Difference between revisions of "UN Global Compact"

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* Catalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs)
 
* Catalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs)
  
The Compact brings companies together with governments, civil society, labour, the United Nations and other key interests. It agreements are not binding as this is a voluntary initiative which relies on a policy of transparency and accountability, known as the Communication on Progress (COP) as its means of monitoring. Companies are required to report annually as a demonstation to their commitment to the Global Compact and its principles. As the UN Global Compact states, 'a commitment to transparency and disclosure is critical to the success of the initiative'. They go on to add that failure to communicate 'will result in a change in participant status and possible delisting'.  
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The Compact brings companies together with governments, civil society, labour, the United Nations and other key interests. It agreements are not binding as this is a voluntary initiative which relies on a policy of transparency and accountability, known as the Communication on Progress (COP) as its means of monitoring. Companies are required to report annually as a demonstation to their commitment to the Global Compact and its principles. As the UN Global Compact states, 'a commitment to transparency and disclosure is critical to the success of the initiative'. They go on to add that failure to communicate 'will result in a change in participant status and possible delisting'.
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In 2009, 1065 companies that have signed up to the Compact are listed as 'Non-Communicating Participants'. With 5100 signed up in total, this translates into over one in five of the participants failing to provide a Communication on Progress or refusing to engage in dialogue on a matter raised under the Global Compact integrity measures in a timely fashion (within 3 months of being contacted by the Compact office)<ref>United Nations Global Compact [http://www.unglobalcompact.org/COP/non_communicating.html. Communication Progress: Non-Communicating Participants] Accessed 28th May 2009</ref>
  
 
==The Ten Principles of the Global Compact==
 
==The Ten Principles of the Global Compact==
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As the Global Compact is a voluntary initiative, a company has no accountability to meet the stated principles. Instead it must simply declare a commitment to the principles in the form of a yearly report<ref>UN Global Compact [http://www.unglobalcompact.org/COP/Overview/COP_Policy.pdf Policy for “Communication on Progress”] 30th April 2008. Accessed 14th April 2009</ref>. This is the Compacts policy of Communicating on Progress, which has only 4 requirements: that it is submitted annually, contains a declared commitment to the principles, it describes some of the actions taken to work towards the principles and includes a measurement of outcomes that are either real of 'expected'.  
 
As the Global Compact is a voluntary initiative, a company has no accountability to meet the stated principles. Instead it must simply declare a commitment to the principles in the form of a yearly report<ref>UN Global Compact [http://www.unglobalcompact.org/COP/Overview/COP_Policy.pdf Policy for “Communication on Progress”] 30th April 2008. Accessed 14th April 2009</ref>. This is the Compacts policy of Communicating on Progress, which has only 4 requirements: that it is submitted annually, contains a declared commitment to the principles, it describes some of the actions taken to work towards the principles and includes a measurement of outcomes that are either real of 'expected'.  
  
