ANNEX 4: Global Compact initiatives in Europe and the CIS 8 November 2005

1. Regional Bureau for Europe & the CIS ANNEX 4:Global Compact initiatives in Europe and the CIS8 November 2005

2. UNDP’s Regional Bureau for Europe & the CIS (RBEC) • UNDP’s Regional Bureau for Europe and the Commonwealth of Independent States (RBEC) is one of UNDP’s five regional bureaux. • The RBEC Regional Bureau builds relationships with business through our network of development and business partnership specialists based in our country offices (see following pages). This on-the-ground network is supported by a regional centre located in Bratislava, Slovakia and the UNDP Head Quarters in New York City. Please find below key ‘business partnership’ contact points within our regional bureau. • UNDP Regional Bureau for Europe & the CIS – key ‘business partnership’ contact points • RBEC Head Quarters – New York City, USA • Kalman Mizsei Regional Director and Assistant Secretary General kalman.mizsei@undp.org ++ 1 212 906 6597 • Marta Ruedas Deputy Regional Director marta.ruedas@undp.org ++ 1 212 906 5466 • RBEC Regional Centre – Bratislava, Slovakia (Private Sector Development Team): • Jonathan Brooks Poverty Reduction Practice Leader jonathan.brooks@undp.org ++ 421 2 59337 173 • Karolina Mzyk Business Partnerships manager karolina.mzyk@undp.org ++ 421 2 59337 227 • Janka Geckova SME development, research assistant janka.geckova@undp.org ++ 421 2 59337 181 • Gina Volynsky Trade Advisor gina.volynsky@undp.org ++ 4212 59337416

3. UNDP’s Regional Bureau for Europe & the CIS • UNDP’s Regional Bureau for Europe and the CIS has offices in the following countries: • Central Asia: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan • Western CIS countries: Belarus, Moldova, Russian Federation, Ukraine • South Caucasus: Armenia, Azerbaijan, Georgia • Western Balkans: Albania, Bosnia & Herzegovina, Croatia, Kosovo, FYR of Macedonia, Serbia & Montenegro • New EU Countries: Hungary, Latvia, Lithuania, Poland • EU Accession: Bulgaria, Romania, Turkey

4. BULGARIA • Focal point: Elena Panova, Ms. Elena Panova, elena.panova@undp.org; • tel: + 35929696125; • Website: http://www.undp.bg/en/global_compact_main.php • BACKGROUND • The Global Compact (GC) was launched in Bulgaria in January 2003, with the support of President Parvanov, senior representatives from over 50 companies, and numerous business associations. • Today there are over 120 members to the GC in Bulgaria with growing interest from leading corporations around the country. The network consists of more than 20 large multinational companies, over 70 small and medium enterprises, as well as 20 non governmental organizations. • MAIN OBJECTIVE FOR THE NETWORK: • To promote the GC principles and CSR among the Bulgarian business community and public • The GC in Bulgaria is driving incentives in the field of environment, human rights, labour and anticorruption. This is concretely supported by ethical business practices in some of the private companies that are GC members and by direct company investment in publicising UN causes and development issues. • The private companies in Bulgaria consider joining the GC, because they recognize it as platform for joint initiatives for the implementation of business partnerships and an instrument for enhancing the corporate social responsibility. More over the recognition that the GC principles are consistent with the internationally agreed standards on human rights, labor and anticorruption are another reason for them to join the GC network; furthermore they distinguish that the translation of those principles would contribute towards the improvement of people’s lives in Bulgaria. • MAIN PARTNERS: Bulgarian Business Leaders Forum • CURRENT ACTIVITIES • Activities implemented by the Global Compact Bulgaria companies include: • Joint projects to contribute towards development of Bulgaria; • Training programmes on implementation on the principles and CSR; • Policy dialogues (Improving health benefits for employees – whose responsibility) • OBJECTIVESfor 2005/6 include: setting up formal governance mechanism of the network, fostering collaboration with other networks.

5. BOSNIA AND HERZEGOVINAFocal point: Vanja Jankovic, Global Compact Coordinator , vjankovic@undp.ba, tel:+387 (33) 276 837http://www.undp.ba • Global Compact and the national network has been launched September 2005 in Sarajevo • MAIN OBJECTIVES FOR THE NETWORK: • The local Network will provide a countrywide platform for mutual learning and information exchange regarding the Global Compact principles, Corporate Social Responsibility and business’ role in BiH society. • MAIN PARTNERS: Foreign Trade Chamber • Currently 30 companies signed up • MAIN ACTIVITIES CURRENTLY IMPLEMENTED: • Promotional events about GC and CSR • Series of thematic learning / training events on transparency policies/anti-corruption activities in a company’s strategy and operations (in the framework of policy dialogue on transparency policies • MAIN OBJECTIVES FOR 2005: • to found a steering committee and strengthen the local network • to promote transparency and anti-corruption frameworks for business operations in BiH

