UN Global Compact
Encyclopedia
The United Nations Global Compact, also known as Compact or UNGC, is a United Nations
initiative to encourage businesses worldwide to adopt sustainable and socially responsible
policies, and to report on their implementation. The Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights
, labour
, the environment
and anti-corruption
. Under the Global Compact, companies are brought together with UN agencies, labour groups and civil society.
The Global Compact is the world's largest corporate citizenship
initiative and as voluntary initiative has two objectives:
"Mainstream the ten principles in business activities around the world" and "Catalyse actions in support of broader UN goals, such as the Millennium Development Goals
(MDGs)."
The Global Compact was first announced by the then UN Secretary-General Kofi Annan
in an address to The World Economic Forum
on January 31, 1999, and was officially launched at UN Headquarters in New York on July 26, 2000.
The Global Compact Office is supported by six UN agencies: the United Nations High Commissioner for Human Rights; the United Nations Environment Programme
; the International Labour Organization
; the United Nations Development Programme
; the United Nations Industrial Development Organization
; and the United Nations Office on Drugs and Crime
.
. This step followed an extensive consultation process with all Global Compact participants.
Human Rights
Businesses should:
Labour Standards
Businesses should uphold:
Environment
Businesses should:
Anti-Corruption
The Compact itself says that once companies declared their support for the Global Compact principles "This does not mean that the Global Compact recognizes or certifies that these companies have fulfilled the Compact’s principles."
The Compact's goals are intentionally flexible and vague, but it distinguishes the following channels through which it provides facilitation and encourages dialogue: policy dialogues, learning, local networks and projects.
The first Global Compact Leaders Summit, chaired by the then Secretary-General Kofi Annan
, was held in UN Headquarters in New York on June 24, 2004. It aimed to bring "intensified international focus and increased momentum" to the Global Compact. On the eve of the conference, delegates were invited to attend the first Prix Ars Electronica
Digital Communities award ceremony, which was co-hosted by a representative from the UN.
The second Global Compact Leaders Summit, chaired by Secretary-General Ban Ki-moon
, was held on 5–6 July 2007 at the Palais des Nations in Geneva, Switzerland. It adopted the Geneva Declaration on corporate responsibility.
. It was formed as an urban-focused component of the Global Compact with its International Secretariat located in Melbourne
, Australia
. The aim of the Cities Programme is to improve urban life in cities throughout the world.
The formation of the Programme goes back to early 2001 when the City of Melbourne
proposed that cities as well as corporations should be allowed and encouraged to engage the UN Global Compact. Melbourne argued that this would engender a clear statement of a city's civic, cultural and corporate commitment to positive change, as well as motivating participation in international dialogue. The Global Compact office in New York
accepted the proposal and Melbourne became the first city to engage the Global Compact in June 2001. It provided an opportunity for the ten Principles of the Global Compact to be translated into meaningful outcomes within a cities (rather than just organizations).
In April 2003 under the directorship of David Teller, a simple framework called the Melbourne Model was developed that entailed more than just signing onto the Ten Principles. It begins by drawing the resources of government, business and civil society into a cross-sector partnership in order to develop a practical project that addresses a seemingly intractable urban issue. For example, Porto Alegre is tackling the problem of developing infrastructure and utilities for slum dwellers.
Member cities include Al Salt, Berlin
, Jinan
, Melbourne
, Milwaukee, Le Havre
, Plock
, Porto Alegre
, San Francisco, Tshwane and Ulan Bator.
In 2007, the International Secretariat moved from the Committee For Melbourne
to the Global Cities Institute at RMIT University
, itself affiliated with UN-HABITAT. There, projects associated with city-based responses to global climate change
and globalization
have become increasingly important. The Melbourne Model has been further elaborated, with a sustainability indicators program developed as a way of assessing and monitoring progress.
The Syria Local Network has 26 businesses, 5 NGO’s, and 5 federations of commerce and industry. It was displayed among 10 selected ones from around the world in the Global Compact Sixth Annual Local Networks Forum. The Syria story was called a “leadership case” and the Syria Network growth ratio was ranked first among the global top ten in 2008. available at
The UNGC National Advisory Council has been formulated and held its founders’ meeting on October 15, 2008, with the participation of leaders from the Syrian private sector, international corporate representatives, local and international civil society organizations, UNDP, the Syrian Government, media and education sectors.