It is up to the company itself to report to the Compact, there is no mention of any external or independent monitoring to validate the reports and it also does not cover the reporting of violations to the principles.  
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It is up to the company itself to report to the Compact, there is no mention of any external or independent monitoring to validate the reports and the Compact's policy also does not cover the reporting of violations to the principles.
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As the ''Guardian'' reports, 'From the start, the global compact has been dogged by accusations that it lacks transparency, has no accountability mechanisms and invites companies to trade off the prestige of the UN'<ref>Balch, O. (2004) [http://www.guardian.co.uk/business/2004/jun/23/money.ethicalmoney Citizenship test: The UN's latest pitch at fostering corporate responsibility isn't all it's built up to be] The ''Guardian'' 23rd June 2004. Accessed 14th April 2009</ref>
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Corporate Watch quotes Deborah Doane, of the Corporate Responsibiility (CORE) Coalition (from her argument in 'Red Tape to Road Signs') as saying 'by promoting these instruments as substitutes for international governance institutions, the UN and OECD effectively undermine the ability of national governments to put forward a different approach'<ref>Corporate Watch [http://www.corporatewatch.org.uk/?lid=2682 The evolution of CSR] Accessed 14th April 2009</ref>.
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In 2000, Monbiot reported how the Global Compact had been established 'with 50 of the world's biggest and most controversial corporations'<ref>Monbiot, G. (2000) [http://www.guardian.co.uk/comment/story/0,3604,361567,00.html Getting into bed with big business
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] 31st August 2000. Accessed 14th April 2009</ref>. He went on to report that:
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:'The companies promised to respect their workers and the environment. This, Annan told them, would "safeguard open markets while at the same time creating a human face for the global economy". The firms which signed his compact would be better placed to deal with "pressure from single-issue groups". Again, they would be allowed to use the UN's logo. But there would be no binding commitments, and no external assessment of how well they were doing'.
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Refering to the UN's previous announcement in 1997 (and their subsequent actions in this respect) that corporations would be given a formal role in UN decision-making when Kofi Annan, the UN secretary general, suggested that he would like to see more opportunities for companies - rather than governments or the UN - to set global standards. Monbiot added:
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:'The UN, in other words, appears to be turning itself into an enforcement agency for the global economy, helping western companies to penetrate new markets while avoiding the regulations which would be the only effective means of holding them to account. By making peace with power, the UN is declaring war upon the powerless'.
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Declarations on ethics such as Human rights are now the norm, but as the ''Guardian'' has highlighted, the international business community has mounted a concerted campaign against these norms, arguing that corporations should not face binding human rights obligations. Instead, business has demanded weak voluntary principles such as the much-derided Global Compact<ref>Hilary, J. (2007) [http://www.guardian.co.uk/commentisfree/2007/mar/30/powerwithoutresponsibilities Corporate abuse: Efforts to hold multinational businesses accountable for human rights violations are meeting stiff resistance] 30th March 2007. Accessed 14th April 2009</ref>.
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The report continues by adding:
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:'It will come as no surprise to discover that the British government has consistently sided with business against the human rights community. The government's official submission on the UN norms argued that corporations should not face legally binding responsibilities for their actions under human rights law. This week in Geneva, the British representative echoed the corporate line yet again by holding up the Global Compact as an example of a bridge between different sectors and standards... The last time the UN drew up a binding code of conduct for multinational companies, the British government joined forces with Germany, the US and other rich nations to ensure such rules never saw the light of day. The final draft of the code was suppressed in 1990, and the UN bodies responsible for it were closed down'.
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==Smokescreens and the 'creeping corporate takeover of the UN'==
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In a critique by Bello<ref>Bello, W. (2001) [http://www.tni.org/detail_page.phtml?page=archives_bello_conjuncture The Global Conjuncture: Characteristics and Challenges] ''Focus on Trade''. No. 60. March 2001. Accessed from the Transnational Institute, 15th April 2009</ref>, the Global Compact has been described as a 'whitewash mechanism' used to legitimise business as usual as a 'soft corporate counteroffensive' against rising criticism of the workings of modern capitalism. In other words, to whitewash the corporate image. Enoch has a similar view of voluntary codes when he argues that signing up to voluntary codes for social responsibility is a tactic used by the business world to avoid binding regulations and constraints on corporate power<ref>Enoch, S. (2007) 'A Greener Potemkin Village? Corporate Social Responsibility and the Limits of Growth'. ''Captalism Nature Socialism''. Volume 18, Number 2. June 2007.</ref>. According to Enoch, this gives the impression of companies as acting responsibly, whilst behind the scenes they continue with business as usual. Such measures of corporate social responsibility have also been criticized as being little more than a PR exercise as companies are not driven by concern for people and communities, but by their own reputations<ref>Christian Aid (2004) ''Behind the Mask: the real face of corporate social responsibility''. Christian Aid Publications</ref>. Businesses are commercial entities acting in the pursuit of profit. Currently law states that actions must be in the best interests of their shareholders, in other words to maximise their returns. Their primary interests must be 'shareholder value and profit projections, not justice, equity or morality'<ref>Hertz, N. (2001) ''The Silent Takeover: Global Capitalism and the Death of Democracy'' Arrow Books</ref>. Initiatives such as membership of the UN Global Compact works to improve their bottom line as 'cause related marketing enhances corporate image, builds brands, generated PR and increases sales'<ref>Ibid</ref>, which has also been descibed as 'hypocritical window dressing'<ref>Bakan. J, (2005) ''The Corporation''. Constable & Robinson Ltd</ref>.
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In 2002, Jupiter wrote in the ''Guardian'' of how the creation of the Compact reflected a 'creeping corporate takeover of the UN itself<ref>Jupiter, T. (2002) [http://www.guardian.co.uk/environment/2002/jul/31/society.worldsummit2002 Smoke screen: Bringing corporations to book] ''The Guardian''. 31st July 2002. Accessed 15th April 2009</ref>'. One of the key players instrumental in setting up the Compact was the [[International Chamber of Commerce]] (ICC), the world business organisation which describes itself as 'the voice of world business'<ref>International Chamber of Commerce [http://www.iccwbo.org/id93/index.html About the ICC] Accessed 15th April 2009</ref>. In the words of Jupiter:
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:'The ICC has been involved with blocking the agreement of several international environmental standards, including the Kyoto protocol on climate change, the Basel convention on toxic waste and the convention on biological diversity. Given this environmentally challenged track record, the fact that the ICC played an instrumental role in setting up the compact should set the alarm bells ringing. After the Seattle protests in 1999, the momentum for corporate globalisation was in danger of stalling. Campaigners pressing the case for international regulation on the environment, labour standards and human rights, staged highly effective protests against the way businesses had acted to craft an international economic order to promote their own ends. For defusing this pressure, what better remedy than to co-opt the UN through firms adopting aims apparently aligned to its peace, security and environment agenda?'
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As Annan himself has acknowledged in addressing the UN's general assembly, "The global compact is not intended as, and does not have the capacity to be, a corporate code of conduct or global standard,"<ref>Jupiter, T. (2002) [http://www.guardian.co.uk/environment/2002/jul/31/society.worldsummit2002 Smoke screen: Bringing corporations to book] ''The Guardian''. 31st July 2002. Accessed 15th April 2009</ref>. There is no systematic scrutiny of corporate performance against the Compact's principles and Juniper reports that the ICC had 'been at pains to prevent the compact from having compliance or monitoring mechanisms'.
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Juniper describes the Compact as acting as a smokescreen for corporations to hide behind, an effective method of positive PR with little cost or effort. The article reports that the actions of companies reinforce the strong impression that the Compact is little more that a 'public relations vehicle for companies'. [[DaimlerChrysler]] is one example given when the 'automotive mammoth' published a booklet with a picture of one of its senior executives, [[Matthias Kleinert]], shaking hands with Annan in front of the UN flag. The article continues by stating that, 'they are not alone in exploiting this opportunity for public relations purposes: [[Nike]]'s [[Phil Knight]] pulled off a similar photographic coup, while chemicals giant [[Bayer]] has cited its membership of the compact as a means of dealing with public criticisms. It is thus difficult not to see the compact as providing a very effective (and cheap) public relations vehicle for international business, while requiring executives to do nothing more.'
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Regulation and mandatory codes holds companies to account, voluntary initiatives do not. Organisations such as Friends of the Earth have previously called for governments to agree to commence talks leading to a corporate accountability convention. Juniper highlights how 'such a treaty would enshrine in international law rights for affected citizens to seek redress from multinationals, introduce duties on big business to take account of social and environmental concerns and create a baseline (and level playing field) for sound practices'. But as he goes on to report, 'Far from adopting an approach that will lead to global regulation for companies, the powerful governments negotiating in the UN instead propose a future based on public-private partnerships that will acknowledge "the important role that multinational enterprises", no doubt including the global oil, forestry, mining and GM food companies, "play in sustainable development".'
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Proposals calling for the regulation of companies in terms of their social and environment impacts has been dismissed, as in the words of one leading business representative - [[Lord Holme]], as ideological and the agenda of a "fundamentalist minority". Yet the arguments presented by the likes of Enoch, Bello and Juniper are compelling and the corporate influence on institutions such as the UN is of concern. As Juniper has stated, the Charter of the United Nations opens with the grand phrase "We the Peoples", but we must question is it really "We the Peoples" who are driving the agenda? or would "We the Corporations" be a more fitting address?
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In 2005, the ''New York Times'' reported that Annan has effectively turned the United Nations into an institution that sees corporations as its partners and thus as part of the solution, not as part of the problem of global governance and development. Annan is quoted as emphasizing that it "is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering."<ref>Benner, T. (2005) ( [http://www.nytimes.com/2005/08/17/opinion/17iht-edbenner.html?_r=1&scp=13&sq=global%20compact&st=cse  The UN can help business help itself] <i>New York Times</i>. August 18th 2005. Accessed 28th May 2009</ref>. This is a contradiction to the UN's ''World Social Situation'' report ([[Image:UN World Social Situation report 2005.pdf]]) published in the same year which stressed that economic growth and income generation (which are key charateristics of the business model) are ineffective as a development strategy as it 'leads to the accumulation of wealth by a few and deepens the poverty of many'. They go on to elaborate that 'foremost among the global dynamics that help explain the root causes of persistant inequality trends are the liberalization policies'<ref>United Nations (2005) ''World Social Situation'' United Nations Publication 2005</ref>.  In other words poverty and inequality are increasing primarily through the free and unhindered activities of business, which is the model championed by the ICC. This inequality predicament is not only an issue for 'developing' countries but also for the majority of the world's population including the UK and USA. Another UN report in 2005 entitled the ''Human Development Report''<ref>United Nations (2005) ''Human Development Report''. United Nations Publications 2005</ref> showed how more than 80% of the world's population live in countries with rising inequality. This included much of the EU (including the UK) and the USA. The report stressed that Britain and America have some of the highest levels of poverty in the western world despite being two of the world's top economies with continued economic growth. 
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The UN stress that the 'persistent and even deepening forms of inequality worldwide should not be accepted with equanimity', they describe business models as being a root cause of this and argue that with the unprecedented wealth and resources available in the world, the most vulnerable cannot continue to be left so far behind<ref>United Nations (2005) ''Human Development Report''. United Nations Publications 2005</ref>. Yet at the same time the United Nations have reached out to business in numerous ways and formed an increasing number of partnerships, even though this contradicts their own findings. It also flies in the face of the realisation, as stated in the ''New York Times'' that at the same time as forming these partnerships, 'the United Nations has come to realize that the corporate social responsibility agenda is bound to fail if it is not embedded in a framework of binding rules. In the medium term, an "à la carte" approach to corporate social responsibility will undermine itself through lack of credibility. Responsible business needs a core set of binding rules to credibly be able to counter accusations that its corporate social responsibility initiatives are mere window dressing'<ref>Benner, T. (2005) ( [http://www.nytimes.com/2005/08/17/opinion/17iht-edbenner.html?_r=1&scp=13&sq=global%20compact&st=cse  The UN can help business help itself] <i>New York Times</i>. August 18th 2005. Accessed 28th May 2009</ref>.
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==UN Agencies Involved==
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At the core of the UN Global Compact network are the Global Compact Office and six UN agencies which make up the 'Inter-Agency Team':
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*[[Office of the High Commissioner for Human Rights]] (OHCHR)
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*[[International Labour Organization]] (ILO)
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*[[United Nations Environment Programme]] (UNEP)
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*[[United Nations Office on Drugs and Crime]] (UNODC)
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*[[United Nations Development Programme]] (UNDP)
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*[[United Nations Industrial Development Organization]] (UNIDO)
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"Other UN agencies are also encouraged to engage in the initiative and to use and promote the Global Compact and its principles wherever relevant in the context of their own programmes."<ref>UN Global Compact [http://www.unglobalcompact.org/ParticipantsAndStakeholders/un_agencies/index.html UN Agencies] Accessed 22/01/10</ref>
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==People==
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===Board Members===
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The Board is chaired by the United Nations Secretary-General and in 2009, Global Compact Board Members are listed as<ref>UN Global Compact [http://www.unglobalcompact.org/AboutTheGC/The_Global_Compact_Board.html About Us:The UN Global Compact Board] Accessed 14th April 2009</ref>
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====Business====
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[[Toshio Arima]] - Director and Executive Advisor to the Board, [[Fuji Xerox]], Japan | [[José Sergio Gabrielli de Azevedo]] - President and CEO, [[Petrobras]], Brazil | [[Guillermo Carey]] - Senior Partner, [[Carey & Allende Abogados]], Chile | [[Charles O. Holliday]] - Chairman of the Board, [[DuPont]], US | [[Cecilie Ibru]] - CEO & Managing Director, [[Oceanic Bank International]], Nigeria | [[Jamshed Irani]] - Director of the Board, [[Tata Steel]], India | [[Anne Lauvergon]] - Chair of the Executive Board, [[Areva]], France | [[Juan De La Mota]] - President, [[Global Compact Spanish Network]] | [[Ntombifuthi Mtoba]] - Chair of the Board, [[Deloitte]], South Africa | [[Mads Oevlisen]] - Chair, [[Lego]], Denmark | [[Fernando Chico Pardo]] - Founder and President of [[Promecap]] S.C., Mexico | [[Chey Tae-won]] - President & Chairman, [[SK Group]], Republic of Korea | [[Chen Ying]] - Deputy Director General, [[China Enterprise Confederation]], China
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====International Labour and Business Organizations====
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[[Antonio Peñalosa]] - Secretary-General, [[International Organization of Employers]] | [[Guy Ryder]] - General Secretary, [[International Trade Union Confederation]] | [[Guy Sebban]] - Secretary-General, [[International Chamber of Commerce]] | [[Manfred Warda]] - General Secretary, [[International Federation of Chemical, Energy, Mine and General Workers’ Unions]]
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====Civil Society====
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[[Habiba Al Marashi]] - Chair, [[Emirates Environmental Group]] | [[Oded Grajew]] - Chair of the Board, [[Instituto Ethos de Empresas e Responsabilidade Social]] | [[Huguette Labelle]] - Chair, [[Transparency International]] | [[Mary Robinson]] - Chair, [[Realizing Rights: The Ethical Globalization Initiative]]
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====Ex-Officio====
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[[Georg Kell]] - Executive Director, UN Global Compact Office | [[Mark Moody-Stuart]] - Chairman, Foundation for the Global Compact
  
 
==Corporate Partners==
 
==Corporate Partners==
The membership of the Global Compact Corporate Partners includes the [[Shell]] Oil Company, [[BP]] PLC, [[Nike]] Inc., [[Tio Tinto]] PLC, [[Novartis]], [[Aracruz Cellulose]], [[Aventis]], [[Bayer]], [[BASF]], [[DuPont]], and [[DaimlerChrysler]], identified among some of the companies with "the most egregious human rights and environmental records."[1]fg
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Below are listed some of the companies and business associations signed up to the Global Compact. This provides just a very small sample as the full list reaches to over 5100 corporate participants which would be impossible to include as a list on this page. The list of participants of the Global Compact can be accessed through the Compacts website using their [http://www.unglobalcompact.org/ParticipantsAndStakeholders/search_participant.html Participant search function].
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===Companies===
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In 2009, some of the world's most controversial companies were listed as being signed up to the UN Global Compact. These include<ref>UN Global Compact [http://www.unglobalcompact.org/ParticipantsAndStakeholders/search_participant.html Participant Search] Accessed 14th April 2009</ref>:
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:[[Shell]] | [[Rio Tinto]] | [[BP]] | [[Nike]] | [[DuPont]] | [[Gap]] | [[Coca Cola]] | [[General Electric]] | [[Levis Strauss]] (who have already been dropped from the [[Ethical Trading Initiative]] for failure to commit to labour standards<ref>Ethical Trading Initiative [http://www.ethicaltrade.org/Z/lib/2007/02/levistrauss2-stmt/index.shtml Resignation of Levi Strauss & Co. from ETI]. 5th February 2007. Accessed 15th January 2009</ref>) | [[Dow Chemical]] and [[Nestle]] to name just a few.
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As the Global Compact is a voluntary initiative and the agreements are not binding, monitoring relies on a policy of transparency and accountability known as the Communication on Progress (COP). Companies are required to report annually as a demonstation to their commitment to the Global Compact and its principles. As the UN Global Compact states, 'a commitment to transparency and disclosure is critical to the success of the initiative'<ref>United Nations Global Compact [http://www.unglobalcompact.org/AboutTheGC/ Overview of the UN Global Compact] Accessed 14th April 2009</ref>. However In 2009, 1065 companies that have signed up to the Compact are listed as 'Non-Communicating Participants'. With 5100 signed up in total, this translates into over one in five of the participants failing to provide a Communication on Progress or refusing to engage in dialogue on a matter raised under the Global Compact integrity measures in a timely fashion (within 3 months of being contacted by the Compact office)<ref>United Nations Global Compact [http://www.unglobalcompact.org/COP/non_communicating.html. Communication Progress: Non-Communicating Participants] Accessed 28th May 2009</ref>
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In 2009, companies listed as Non-Communicating Participants include:
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:[[ABN AMRO]] Holding N.V.; [[Adecco]] USA, Austria, Belgium, Findland, Germany, Switerland Italia, Luxembourg, Nederlands, Peru, & Poland; [[BP]] Exploration - Caspian Sea Ltd, Georgia;  [[Coca-Cola ]]Beverages Hrvatska d.d. Croatia; [[Coca-Cola]] Bottling Company of Ghana Ltd; [[Coca-Cola]] Mesrubat Pazarlama Ve Danismanlik Turkey; [[Deloitte Touche Tohmatsu]] - France ([[Deloitte & Touche]]); [[Edelman]] U.S.; [[Eli Lilly]] y Compañia de Mexico, S.A. de C.V.; [[Johnson & Johnson]] S.E. d.o.o. Croatia; [[KPMG]] Armenia cjsc; [[Medcom]] Panama; [[Merck]] KGaA Germany; [[Nestlé]] Dominicana S. A. Dominican Republic; [[Publicis]] Skopje Macedonia; The [[Shell]] Petroleum Development Company of Nigeria, Limited; [[Unilever]] Ghana Limited; [[Unilever]] Mocambique Lda. Mozambique; [[Wyeth]] Mexico. 
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The Compact also has a list of 'Inactive Partners', these are companies which have signed up to the Compact but who either have either failed to submit a COP in the first 3 years of signing up, or who have not submitted a further COP for 2 years or more<ref>UN Global Compact [http://www.unglobalcompact.org/COP/inactives.html?submit_x=page&pc=100&pn=1 Communication Progress:Inactive Partners] Accessed 28th May 2009</ref>. In 2009, companies listed amongst those 'Inactive' included:
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:[[Ernst & Young]] - Hungary; [[Ernst & Young]] Baltic UAB - Lithuania; [[GlaxoSmithKline]] Romania; [[GlaxoSmithKline]] Ukraine Representative Office; [[KPMG]] Dominicana; [[Merck]] Pty Ltd - South Africa; [[Nissan]] Motor Ukraine; [[SC Johnson]] - A Family Company, Ukraine; [[Unilever]] South Central Europe and [[Unilever]] South East Africa.
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Both the Non-Communicating and Inactive Participants lists are littered with companies from sectors such as the oil and gas industry, chemicals, pharmaceuticals & biotechnology, construction industry, food, beverages, the finance industry and the media. The inclusion on this list of a great deal of companies operating in Latin America and Eastern Europe is noticeable.
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===Business Associations===
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Business Associations are also included in the Global Compact. In 2009, global business associations were listed as<ref>Un Global Compact [http://www.unglobalcompact.org/ParticipantsAndStakeholders/business_associations.html Participants and Stakeholder:Business Associations] Accessed 14th April 2009</ref>:
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: [[World Savings Banks Institute]] - Belgium | [[World Confederation of Businesses]] - United States of America | [[World Business Council for Sustainable Development]] - Switzerland | [[Wafa Investing]] LLC - Syrian Arab Republic | The [[Conference Board]] - United States of America | The [[Associated Chambers of Commerce and Industry of India]] - India | [[Norwegian Shipowners' Association]] - Norway | [[International Post Corporation]] - Belgium | [[International Petroleum Industry Environmental Conservation Association]](IPIECA) - United Kingdom | [[International Organization of Employers]] - Switzerland | [[International Council of Chemical Associations]] - United States of America | [[International Chamber of Commerce]] (ICC) - France | [[Instituto Ethos de Empresas e Responsibilidade Social]] - Brazil | [[Indonesian Suiseki Association]] - Indonesia | [[Hippocrates Research]] Srl - Italy | [[Global Business Coalition on HIV/AIDS]] - United States of America | [[Foreign Investment Promotion Organisation]] - India | [[European Savings Banks Group]] - Belgium | [[Dison Investment & Services Co. Ltd]] - [[Sudan]] | [[CSR Europe]] - Belgium | [[Caux Round Table]] - United States of America | [[Byblos Bank Syria]] - Syrian Arab Republic | [[Business for Social Responsibility]] - United States of America | [[Bellagio Forum for Sustainable development]] - Germany | [[American International General Chamber of Commerce]] - United States of America | [[ADSG Atrugal]] - Spain
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==Funding==
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The Global Compact receives funding through the [[Foundation for the Global Compact]], which collects voluntary contributions to finance the Compacts activities<ref>UN Global Compact [http://www.unglobalcompact.org/AboutTheGC/The_GC_Foundation.html Foundation for the Global Compact] Accessed 15th April 2009</ref>.
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===2009===
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Contributers in 2009 are listed as<ref>Foundation for the Global Compact [http://www.globalcompactfoundation.org/donors/our.donors.htm Contributers] Accessed 15th April 2009</ref>:
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Contribution between 10,000 — 20,000 USD - [[Levi Strauss]] Foundation
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Contributions between 5,000 — 10,000 USD:
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: [[Accenture]] LLP | [[FLSmidth & Co]] A/S | [[SK Telecom]] | The [[Davis Service Group plc]] | [[Celer Soluciones]] | [[Coop Centr Raiff]] | [[Adecco]] | [[Danfoss]] AS | [[Dong Energy Oil & Gas]] | [[FLSmidth & Co]] A/S | [[ICA Sverige]] | [[Tata Steel]] | [[OSASCO]] SP
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Contibutions between 1,000 — 5,000 USD:
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: [[Bpn Banco Brasil Multiplo]] | [[Brodrene Hartmann]] AS | [[Centrica]] | [[City Developments Ltd]] | [[DHV Holding]] BV | [[DigiTelecommunications]] | [[DNB Nor Bank]] | [[Driling Equipment]] | [[Ducati Motor Holdings]] SPA | [[Ernst Young]] AG | [[Esquel Enterprises]] | [[Firmenich]] | [[HM GBC]] Ab | [[Holmen]] AB | [[Invest for Children Foundation]] | [[Lanco Infratech Ltd]] | [[Motor Oil Ellas Dilistiria Korin]] | [[Novartis]] | [[Nykredit]] | [[SIRTI Societa per azioni]] | [[SKF]] HQ | [[Sungjin Geotec Ltd]]
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A long list of contributers of under 1,000 USD is also included on the Foundations website.
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===2008===
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In 2008, Contributers of over US$ 20,000 are listed as<ref>Foundation for the Global Compact [http://www.globalcompactfoundation.org/donors/our.2008donors.htm Contributers 2008] Accessed 15th April 2009</ref>:
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: [[Broad Air Conditioning]] | [[HSBC]] Holdings plc. | [[Petrobras]] SA | [[Royal Dutch Shell]] plc. | The [[Coca-Cola]] Company
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Contributers of between 5,001 – 20,000 USD were:
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: [[Aktiebolaget]] SKF | [[Anglo American]] | [[ArcelorMittal]] | [[Celer Soluciones]] S.L. | [[Daimler]] AG | [[Deutsche Bank]] AG | [[Deutsche Post]] (in kind) | [[Diageo]] Plc | [[Fundacion fondo de cultura de Sevilla]] | [[Heineken International]] | [[Hindustan Construction Company Ltd]] | [[ICA]] AB | [[ING Group]] | [[Nexen Inc.]] | [[Norsk Hydro]] ASA | [[Oil and Natural Gas Corporation]] | [[PetroChina Company Limited]] | [[Rio Tinto]] | [[Suez]] | [[Symantec Corporation]] | [[Tetra Pak Limited]] | [[Trelleborg]] AB | [[TUV Rheinland Holding]] AG
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Contributers of between 1,000 to 5,000 USD:
 +
: [[2Moro]] SAS | [[A Raymond]] SCS | [[ABN AMRO]] Bank N.V. | [[Ading Ad Skopje]] | [[African Petroleum PLC]] | [[AG2R]] | [[Akkok Sanayi ve Gelistirme]] A.S. | [[Akritas]] S.A. | [[Alcatel-Lucent]] | [[Altana]] AG | [[AMPEG Technologie and Computer Service]] GmbH | [[Aqua y Saneamientos Argentinos]] S.A. - AySA | [[Arla Foods]] amba | [[Armacell Group]] | [[ASUR]] - [[Grupo Aeropuertuario del Sureste]], S.A. de C.V. | [[Autocesta Rijeka-Zagreb]] d.d | [[Aviatur]] | [[Aviva Sigorta]] AS | [[Aviva]] | [[AvivaSA Emeklilik ve Hayat]] A.Ş. | [[AXA]] | [[Ayr Aviation]] | [[Barrick Gold Corporation]] | [[Befesa Medio Ambiente]], S.A. | [[BHP Billiton]] | [[Bombeo Energia y Compactacion de Madrid]] (BECMA) | [[Bouygues]] | [[Broedrene Hartmann]] A/S | [[Brown Flynn]] | [[C.I.P.I.]] - [[Compagnie Internationale de Promotion Industrielle]] | [[CA Inc.]] | [[Caixa Catalunya]] | [[Caja De Ahorros Y Monte De Piedad De Zaragoza Aragon Y Rioja]] - Ibercaja | [[Caja Madrid]] | [[Caja Provincial De Ahorros De Jaen]] | [[Caja de Ahorros y Pensiones de Barcelona]] (La Caixa) | [[Calvert Group Ltd.]] | [[Carvalho, Coimbra y Esteves]], Lda. | [[Cassa di Risparmio di Volterra]] S.p.A | [[Cassab Ahun]] SRL | [[CEGELEC Nord et Est]] | [[Centrica plc]] | [[Citizen Holdings Co. Ltd.]] | [[City Developments Limited]] | [[Cloetta Fazer]] | [[Coca-Cola]] Beverages Hrvatska | [[Colombia Movil]] S.A. E.S.P. | [[COMBIS]] d.o.o. | [[Confidi Roma Gafiart]] | [[Consolidated Contractors International Co.]] | [[Constructus Ltd]] | [[Corporate Fashion International Ltd]] | [[CPT]] AG | [[Danfoss Groups]] | [[Deloitte]] Croatia | [[Deutsche Post World Net]] | [[Dexia Group]] | [[DnB]] NOR ASA | [[Eastern Produce Kenya Ltd]] | [[Edelman]] | [[Eiffage]] | [[Ekol Logistics Co Inc]] | [[Electrical Industries Limited]] | [[Elektroncek]] D.D. | [[ENI]] | [[Environnement]] S.A. | [[EPOS Health Consultants]] | [[EPS]] (Engineering and Professional Services, Inc.) | [[Essilor International]] | [[EUROTECH]] France | [[Euskaltel]] | [[Exxaro Resources Ltd]] | [[FAI rent-a-jet]] AG | [[Fairmount Minerals]] | [[Financiere de Champlain]] | [[Folksam]] | [[Gahood Holding Co Ltd]] | [[Garrigues]] | [[Geodis]] | [[Global Calcium Pvt Ltd]] | [[GlobeScan Incorporated]] | [[Grant Thornton]] Amyot LLC | [[Grindeks]] | [[Gris Decoupage]] | [[Groupe]] SEB | [[Groupe Vedior]] France | [[Grupo Eroski]] | [[Grupo Inmobiliario y Constructor M]], S.A. de C.V. | [[Grupsa System]] | [[HaiConsult]] - Consulting Fund | [[HC Tekstil Tas.Gumr.Ith.Ihr.Ltd.Sti.]] | [[Hellenic Petroleum]] | [[Hilti Aktiengesellschaft]] | [[Hiroca]] CxA | [[Holcim Ltd]] | [[Holmen]] AB [[IFOP]] | [[Impact Development Training Group]] | [[Infosys Technologies Ltd]] | [[Instituto Tecnologico y de Estudios Superiores de Monterrey]], Campus Queretaro | [[International Distillers Lanka Limited]] | [[Ipek Kagit Sanayi]] | [[Iquest]] | [[Izanet Global Services]] S.L. | [[Jal Group]] Tunisia | [[Jason Electronics (Pte) Ltd]] | [[Kedrion]] s.p.a | [[Kelani Valley Plantations Limited]] | [[Kenya Grange Vehicle Industries Ltd]] | [[Kjaer Group]] A/S | [[Kluntz]] A/S | [[Koç Holding]] | [[Kongsberg Gruppen]] ASA | [[Koninklijke Philips Electronics]] N.V. | [[Korea Electric Power Industrial Development Co Ltd]] | [[KPMG]] LLP | [[KPMG]], Cardenas Dosal, S.C. | [[Lanka Hydraulic Institute]] | [[Lantrade Global Supplies Ltd]] | [[Lazare Kaplan International Inc]] | [[Li and Fung Limited]] | [[Lindex]] | [[LM Ericsson]] | [[Mabroc Teas Pvt Ltd]] | [[Magadi Soda Company]] | [[Mahindra & Mahindra Ltd]] | [[Mane]] | [[Mansour Manufacturing & Distribution Group of Companies]] | [[Masisa Argentina]] S.A. | [[Maxibit Worldwide]] AB | [[Miele & Cie]] KG | [[MIPS]] - Mozambique International Port Services | [[MTN Nigeria Communications Ltd]] | [[Naouri Group]] | [[NATIXIS]] | [[Netafim]] | [[Newman Foundation]] | [[Nexen Inc]] | [[NOBA]] Verbandmittel Danz GmbH & Co. KG | [[Nordea Bank]] AB | [[North American Communications]] | [[Novartis]] International AG | [[Novo Nordisk]] AS | [[Novozymes]] | [[OCBC Bank Ltd]] | [[Okbil Bilgisayar Elektronik Danismanlik Pazarlama Sanayi ve Dis Ticaret]] | [[Orsys]] | [[Otto GmbH & Co]] KG | [[Ozka Tyre and Rubber Co]] | [[Pan Asia Banking]] | [[PARTICIP]] GmbH | [[Perstorp Holding]] AB | [[Petrolin Group]] | [[Pfizer]] Inc. | [[Phoenix Design Aid]] A/S | [[Phytomonitor]] | [[Pranda Jewelry Public Company Ltd]] | [[PricewaterhouseCoopers]] | [[Privredna Banka Zagreb]] | [[Rahimafrooz Batteries Ltd]] | [[REN]] - [[Redes Energeticas Nacionais]], SGPS, SA | [[Representaciones Industriales]] jbl S.A. de C.V. | [[Rhodia]] | [[Rideau Recognition Solutions Inc]] | [[Rosy Blue]] | [[RWE]] AG | [[Sa Van Den Broeke-Lutosa]] | [[SAB Ingenierie Informatique]] | [[SAP]] AG | [[Sasol Ltd]] | [[Seguros Catalana Occidente]] S.A. | [[Selamoglu International Transport]] | [[Senoko Power Ltd]] | [[Shaheen Airport Services]] | [[Sigdopack]] S.A. | [[SINAK Corporation]] | [[Sinosteel Corporation]] | [[Sirota Consulting]] LLC | [[SK Energy Co Ltd]] | [[Société Générale]] | [[software-systems.at]] | [[Sokoa]] S.A | [[Sotral]] S.P.A | [[SPERIT]], IT Consulting Services S.L. | [[StatoilHydro]] ASA | [[Steel Authority of India Limited]] | [[Steelhenge Consulting Limited]] | [[Stopanska Banka]] Ad | [[Suzano Papel e Celulose]] | [[Talisman Energy Inc]] | [[Tata Chemicals]] | [[Taxis G7]] | [[Teck Cominco]] | [[Tek-Ser Ltd]] | [[TGI Consultoria em Gestao Ltda]] | [[Thal Engineering]] | The [[Dow Chemical]] Company | [[TNT]] N.V. | [[Todini Costruzioni Generali]] S.p.A. | [[Trimo]] d.d. | [[Veolia Environnement]] | [[Volkswagen]] AG | [[Vukmir and Associates]], Law Firm | [[Westpac Banking Corporation]] | [[Xiring]] | [[Yuksel Holding]] A.S. - Yuksel Holding Co., Inc. | [[Zhejiang Zhenhua Electronics]] Co., Ltd | [[Zygon Baltic Consulting Ltd]]
 +
 
