UN Global Compact

The Global Compact^[1] was first proposed by United Nations Secretary-General Kofi Annan in an address to The World Economic Forum on January 31, 1999.

Background

"The Global Compact's operational phase was launched at UN Headquarters in New York on 26 July 2000. The Secretary-General challenged business leaders to join an international initiative - the Global Compact - that would bring companies together with UN agencies, labour and civil society to support nine principles in the areas of human rights, labour and the environment. Through the power of collective action, the Global Compact seeks to advance responsible corporate citizenship so that business can be part of the solution to the challenges of globalisation. In this way, the private sector - in partnership with other social actors - can help realize the Secretary-General's vision: a more sustainable and inclusive global economy.

"Today, hundreds of companies from all regions of the world, international labour and civil society organizations are engaged in the Global Compact. The Global Compact is a direct initiative of the Secretary-General; its staff and operations are lean and flexible.

"The Global Compact is a voluntary corporate citizenship initiative with two objectives:

   "Making the Global Compact and its principles part of business strategy and operations 
   "Facilitating cooperation among key stakeholders and promoting partnerships in support of U.N. goals 

"To achieve these objectives, the Global Compact offers facilitation and engagement through several mechanisms: Policy Dialogues, Learning, Local Structures and Projects.

"The Global Compact is not a regulatory instrument - it does not police, enforce or measure the behavior or actions of companies. Rather, the Global Compact relies on public accountability, transparency and the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles upon which the Global Compact is based.

"The Global Compact is a network. At its core are the Global Compact Office and four UN agencies: Office of the High Commissioner for Human Rights; United Nations Environment Programme; International Labour Organization; United Nations Development Programme. The Global Compact involves all the relevant social actors: governments, who defined the principles on which the initiative is based; companies, whose actions it seeks to influence; labour, in whose hands the concrete process of global production takes place; civil society organizations, representing the wider community of stakeholders; and The United Nations, the world's only truly global political forum, as an authoritative convener and facilitator."

References

1. ^http://www.unglobalcompact.org/