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The UN Global Compact Corporate Citizenship in The 21 st Century. THE CASE FOR CC A Simple Truth. “Corporate citizenship is not just about how money is spent, it’s also about how money is made.” . THE CASE FOR CC What exactly is CC?.
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The UN Global CompactCorporate Citizenship in The 21st Century
THE CASE FOR CCA Simple Truth “Corporate citizenship is not just about how money is spent, it’s also about how money is made.”
THE CASE FOR CCWhat exactly is CC? • a long-term strategy to manage risks and discover opportunities • an alignment of business strategy and operations with universal values. • a potentially fundamental transformation of corporate strategies, operations, corporate culture, relationships • proactive strategic planning, not defensive communication • far more core business than philanthropy
THE CASE FOR CCWhat Does it Do for my Business? • Boost morale and productivity. • Renew and rebuild trust. • Improved risk profile. • Strengthen corporate reputation. • Improve efficiency. Reduce costs. • Discover innovation in product development.
THE UN GLOBAL COMPACTThe UN & Business – Odd Couple? Business United Nations Building Markets Peace & Poverty Reduction Good Governance Profit & Growth Environment Global Health Security Deepening Interdependencies
THE UN GLOBAL COMPACTOverview Launched on 26 July 2000 in New York with roughly 40 businesses “A more sustainable and inclusive global economy.” Multi-stakeholder platform for collective action Rooted in universally accepted conventions: Universal Declaration of Human Rights ILO Declaration Rio Declaration UN Convention Against Corruption
THE UN GLOBAL COMPACTThe 10 Principles 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 all forms of corruption, including extortion and bribery.
Make the ten principles part of business strategy, operations and culture everywhere. Internalization Contribution to Development “A more sustainable and inclusive global economy.” VISION TWO COMPLEMENTARY OBJECTIVES Catalyze action in support of broad UN goals, including the Millennium Development Goals THE UN GLOBAL COMPACTVision and Mission
The UN GLOBAL COMPACTWhat It Is (Not) What It Is... What It Is NOT... Values-based Framework to Integrate Universal Principles into Organizational Change Substitute for Codes/Standards Multi-stakeholder Network Acting as a Platform for Learning and Collaboration Public Relations Initiative Initiative Based on Internationally Accepted Principles Regulatory Instrument
THE UN GLOBAL COMPACTWhat is expected? Leadership Commitment (CEO) Letter from Chief Executive to UN Secretary-General Willingness to engage in continuous performance improvement Setting strategic and operational goals, measuring results Openness to dialogue and learning around critical issues Participate in events at local (and global), engage in stakeholder dialogue Commitment to transparency, accountability & public disclosure. Annual Communication on Progress (COP)
THE UN GLOBAL COMPACTThe Business Case Investor stronger financial performance / improved relations with investment community enhanced employee productivity / creative and value-added solutions Innovator stronger relationships with community / credibility and trust / enhanced products & services Customer operational efficiency / reduction of transaction costs / ’ethical’ supply management Operations better reputation and branding vs. competitor / enhanced license to operate vs. competitor Competitor Employee enhanced employee relations (recruitment, motivation, retention, innovation, productivity) better relationship with community / credibility and trust in society / ‘license to operate’ Society Change Agent moral compass for organizational change / proactive action basis to minimize risks
THE UN GLOBAL COMPACTThe Global Compact Today 6,200+ active business participants in 135 countries 1800+ non-business participants from civil society, labour, academia Equal participation in developed and developing world Equal participation from SME’s and large companies 170 of the Financial Times Global 500 companies (by market cap) 90+ active local networks around the world Note: the data is as of 2010
THE UN GLOBAL COMPACTLocal Networks • Clusters of participants who have come together to advance the UNGC and its principles a local level • Activities: • Identify local priorities • Awareness-raising and recruitment • Organize learning and dialogue events • Produce learning materials in local languages • Mobilize collective action • Facilitate partnership projects in support of MDGs • Safeguarding overall UNGC integrity
THE UN GLOBAL COMPACTNetworks and Participants over the years
Thank You! www.unglobalcompact.org