 +
===2007===
 +
Contributers in 2007 are listed as (no USD amount is disclosed)<ref>Foundation for the Global Compact [http://www.globalcompactfoundation.org/donors/our.2007donors.htm Contributers 2007] Accessed 15th April 2009</ref>:
 +
: [[AB Lindex]] | [[Anglo American]] | [[Autostrade per Italia]] S.p.A. | [[Carvalho, Coimbra & Esteves]], Lda. | [[COIB]] | [[Deutsche Telekom]] AG | [[Eskom]] | [[Green Mountain Coffee]] | [[Grupo Cementos Portland Valderrivas]] | [[Noredea Bank]] | [[Otto Group]] | [[PhB Nigeria]] | [[RWE]] | [[Sonae]] SGPS SA | [[Talal Abu-Ghazaleh Organization]] (TAGorg) | [[Telecom Italia]] | [[Total]] | [[TUV Rheinland Group]] | [[Unilever]] UK | [[William E. Connor and Associates]]
 +
 
 +
===2006===
 +
Contributers in 2006 were listed as (no USD amount is disclosed)<ref>Foundation for the Global Compact [http://www.globalcompactfoundation.org/donors/our.2006donors.htm Contributers 2006] Accessed 15th April 2009</ref>:
 +
: [[Aditya Birla Management Corporation]] | [[Alcan Inc]] | [[Anglo American]] | [[Banco General]] S.A | [[Bayer]] AG | [[BHP Billiton Group]] | [[BP]] | [[Brødrene Hartmann]] A/S | [[Carey and Allende]] | [[Centrica]] plc | [[Citizen Watch Co Ltd]] | [[Cosmo Oil]] | [[De Beers Group of Companies]] | [[Deutsche Bank]] | [[Deutsche Post]] AG | [[Deutsche Telekom]] AG | [[Diageo]] | [[Engro Chemical Pakistan Limited]] | [[Fidanque Panama]] | [[Gaz de France]] | [[Guilé Foundation]] | [[Lego Systems]] A/S | [[Nexen]] Inc | [[NHO]] (Confederation of Norwegian Enterprise) | [[Norsk Hydro]] ASA | [[Novartis]] Foundation | [[Novo Nordisk]] A/S | [[OMV]] | [[Pakistan Refinery Limited]] | [[Pranda Jewelry Public Company Limited]] | [[Statoil]] ASA | [[Storebrand]] ASA | [[Symantec]] Corporation | [[Talal Abu-Ghazaleh Organization]] (TAGorg) | [[Telefonica]] | The [[Coca-Cola]] Company | [[Total]] | [[UBS]] AG | [[Veolia Environment]] | [[Volvo]] | [[Wessex Water]] | [[William O'Connor and Associates]]
  
 
==External Links==
 
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[[Category:CSR]]

Latest revision as of 15:37, 22 January 2010

Background

The United Nations Global Compact initiative was started by the then UN Secretary General Mr. Kofi Anan in the year 2000[1].

According to its website, the UN Global Compact 'is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. By doing so, business, as a primary agent driving globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere'[2].

The Global Compact describes itself as 'the largest corporate citizenship and sustainability initiative in the world', which in 2009 has over 5100 corporate participants and stakeholders from over 130 countries[3].

It has two stated objectives, which are:

  • Mainstream the ten principles in business activities around the world
  • Catalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs)

The Compact brings companies together with governments, civil society, labour, the United Nations and other key interests. It agreements are not binding as this is a voluntary initiative which relies on a policy of transparency and accountability, known as the Communication on Progress (COP) as its means of monitoring. Companies are required to report annually as a demonstation to their commitment to the Global Compact and its principles. As the UN Global Compact states, 'a commitment to transparency and disclosure is critical to the success of the initiative'. They go on to add that failure to communicate 'will result in a change in participant status and possible delisting'.

In 2009, 1065 companies that have signed up to the Compact are listed as 'Non-Communicating Participants'. With 5100 signed up in total, this translates into over one in five of the participants failing to provide a Communication on Progress or refusing to engage in dialogue on a matter raised under the Global Compact integrity measures in a timely fashion (within 3 months of being contacted by the Compact office)[4]

The Ten Principles of the Global Compact

In 2009, The UN Global Compact declares its ten principles to be:

  • Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.
  • Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
  • Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
  • Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Accountability

As the Global Compact is a voluntary initiative, a company has no accountability to meet the stated principles. Instead it must simply declare a commitment to the principles in the form of a yearly report[5]. This is the Compacts policy of Communicating on Progress, which has only 4 requirements: that it is submitted annually, contains a declared commitment to the principles, it describes some of the actions taken to work towards the principles and includes a measurement of outcomes that are either real of 'expected'.

It is up to the company itself to report to the Compact, there is no mention of any external or independent monitoring to validate the reports and the Compact's policy also does not cover the reporting of violations to the principles.

As the Guardian reports, 'From the start, the global compact has been dogged by accusations that it lacks transparency, has no accountability mechanisms and invites companies to trade off the prestige of the UN'[6]

Corporate Watch quotes Deborah Doane, of the Corporate Responsibiility (CORE) Coalition (from her argument in 'Red Tape to Road Signs') as saying 'by promoting these instruments as substitutes for international governance institutions, the UN and OECD effectively undermine the ability of national governments to put forward a different approach'[7].

In 2000, Monbiot reported how the Global Compact had been established 'with 50 of the world's biggest and most controversial corporations'[8]. He went on to report that:

'The companies promised to respect their workers and the environment. This, Annan told them, would "safeguard open markets while at the same time creating a human face for the global economy". The firms which signed his compact would be better placed to deal with "pressure from single-issue groups". Again, they would be allowed to use the UN's logo. But there would be no binding commitments, and no external assessment of how well they were doing'.

Refering to the UN's previous announcement in 1997 (and their subsequent actions in this respect) that corporations would be given a formal role in UN decision-making when Kofi Annan, the UN secretary general, suggested that he would like to see more opportunities for companies - rather than governments or the UN - to set global standards. Monbiot added:

'The UN, in other words, appears to be turning itself into an enforcement agency for the global economy, helping western companies to penetrate new markets while avoiding the regulations which would be the only effective means of holding them to account. By making peace with power, the UN is declaring war upon the powerless'.

Declarations on ethics such as Human rights are now the norm, but as the Guardian has highlighted, the international business community has mounted a concerted campaign against these norms, arguing that corporations should not face binding human rights obligations. Instead, business has demanded weak voluntary principles such as the much-derided Global Compact[9]. The report continues by adding:

'It will come as no surprise to discover that the British government has consistently sided with business against the human rights community. The government's official submission on the UN norms argued that corporations should not face legally binding responsibilities for their actions under human rights law. This week in Geneva, the British representative echoed the corporate line yet again by holding up the Global Compact as an example of a bridge between different sectors and standards... The last time the UN drew up a binding code of conduct for multinational companies, the British government joined forces with Germany, the US and other rich nations to ensure such rules never saw the light of day. The final draft of the code was suppressed in 1990, and the UN bodies responsible for it were closed down'.

Smokescreens and the 'creeping corporate takeover of the UN'

In a critique by Bello[10], the Global Compact has been described as a 'whitewash mechanism' used to legitimise business as usual as a 'soft corporate counteroffensive' against rising criticism of the workings of modern capitalism. In other words, to whitewash the corporate image. Enoch has a similar view of voluntary codes when he argues that signing up to voluntary codes for social responsibility is a tactic used by the business world to avoid binding regulations and constraints on corporate power[11]. According to Enoch, this gives the impression of companies as acting responsibly, whilst behind the scenes they continue with business as usual. Such measures of corporate social responsibility have also been criticized as being little more than a PR exercise as companies are not driven by concern for people and communities, but by their own reputations[12]. Businesses are commercial entities acting in the pursuit of profit. Currently law states that actions must be in the best interests of their shareholders, in other words to maximise their returns. Their primary interests must be 'shareholder value and profit projections, not justice, equity or morality'[13]. Initiatives such as membership of the UN Global Compact works to improve their bottom line as 'cause related marketing enhances corporate image, builds brands, generated PR and increases sales'[14], which has also been descibed as 'hypocritical window dressing'[15].

