?
DanWatch is an analysis center and a journalistic watchdog which investigates and presents cases where Danish companies' international ativities contribute to violations of human and workers' rights, environmental destruction, corruption or conflicts.
DanWatch sets new agendas by documenting whether Danish companies act according to internationally acknowledged CSR (Corporate Social Responsibility) standards in connection with their international investments, spendings, trade, production as well as deliveries of technology and services.
DanWatch makes sure that companies' CSR-responsibility is a constant priority in the Danish - and international – media. Thereby, DanWatch creates the basis for a nuanced and informed public debate and decision-making.
The clerical staff of DanWatch currently consists of four employees, four interns and a considerable amount of volunteers.
Why is There a Need for Danwatch?
Many Danish companies have activities and relations abroad in order to gain access to markets, raw materials or cheaper labour. However, this also means that Danish companies have activities in countries which either cannot or will not enforce international and national laws concerning environment and human rights. For instance, this could be developing countries or countries with repressive regimes. If Danish companies do not make an active effort to achieve the opposite, they run the risk of getting involved in activites which have serious consequenses for humans and nature.
Today CSR is an integrated part of the international business practices of an increasing number of companies. However, there are still Danish companies which do not acknowledge their social responsibility, and there are cases where Danish companies do not live up to the internationally acknowledged CSR principles they already have endorsed.
The public is has a right to know what the Danish corporate sector is involved in, and it is the public's 'eye' that urges (a larger number of) companies to take their social responsibility seriously. That is why DanWatch has an important function in relation to exposing problematíc cases and making them known to the public.
International trade and production is characterized by great complexity and, at times, a lack of transparency. It is difficult for consumers, the public and, in some cases, Danish and multinational companies to know what effects their international activities and relations have. DanWatch wished to contribute to a more nuanced understanding of companies' activities and create a greater public debate about the effects that the corporate sector has on the enviroment and human rights and the dilemmas it involves.
On What Basis Does DanWatch Work?
DanWatch bases its work on internationally acknowledged standards within the area of CSR. This especially applies for the UN's Global Compact and the OECD's Guidelines for Multinational Enterprises, which are rooted in internationally adopted conventions within the area of human rights, employment rights, environmental protection and the fight against corruption. The most important ones are:
- The UN's Universal Declaration of Human Rights - including the UN's conventions on civil and political rights, together with economic, social and cultural rights
- The ILO's Declaration on Fundamental Principles and Rights at Work
- The Rio Declaration
- The UN's Convention Against Corruption
Sometimes DanWatch includes national and local legislation as well as the companies' own CSR and SRI (Social Responsible Investment) goals in order to shed light on specific problems that a company is involved in.
What is the Purpose with DanWatch's Work?
DanWatch works thoroughly, seriously, and impartially with problems in order to contribute with new knowledge for the public and consumers concerning the social and environmental bottomline of Danish companies and public buyers. The goal is to promote responsible production, investments and services down through their supply chain, and generate respect for the international CSR standards. The final goal is to avoid negative effects and maximize Danish companies' positive influence internationally.
DanWatch communicates recommendations, but it is not the organization's role to offer final solutions. It is DanWatch's intention to create public awareness about problematic cases, after which other players can have their say in the debate, so that in the end, a solution is found and problems are actually solved.
Which Working Methodes Does DanWatch Use?
DanWatch makes in-depth and investigative research and journalism. The results of this are communicated through reports, minor briefings, through news articles on www.danwatch.dk and other Danish and foreign media. DanWatch puts emphasis on active and documenting work, which in many cases takes place outside Denmark. DanWatch also makes studies of principal questions within the areas of CSR and ethical investments, where there is doubt about the boundaries of a company's responsibility.
DanWatch documents problems through field and desk studies. When conducting field studies, DanWatch visits the place or places which is relevant for the study, and enters in a dialog with local players. This could be an NGO, unions and representatives of the affected community. It is central for the study that the people and community affected by a certain company or the activities of a particular business sector are heard. This will also help create a nuanced and accurate picture of a given problem.
Desk studies will typically be based on reports from internationally recognized organizations, statistics from Denmark and abroad, together with interviews with relevant players. Desk studies can, for instance, be used to uncover problems which require a quantitative comparison of data or shed light on a larger number of companies.