", as an excuse and argument to oppose any binding international regulation on corporate accountability, and as an entry door to increase corporate influence on the policy discourse and the development strategies of the United Nations.
have written to the UN Global Compact saying they are "concerned and frustrated" by the inclusion in it of a controversial Brazilian ranching company. The company, Yaguarete Porá, was charged and fined for illegally clearing the Ayoreo’s forests, and concealing evidence of uncontacted Ayoreo living there. The Ayoreo have asked that it be expelled from the Global Compact. Stephen Corry
, Director of the international indigenous rights organization, Survival International
, has said, "This makes an utter mockery of the UN Global Compact. If the UN doesn’t make sure companies displaying its logos abide by the rules, such initiatives become entirely meaningless. Yaguarete should be forced to leave the compact immediately."
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
initiative to encourage businesses worldwide to adopt sustainable and socially responsible
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
policies, and to report on their implementation. The Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...
, labour
Labor relations
Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations because of the importance of non-industrial employment relationships. Many outsiders also equate industrial relations to labour relations...
, the environment
Environment (biophysical)
The biophysical environment is the combined modeling of the physical environment and the biological life forms within the environment, and includes all variables, parameters as well as conditions and modes inside the Earth's biosphere. The biophysical environment can be divided into two categories:...
and anti-corruption
Anti-Corruption
Anti-Corruption is a 1975 Hong Kong film directed by Ng See Yuen and released under the Eternal Film banner.-External links:* Anti-Corruption at...
. Under the Global Compact, companies are brought together with UN agencies, labour groups and civil society.
The Global Compact is the world's largest corporate citizenship
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
initiative and as voluntary initiative has two objectives:
"Mainstream the ten principles in business activities around the world" and "Catalyse actions in support of broader UN goals, such as the Millennium Development Goals
Millennium Development Goals
The Millennium Development Goals are eight international development goals that all 193 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015...
(MDGs)."
The Global Compact was first announced by the then UN Secretary-General Kofi Annan
Kofi Annan
Kofi Atta Annan is a Ghanaian diplomat who served as the seventh Secretary-General of the UN from 1 January 1997 to 31 December 2006...
in an address to The World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....
on January 31, 1999, and was officially launched at UN Headquarters in New York on July 26, 2000.
The Global Compact Office is supported by six UN agencies: the United Nations High Commissioner for Human Rights; the United Nations Environment Programme
United Nations Environment Programme
The United Nations Environment Programme coordinates United Nations environmental activities, assisting developing countries in implementing environmentally sound policies and practices. It was founded as a result of the United Nations Conference on the Human Environment in June 1972 and has its...
; the International Labour Organization
International Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...
; the United Nations Development Programme
United Nations Development Programme
The United Nations Development Programme is the United Nations' global development network. It advocates for change and connects countries to knowledge, experience and resources to help people build a better life. UNDP operates in 177 countries, working with nations on their own solutions to...
; the United Nations Industrial Development Organization
United Nations Industrial Development Organization
The United Nations Industrial Development Organization , French/Spanish acronym ONUDI, is a specialized agency in the United Nations system, headquartered in Vienna, Austria...
; and the United Nations Office on Drugs and Crime
United Nations Office on Drugs and Crime
The United Nations Office on Drugs and Crime is a United Nations agency that was established in 1997 as the Office for Drug Control and Crime Prevention by combining the United Nations International Drug Control Program and the Crime Prevention and Criminal Justice Division in the United Nations...
.
The Ten Principles
The Global Compact was initially launched with nine Principles. June 24, 2004, during the first Global Compact Leaders Summit, Kofi Annan announced the addition of a tenth principle against corruptionPolitical corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
. This step followed an extensive consultation process with all Global Compact participants.
Human Rights
Businesses should:
- Principle 1: Support and respect the protection of internationally proclaimed human rightsHuman rightsHuman rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...
; and - Principle 2: Make sure that they are not complicit in human rights abuses.
Labour Standards
Businesses should uphold:
- Principle 3: the freedom of associationFreedom of associationFreedom of association is the individual right to come together with other individuals and collectively express, promote, pursue and defend common interests....
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 employment and occupation.
Environment
Businesses should:
- Principle 7: support a precautionary approach to environmental challenges;
- Principle 8: undertake initiatives to promote environmental responsibility; and
- Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
- Principle 10: Businesses should work against corruptionPolitical corruptionPolitical corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
in all its forms, including extortionExtortionExtortion is a criminal offence which occurs when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime...
and briberyBriberyBribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
.
Facilitation
The Global Compact is not a regulatory instrument, but rather a forum for discussion and a network for communication including governments; companies and labour organisations, whose actions it seeks to influence; and civil society organizations, representing its stakeholders.The Compact itself says that once companies declared their support for the Global Compact principles "This does not mean that the Global Compact recognizes or certifies that these companies have fulfilled the Compact’s principles."
The Compact's goals are intentionally flexible and vague, but it distinguishes the following channels through which it provides facilitation and encourages dialogue: policy dialogues, learning, local networks and projects.