In 2002, Jupiter wrote in the Guardian of how the creation of the Compact reflected a 'creeping corporate takeover of the UN itself[16]'. One of the key players instrumental in setting up the Compact was the International Chamber of Commerce (ICC), the world business organisation which describes itself as 'the voice of world business'[17]. In the words of Jupiter:

'The ICC has been involved with blocking the agreement of several international environmental standards, including the Kyoto protocol on climate change, the Basel convention on toxic waste and the convention on biological diversity. Given this environmentally challenged track record, the fact that the ICC played an instrumental role in setting up the compact should set the alarm bells ringing. After the Seattle protests in 1999, the momentum for corporate globalisation was in danger of stalling. Campaigners pressing the case for international regulation on the environment, labour standards and human rights, staged highly effective protests against the way businesses had acted to craft an international economic order to promote their own ends. For defusing this pressure, what better remedy than to co-opt the UN through firms adopting aims apparently aligned to its peace, security and environment agenda?'

As Annan himself has acknowledged in addressing the UN's general assembly, "The global compact is not intended as, and does not have the capacity to be, a corporate code of conduct or global standard,"[18]. There is no systematic scrutiny of corporate performance against the Compact's principles and Juniper reports that the ICC had 'been at pains to prevent the compact from having compliance or monitoring mechanisms'.

Juniper describes the Compact as acting as a smokescreen for corporations to hide behind, an effective method of positive PR with little cost or effort. The article reports that the actions of companies reinforce the strong impression that the Compact is little more that a 'public relations vehicle for companies'. DaimlerChrysler is one example given when the 'automotive mammoth' published a booklet with a picture of one of its senior executives, Matthias Kleinert, shaking hands with Annan in front of the UN flag. The article continues by stating that, 'they are not alone in exploiting this opportunity for public relations purposes: Nike's Phil Knight pulled off a similar photographic coup, while chemicals giant Bayer has cited its membership of the compact as a means of dealing with public criticisms. It is thus difficult not to see the compact as providing a very effective (and cheap) public relations vehicle for international business, while requiring executives to do nothing more.'

Regulation and mandatory codes holds companies to account, voluntary initiatives do not. Organisations such as Friends of the Earth have previously called for governments to agree to commence talks leading to a corporate accountability convention. Juniper highlights how 'such a treaty would enshrine in international law rights for affected citizens to seek redress from multinationals, introduce duties on big business to take account of social and environmental concerns and create a baseline (and level playing field) for sound practices'. But as he goes on to report, 'Far from adopting an approach that will lead to global regulation for companies, the powerful governments negotiating in the UN instead propose a future based on public-private partnerships that will acknowledge "the important role that multinational enterprises", no doubt including the global oil, forestry, mining and GM food companies, "play in sustainable development".'

Proposals calling for the regulation of companies in terms of their social and environment impacts has been dismissed, as in the words of one leading business representative - Lord Holme, as ideological and the agenda of a "fundamentalist minority". Yet the arguments presented by the likes of Enoch, Bello and Juniper are compelling and the corporate influence on institutions such as the UN is of concern. As Juniper has stated, the Charter of the United Nations opens with the grand phrase "We the Peoples", but we must question is it really "We the Peoples" who are driving the agenda? or would "We the Corporations" be a more fitting address?

In 2005, the New York Times reported that Annan has effectively turned the United Nations into an institution that sees corporations as its partners and thus as part of the solution, not as part of the problem of global governance and development. Annan is quoted as emphasizing that it "is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering."[19]. This is a contradiction to the UN's World Social Situation report (File:UN World Social Situation report 2005.pdf) published in the same year which stressed that economic growth and income generation (which are key charateristics of the business model) are ineffective as a development strategy as it 'leads to the accumulation of wealth by a few and deepens the poverty of many'. They go on to elaborate that 'foremost among the global dynamics that help explain the root causes of persistant inequality trends are the liberalization policies'[20]. In other words poverty and inequality are increasing primarily through the free and unhindered activities of business, which is the model championed by the ICC. This inequality predicament is not only an issue for 'developing' countries but also for the majority of the world's population including the UK and USA. Another UN report in 2005 entitled the Human Development Report[21] showed how more than 80% of the world's population live in countries with rising inequality. This included much of the EU (including the UK) and the USA. The report stressed that Britain and America have some of the highest levels of poverty in the western world despite being two of the world's top economies with continued economic growth.

The UN stress that the 'persistent and even deepening forms of inequality worldwide should not be accepted with equanimity', they describe business models as being a root cause of this and argue that with the unprecedented wealth and resources available in the world, the most vulnerable cannot continue to be left so far behind[22]. Yet at the same time the United Nations have reached out to business in numerous ways and formed an increasing number of partnerships, even though this contradicts their own findings. It also flies in the face of the realisation, as stated in the New York Times that at the same time as forming these partnerships, 'the United Nations has come to realize that the corporate social responsibility agenda is bound to fail if it is not embedded in a framework of binding rules. In the medium term, an "à la carte" approach to corporate social responsibility will undermine itself through lack of credibility. Responsible business needs a core set of binding rules to credibly be able to counter accusations that its corporate social responsibility initiatives are mere window dressing'[23].

UN Agencies Involved

At the core of the UN Global Compact network are the Global Compact Office and six UN agencies which make up the 'Inter-Agency Team':

"Other UN agencies are also encouraged to engage in the initiative and to use and promote the Global Compact and its principles wherever relevant in the context of their own programmes."[24]

People

Board Members

The Board is chaired by the United Nations Secretary-General and in 2009, Global Compact Board Members are listed as[25]

Business

Toshio Arima - Director and Executive Advisor to the Board, Fuji Xerox, Japan | José Sergio Gabrielli de Azevedo - President and CEO, Petrobras, Brazil | Guillermo Carey - Senior Partner, Carey & Allende Abogados, Chile | Charles O. Holliday - Chairman of the Board, DuPont, US | Cecilie Ibru - CEO & Managing Director, Oceanic Bank International, Nigeria | Jamshed Irani - Director of the Board, Tata Steel, India | Anne Lauvergon - Chair of the Executive Board, Areva, France | Juan De La Mota - President, Global Compact Spanish Network | Ntombifuthi Mtoba - Chair of the Board, Deloitte, South Africa | Mads Oevlisen - Chair, Lego, Denmark | Fernando Chico Pardo - Founder and President of Promecap S.C., Mexico | Chey Tae-won - President & Chairman, SK Group, Republic of Korea | Chen Ying - Deputy Director General, China Enterprise Confederation, China

International Labour and Business Organizations

Antonio Peñalosa - Secretary-General, International Organization of Employers | Guy Ryder - General Secretary, International Trade Union Confederation | Guy Sebban - Secretary-General, International Chamber of Commerce | Manfred Warda - General Secretary, International Federation of Chemical, Energy, Mine and General Workers’ Unions

Civil Society

Habiba Al Marashi - Chair, Emirates Environmental Group | Oded Grajew - Chair of the Board, Instituto Ethos de Empresas e Responsabilidade Social | Huguette Labelle - Chair, Transparency International | Mary Robinson - Chair, Realizing Rights: The Ethical Globalization Initiative

Ex-Officio

Georg Kell - Executive Director, UN Global Compact Office | Mark Moody-Stuart - Chairman, Foundation for the Global Compact

Corporate Partners

Below are listed some of the companies and business associations signed up to the Global Compact. This provides just a very small sample as the full list reaches to over 5100 corporate participants which would be impossible to include as a list on this page. The list of participants of the Global Compact can be accessed through the Compacts website using their Participant search function.

Companies

In 2009, some of the world's most controversial companies were listed as being signed up to the UN Global Compact. These include[26]:

Shell | Rio Tinto | BP | Nike | DuPont | Gap | Coca Cola | General Electric | Levis Strauss (who have already been dropped from the Ethical Trading Initiative for failure to commit to labour standards[27]) | Dow Chemical and Nestle to name just a few.

As the Global Compact is a voluntary initiative and the agreements are not binding, monitoring relies on a policy of transparency and accountability known as the Communication on Progress (COP). Companies are required to report annually as a demonstation to their commitment to the Global Compact and its principles. As the UN Global Compact states, 'a commitment to transparency and disclosure is critical to the success of the initiative'[28]. However In 2009, 1065 companies that have signed up to the Compact are listed as 'Non-Communicating Participants'. With 5100 signed up in total, this translates into over one in five of the participants failing to provide a Communication on Progress or refusing to engage in dialogue on a matter raised under the Global Compact integrity measures in a timely fashion (within 3 months of being contacted by the Compact office)[29]

In 2009, companies listed as Non-Communicating Participants include:

ABN AMRO Holding N.V.; Adecco USA, Austria, Belgium, Findland, Germany, Switerland Italia, Luxembourg, Nederlands, Peru, & Poland; BP Exploration - Caspian Sea Ltd, Georgia; Coca-Cola Beverages Hrvatska d.d. Croatia; Coca-Cola Bottling Company of Ghana Ltd; Coca-Cola Mesrubat Pazarlama Ve Danismanlik Turkey; Deloitte Touche Tohmatsu - France (Deloitte & Touche); Edelman U.S.; Eli Lilly y Compañia de Mexico, S.A. de C.V.; Johnson & Johnson S.E. d.o.o. Croatia; KPMG Armenia cjsc; Medcom Panama; Merck KGaA Germany; Nestlé Dominicana S. A. Dominican Republic; Publicis Skopje Macedonia; The Shell Petroleum Development Company of Nigeria, Limited; Unilever Ghana Limited; Unilever Mocambique Lda. Mozambique; Wyeth Mexico.

The Compact also has a list of 'Inactive Partners', these are companies which have signed up to the Compact but who either have either failed to submit a COP in the first 3 years of signing up, or who have not submitted a further COP for 2 years or more[30]. In 2009, companies listed amongst those 'Inactive' included:

Ernst & Young - Hungary; Ernst & Young Baltic UAB - Lithuania; GlaxoSmithKline Romania; GlaxoSmithKline Ukraine Representative Office; KPMG Dominicana; Merck Pty Ltd - South Africa; Nissan Motor Ukraine; SC Johnson - A Family Company, Ukraine; Unilever South Central Europe and Unilever South East Africa.

Both the Non-Communicating and Inactive Participants lists are littered with companies from sectors such as the oil and gas industry, chemicals, pharmaceuticals & biotechnology, construction industry, food, beverages, the finance industry and the media. The inclusion on this list of a great deal of companies operating in Latin America and Eastern Europe is noticeable.

Business Associations

Business Associations are also included in the Global Compact. In 2009, global business associations were listed as[31]:

World Savings Banks Institute - Belgium | World Confederation of Businesses - United States of America | World Business Council for Sustainable Development - Switzerland | Wafa Investing LLC - Syrian Arab Republic | The Conference Board - United States of America | The Associated Chambers of Commerce and Industry of India - India | Norwegian Shipowners' Association - Norway | International Post Corporation - Belgium | International Petroleum Industry Environmental Conservation Association(IPIECA) - United Kingdom | International Organization of Employers - Switzerland | International Council of Chemical Associations - United States of America | International Chamber of Commerce (ICC) - France | Instituto Ethos de Empresas e Responsibilidade Social - Brazil | Indonesian Suiseki Association - Indonesia | Hippocrates Research Srl - Italy | Global Business Coalition on HIV/AIDS - United States of America | Foreign Investment Promotion Organisation - India | European Savings Banks Group - Belgium | Dison Investment & Services Co. Ltd - Sudan | CSR Europe - Belgium | Caux Round Table - United States of America | Byblos Bank Syria - Syrian Arab Republic | Business for Social Responsibility - United States of America | Bellagio Forum for Sustainable development - Germany | American International General Chamber of Commerce - United States of America | ADSG Atrugal - Spain

Funding

The Global Compact receives funding through the Foundation for the Global Compact, which collects voluntary contributions to finance the Compacts activities[32].

2009

Contributers in 2009 are listed as[33]:

Contribution between 10,000 — 20,000 USD - Levi Strauss Foundation

Contributions between 5,000 — 10,000 USD:

Accenture LLP | FLSmidth & Co A/S | SK Telecom | The Davis Service Group plc | Celer Soluciones | Coop Centr Raiff | Adecco | Danfoss AS | Dong Energy Oil & Gas | FLSmidth & Co A/S | ICA Sverige | Tata Steel | OSASCO SP

Contibutions between 1,000 — 5,000 USD:

Bpn Banco Brasil Multiplo | Brodrene Hartmann AS | Centrica | City Developments Ltd | DHV Holding BV | DigiTelecommunications | DNB Nor Bank | Driling Equipment | Ducati Motor Holdings SPA | Ernst Young AG | Esquel Enterprises | Firmenich | HM GBC Ab | Holmen AB | Invest for Children Foundation | Lanco Infratech Ltd | Motor Oil Ellas Dilistiria Korin | Novartis | Nykredit | SIRTI Societa per azioni | SKF HQ | Sungjin Geotec Ltd

A long list of contributers of under 1,000 USD is also included on the Foundations website.

2008

In 2008, Contributers of over US$ 20,000 are listed as[34]:

Broad Air Conditioning | HSBC Holdings plc. | Petrobras SA | Royal Dutch Shell plc. | The Coca-Cola Company

Contributers of between 5,001 – 20,000 USD were:

Aktiebolaget SKF | Anglo American | ArcelorMittal | Celer Soluciones S.L. | Daimler AG | Deutsche Bank AG | Deutsche Post (in kind) | Diageo Plc | Fundacion fondo de cultura de Sevilla | Heineken International | Hindustan Construction Company Ltd | ICA AB | ING Group | Nexen Inc. | Norsk Hydro ASA | Oil and Natural Gas Corporation | PetroChina Company Limited | Rio Tinto | Suez | Symantec Corporation | Tetra Pak Limited | Trelleborg AB | TUV Rheinland Holding AG

Contributers of between 1,000 to 5,000 USD:

2Moro SAS | A Raymond SCS | ABN AMRO Bank N.V. | Ading Ad Skopje | African Petroleum PLC | AG2R | Akkok Sanayi ve Gelistirme A.S. | Akritas S.A. | Alcatel-Lucent | Altana AG | AMPEG Technologie and Computer Service GmbH | Aqua y Saneamientos Argentinos S.A. - AySA | Arla Foods amba | Armacell Group | ASUR - Grupo Aeropuertuario del Sureste, S.A. de C.V. | Autocesta Rijeka-Zagreb d.d | Aviatur | Aviva Sigorta AS | Aviva | AvivaSA Emeklilik ve Hayat A.Ş. | AXA | Ayr Aviation | Barrick Gold Corporation | Befesa Medio Ambiente, S.A. | BHP Billiton | Bombeo Energia y Compactacion de Madrid (BECMA) | Bouygues | Broedrene Hartmann A/S | Brown Flynn | C.I.P.I. - Compagnie Internationale de Promotion Industrielle | CA Inc. | Caixa Catalunya | Caja De Ahorros Y Monte De Piedad De Zaragoza Aragon Y Rioja - Ibercaja | Caja Madrid | Caja Provincial De Ahorros De Jaen | Caja de Ahorros y Pensiones de Barcelona (La Caixa) | Calvert Group Ltd. | Carvalho, Coimbra y Esteves, Lda. | Cassa di Risparmio di Volterra S.p.A | Cassab Ahun SRL | CEGELEC Nord et Est | Centrica plc | Citizen Holdings Co. Ltd. | City Developments Limited | Cloetta Fazer | Coca-Cola Beverages Hrvatska | Colombia Movil S.A. E.S.P. | COMBIS d.o.o. | Confidi Roma Gafiart | Consolidated Contractors International Co. | Constructus Ltd | Corporate Fashion International Ltd | CPT AG | Danfoss Groups | Deloitte Croatia | Deutsche Post World Net | Dexia Group | DnB NOR ASA | Eastern Produce Kenya Ltd | Edelman | Eiffage | Ekol Logistics Co Inc | Electrical Industries Limited | Elektroncek D.D. | ENI | Environnement S.A. | EPOS Health Consultants | EPS (Engineering and Professional Services, Inc.) | Essilor International | EUROTECH France | Euskaltel | Exxaro Resources Ltd | FAI rent-a-jet AG | Fairmount Minerals | Financiere de Champlain | Folksam | Gahood Holding Co Ltd | Garrigues | Geodis | Global Calcium Pvt Ltd | GlobeScan Incorporated | Grant Thornton Amyot LLC | Grindeks | Gris Decoupage | Groupe SEB | Groupe Vedior France | Grupo Eroski | Grupo Inmobiliario y Constructor M, S.A. de C.V. | Grupsa System | HaiConsult - Consulting Fund | HC Tekstil Tas.Gumr.Ith.Ihr.Ltd.Sti. | Hellenic Petroleum | Hilti Aktiengesellschaft | Hiroca CxA | Holcim Ltd | Holmen AB IFOP | Impact Development Training Group | Infosys Technologies Ltd | Instituto Tecnologico y de Estudios Superiores de Monterrey, Campus Queretaro | International Distillers Lanka Limited | Ipek Kagit Sanayi | Iquest | Izanet Global Services S.L. | Jal Group Tunisia | Jason Electronics (Pte) Ltd | Kedrion s.p.a | Kelani Valley Plantations Limited | Kenya Grange Vehicle Industries Ltd | Kjaer Group A/S | Kluntz A/S | Koç Holding | Kongsberg Gruppen ASA | Koninklijke Philips Electronics N.V. | Korea Electric Power Industrial Development Co Ltd | KPMG LLP | KPMG, Cardenas Dosal, S.C. | Lanka Hydraulic Institute | Lantrade Global Supplies Ltd | Lazare Kaplan International Inc | Li and Fung Limited | Lindex | LM Ericsson | Mabroc Teas Pvt Ltd | Magadi Soda Company | Mahindra & Mahindra Ltd | Mane | Mansour Manufacturing & Distribution Group of Companies | Masisa Argentina S.A. | Maxibit Worldwide AB | Miele & Cie KG | MIPS - Mozambique International Port Services | MTN Nigeria Communications Ltd | Naouri Group | NATIXIS | Netafim | Newman Foundation | Nexen Inc | NOBA Verbandmittel Danz GmbH & Co. KG | Nordea Bank AB | North American Communications | Novartis International AG | Novo Nordisk AS | Novozymes | OCBC Bank Ltd | Okbil Bilgisayar Elektronik Danismanlik Pazarlama Sanayi ve Dis Ticaret | Orsys | Otto GmbH & Co KG | Ozka Tyre and Rubber Co | Pan Asia Banking | PARTICIP GmbH | Perstorp Holding AB | Petrolin Group | Pfizer Inc. | Phoenix Design Aid A/S | Phytomonitor | Pranda Jewelry Public Company Ltd | PricewaterhouseCoopers | Privredna Banka Zagreb | Rahimafrooz Batteries Ltd | REN - Redes Energeticas Nacionais, SGPS, SA | Representaciones Industriales jbl S.A. de C.V. | Rhodia | Rideau Recognition Solutions Inc | Rosy Blue | RWE AG | Sa Van Den Broeke-Lutosa | SAB Ingenierie Informatique | SAP AG | Sasol Ltd | Seguros Catalana Occidente S.A. | Selamoglu International Transport | Senoko Power Ltd | Shaheen Airport Services | Sigdopack S.A. | SINAK Corporation | Sinosteel Corporation | Sirota Consulting LLC | SK Energy Co Ltd | Société Générale | software-systems.at | Sokoa S.A | Sotral S.P.A | SPERIT, IT Consulting Services S.L. | StatoilHydro ASA | Steel Authority of India Limited | Steelhenge Consulting Limited | Stopanska Banka Ad | Suzano Papel e Celulose | Talisman Energy Inc | Tata Chemicals | Taxis G7 | Teck Cominco | Tek-Ser Ltd | TGI Consultoria em Gestao Ltda | Thal Engineering | The Dow Chemical Company | TNT N.V. | Todini Costruzioni Generali S.p.A. | Trimo d.d. | Veolia Environnement | Volkswagen AG | Vukmir and Associates, Law Firm | Westpac Banking Corporation | Xiring | Yuksel Holding A.S. - Yuksel Holding Co., Inc. | Zhejiang Zhenhua Electronics Co., Ltd | Zygon Baltic Consulting Ltd

