Communicating the Global Compact

1. Communicating the Global Compact Barcelona, 25 September 2006

2. What Exactly is CSR? “Corporate Social Responsibility is not about how money is spent, it’s about how money is made.” -- Anonymous

3. What Exactly is CSR? • CSR is, first and foremost, a long-term strategy. • CSR means aligning business strategy and operations with universal values. • CSR is a fundamental transformation of operations, relationships, corporate culture and identity. • CSR is proactive strategic planning, not defensive communication. • CSR includes philanthropy – but it is much more.

4. The Global Compact – Overview • Launched 26 July 2000 • World’s largest voluntary CSR initiative • Multi-stakeholder platform for collaborative action • Rooted in universally accepted conventions: • Universal Declaration of Human Rights • ILO Declaration • Rio Declaration • UN Convention Against Corruption

5. The Ten 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. 

6. The Global Compact – Mission • Make the 10 principles part of business strategy, operations and culture • Facilitate cooperation among global stakeholders in support of broader development goals (such as the Millennium Development Goals) “To help create a more sustainable and inclusive global economy”

7. Business Participation Today • More than 3,000 businesses on 100 countries • Global, large domestic, SMEs • All business sectors • Developed and developing world • 50+ country networks • More than 500 non-business participants

8. Managing Expectations The Global Compact Is … • A voluntary initiative to promote sustainable development and good corporate citizenship • A set of values based on universally accepted principles • A network of companies and other stakeholders The Global Compact is NOT … • Mandatory • A method for monitoring company behavior • A standard, management system or code of conduct • A regulatory instrument • PR or philanthropy

9. Managing ExpectationsHow Can we Join? • Letter of participation from the company’s top executive to the Secretary-General of the UN • Commitment to make the 10 principles part of business strategy, operations and culture • Willingness to engage in joint action with other global stakeholders in support of broader development goals (such as the Millennium Development Goals) • Become a public advocate of the Global Compact and the concept of corporate responsibility.

10. Managing ExpectationsWhat else is expected? • Communication on Progress (COP): Annual public statement on the implementation of the GC principles • Demonstration of transparency and accountability • Communication with stakeholders • Safeguarding the integrity of the GC

11. Why Does It Matter?Benefits of Engagement • Employee morale and productivity • Reputation management • License to operate/trust-building • Good corporate governance • Improved risk profile (legal liabilities) • Improved access to capital • Multi-stakeholder dialogue and learning • Implementation tools & guidance

12. Why Should We Participate?Creating Value through CSR Exposure to ESG Issues Transmission Factors Financial Value Drivers Human Rights Litigation and regulatory risk Risk premiums Operational risks Workplace Reputation and brands Operational efficiency Costs Environment Innovation Access to new/ existing markets Anti-Corruption Access to knowledge and skills Revenues Access to key resources Community Source: Conference Board/GC Working Group, 2005

13. Why Should We Participate?Creating Value through CSR Exposure to ESG Issues CSR Engagement Transmission Factors Financial Value Drivers Strategy, Policy, Management Systems Human Rights Litigation and regulatory risk Risk premiums Operational risks Workplace Reputation and brands Operational efficiency Costs Environment Innovation Access to new/ existing markets Anti-Corruption Access to knowledge and skills Revenues Access to key resources Community Source: Conference Board/GC Working Group, 2005

14. Managing ExpectationsDeveloping the Right Approach • The Global Compact is not about compliance, but about continuous improvement. • The Global Compact is universal in principle, but flexible and open to individual adaptation in practice. • Prioritizing is crucial – not everything is equally important in the beginning. • Most companies already carry out Global Compact related activities of some form. • Be creative and look out for win-win situations – both company and society should benefit.

15. Some recent developments… • CSR in public policy (e.g. reporting requirements) • Principles for Responsible Investment (PRI) – GC-based engagement initiative of institutional investors • ESG – Increasing Role of Environmental, Social and Governance Criteria in capital markets • Training tomorrow’s CSR leaders – integration of CSR in academic training • Sectoral alliances and initiatives to tackle CSR challenges • Lobbying reform • Development of an Academic Network • Global Compact Cities Programme

16. Communicating the GC: Some Basic Considerations

17. UNDP/ GC Network Know Your Target Groups Business Public at Large Governments Civil Society Media

18. Strategize – Act – Measure • Consistent messaging across all communication channels • Identify national CSR context (How can CSR play a key role in this country?) • Balance global principles with local action • Different angles • Media: Focus on issues, not companies • Public: Address consumer-relevant globalization concerns • Companies: Establish business case, share best practices • Governments: National competitiveness • Civil Society: Partnerships, contribution to global governance • Develop narratives, not activity reports • Communicate challenges

19. Strategize – Act – Measure • Introductory Briefings with the Media • Awareness-raising workshops with the Business Community • Panel discussions around CSR • Editorials by champions • Campaigns • Newsletters • Award Schemes • Electronic databases of best practices

20. Strategize– Act – Measure • Monitoring of Media Coverage (Clipping Service) • Database of Outreach Contacts & Champions • Web Metrics “What gets measured gets managed”

21. www.unglobalcompact.org