DanWatch does not feel obligated to advise companies or investors before a report or other news are released. Companies which are included in DanWatch's reports are at the release invited to submit an answer, which will be published at www.danwatch.dk. DanWatch will, as far as possible, follow up on the completed study and informs about positive changes which afterwards have been made.
Why Does DanWatch Only Shed Light on the Critical Cases?
DanWatch does not see it as its primary job to tell stories about companies whose behaviour is in compliance with with internationally recognized CSR standards. There is a greater need for shedding light on the critical cases, because historically, this is the criticism that can kickstart the CSR work amongst companies who have not started yet, and keeps those who are on the right track going. This applies both internationally and in a Danish context. At the same time there is a weak culture for critical business journalism in Denmark, and this is something DanWatch wants to rectify. DanWatch sheds light on the current cases as thoroughly and nuanced as possible, and in that context also includes examples from companies and authorities who are good examples.
Is DanWatch Against the Activity of Danish Companies in Development Countries?
No - on the contrary. Investments and trade is extremly important for the development in the Third World. Danish companies can contribute positively to the development of these countries, for instance by creating new jobs, transferring knowledge and technology, creating local business development and strengthening trade with other coutries.
However, DanWatch thinks that Danish businesses have a responsibility to ensure and promote the respect for international conventions and national laws everywhere they are operating. Here it is especially important to keep in mind how one's business activities affect the community in countries where breaches of international conventions are widespread.
Is DanWatch a Unique Organization?
Yes. In a Danish context DanWatch is an innovation. As the only independent organization in Denmark, DanWatch has the purpose of investigating Danish sectors and individual companies' supply chain or investments abroad, such that possible discrepancies can be put on the public agenda, domestically and abroad.
There are corporate watchdog in many European countries, and DanWatch is part of the Nordic watch-organizations, which have existed for several years.The organizations often work together on specific projects and exchange information, for instance concerning companies or sectors, which has relevance in the countries concerned. Some of the organizations get part of their funding from the government. For instance, SwedWatch is mainly financed by the Swedish state through the Swedish counterpart to Danida: Sida.
What has DanWatch Achieved so far?
Since fall 2007, DanWatch has helped put a number of cases on the media agenda - and this has already given actual results.
In October 2007, DanWatch documented that several pension- and mutual funds had shares in oil companies which co-operated with the Burmese military dictatorship. After this, ATP and a number of pension funds chose to sell all their shares in the companies in question.
In November 2007, DanWatch presented documentation of a growing Danish import of Chinese granite, which, with great likelihood, was produced under lethal working conditions. DanWatch's story helped start a debat among the Danish local authorities and the importers of granite concerning ethical stardards for Danish granite import. Their work continued in 2008.
In January 2008, DanWatch started to shed light on private pension funds' general investment ethics. Here it was revealed that several companies held back information concerning their investments. After many requests, Nordea Liv & Pension informed DanWatch that they now - for the first time - were going to put their entire invesment portfolio out to the public. Several Danish pension funds have followed this example and have, after DanWatch's focus on their investments, e.g. in cluster bombs, chosen to re-evaluate their investments.
How is DanWatch Organized?
DanWatch is founded by The Danish Consumer Council, Solhvervfonden, WWF, MS Actionaid and DanChurchAid. Like WWF & Max Havelaar, DanWatch is formally a business foundation. Besides a board of directors, DanWatch consists of a general office/editorial office as well as a consultative assembly. The board of directors marks out the administrative guidelines but has no influence on the editorial planning.
How is DanWatch Financed?
The funding of DanWatch is limited, so your support is very important for DanWatch.
DanWatch looks for financing through a number of different sources. Partly from projects and co-operation with NGOs and the media. Likewise, DanWatch continously looks for foundation funds and public grants. DanWatch also receives dues from the counsultative assembly, contributions from private persons through membership support and companies through newsletter subscriptions as well as revenues from lectures. DanWatch also receives donations. Furthermore, DanWatch can recieve money for carrying out assignments for the public sector, and in special cases, for companies, with reference to the ethical guidelines determined by the board of directors.
