International development

We live in a world of globalisation, and many of the goods we consume are produced overseas, where labour is often cheaper to secure. When undertaken fairly, trade has an unparalleled capacity to lift people out of poverty and enhance the quality of lives across the world. When international trade is conducted unfairly, however, it can actually undermine development.

To reflect the concerns of our customers, we expect businesses to respect the Core Conventions of the International Labour Organisation on issues such as child labour and freedom of association, and we will withhold finance from those that do not.

Development in the poorest countries in the world can be undermined by lack of access to basic medicines for diseases such as Malaria, TB and HIV/AIDS, and lack of access to clean water. We will withhold finance from organisations who systematically impede access to basic human necessities, eg safe drinking water or vital medicines.

In addition, we will withhold finance from businesses using irresponsible marketing practices in developing countries. For example: practices relating to tobacco products, breastmilk substitutes or pharmaceuticals

One of the most effective ways that businesses can contribute to poverty reduction is to pay income tax in developing countries. The exploitation of tax havens by multinational corporations operating in least developed countries is particularly harmful. We will withhold finance to those businesses that avoid paying tax in the least developed countries through the use of tax havens.

On the flip side, we seek to invest in Fairtrade businesses and are committed to solutions such as Micro-finance that enable people to work their way out of poverty and become self-sufficient. So, your money may be helping small-scale Fairtrade farmers, or small businesses in the developing world to thrive.

We have a history of campaigning on this issue. In 2005, we campaigned in partnership with Christian Aid for Trade Justice and in 2000, our Rip It Up, Write It off - Drop Third World Debt campaign joined forces with the Jubilee Debt Campaign to cancel the debts of the world's poorest countries.

Our policy on international development

We will seek to support poverty reduction. In line with this, we will not finance organisations that:

• fail to implement basic labour rights as set out in the Fundamental ILO Convention eg avoidance of child labour, or that actively oppose the rights of workers to freedom of association, eg in a trade union;
• take an irresponsible approach to the payment of tax in the least developed countries;
• impede access to basic human necessities, eg safe drinking water or vital medicines;
• engage in irresponsible marketing practices in developing countries, eg with regard to tobacco products and manufacture.
• Furthermore, we will support fair trade and the provision of finance to the working poor in developing countries via micro-finance.