It was then renovated in the style of the day at the start of the following century by Robert de Cotte, the First Architect of Louis XIV, for the Count of Toulouse, the legitimated son of the Sun King and its new owner. Naturally, this place provides an appropriate setting for putting matters into perspective. This is most apposite for the discussions to which Mr Pohl invites us today, because they should be considered from both a historical and forward-looking perspective. Japanese philosophy teaches us that visiting the past teaches us new things. This privileged setting nevertheless does not isolate us from the world. The turmoil that we are experiencing gives a particular significance to your work. The current financial crisis and the unprecedented financial cooperation between countries to preserve financial stability should add a new dimension to the debate on Corporate Social Responsibility. I therefore hope that this approach in perspective will shed light on both the implications of the Corporate Social Responsibility (CSR) and its potential role as a force for change in a globalised world. CSR is a concept whereby companies and financial institutions not only consider their profitability and growth, but also the interests of society and the environment by taking responsibility for the impact of their activities on stakeholders, employees, shareholders, customers, suppliers, and civil society represented by NGOs. Companies (including banks) must take on new responsibilities that go beyond a simple policy of “paternalism” vis-à-vis their suppliers, customers and employees, such as that practised up until recent times.

If the krona continues to develop along the path estimated by the Riksbank and many other analysts, and continues to strengthen in 2002 and 2003, it will help ensure that the economic upturn does not grow into overheating. 4  BIS Review 32/2002  The economic situation and monetary policy It is clear from the minutes of the most recent monetary policy meeting that the Riksbank is painting a fairly bright picture of the Swedish economy in future. The international recovery, particularly in the USA, may become slightly stronger than we believed earlier, and this, combined with a continued weak krona, will benefit Swedish exports. However, developments in Ericsson and the telecommunications industry constitute cause for concern and uncertainty. At the same time, the significance of one single sector should not be exaggerated. Industrial activity in Sweden is continuing to strengthen. Both order intake and industrial production indicate a recovery is on its way. This is also reflected in various confidence indicators. With regard to consumption, there are also signs that a turnaround is on its way; households’ confidence indicators and the demand for banknotes and coins all point in this direction. Retail trade sales have stabilised and there has possibly been a slight upturn at the beginning of the year. This applies particularly to consumption of durable goods. Low real interest rates and the expansionary fiscal policy indicate that consumption will pick up. Developments in prices and wages leave a lot to be desired, as I mentioned in the beginning.