Biac annual report_2014_final_digital

ANNUAL REPORT 2014
A BUSINESS AGENDA FOR OPEN MARKETS, INVESTMENT, and
SUSTAINABLE GROWTH
The Business and Industry Advisory Committee to the OECD
Comité consultatif économique et industriel auprès de l’OCDE

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TABLE OF CONTENTS
OPEN FOR BUSINESS – A WORD FROM THE BIAC LEADERSHIP
CELEBRATING JAPAN’S 50TH ANNIVERSARY AT THE OECD
A MESSAGE FROM THE OECD SECRETARY GENERAL
THE BUSINESS AGENDA FOR 2014 AND BEYOND
FOCUS AREAS
ECONOMIC POLICY, FINANCIAL MARKETS, AND STRUCTURAL REFORMS
INTERNATIONAL TAXATION
EMPLOYMENT, JOB CREATION, AND SKILLS
TRADE AND INVESTMENT
PUBLIC AND CORPORATE GOVERNANCE
EMERGING AND DEVELOPING ECONOMIES
INNOVATION AND TECHNOLOGY
SUSTAINABLE DEVELOPMENT AND GREEN GROWTH
HIGHLIGHTS
THE BIAC BOARD
BIAC SECRETARIAT
BIAC POLICY GROUPS
THE BIAC NETWORK
2
4
5
6
8
24
26
27
28
30
8
10
12
14
16
18
20
22

2 A N N UA L R E P O R T 2 0 1 4
OPEN FOR BUSINESS
A word from the BIAC Leadership
Dear Colleagues and Friends of BIAC,
It would be commonplace to say that
we live in extraordinary times. But it may
not be an exaggeration to assert that we
face extraordinary challenges. We are still
coping with the fallout of the most profound
global economic crisis in our times and the
distinct dynamics driving the global and
increasingly digital economy.
If there is one institution that can help us all
to better understand how our economies
work and how we can leverage our
economic potential, it is the OECD with a
stellar record of evidence-based analysis
and peer reviewed policy advice.
Obviously, new times and challenges
call for new ways of thinking. The OECD
stood up to the task and introduced the
multifaceted debate on New Approaches
to Economic Challenges (NAEC). BIAC
is strongly engaged in this ongoing
and sophisticated exercise because we
believe that, in spite of all complexities,
the fundamentals that drive our economies
to develop and grow still apply. We note
with great satisfaction that the report
that was presented to OECD Ministers
in May reflects well on the need for
structural reform and the benefits of
open and competitive markets. We say
it loud and clear: only the private sector
with its great potential for innovation and
entrepreneurship can lead the way to more
growth and employment in our economies.
This year, we celebrate the 50th anniversary
of Japan’s OECD membership under the
motto “Resilient Economies and Inclusive
Societies – Empowering People for Jobs and
Growth”. This theme resonates well with our
call for bold economic reforms that will lead to
more sustainable growth, entrepreneurship,
and employment. Since 1964, the Japanese
government and private sector have actively
contributed to the work of the OECD. We
are very proud to count Keidanren and BIAC
Japan, chaired by Katsutoshi Saito, among
our most active members. Their support for
the contribution of BIAC to the 2014 OECD
Ministerial and related consultations in Tokyo
is much appreciated.
Of course, we are also challenged to
answer some other fundamental questions.
What can business do to support the
environment? How can we promote
responsible business conduct in global
markets? How do we look at the particular
challenges and opportunities that come
with the digital economy? And how do
we respond to the call for a sustainable
international tax system?
BIAC can only engage in all these debates
because of the commitment of our
members and the expertise they offer
throughout the year.
The ambitious OECD Action Plan on
international taxation, also known as Base

B I AC - T H E VO I C E O F B U S I N E S S AT T H E O E C D 3
Erosion and Profit Shifting, is a case in point. It requires a
massive effort from governments and business to develop
a framework for international taxation that is conducive
for growth and does not discourage investment and cross
border trade. We currently also engage in the review of the
OECD Principles on Corporate Governance and the update
of the OECD Policy Framework for Investment (PFI), to
name only a few.
The mission to spread good economic governance to mature
and emerging economies is among our priorities. Responding
to the challenging agenda of the OECD, we rely on members
and observers who will also carry the perspective of smaller
and medium sized companies. With the support of the
Australian Chamber of Commerce and Industry (ACCI), BIAC
is deeply involved in the consultations of the Australian
B20 preparing business input to this year’s G20 summit in
Brisbane. We also support the OECD Southeast Asia Regional
Programme launched in May at the Ministerial. This program
will give governments in the region important guidance to
connect and develop their dynamic economies for the benefit
of businesses and people.
Looking ahead, we count on the leadership of the OECD as
a powerful agent for efficient and productive markets, sound
and consistent policies, and for good economic governance.
With the support of our members, we are prepared to
contribute to the continued success of this mission.
Phil O’Reilly
—BIAC Chair
Bernhard Welschke
—BIAC Secretary General

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CELEBRATING JAPAN’S
50th ANNIVERSARY AT
THE OECD
The year 2014 marked the 50th anniversary of Japan’s accession to the OECD. In this
commemorative year, Japan had the honor to chair the Ministerial Council Meeting, and
Prime Minister Shinzo Abe and four Ministers participated in the MCM.
Under the theme of “Resilient Economies and Inclusive Societies – Empowering People
for Jobs and Growth”, we shed light on ways to empower people to achieve sustainable,
balanced and inclusive growth, as well as resilient economies and societies. Enhancing the
OECD’s global relevance, notably through strengthening partnerships with Southeast Asia,
was another highlight and the Southeast Asia Regional Programme was formally launched
with the attendance of the Japanese Prime Minister and Southeast Asia representatives
including five Ministers.
Prime Minister Abe, in his keynote address, quoted George Marshall, United States Secretary
of State, who said that “any assistance… should provide a cure rather than a mere palliative”,
emphasizing the importance of expanding fair and impartial rules widely around the globe.
BIAC has accompanied us by providing valuable input, starting from the preparatory phase
of the MCM, including the Consultation Meeting in Tokyo. I would like to sincerely express
our appreciation for the business insight provided by BIAC and look forward to our continued
close collaboration.
Ambassador Kazuo Kodama
Delegation of Japan to the OECD

