Dear Friends and Colleagues,
Over the past two weeks, we have been asked by clients and stakeholders about the status of the Global Monitoring Institute (GMI) efforts. These inquiries have been driven – at least in part – as a result of the circulation of a funding proposal (written by APCO Worldwide) for the development of a China Compliance Professionals Association.
GMI continues to move forward – and our mission and objectives remain unchanged. With the initial meeting of the GMI Stakeholder Board in March of this year, the process of developing the framework to support the professionalization of CSR monitoring continues. While this process is not moving as rapidly as any of those involved with or interested in the process would necessarily like – there is a critical need for the process to be collaborative and involve multiple stakeholders to ensure the resultant product is both credible and workable. Fundamentally, this takes time.
The member organizations comprising the GMI are supportive of the need to develop professional standards and – in many ways – are aligned with those involved with the China Compliance Professionals Association Initiative.
Representatives from GMI have reached out to the groups involved with the China Compliance Professionals Association since the initial meetings in November 2009. In early 2010, representatives from GMI began dialogue with those involved in the development of the China Compliance Professionals Association initiative. This dialogue has been mixed – as there is a view from those involved with the China Monitoring Institute initiative that a localized initiative can be implemented more rapidly and as such, is uniquely separate from GMI. GMI has expressed an interest and the necessity to have a coordinated development of the China Compliance Professionals Association to avoid perceived and real miscommunication, duplication, and inefficiencies, but have not been involved as such. GMI representatives will continue to pursue opportunities to collaborate and converge both of these efforts.
However, the participating firms involved with the GMI believe that the development and implementation of standards for monitors on a country by country basis is not cost efficient – and creates a risk that local interests will result in reduced standards in certain developing world markets – effectively undermining the credibility for the entire industry. Cost considerations are further demonstrated by the proposal for the China Compliance Professionals Association Initiative – which seeks up to US$1 million for the start-up and first year operation and fees to APCO.
To date, the GMI has been funded completely by the participating firms. There is a belief that this work is the responsibility of the “industry” to be regulated – and as such that is where the cost should be borne. This approach to funding has been intentional to build ownership and responsibility among those directly involved in CSR monitoring activities. GMI does not seek to be exclusively designed for monitoring firms, but is designed to be a professional association for all individual auditors – regardless of their organizational affiliation. By involving and getting buy-in from the monitoring organizations upfront, GMI believes these organizations – which represent the largest population of individual monitors – can create a tipping point for the uptake and large scale professionalization of this industry. GMI believes that it necessary to and will continue to invite all stakeholder participation, but has specifically focused on the participation and empowerment of monitors already members of GMI because we have seen passed efforts fail because of the neglect of this key stakeholder group.
Finally, those involved with GMI do not believe that a consultant can be effective in developing professional standards for this industry in a manner that builds ownership, participation, and responsibility among those to-be “professionalized”.
While the organizations involved with GMI are not in a position to comment on the merits of the China Compliance Professionals Association initiative and the associated request for funding, based in the current construct, the GMI participating firms will not provide any financial support for the effort.
We will continue to provide updates on the status of GMI – and look forward to any questions or comments. For further information, please contact the Board of Directors of the Global Monitoring Institute through admin@globalmonitoringinstitute.org.
Sincerely,
Board of Directors
Global Monitoring Institute