2007

Contributers in 2007 are listed as (no USD amount is disclosed)[35]:

AB Lindex | Anglo American | Autostrade per Italia S.p.A. | Carvalho, Coimbra & Esteves, Lda. | COIB | Deutsche Telekom AG | Eskom | Green Mountain Coffee | Grupo Cementos Portland Valderrivas | Noredea Bank | Otto Group | PhB Nigeria | RWE | Sonae SGPS SA | Talal Abu-Ghazaleh Organization (TAGorg) | Telecom Italia | Total | TUV Rheinland Group | Unilever UK | William E. Connor and Associates

2006

Contributers in 2006 were listed as (no USD amount is disclosed)[36]:

Aditya Birla Management Corporation | Alcan Inc | Anglo American | Banco General S.A | Bayer AG | BHP Billiton Group | BP | Brødrene Hartmann A/S | Carey and Allende | Centrica plc | Citizen Watch Co Ltd | Cosmo Oil | De Beers Group of Companies | Deutsche Bank | Deutsche Post AG | Deutsche Telekom AG | Diageo | Engro Chemical Pakistan Limited | Fidanque Panama | Gaz de France | Guilé Foundation | Lego Systems A/S | Nexen Inc | NHO (Confederation of Norwegian Enterprise) | Norsk Hydro ASA | Novartis Foundation | Novo Nordisk A/S | OMV | Pakistan Refinery Limited | Pranda Jewelry Public Company Limited | Statoil ASA | Storebrand ASA | Symantec Corporation | Talal Abu-Ghazaleh Organization (TAGorg) | Telefonica | The Coca-Cola Company | Total | UBS AG | Veolia Environment | Volvo | Wessex Water | William O'Connor and Associates

External Links

  • Global Compact Primer.
  • DaimlerChrysler and The Global Compact, DaimlerChrysler.
  • Kenny Bruno, Perilous Partnerships. The UN's Corporate Outreach Program , Multinational Monitor, March 2000.
  • Coalition Says Global Compact Threatens UN Mission And Integrity. Corporate Partners Scrutinized, Common Dreams, July 25, 2000.
  • NGO Letter to UN Secretary General on Global Compact re Nike Inc.,Third World Network, July 28, 2000.
  • Ellen Paine, The Road to the Global Compact: Corporate Power And The Battle Over Global Public Policy at The United Nations, Global Policy, October 2000. Particularly focuses on think tank opposition to Globalization, i.e. Heritage Foundation and Cato Institute.
  • Global Compact with Corporations: "Civil Society" Responds, Women's International Leage for Peace and Freedom, February 15, 2001.
  • "Globalization": the UN’s "Safe Haven" for the World’s Marginalized, Laetus in Praesens, March 6, 2001.
  • Nityanand Jayaraman, Norsk Hydro: Global Compact Violator, CorpWatchIndia, October 18, 2001.

References

  1. Global Compact Society:India History Accessed 14th April 2009
  2. United Nations Global Compact Overview of the UN Global Compact Accessed 14th April 2009
  3. United Nations Global Compact Overview of the UN Global Compact Accessed 14th April 2009
  4. United Nations Global Compact Communication Progress: Non-Communicating Participants Accessed 28th May 2009
  5. UN Global Compact Policy for “Communication on Progress” 30th April 2008. Accessed 14th April 2009
  6. Balch, O. (2004) Citizenship test: The UN's latest pitch at fostering corporate responsibility isn't all it's built up to be The Guardian 23rd June 2004. Accessed 14th April 2009
  7. Corporate Watch The evolution of CSR Accessed 14th April 2009
  8. Monbiot, G. (2000) [http://www.guardian.co.uk/comment/story/0,3604,361567,00.html Getting into bed with big business ] 31st August 2000. Accessed 14th April 2009
  9. Hilary, J. (2007) Corporate abuse: Efforts to hold multinational businesses accountable for human rights violations are meeting stiff resistance 30th March 2007. Accessed 14th April 2009
  10. Bello, W. (2001) The Global Conjuncture: Characteristics and Challenges Focus on Trade. No. 60. March 2001. Accessed from the Transnational Institute, 15th April 2009
  11. Enoch, S. (2007) 'A Greener Potemkin Village? Corporate Social Responsibility and the Limits of Growth'. Captalism Nature Socialism. Volume 18, Number 2. June 2007.
  12. Christian Aid (2004) Behind the Mask: the real face of corporate social responsibility. Christian Aid Publications
  13. Hertz, N. (2001) The Silent Takeover: Global Capitalism and the Death of Democracy Arrow Books
  14. Ibid
  15. Bakan. J, (2005) The Corporation. Constable & Robinson Ltd
  16. Jupiter, T. (2002) Smoke screen: Bringing corporations to book The Guardian. 31st July 2002. Accessed 15th April 2009
  17. International Chamber of Commerce About the ICC Accessed 15th April 2009
  18. Jupiter, T. (2002) Smoke screen: Bringing corporations to book The Guardian. 31st July 2002. Accessed 15th April 2009
  19. Benner, T. (2005) ( The UN can help business help itself New York Times. August 18th 2005. Accessed 28th May 2009
  20. United Nations (2005) World Social Situation United Nations Publication 2005
  21. United Nations (2005) Human Development Report. United Nations Publications 2005
  22. United Nations (2005) Human Development Report. United Nations Publications 2005
  23. Benner, T. (2005) ( The UN can help business help itself New York Times. August 18th 2005. Accessed 28th May 2009
  24. UN Global Compact UN Agencies Accessed 22/01/10
  25. UN Global Compact About Us:The UN Global Compact Board Accessed 14th April 2009
  26. UN Global Compact Participant Search Accessed 14th April 2009
  27. Ethical Trading Initiative Resignation of Levi Strauss & Co. from ETI. 5th February 2007. Accessed 15th January 2009
  28. United Nations Global Compact Overview of the UN Global Compact Accessed 14th April 2009
  29. United Nations Global Compact Communication Progress: Non-Communicating Participants Accessed 28th May 2009
  30. UN Global Compact Communication Progress:Inactive Partners Accessed 28th May 2009
  31. Un Global Compact Participants and Stakeholder:Business Associations Accessed 14th April 2009
  32. UN Global Compact Foundation for the Global Compact Accessed 15th April 2009
  33. Foundation for the Global Compact Contributers Accessed 15th April 2009
  34. Foundation for the Global Compact Contributers 2008 Accessed 15th April 2009
  35. Foundation for the Global Compact Contributers 2007 Accessed 15th April 2009
  36. Foundation for the Global Compact Contributers 2006 Accessed 15th April 2009