Each year our engagement with BIAC gains strength and importance. At a time
when we are gradually exiting the crisis, the challenges confronting us remain
substantial and threaten to undermine the recovery. The role of business is
paramount in battling the legacies of the crisis, in promoting sustainable, green
growth and in unlocking the opportunities for much needed job creation.
In this respect, over the past twelve months, under the skilful leadership of its
Chairman, Phil O’Reilly, and Secretary General, Bernhard Welschke, BIAC has
been extremely active in advising and providing useful insight to many areas of
the OECD’s work.
We greatly appreciate and value BIAC’s active participation in the development
and implementation of the BEPS Action Plan; its contribution to the NAEC Synthesis
Report for our Ministerial Council Meeting in May 2014; its work in highlighting the
importance of investment liberalisation, which is essential to unlocking economic
growth and battling unemployment; in helping us set the stage for strengthening
the global dialogue on corporate responsibility, through the OECD Global Forum
on Responsible Business Conduct; and in identifying trade priorities to reinvigorate
multilateral trade negotiations and speed up the movement of goods and services
across borders.
We have every confidence that in the coming months and years we can continue
to develop this productive course together and support our member and partner
countries’ efforts to create more sustainable and resilient economies with equal
opportunities for all.
Angel Gurría
Secretary-General of the OECD
A MESSAGE FROM THE
OECD SECRETARY-GENERAL

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THE BUSINESS AGENDA
FOR 2014 AND BEYOND
The revival of the global economy from the 2008-09 financial and economic crises
remains slow, uneven, and fragile. Business is a key partner in unlocking recovery
and growth, and BIAC is actively working with OECD to help policymakers achieve
bold reforms. As a return to business confidence is a precondition for recovery,
BIAC advises OECD on solutions for greater policy consistency and predictability.
Business is a growth engine for the world economy and our unique collaboration
with the OECD brings the business perspective to the table.

INNOVATION TO FOSTER
GROWTH
Continued emphasis on innovation is a
crucial prerequisite for long-term growth
and development, and for promoting
sustainable growth.
SUSTAINABLE DEVELOPMENT
AND GREEN GROWTH
OECD governments should foster growth
and economic opportunities to address
global challenges and to ensure that the
necessary investments for greening our
economies will come forward.
A MORE PREDICTABLE
ENVIRONMENT FOR
INTERNATIONAL TAXATION
More than ever, business depends on a
predictable tax environment. Ensuring
stable, transparent, non-distortive
frameworks for taxation is essential to
encourage and attract cross border trade
and investment.
EFFECTIVE CO-OPERATION AT
GLOBAL LEVEL
Emerging and developing countries
should build business-friendly
environments through the good use of
OECD instruments and best practices.
BALANCED ECONOMIC POLICIES,
STRUCTURAL REFORMS, AND A
SOUND FINANCIAL SYSTEM FOR
GROWTH
Governments should commit to macro-economic
cooperation and bold structural
reforms to product and labor markets, and to
greater coordination of financial regulatory
approaches. These goals can be achieved
through deep dialogue among governments,
regulators and business as well as evidence-based
and independent analysis.
STRENGTHENED JOB CREATION
AND EMPLOYABILITY OF
INDIVIDUALS
To create jobs and drive growth, business
needs the reduction of labor market
rigidities, as well as a strong focus on
improving education systems to boost the
skills and employability of individuals.
OPEN, COMPETITIVE MARKETS
AND FREEDOM OF INVESTMENT
OECD governments should take determined
steps to counter the proliferation of new
and recurring protectionist measures.
OECD should take a leading role in the
international debate on freedom of cross-border
trade and investment.
GOOD GOVERNANCE
Open markets and a level playing field for
competition also requires sound legal and
regulatory frameworks as well as good
corporate governance, and responsible
business conduct.

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ECONOMIC POLICY,
FINANCIAL MARKETS,
AND STRUCTURAL
REFORMS
The global economic recovery has been too slow,
fragile, and uneven. The key to unlocking strong
and sustained growth lies largely in reforms that
help to unleash and fuel business.
FOCUS AREA
NEW ECONOMIC TIMES, NEW
CHALLENGES:
Faced with new and unprecedented
economic, political, social and
environmental challenges witnessed
since the onset of the 2008-09 global
economic crisis, the OECD’s New
Approaches to Economic Challenges
(NAEC) process seeks to improve
upon and update OECD advice to
policymakers. At the December 2013
and February 2014 meeting of the
NAEC Group, BIAC offered guidance
to the NAEC process in order to help
develop more effective and more
structured ways for companies to deal
with the complexities and challenges
that they encounter in global markets.
THE MACRO PICTURE:
With business investment and trade still
far below pre-crisis levels, and continued
high unemployment in many countries,
BIAC engages in regular dialogue
with the Chair of the OECD Economic
Policy Committee and the OECD Chief
Economist. At the biannual meeting
of April 2014, BIAC drew the attention
of policymakers to business concerns
about the state of the global economy
and priorities for action. The OECD’s
leading flagship publication – the OECD
Economic Outlook – also benefits from
BIAC’s expertise on such issues.
FINANCING GROWTH:
Financing is critical in supporting
our growth aspirations. However,

