International Chamber of Commerce

Affiliations

UN Global Compact and the 'creeping corporate takeover of the UN'

The UN Global Compact was established in 2000 with the stated aims of encouraging companies to sign up to agreements of principles relating to human rights, labour standards, environmental protection and anti-corruption. This is a voluntary initiative which states one of its aims as to work towards the UN's Millennium Development Goals.

In 2002, Jupiter wrote in the Guardian of how the creation of the Compact reflected a 'creeping corporate takeover of the UN itself'. 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'. 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,". 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.'

Publications, Contact, Resources and Notes

Contact

Address:

Phone:

Email:

Website: