United Nations Global Compact

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Circles of Sustainability image (assessment - Melbourne 2011)

United Nations Global Compact

The United Nations Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to undertake partnerships in support of United Nations goals. It seeks to mobilize a global movement of sustainable companies and stakeholders to create the world we want. The Compact is the largest corporate sustainability initiative in the world, with more than 15,000 companies and 3,000 non-business signatories based in over 160 countries and more than 69 local networks.

History

The United Nations Global Compact was announced by then UN Secretary-General Kofi Annan in an address to the World Economic Forum on January 31, 1999. It was officially launched at UN Headquarters in New York on July 26, 2000. The initiative was a response to the increasing globalization of the world economy and aimed at encouraging businesses worldwide to adopt sustainable and socially responsible policies.

Principles

The Global Compact asks companies to embrace, support, and enact within their sphere of influence, a set of ten principles in the areas of human rights, labor, the environment, and anti-corruption. These principles are derived from:

• The Universal Declaration of Human Rights
• The International Labour Organization's Declaration on Fundamental Principles and Rights at Work
• The Rio Declaration on Environment and Development
• The United Nations Convention Against Corruption

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
• Principle 2: Make sure that they are not complicit in human rights abuses.

Labour

• 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 labor.
• Principle 5: The effective abolition of child labor.
• 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.
• 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.

Activities

The UN Global Compact pursues two complementary objectives: mainstreaming the ten principles in business activities around the world and catalyzing actions in support of broader UN goals, such as the Sustainable Development Goals (SDGs). It facilitates this through the development of resources and tools, policy advocacy, and convening multi-stakeholder dialogues and partnerships.

Criticism and Challenges

Despite its achievements, the UN Global Compact has faced criticism, including concerns about the lack of enforcement mechanisms to ensure that participating companies adhere to the ten principles. Critics argue that without stricter accountability measures, the initiative risks being used as a tool for greenwashing. In response, the Global Compact has taken steps to enhance transparency and accountability among its participants, including the introduction of the Communication on Progress (COP) policy, which requires participating companies to report annually on their efforts to implement the ten principles.

Conclusion

The United Nations Global Compact represents a significant effort by the international community to encourage businesses worldwide to adopt sustainable and socially responsible practices. While challenges remain, particularly in terms of ensuring compliance and accountability, the initiative continues to grow, reflecting a growing global consensus on the importance of corporate sustainability.