companies are concerned that too little
attention is being paid to the possible
consequences of financial regulations on
economic growth. Start-ups and small- and
medium-sized enterprises (SMEs) may be
particularly affected, finding it harder to
access financial services. BIAC calls for a
more coordinated approach to financial
regulation that considers economic growth,
financial stability, and investment. BIAC also
encourages more independent analysis
of the combined impacts of different
regulatory approaches around the world.
STRUCTURAL REFORMS TO OUR
ECONOMIES:
As fiscal and monetary options to revive
growth become exhausted, the OECD is
making the case for bold structural reforms
to product and labor markets in countries –
for example, reforms to reduce regulatory
burdens, liberalize markets for trade and
investment, improve public sector efficiency,
and strengthen human capital, among
others. Through a regular survey exercise
of its national member and observer
organizations, BIAC contributes detailed
country-specific priorities to major OECD
analyses, such as the Going for Growth
publication series, in order to spur national
governments to implement pressing reforms.
THE BIAC ECONOMIC POLICY
SURVEY 2014
BIAC conducted a membership
survey on the implementation of
structural reforms in OECD countries.
This survey shows that, in order to
unlock growth, reforms are needed
to reduce the regulatory burden on
companies, but also to increase public
sector efficiency and strengthen
human capital, among others.
However, only 4% of last year’s OECD
recommendations are considered to
have been fully implemented.
Read more on www.biac.org

1 0 A N N UA L R E P O R T 2 0 1 4
INTERNATIONAL
TAXATION
More than ever, business depends on a
predictable tax environment. Ensuring stable,
transparent, non-distortive frameworks for
taxation at both domestic and international levels
is essential for attracting investment.
INTERNATIONAL TAXATION:
Business looks to OECD as the standard
setter for international tax principles.
The OECD Model Tax Convention and
Transfer Pricing Guidelines underpin
international tax policy that supports
growth, trade, and investment. The
development of an OECD International
Framework for VAT/GST currently
underway will add to this important
OECD guidance. In 2014, OECD and
BIAC supported the development of a
new G20 Common Reporting Standard
(CRS) for the automatic exchange of
information. BIAC is actively engaged in
dialogue around the OECD tax standards,
which are critical to effective and efficient
tax administration and certainty for
international business.
BASE EROSION AND PROFIT
SHIFTING:
In recent years, globalization has been
placing pressure on the international
tax system, raising concerns about both
double taxation and double non-taxation
and the viability of OECD international
tax standards. As a result, in July 2013,
the OECD launched its project on Base
Erosion and Profit Shifting (BEPS),
endorsed by the G20. BIAC is present at
every step of this project. In the current
context, the BEPS project presents an
opportunity to restore public and private
sector confidence in the corporate
taxation system, by undertaking review
and analysis to ensure that tax rules
are up to date, without dampening the
potential for private sector growth and
job creation through cross-border trade
and investment.
The BEPS Action Plan sets out 15 areas
of work to be undertaken across a
range of tax issues, including the digital
economy, transfer pricing, coherence
of corporate income taxation, as well
FOCUS AREA

B I AC - T H E VO I C E O F B U S I N E S S AT T H E O E C D 1 1
as transparency, certainty and predictability
of taxation to be completed by December
2015. BIAC is a strong supporter of OECD
involvement: the OECD is the right place for
the BEPS analysis to take place and BIAC
advocates that these changes must be
done on the broadest possible international
basis through the G20 and beyond,
to ensure a level playing field in the
global economy. This will be essential to
harnessing the greatest potential for trade
and investment by all players in the global
economy – developed and developing
countries alike.
BIAC AS A KEY PARTNER:
BIAC is working with its Members and
Observer members to engage OECD
and governments in the BEPS project in
innovative ways and use the BIAC network
at the highest political level to advance
understanding of current business models
relative to issues being addressed in the
BEPS project. Importantly, OECD has also
brought in G20 and developing countries
into the BEPS process on equal footing.
BIAC strongly supports this approach,
which is essential for fostering broader
international consensus on tax issues, and
most recently met with tax authorities on
BEPS in India, China and Brazil, Australia,
Japan and the United States, at the OECD
BEPS Regional Conferences in Korea and
Colombia, and at the G20 International Tax
Conference in Tokyo.
“BIAC engages OECD on a broad
range of international tax issues,
including the BEPS project, to ensure
that OECD effectively removes all
distortions from the international tax
system while continuing to support
the OECD’s core mission of fostering
cross-border trade and investment.”
William Morris
GE International Inc. and Chair of BIAC Taxation Committee.

1 2 A N N UA L R E P O R T 2 0 1 4
EMPLOYMENT, JOB
CREATION, AND SKILLS
Persistently high unemployment in many
economies, particularly among young people, and
the consequences of long-term unemployment,
remain serious concerns for business. The OECD
Jobs and Skills Strategies provide valuable
frameworks for addressing necessary labor
market reform and employability challenges.
ENCOURAGING EMPLOYMENT:
BIAC advocates that employment
strategies be comprehensive –
they must support job creation,
activate people into work, enhance
employability, and instill confidence for
business to hire. More structural reform
is needed in many economies and
should aim to support flexibility in labor
markets, necessary for companies and
individuals alike to adapt to changes
and opportunities in today’s workplace
and invest in creating more jobs. This
was also a key message of the BIAC/
IOE/B20 contribution to the G20 under
the Russian Presidency and remains a
focus of BIAC’s engagement to the B20
Human Capital Task Force during the
Australian G20.
ENHANCING EMPLOYABILITY:
BIAC’s contributions to the OECD
Committee on Employment Labour
and Social Affairs (ELSA) continue to
emphasize that flexibility in labour
markets should be balanced with
appropriate employment, education
and social benefit systems that serve
to maximize work opportunities and
mobility for all groups. Regulatory
frameworks, including employment
protection and tax and benefit systems,
must provide incentives – and not
disincentives – to employment,
entrepreneurship and enterprise growth.
PROMOTING GENDER EQUALITY:
Women’s economic empowerment
contributes to the vitality of business
and our economies. BIAC launched
FOCUS AREA

the second phase of its work on Gender
Equality with a 2013 business survey.
Results show that progress is slow and
dependent on top business leadership
– more action is needed. The survey
workshop was presented at a BIAC
workshop on Women’s entrepreneurship
in June 2014.
FOCUS ON YOUTH:
In response to the OECD Action Plan on
Youth and G20, BIAC jointly with IOE, the
International Organization of Employers,
launched the Global Apprenticeship
Network (GAN), which aims to increase
the scope and scale of apprenticeship
programs and job training opportunities
for youth. The GAN and company training
initiatives were featured at an April 2014
OECD/EU/G20 Workshop, which also
highlighted the B20/L20 Joint Principles for
Quality Apprenticeships.
STRENGTHENING SKILLS:
Access for all groups to quality education,
from early childhood through to adult
education, is a critical factor for lifelong
employability in OECD, emerging and
developing economies alike. It also bears
important implications for productivity,
innovation, and reducing income inequality.
A major BIAC survey of 28 national employer
organizations, released in June 2013, found
that employers seek greater co-operation
with education policymakers and institutions
at all levels of learning in order to build
closer synergies with labor market needs.
Results from the BIAC survey will feature in a
dedicated chapter in a new OECD education
policy publication to be released later in 2014.
“BIAC’s 2014 Gender Report
highlights that empowering
women at work, in education,
and as entrepreneurs benefits
business, our economies and
society as a whole.”
Ronnie Goldberg
USCIB, Chair of BIAC Employment, Labor and
Social Affairs Committee

1 4 A N N UA L R E P O R T 2 0 1 4
TRADE AND
INVESTMENT
Trade and investment policies continue to
be a cornerstone of BIAC’s engagement with
the OECD. By facilitating international policy
coordination, OECD is in a unique position to help
its member and non-member economies adopt
policies that lead to growth.
FOCUS AREA
INTERNATIONAL BUSINESS
DIALOGUE AND ENGAGEMENT
POST BALI:
The Trade Facilitation Agreement
announced in Bali in December
2013 offers a very much needed
opportunity for countries to
reinvigorate multilateral trade
negotiations and to speed the
movement of goods and services
across borders. Implementing Bali
and reducing the costs of trade
is essential, as the changes to
transportation and communications
technology over the past twenty years
have transformed the way companies
deliver products and services – a
paradigm shift captured in the
OECD work on Global Value Chains
(GVCs). In April 2014, BIAC and OECD
jointly organized an International
Business Dialogue on international
regulatory cooperation where
business representatives exchanged
views on how regulatory cooperation
can enhance trade. With its global
membership, BIAC also developed a
focus document that identifies nine
priorities on trade going forward.
ENSURING FREEDOM OF
INVESTMENT:
BIAC is working closely with the
OECD to highlight the fundamental
importance of investment liberalization.
New restrictive measures are being
introduced and foreign investors
are witnessing a revival of restrictive
foreign investment regulation. Bilateral
Investment Treaties (BITs) and Investor-
State Dispute Settlement (ISDS), which
play a crucial role for the protection
of investment, have increasingly
come under attack. OECD advice and

leadership is needed as our economies
cannot afford to lose crucial instruments
that mitigate risk in international investment
decisions. Throughout the year, BIAC
has forcefully advocated for freedom of
cross-border investment: at a special focus
session on investment of the BIAC Board,
at the annual consultation with OECD
Ambassadors, and in our interactions with
the OECD Investment Committee. BIAC
has also contributed to discussions on the
update of the OECD Policy Framework
for Investment (PFI), which provides a
comprehensive and systematic approach
for improving investment conditions in non-member
countries.
FOSTERING RESPONSIBLE BUSINESS
CONDUCT:
BIAC considers responsible business
conduct as promoted by the OECD
Guidelines for Multinational Enterprises
(MNEs) an essential part of an open
investment climate. BIAC has therefore
worked in partnership with the OECD to
promote implementation of the Guidelines
in multiple events. BIAC has also underlined
the importance of a correct understanding
of the role of National Contact Points, of
the extent and limitations of supply chain
responsibilities, and of the role of the
proactive agenda of the Guidelines.
“For business, the OECD
is key to promote an open
international investment
climate. Together we implement
our pro-active investment
agenda.”
Winand Quaedvlieg
VNO-NCW, Chair of BIAC Investment Committee
BIAC RELEASES ITS BUSINESS PRIORITIES ON TRADE
“Our business priorities on trade clearly identify emerging policy issues that
matter to OECD, governments, and our business community. Localization
barriers to trade, the movement of business persons, and trade in services
are a few examples from our paper where OECD can deliver new evidence
to help policymakers in their reform agendas. These recommendations are
crucial as governments look for ways to implement the Bali package and to
create jobs and growth opportunities.”
Clifford Sosnow, Partner at Fasken Martineau DuMoulin LLP,
Chair of BIAC Trade Committee

