Difference between revisions of "UN Global Compact"

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The Global Compact{{ref|1}} was first proposed by United Nations Secretary-General [[Kofi Annan]] in an address to The World Economic Forum on January 31, 1999.
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==Background==
  
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===Background===
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The United Nations Global Compact initiative was started by the then UN Secretary General Mr. Kofi Anan in the year 2000<ref>Global Compact Society:India [http://globalcompactasiapacific.org/india/viewPage.php?ID=History History] Accessed 14th April 2009</ref>.
  
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"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 and anti-corruption<ref>United Nations Global Compact [http://www.unglobalcompact.org/AboutTheGC/ Overview of the UN Global Compact] Accessed 14th April 2009</ref>. 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.
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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'<ref>United Nations Global Compact [http://www.unglobalcompact.org/AboutTheGC/ Overview of the UN Global Compact] Accessed 14th April 2009</ref>.
  
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"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.
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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<ref>United Nations Global Compact [http://www.unglobalcompact.org/AboutTheGC/ Overview of the UN Global Compact] Accessed 14th April 2009</ref>.
  
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"The Global Compact is a voluntary corporate citizenship initiative with two objectives:
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It has two stated objectives, which are:
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* Mainstream the ten principles in business activities around the world
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* Catalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs)
  
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"Making the Global Compact and its principles part of business strategy and operations."
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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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"Facilitating cooperation among key stakeholders and promoting partnerships in support of U.N. goals."
 
  
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"To achieve these objectives, the Global Compact offers facilitation and engagement through several mechanisms: Policy Dialogues, Learning, Local Structures and Projects.
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==The Ten Principles of the Global Compact==
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In 2009, The UN Global Compact declares its ten principles to be:
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*Human Rights
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: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
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: Principle 2: make sure that they are not complicit in human rights abuses.
  
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"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.
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*Labour Standards
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:Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
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: Principle 4: the elimination of all forms of forced and compulsory labour;
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: Principle 5: the effective abolition of child labour; and
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: Principle 6: the elimination of discrimination in respect of employment and occupation.
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* Environment
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: Principle 7: Businesses should support a precautionary approach to environmental challenges;
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: Principle 8: undertake initiatives to promote greater environmental responsibility; and
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: Principle 9: encourage the development and diffusion of environmentally friendly technologies.  
  
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"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."
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* Anti-Corruption
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: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
  
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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<ref>United Nations Global Compact [http://www.unglobalcompact.org/AboutTheGC/ Overview of the UN Global Compact] Accessed 14th April 2009</ref>.
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==Accountability==
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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'.
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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 it also does not cover the reporting of violations to the principles.  
  
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===Corporate Partners===
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==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
 
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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===External Links===
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==External Links==
  
 
* Global Compact Primer.
 
* Global Compact Primer.
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* Nityanand Jayaraman, Norsk Hydro: Global Compact Violator, CorpWatchIndia, October 18, 2001.
 
* Nityanand Jayaraman, Norsk Hydro: Global Compact Violator, CorpWatchIndia, October 18, 2001.
  
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===References===
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==References==
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<references/>
  
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#{{note|1}}http://www.unglobalcompact.org/
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[[Category:?]]

Revision as of 12:33, 14 April 2009

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'.

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[4]. 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.

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

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. ↑ UN Global Compact Policy for “Communication on Progress” 30th April 2008. Accessed 14th April 2009
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