The United Nations Global Compact is a United Nations initiative to encourage
businesses worldwide to adopt sustainable and socially responsible
policies, and to report on their implementation. The UN 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. Cities can join the Global Compact through the
Cities Programme. The UN Global Compact is the world's
largest corporate citizenship initiative with 10000 corporate participants and
other stakeholders over 130 countries with 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."
The UN Global Compact was announced by 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 seven UN agencies: the United Nations
Framework Convention on Climate Change; 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. The UN Global Compact is a founding
member of the United Nations Sustainable Stock Exchanges initiative along with
the Principles for Responsible Investment, the United Nations
Environment Programme Finance Initiative, and the United Nations
Conference on Trade and Development. The Ten Principles
The UN Global Compact was initially launched with nine Principles. On June
24, 2004, during the first Global Compact Leaders Summit, Kofi Annan
announced the addition of the tenth principle Against corruption in
accordance with the United Nations Convention against Corruption adopted in
2003. Human Rights
Businesses should: Principle 1: 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 Businesses should uphold:
Principle 3: 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 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 corruption in all its forms, including extortion and bribery.
Facilitation The UN 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 UN Global Compact says that once companies
declared their support for the principles "This does not mean that the
Global Compact recognizes or certifies that these companies have fulfilled the
Compact’s principles." The UN Global 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.
History 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, to bring "intensified international focus and
increased momentum" to the UN 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. Marking the 10th anniversary of the
Global Compact's launch, the Global Compact Leaders Summit 2010 took place
on 24–25 June 2010 in New York. On the occasion, the Blueprint for Corporate
Sustainability Leadership identifying leadership criteria linked to
implementation of the ten principles, efforts to support development
objectives, and engagement in the Global Compact was released. The document was
supported by Fondation Guilé. The UN Global Compact - Rotary
International In 2009 Rotary International partnered
with the UN Global Compact. This was a very friendly partnership since Rotary
International played a role in the chartering of the United Nations
The UN Global Compact – Cities Programme In 2001, the City of Melbourne proposed
that cities as well as corporations should be allowed to join the UN Global
Compact, arguing that this would provide a clear statement of a city's commitment
to positive change, as well as motivating participation in
international dialogue. The proposal was accepted, and the UN Global Compact
Cities Programme was launched in 2002. It was formed as an urban-focused
component of the Global Compact with its International Secretariat initially
located in Melbourne, Australia. The aim of the programme is to improve urban
life in cities throughout the world. Melbourne became the first city to
engage the Global Compact in June 2001. There are, as of 2013, over 80 member
cities in the programme. In April 2003, under the directorship of
David Teller, a framework called the Melbourne Model was developed that went
beyond 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. In 2007, the current Director, Paul James and his colleagues Dr Andy
Scerri and Dr Liam Magee, took this methodology further by integrating the
partnership model with a four-domain sustainability framework called 'Circles
of Sustainability'. In 2007, the 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 was further elaborated, with a
sustainability indicators program developed as a way of assessing and
monitoring progress. In 2012, the Circles of Sustainability method was
elaborated to guide a city or urban region through a rigorous assessment
process. As one of the outcomes it provides a figurative image of the
overall sustainability of that city to illustrate its strengths and weaknesses.
UN Global Compact in Australia The Global Compact Local Network in
Australia was established in 2009 by a steering committee drawn from the
Australian business community and stakeholder groups. It was formally
incorporated in 2011. as the Global Compact Network Australia Limited, and
elections were held for the inaugural board of directors. In 2011 it
established two business-led leadership groups dealing with human rights and
anti-corruption. The GCNA draws its funding directly from members and
member-based activities, in contrast to many networks who rely in part on
government funding. UN Global Compact in Bulgaria
In Bulgaria UN Global Compact was founded in January 2003, under the
auspices of President Georgi Parvanov. The voluntary initiative unites 120
Bulgarian companies, non-governmental organizations and academia in a unique
for Bulgaria network. All members are united around the idea to apply the ten
principles of the UN Global Compact in their daily practices and to be
responsible corporate citizens. To strengthen and enhance the role of
the initiative in 2006 was introduced management structure consisting of
Advisory Board and a Secretariat. For the period 2006-2010 the network
activities were supported by the United Nations Development Program Bulgaria.
With the active participation and financial contribution of its members
Global Compact Bulgaria organized numerous initiatives related to
environment, health, education and youth. Among them are the projects:
"Unleashing Entrepreneurship"; "Love Bridge"; "Sharing Best Practices in
Corporate Social Responsibility". With the end of the support of UNDP
Bulgaria, UN Global Compact Bulgaria had to identify and formulate a new strategy
for sustainability. So, between 2009 and 2010 the members signed an institutional
framework for future organizational development. As a result, on 10
September 2010 a new independent organization was founded – Association
Global Compact Network Bulgaria. Its members are 20 leading companies and
organizations in Bulgaria, members the UN Global Compact as well. The
Association is managed by a Steering Committee and Control Committee. Their
main goals are to learn from each other, to communicate, to generate an advocacy
impact and initiate dialogue or partnerships with other actors such as
the government, local authorities, labour organisations and civil society
organizations. UN Global Compact In France
The Global Compact Network France was established in 2004. It is the second
largest local network of the UN Global Compact after Spain, with 873 members in
January 2013. The main aim of the Global Compact Network France is to add
personalized value to the French participants of the Global Compact, in
order to help them to make progress in their CSR approach and develop the
Global Compact network. The network is entirely financed by its members.
UN Global Compact in India The Global Compact Network India was
formed by organizations from India who participate in the UN Global Compact. It
was registered on 24 November 2003, with Registrar of Societies, NCT, Delhi, as a
non-profit body. The main objective of the Network is to provide a forum to
various Indian Companies/ Organizations to exchange experiences, network and
work together on activities related to Corporate Social Responsibility. This is
expected to promote sustainable growth besides encouraging good corporate
citizenship. The Network, acts as an Apex level nodal agency representing
various Indian Corporate bodies/ Institutions/ NGOs/ SMEs, who are
committed to the UN Global Compact principles.
The Global Compact Network India has been one of the pioneering local
initiatives of the UN Global Compact. It is one of the first local networks to be
set up as a legal entity. Over the last nine years the network has seen modest
growth and has been able to create a niche for itself within efforts by the
business community directed towards realising the vision of sustainable
development in India. At present Sudhir Vasudeva, CMD, ONGC, is the President of
the Global Compact Network India for the term 2011-13 and is managed by a
Governing Council. 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 NGOs, 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 "bluewash", 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 Paraguay 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." See also
Circles of Sustainability Global Reporting Initiative
Corporate social responsibility Sustainable development
References External resources
Hoessle, Ulrike: The Contribution of the UN Global Compact towards the Compliance
of International Regimes: A Comparative Study of Businesses from the USA,
Mozambique, United Arab Emirates and Germany. In: Journal of Corporate
Citizenship, No 53, p. 27-60. Rasche, A. and Kell, G. The United
Nations Global Compact: Achievement, Trends and Challenges. Cambridge/New
York: Cambridge University Press. Kell, G. The Global Compact: Selected
Experiences and Reflection, Journal of Business Ethics, 59: 69–79.
Global Policy Forum Europe 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 UN Global Compact – Is the Compact
raising corporate responsibility standards?, Ethical Corporation, May
2008.