The first Global Compact Leaders Summit, chaired by the then Secretary-General Kofi Annan
Kofi Annan
Kofi Atta Annan is a Ghanaian diplomat who served as the seventh Secretary-General of the UN from 1 January 1997 to 31 December 2006...
, was held in UN Headquarters in New York on June 24, 2004. It aimed to bring "intensified international focus and increased momentum" to the Global Compact. On the eve of the conference, delegates were invited to attend the first Prix Ars Electronica
Prix Ars Electronica
The Prix Ars Electronica is one of the most important yearly prizes in the field of electronic and interactive art, computer animation, digital culture and music...
Digital Communities award ceremony, which was co-hosted by a representative from the UN.
The second Global Compact Leaders Summit, chaired by Secretary-General Ban Ki-moon
Ban Ki-moon
Ban Ki-moon is the eighth and current Secretary-General of the United Nations, after succeeding Kofi Annan in 2007. Before going on to be Secretary-General, Ban was a career diplomat in South Korea's Ministry of Foreign Affairs and in the United Nations. He entered diplomatic service the year he...
, was held on 5–6 July 2007 at the Palais des Nations in Geneva, Switzerland. It adopted the Geneva Declaration on corporate responsibility.
The UN Global Compact – Cities Programme
The UN Global Compact – Cities Programme was launched in 2002 by the then UN Secretary-General Kofi AnnanKofi Annan
Kofi Atta Annan is a Ghanaian diplomat who served as the seventh Secretary-General of the UN from 1 January 1997 to 31 December 2006...
. It was formed as an urban-focused component of the Global Compact with its International Secretariat located in Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. The aim of the Cities Programme is to improve urban life in cities throughout the world.
The formation of the Programme goes back to early 2001 when the City of Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
proposed that cities as well as corporations should be allowed and encouraged to engage the UN Global Compact. Melbourne argued that this would engender a clear statement of a city's civic, cultural and corporate commitment to positive change, as well as motivating participation in international dialogue. The Global Compact office in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
accepted the proposal and Melbourne became the first city to engage the Global Compact in June 2001. It provided an opportunity for the ten Principles of the Global Compact to be translated into meaningful outcomes within a cities (rather than just organizations).
In April 2003 under the directorship of David Teller, a simple framework called the Melbourne Model was developed that entailed more than just signing onto the Ten Principles. It begins by drawing the resources of government, business and civil society into a cross-sector partnership in order to develop a practical project that addresses a seemingly intractable urban issue. For example, Porto Alegre is tackling the problem of developing infrastructure and utilities for slum dwellers.
Member cities include Al Salt, Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
, Jinan
Jinan
Jinan is the capital of Shandong province in Eastern China. The area of present-day Jinan has played an important role in the history of the region from the earliest beginnings of civilisation and has evolved into a major national administrative, economic, and transportation hub...
, Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, Milwaukee, Le Havre
Le Havre
Le Havre is a city in the Seine-Maritime department of the Haute-Normandie region in France. It is situated in north-western France, on the right bank of the mouth of the river Seine on the English Channel. Le Havre is the most populous commune in the Haute-Normandie region, although the total...
, Plock
Plock
Płock is a city in central Poland, on the Vistula river. According to the data provided by GUS on 30 June 2009 there were 126,675 inhabitants. It is located in the Masovian Voivodeship , having previously been the capital of the Płock Voivodeship . It now is a capital of a Powiat at the extreme...
, Porto Alegre
Porto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
, San Francisco, Tshwane and Ulan Bator.
In 2007, the International Secretariat moved from the Committee For Melbourne
Committee For Melbourne
The Committee for Melbourne is a non-profit organisation based in Melbourne, Australia, made up of businesses and organisation. The Committee was founded in 1985 to bring together businesses, academia and non-profit organisations to do activities, networking, and policy advice to government...
to the Global Cities Institute at RMIT University
RMIT University
RMIT University is an Australian public university located in Melbourne, Victoria. It has two branches, referred to as RMIT University in Australia and RMIT International University in Vietnam....
, itself affiliated with UN-HABITAT. There, projects associated with city-based responses to global climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
and globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
have become increasingly important. The Melbourne Model has been further elaborated, with a sustainability indicators program developed as a way of assessing and monitoring progress.