1 6 A N N UA L R E P O R T 2 0 1 4
PUBLIC AND
CORPORATE
GOVERNANCE
The promotion of legal and regulatory systems
that are stable, transparent, efficient, and non-distortive,
contributes to opening markets and to
levelling the playing field for business. BIAC sees
good governance as a key business enabler.
IMPROVEMENTS IN REGULATORY
POLICY:
Sound procurement rules, transparent
public investment, and the overall
consistency of the regulatory
framework are essential areas to
address when it comes to securing
a business friendly environment.
Actively contributing to the work of
the OECD, BIAC was present at the
Territorial Development Ministerial
meeting in December 2013 in Marseille.
The BIAC Governance Committee
also participated in the follow up
activities on the Measuring Regulatory
Performance project to help OECD
countries implement an ambitious
regulatory policy reform agenda. BIAC
also participated in an expert meeting
in The Hague in June 2014 to discuss
progress and next steps on the project,
which hopes to allow governments
and business to engage in earlier
consultation in the law-making process,
improved assessments of costs and
benefits of new regulation, and a
systematic evaluation of regulations
in force to ensure they serve current
policy environments.
UPDATE OF THE OECD CORPORATE
GOVERNANCE PRINCIPLES:
The OECD Corporate Governance
Principles are widely recognized by
policy makers and business as a key
international point of reference and
form the basis of countless local codes
of corporate governance around the
world. BIAC is actively contributing to
the update of the current Principles.
FOCUS AREA

To provide first-hand input early in the
process, BIAC organized a high-level
roundtable in November 2013 and is
providing both strategic and specific
comments throughout the consultation
process. BIAC is also involved in the
revision of the OECD Guidelines on
Corporate Governance of State-Owned
Enterprises (SOEs). The update will have
a long-term influence going forward
and needs to benefit from the active
contribution of the private sector to
reflect business realities.
ADDRESSING BRIBERY AND
CORRUPTION:
The OECD Anti-Bribery Convention
and related instruments have clearly
positioned the OECD as a leading
“BIAC has a key role to
play in further developing
the anticorruption agenda
of the OECD, especially in
promoting new and innovative
ideas how to fight corruption
by rewarding compliance
efforts of companies and
fostering the dialogue between
public and private sector.”
Dr. Klaus Moosmayer
Siemens AG, Chair of the BIAC Task Force
on Anti-Bribery/Corruption
institution in the international fight against
corruption. BIAC has been an active partner
facilitating business participation in the
OECD monitoring process in adhering
countries. BIAC highlighted key business
considerations and the proactive role
companies can play at the annual meeting
with the OECD Working Group on Bribery
celebrating 15 years of the Anti-Bribery
Convention in December 2013 as well as at
the OECD Integrity Forum in March 2014.
BIAC also continued its active involvement
in the B20 process and participated in
the annual OECD/G20 anti-corruption
conference. Going forward, BIAC will provide
strategic input on the implementation of the
Convention, calling for increased focus on
encouraging collective action and rewarding
compliance efforts.

1 8 A N N UA L R E P O R T 2 0 1 4
EMERGING AND
DEVELOPING
ECONOMIES
Companies continue to face a number of obstacles
when operating in emerging and developing
economies. BIAC supports the OECD – a
knowledge partner and hub of good policy practices
– in its work to promote an enabling environment for
growth and development around the world.
LEVELLING THE PLAYING FIELD:
The accession of new countries to
OECD membership offers a very
thorough means for levelling the
playing field for business internationally.
In May 2013, the OECD Ministerial
Council opened membership talks with
Colombia and Latvia, and indicated
its intention to follow with Costa Rica
and Lithuania in 2015. BIAC is currently
preparing a paper that presents
business priorities for key reforms
to be addressed during Colombia’s
membership talks.
FORGING COOPERATION:
The OECD’s enhanced cooperation
with major emerging economies
and strategic regions presents an
opportunity to heighten international
regulatory coordination and share
good policy practices, thereby
helping businesses to navigate more
efficiently in and across markets. In
this context, BIAC participated actively
in the inaugural OECD Southeast Asia
Regional Forum, in Bali in March 2014,
and presented regional policymakers
with business priorities for reforms.
Recognizing China’s deepening
cooperation with the OECD over
the past year, BIAC is also preparing
contributions to the OECD’s forthcoming
work on China’s 13th Five Year Plan
as well as the next OECD Economic
Survey on China. BIAC is furthermore
participating actively in OECD regional
programmes in Eurasia, the Middle East
and North Africa (MENA), among others.
FOCUS AREA

FUELLING DEVELOPMENT:
Countries now recognize more than ever
before that a thriving private sector is
an irreplaceable vehicle for achieving
sustainable and inclusive development. This
was most recently highlighted at the High-
Level Meeting of the Global Partnership for
Effective Development Cooperation, held
in Mexico City in April 2014. But companies
on the ground in many developing countries
continue to face barriers that prevent
them from investing and hiring. With the
Millennium Development Goals (MDGs)
set to expire next year, BIAC encourages
governments to make full use of the OECD’s
expertise, instruments, and advice, in order
to help formulate new targets by which
countries will measure their progress for
years to come.
“Recognizing that China’s
success in the 21st Century
depends to a large extent
on enabling the market
to play a bigger role, the
contributions of BIAC are
more important than ever to
China-OECD co-operation.”
Joerg Wuttke
BASF, Chair of BIAC China Task Force

2 0 A N N UA L R E P O R T 2 0 1 4
INNOVATION AND
TECHNOLOGY
BIAC’s horizontal work on innovation and
technology ensures OECD’s work on science,
technology, and innovation focuses on creating
value and addresses global challenges.
INNOVATION IN THE HEALTH
SECTOR:
BIAC actively participated in major
meetings of the Committee on Science
and Technology Policy and is identifying
opportunities for business engagement
in international fora in a wide range of
topics. Notably, the BIAC management
joined a high-level meeting at the
margins of a G8 Summit on Alzheimer’s
together with the CEO initiative on
Alzheimer’s to identify areas in which
governments and the private sector can
join forces to accelerate the fight against
this disease. BIAC also contributed to
several OECD projects in the field of
health policy, providing perspectives
and insights on e-health, the spread of
non-communicable diseases, access to
innovation, prevention policies to reduce
harmful use of alcohol, among others.
Over the next year, BIAC will work to
develop a proactive agenda on health
policy to better show governments and
health stakeholders how the private
sector can be part of the solution in the
health ecosystem.
NANOTECHNOLOGY AND
BIOTECHNOLOGY:
The OECD is also at the forefront of
international efforts to improve global
understanding of the responsible
development of nanotechnology and
biotechnology. In addition to its active
involvement in addressing environment,
health, and safety issues relating to
these technologies, BIAC has been
contributing to discussions on how
to foster innovation in the fields of
biotechnology and nanotechnology,
which impact an increasing number of
industry sectors and are key enablers
for sustainable growth.
FOCUS AREA

LEVERAGING BENEFITS OF THE DIGITAL
ECONOMY:
Information and Communications Technologies
(ICT) underpinning the Internet and the digital
economy constitute fundamental building blocks
for global growth, competitiveness, enhanced
productivity, and job creation. The OECD Internet
Policy Making Principles, as well as OECD
Guidelines addressing online privacy and security,
developed with the input of BIAC, are for business
a key reference for global discussions on Internet
Governance. Policies affecting the development
and use of ICTs are evolving quickly around the
world and trust is imperative to realising the full
potential of developments afforded by the digital
age. BIAC contributes to OECD work in this field
to ensure that policies maximize growth and
innovations in the digital economy, including
frameworks for digital skills and entrepreneurship
and consumer protection. This was the backdrop
for a major 2013 BIAC USCIB OECD conference
in Washington, D.C., on “Growth, Jobs and
Prosperity in the Digital Age: OECD Shapes
the Policy Environment”, which served as a
leading discussion for planning towards an OECD
Ministerial meeting on the Digital Economy, to
take place in 2016 in Mexico.
BIAC’S INVOLVEMENT IN THE FIELD
OF INNOVATION AND TECHNOLOGIES
CONTRIBUTES TO:
• Taking a whole-of-government approach to
innovation
• Fostering an overall innovation-friendly
policy framework
• Gaining benefits from co-operation in
globally connected societies
• Fostering innovation for green growth and
addressing other global challenges
• Working with major non-member economies

2 2 A N N UA L R E P O R T 2 0 1 4
SUSTAINABLE
DEVELOPMENT AND
GREEN GROWTH
Through its Green Growth Strategy, the OECD has
made an important contribution to fostering policy
coherence among different disciplines. BIAC
works closely with the OECD to support a long-term
strategy for greening growth built around
stimulating innovation, new solutions, and an
active role of business.
PROMOTING GREENER GROWTH:
Creating the right incentives for
business to invest is essential to
making green growth deliver. BIAC
therefore actively participated in the
2013 OECD Global Forum on Green
Growth and Sustainable Development,
which focused on creating the
right conditions for the necessary
investments to come forward. BIAC
also continues its engagement in
OECD climate change activities and
contributes to discussions on resource
productivity, including the current
project on elaborating new guidance
for extended producer responsibility.
SHARING THE BURDEN FOR
CHEMICALS TESTING AND
ASSESSMENT:
BIAC’s engagement in the OECD
environment, health, and safety program
remains strong. This program helps
reduce barriers to trade, optimizes the
use of resources, and saves over EUR
150 million Euros a year for business
and governments through cooperative
working on chemicals, pesticides,
biotechnology, and nanotechnology, thus
avoiding duplicative data requirements.
INCREASING THE SECURITY OF
FOOD, WATER, AND ENERGY:
As global demands for food, water and
FOCUS AREA

energy are set to grow dramatically in the
coming decades, businesses will face both
costs and opportunities. Urgent actions
are needed to mobilise the investment,
innovation, good policy practices, and
consumer behaviours that will all be
necessary to meet these challenges. In this
context, BIAC is drawing the attention of
OECD policymakers to the importance of
efficient and sustainable management of
water resources and water re-use in the run-up
to the next World Water Forum in 2015.
Following the success of a joint OECD-BIAC
workshop on greening the agro-food chain
last year, BIAC is also contributing expertise
on approaches for increasing agricultural
productivity.
“BIAC supports our growing
engagement with OECD, as
the investment, innovation and
competitiveness policies needed
for more sustainable growth
also require more effective
cooperation between business
and policy makers.”
Russel Mills
The Dow Chemical Company, BIAC
Environment Committee Chair

2 4 A N N UA L R E P O R T 2 0 1 4
HIGHLIGHTS
JUNE
BIAC participates
in Global Forum
on Responsible
Business Conduct
BIAC attends
International
Conference on
financial consumer
protection
organized by
OECD, G20 and
World Bank in
Moscow
BIAC participates
in the OECD
Eurasia Ministerial
Conference and at
OECD Reflection
Group on China
BIAC releases
2014 Education
Survey and
Perspectives on
Private Sector
Solutions to Food
Waste and Loss
SEPTEMBER
BIAC organizes
strategy meeting on
Nanotechnology in
Washington D.C.
BIAC participates in the
OECD/IEA Global Forum
on Climate Change
OCTOBER
BIAC holds
International
Business Dialogue
with OECD and
G20 Governments
on the BEPS
Action Plan
BIAC and Brazilian
observer CNI
hold Conference
on International
Taxation and BEPS
in Brasilia
2013
NOVEMBER
BIAC organizes High-
Level Roundtable
on Corporate
Governance
BIAC Board members
meet with OECD at
focus session on
Investment
BIAC and Turkish
member TUSIAD
lead International
Conference on
Innovative and
Sustainable
Agriculture in Istanbul
DECEMBER
The Global
Apprenticeship
Network (GAN) is
launched by BIAC and
IOE in Madrid
BIAC participates
in the Global
CEO Initiative on
Alzheimer’s Disease
(CEOi)
BIAC attends 3rd
Meeting of the NAEC
Group
BIAC speaks at Global
Forum on Sustainable
Development and
Investment

JANUARY
BIAC calls
for structural
reforms
at Annual
Consultation
with OECD
Ambassadors
FEBRUARY
BIAC speaks
at conference
on Corporate
Governance of
State Owned
Enterprises
BIAC attends 4th
Meeting of the
NAEC Group
BIAC presents
business views
to regional
conferences on
the BEPS in Seoul
and Bogotá
MARCH
BIAC participates
in Integrity Forum
and in the G20/
OECD Task Force
on Institutional
Investors
BIAC is
involved in the
Development
Assistance
Committee at
senior level and
in the OECD
Southeast Asia
Regional Forum
BIAC and USCIB
hold Workshop
on Growth, Jobs
and Prosperity in
the Digital Age
with OECD in
Washington, D.C
BIAC releases
The Case for
a more Co-ordinated
Approach
to Financial
Regulation
2014
APRIL
In partnership
with BIAC, OECD
organizes 2nd
International
Business
Dialogue on trade
BIAC supports
2nd OECD Global
Forum on VAT
held in Tokyo
BIAC attends
High-Level
Meeting of
the Global
Partnership
for Effective
Development
Co-operation in
Mexico City
BIAC participates
in OECD/G20/
EU Workshop on
Apprenticeships
and leads B20/
L20 event
on quality
apprenticeships
with OECD
and G20
Governments
MAY
BIAC attends
OECD Ministerial
Council Meeting
& Forum
BIAC General
Assembly
BIAC releases
2014 Economic
Policy Survey
BIAC contributes
to event on
OECD Due
Diligence
Guidance for
Responsible
Supply Chains
of Minerals from
Conflict-Affected
and High-Risk
Areas
JUNE
USCIB, BIAC and
OECD hold Annual
International Tax
Conference in
Washington, D.C.
BIAC launches
Putting ALL our
Minds to Work –
An Assessment
survey report
and holds its
first workshop
on Women’s
Entrepreneurship
at OECD
BIAC participates
in Global Forum
on Responsible
Business Conduct
BIAC contributes
to Global Forum
on Extended
Producer
Responsibility in
Tokyo
Find more on www.biac.org

2 6 A N N UA L R E P O R T 2 0 1 4
THE BIAC BOARD
PHIL O’REILLY
CHAIRMAN
Chief Executive Officer
BusinessNZ
(New Zealand)
BERNHARD
WELSCHKE
SECRETARY
GENERAL
Ex officio
CHARLES R.
JOHNSTON
EXECUTIVE BOARD
VICE CHAIR
Managing Director
Global Government
Affairs Citigroup, Inc.
(United States)
DOMINIQUE MOCKLY
EXECUTIVE BOARD
VICE CHAIR
Senior Executive Vice
President - Back End
Business Group AREVA
(France)
RANDOLF
RODENSTOCK
EXECUTIVE BOARD
VICE CHAIR
Managing Partner
Optische Werke G.
Rodenstock GmbH & Co.
KG (Germany)
PETER LÖRINCZE
EXECUTIVE BOARD
VICE CHAIR
Vice President for
International Relations of
TriGránit Development
Corporation (Hungary)
MARIA CARMELA
COLAIACOVO
EXECUTIVE BOARD
VICE CHAIR
Presidente
Confindustria Alberghi
(Italy)
KATSUTOSHI SAITO
EXECUTIVE BOARD
VICE CHAIR
Chairman of Dai-Ichi Life
Insurance Company Ltd.
(Japan)
YOON KIM
EXECUTIVE BOARD
VICE CHAIR
Chairman & CEO
Samyang Holdings
(Korea)
JOSÉ IGNACIO
MARISCAL
EXECUTIVE BOARD
VICE CHAIR
Chief Executive Officer of
Grupo Marhnos
(Mexico)
CHRISTOPH MÄDER
EXECUTIVE BOARD
VICE CHAIR
Member of the Executive
Committee Syngenta
International AG
(Switzerland)

BIAC SECRETARIAT
BERNHARD
WELSCHKE
SECRETARY
GENERAL
HANNI ROSENBAUM
SENIOR POLICY
MANAGER
NICOLE PRIMMER
SENIOR POLICY
MANAGER
JONNY GREENHILL
POLICY MANAGER
ALI KARAMI-RUIZ
POLICY MANAGER
MAUD GARNIER
COMMUNICATIONS
MANAGER
MARIE-THÉRÈSE
DOS REIS
HEAD OF
ADMINISTRATION/
FINANCE AND
ASSISTANT TO
SG AND POLICY
MANAGERS
SALETTE
BELLAVOINE
POLICY MANAGER
ASSISTANT
AND LOGISTICS
COORDINATOR
NATHALIE MAZIER
POLICY MANAGER
ASSISTANT AND
PUBLICATIONS
COORDINATOR

2 8 A N N UA L R E P O R T 2 0 1 4
BIAC POLICY
GROUPS
COMMITTEE ON
COMPETITION
Ms. Lynda Martin
Alegi
COMMITTEE ON
ECONOMIC POLICY
Dr. Stephan
Mumenthaler
COMMITTEE ON
TAXATION AND
FISCAL AFFAIRS
Mr. William Morris
TASK FORCE ON
FINANCE
Mr. Kent D. Andrews
COMMITTEE ON
TRADE
Mr. Clifford Sosnow
COMMITTEE ON
INTERNATIONAL
INVESTMENT AND
MULTINATIONAL
ENTERPRISES (MNE)
Mr. Winand L.E.
Quaedvlieg
TASK FORCE ON
EXPORT CREDITS
Mr. Steven W. Howlett
ECONOMIC
POLICY AND
TAXATION
COMMITTEE ON
BIOTECHNOLOGY
Ms. Lisa W. Zannoni
COMMITTEE ON
NANOTECHNOLOGY
Mr. Terry L. Medley
COMMITTEE ON
TECHNOLOGY
Mr. Richard A. Johnson
TASK FORCE ON
HEALTH CARE
POLICY
Ms. Nicole Denjoy
AD HOC GROUP
ON INTELLECTUAL
PROPERTY RIGHTS
(IPR)
Mr. Richard A. Johnson
INNOVATION
AND
TECHNOLOGY
TRADE AND
INVESTMENT

COMMITTEE ON
GOVERNANCE
Mr. Jens Hedström
TASK FORCE ON
ANTI-BRIBERY/
CORRUPTION
Dr. Klaus Moosmayer
TASK FORCE
ON CORPORATE
GOVERNANCE
Mr. Dan Konigsburg
PUBLIC AND
CORPORATE
GOVERNANCE
COMMITTEE ON
EDUCATION
Mr. Charles Fadel
COMMITTEE ON
EMPLOYMENT,
LABOUR & SOCIAL
AFFAIRS
Dr. Ronnie Goldberg
TASK FORCE ON
CONSUMER POLICY
AD HOC GROUP ON
PRIVATE PENSIONS
Mr. Michel Benoit
EMPLOYMENT,
SKILLS, AND
SOCIETY
COMMITTEE ON
ENERGY
Mr. Holger Gassner
COMMITTEE
ON FOOD &
AGRICULTURE
Mr. Horacio
González Alemán
COMMITTEE ON
ENVIRONMENT
Mr. Russel Mills
COMMITTEE ON
RAW MATERIALS
Mr. Guy Thiran
COMMITTEE ON
CHEMICALS
Dr. Hans-Jürgen
Wiegand
AD HOC GROUP ON
WATER
Mr. Jack Moss
AD HOC GROUP ON
GREEN GROWTH
SUSTAINABLE
DEVELOPMENT &
GREEN GROWTH
EMERGING
ECONOMIES
COMMITTEE
ON EMERGING
ECONOMIES
TASK FORCE ON
DEVELOPMENT
Mr. Thomas de Man
TASK FORCE ON
CHINA
Mr. Joerg Wuttke
AD HOC GROUP ON
AFRICA
Ms. Marie Gad
TASK FORCE ON
MIDDLE EAST AND
NORTH AFRICA
(MENA)
Mr. Thomas Spiller
TASK FORCE ON
RUSSIA
Dr. Erman Ilicak

3 0 A N N UA L R E P O R T 2 0 1 4
THE BIAC NETWORK
BIAC MEMBER ORGANIZATIONS
AUSTRALIA AUSTRIA BELGIUM CANADA CHILE CZECH REPUBLIC
DENMARK DENMARK ESTONIA FINLAND FRANCE GERMANY
GERMANY GREECE HUNGARY HUNGARY IRELAND ISRAEL
ITALY ITALY JAPAN KOREA LUXEMBOURG MEXICO
NETHERLANDS NEW ZEALAND NORWAY POLAND POLAND PORTUGAL
SLOVAK REPUBLIC SLOVENIA SPAIN SWEDEN SWITZERLAND SWITZERLAND
TURKEY TURKEY TURKEY UNITED KINGDOM UNITED STATES

BIAC OBSERVER ORGANIZATIONS
ARGENTINA BRAZIL COLOMBIA CROATIA INDIA INDIA
INDONESIA LATVIA MOROCCO RUSSIAN FEDERATION SOUTH AFRICA
BIAC ASSOCIATE EXPERTS

3 2 A N N UA L R E P O R T 2 0 1 4
BIAC IN BRIEF
WE ARE
• An international business network with a global membership
• A cross-industry diverse group with a common mission: advocate for open markets and
private sector-led growth
• A trusted partner to the OECD and other international institutions
WE BRING TO THE TABLE
• An Officially Recognized Business Voice to the OECD with over 50 years of experience
conveying business perspectives and expertise to policymakers on a broad range of global
economic governance and policy issues
• Access to high-level OECD meetings, forums, and discussions on leading matters that
impact businesses globally
• An International Network of 2800+ business experts meeting regularly with OECD
governments and key leadership for consultations on governance and economic policy
• Strategic Counsel on major policy decisions, peer reviews, and key OECD policy instruments.
• International Advocacy through the formulation of policy positions and the engagement
with government officials in OECD member and non-member economies
• Targeted Expertise through more than 30 policy groups communicating business
perspectives to OECD committees, working parties, and governments
OUR ADDED VALUE
• Advocacy: We address business and industry needs at all OECD policy decision levels
• Coordination: We are the hub for all OECD developments that could impact business
• Thought Leadership: Our expert network brings comprehensive input and consensus
industry perspectives on key policy matters
• Competence: Our sound knowledge and expertise help shape the OECD work and agenda

13/15 Chaussée de la Muette
75016 – Paris (France)
Tel: +33 (0) 1 42 30 09 60
Fax: +33 (0) 1 42 88 78 38
biac@biac.org
www.biac.org

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