UN Global Compact In Syria
The Syria initiative aims at enhancing civic engagement and corporate social responsibility of private sector by promoting the ten principles of the UN Global Compact as well as forging partnerships between private sector organizations, public sector institutions and civil society. This initiative is a partnership between the Syrian Government represented by the State Planning Commission and the UNDP Country Office in Syria. It was launched under the patronage of the Head of State Planning Commission and in the presence of the Deputy Chairperson of the UN Global Compact, in July 2008.The Syria Local Network has 26 businesses, 5 NGO’s, and 5 federations of commerce and industry. It was displayed among 10 selected ones from around the world in the Global Compact Sixth Annual Local Networks Forum. The Syria story was called a “leadership case” and the Syria Network growth ratio was ranked first among the global top ten in 2008. available at
The UNGC National Advisory Council has been formulated and held its founders’ meeting on October 15, 2008, with the participation of leaders from the Syrian private sector, international corporate representatives, local and international civil society organizations, UNDP, the Syrian Government, media and education sectors.
Criticism
Many civil society organizations believe that without any effective monitoring and enforcement provisions, the Global Compact fails to hold corporations accountable. Moreover, these organizations argue that companies can misuse the Global Compact as a public relations instrument for "bluewashBluewash
Bluewash is a disparaging term used to describe a partnership between the United Nations and a corporation which has agreed to abide by the United Nations Global Compact. The compact outlines ten principles which promote environmentally sustainable practices, fair labor practices , human rights...
", as an excuse and argument to oppose any binding international regulation on corporate accountability, and as an entry door to increase corporate influence on the policy discourse and the development strategies of the United Nations.
Global Compact Critics
An informal network of organizations and people with concerns about the UN Global Compact, called Global Compact Critics, levels a variety of criticisms at the Global Compact:- The compact contains no mechanisms to sanction member companies for non-compliance with the Compact's principles;
- A corporation's continued participation is not dependent on demonstrated progress;
- The Global Compact has admitted companies with dubious humanitarian and environmental records in contrast with the principles demanded by the Compact.
Alliance for a Corporate-Free UN
The Alliance for a Corporate-Free UN, which no longer exists, was a campaigning organization of several international NGOs, led by Corpwatch, which highlighted weaknesses in the principles underlying the Global Compact.Criticism from within the United Nations
The Global Compact has been criticized by several senior UN officials and advisers. In December 2008, Maude Barlow, senior adviser on water issues to the President of the United Nations General Assembly, called the Global Compact "bluewashing". Other vocal critics have been David Andrews, senior adviser on Food Policy and Sustainable Development, and Peter Utting, deputy director of UNRISD.Indigenous peoples and human rights
Leaders of the tribe Ayoreo Indians in ParaguayParaguay
Paraguay , officially the Republic of Paraguay , is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the...
have written to the UN Global Compact saying they are "concerned and frustrated" by the inclusion in it of a controversial Brazilian ranching company. The company, Yaguarete Porá, was charged and fined for illegally clearing the Ayoreo’s forests, and concealing evidence of uncontacted Ayoreo living there. The Ayoreo have asked that it be expelled from the Global Compact. Stephen Corry
Stephen Corry
Stephen Corry is a British anthropologist and indigenous rights activist, better known as the Director of the non-governmental organisation Survival International. He has also been the chairman of the Free Tibet Campaign since 1993.- Biography :...
, Director of the international indigenous rights organization, Survival International
Survival International
Survival International is a human rights organisation formed in 1969 that campaigns for the rights of indigenous tribal peoples and uncontacted peoples, seeking to help them to determine their own future. Their campaigns generally focus on tribal peoples' fight to keep their ancestral lands,...
, has said, "This makes an utter mockery of the UN Global Compact. If the UN doesn’t make sure companies displaying its logos abide by the rules, such initiatives become entirely meaningless. Yaguarete should be forced to leave the compact immediately."
See also
- Global Reporting InitiativeGlobal Reporting InitiativeThe Global Reporting Initiative produces one of the world's most prevalent standards for sustainability reporting - also known as ecological footprint reporting, Environmental Social Governance reporting, Triple Bottom Line reporting, Corporate Social Responsibility reporting...
- Corporate social responsibilityCorporate social responsibilityCorporate social responsibility is a form of corporate self-regulation integrated into a business model...
External resources
- Rasche, A. and Kell, G. (Eds.) (2010) The United Nations Global Compact: Achievement, Trends and Challenges. Cambridge/New York: Cambridge University Press.
- Kell, G. (2005) The Global Compact: Selected Experiences and Reflection, Journal of Business Ethics, 59: 69–79.
- Global Policy Forum Europe (Ed. 2007) Whose Partnership for whose development?: Corporate Accountability in the UN System beyond the Global Compact, Speaking Notes of a Hearing at the United Nations, Geneva, 4 July 2007.
- Debate between Georg Kell and Bart Slob (2008) UN Global Compact – Is the Compact raising corporate responsibility standards?, Ethical Corporation, May 2008.