6. HUNGARYFocal point: Stanislav Saling, CST Communication and Public Private Partnership Officer,  Tel:  +421 2 59337 222; GSM: +421 905 817 811,  stanislav.saling@undp.org; Website: europeandcis.undp.org/?wspc=gc:rbec • Launching of the Hungarian Global Compact network is planned for 9 December 2005. • OBJECTIVES: • To promote corporate responsibility among the Hungarian companies (of all sizes, including SMEs) • To create platform for partnership projects in support of the UN development goals • To form an umbrella for Hungarian organizations working in the area of CSR • MAIN PARTNERS: The Hungarian Business Leaders Forum, ILO, Central European University, World Bank, Hungarian companies: Holcim, MOL, Magyar Telecom, OTP Management Fund. COMPANIES Currently 2 Hungarian companies sent letter to SG. • PAST/ON-GOING ACTIVITIES: • June 2005- organized a workshop with an aim to raise awareness about the Global Compact among mid-level business managers of Hungarian companies (agenda+report available on the website) • On-going bilateral meetings with main Hungarian companies – to introduce the GC and discuss their potential engagement in the local network • Research study complemented on Barriers to Roma employment (currently plans for printing, communication and distribution) • PLANS FOR 2005/6: • Main goal: to launch the network in December and establish a local steering committee • Continue enlarging the network • Main activities planned: • Learning events planned on the following themes: • Developing CSR strategy (alternatively defining stakeholder groups ) • Preventive approach to environmental protection • Endorsing diversity at workplace (based on the Roma employment study) • Anti-corruption

7. KAZAKHSTANFocal point: Natalia MAQSIMCHOOK, TEL. +7 3272 582643, natalia.maximchuk@undp.org • BACKGROUND • Global Compact was launched in November 2003, during a regional meeting for the countries of • Central Asia and Azerbaijan on the role of business in promoting stability and development in • the region. The meeting generated interest on the part of private sector and increased • awareness of UN/UNDP activities and opportunities for partnerships. There are plans to re-invigorate the network (inactive due • to lack of funds) • OBJECTIVES FOR THE NETWORK 2005/6 • To promote CSR and the GC principles among the local business community • MAIN PARTNERS • American Chamber of Commerce in Kazakhstan. The Chamber facilitates contacts and outreach to private • companies, jointly organized a number of events. • ON-GOING ACTIVITIES AND PLANS FOR 2006 • Advocacy events (4) for industry and regional business associations, trade union organisations, • chambers of commerce on the GC principles, benefits of participation in GC. • Organize national public events and training with focus on anti-corruption. • Establishing national network in Kazakhstan • MANAGEMENT STRUCTURE • Based on results of discussions, management of local network could be assigned to one of • industry or regional business associations.

8. LATVIAFocal point: Inita Paulovica; inita.paulovica@undp.org, Head of Office • BACKGROUND • Global Compact launched in September 2003. • During discussions, three issues emerged as central concerns among participants in the dialogue. • First, corruption was identified as a pervasive problem confronting both the private and public sectors. To alleviate its corrosive impact, participants in the roundtable concluded that government and business must forge a new coalition aimed at containing corrupt practices in political and economic life. Second, participants focused on the flaws in the Latvian taxation system, which some characterized as excessively onerous and disproportionate to the needs of a developing economy.Third, education was defined as a key element of Latvia's future economic prosperity. Business leaders, said some roundtable participants, must make education policy a priority as a means of both ensuring the quality of the labor force, and providing meaningful opportunities for Latvia's next generation. • OBJECTIVES MAIN PARTNERS • National Confederation of Employers (NCE) • PAST/ON-GOING ACTIVITIESPLANS FOR 2005/6 • Public and training events in support of the 10th Anit-corruption principle. • Encouraging companies to send Communication on Progress (COP) • MANAGEMENT STRUCTURE • National Confederation of Employers (NCE) facilitates the GC movement in Latvia.

9. LITHUANIA Focal point: Lyra Jakuleviciene, lyra.jakuleviciene@undp.org; tel. +370 699 28893Website: http://www.undp.lt/en/?id=131 • BACKGROUND: • Global Compact was launched in June 2005. The President of Lithuania, H.E. Valdas Adamkus undertook the patronage of the initiative. 39 Lithuanian and foreign companies and business associations publicly pledged support to the GC. State Secretary of the Ministry of Social Security and Labour, Mr. Rimantas Kairelis, stressed in his speech that the Government attaches great importance to CSR issues and included CSR promotion in its Government programme. Media attention to the event was also high. • Lithuanian network was established in April 2005 as informal forum of companies, business associations and UNDP; established on the basis of Group of Initiative, that has been meeting since the beginning of 2005 (statement on establishment of the network, including mission, etc. is available upon request); • OBJECTIVES The promote corporate social responsibility and sustainable development among the Lithuanian companies • MAIN PARTNERS Lithuanian business association “Investors’ Forum”, World Bank, private company “Constructus International Business Leaders’ Forum (IBLF), CSR Europe. • COMPANIES Global Compact engagement letters submitted by 40 companies (as of 1 July). • PAST ACTIVITIES: • November 2004 -- international conference “Responsible Business in Society”. The President of Lithuania gave the keynote address, and the event was attended by the International Business Leaders’ Forum, the NGO “CRS Europe” and other global partners. Over 120 companies/organisations had an opportunity to learn more about the Global Compact initiative during this conference. It also created a platform for discussions on the CSR in Lithuania and mobilized a Group of Initiative of socially responsible business leaders; • April 2005, -- Mobilization and Establishment of the National Network of Responsible Business. -- to provide a regular platform for discussions/experience exchange and networking on CSR before launching the Global Compact. It was believed that launching of the initiative without having anything concrete to offer at national level from business community itself would not guarantee a true commitment from the companies. Therefore, on the basis of regular meetings with the Group of Initiative (11 companies and associations, created during the Conference in November) facilitated by UNDP, an informal network was set up by the business champions, associations and UNDP; • May 2005 -- jointly with five professional associations, the World Bank, and the Commission on Business and Employment of the Parliament of Lithuania, a discussion on CSR was organized in the Parliament.

10. LITHUANIA (cont) • PLANS FOR 2005/6 • Main goal is to strengthen the network and enable the GC members to mainstream CSR/GC principles into their business practices • Main activities planned: • Adaptation of existing CSR instruments for local business needs and publication of a brochure “New roadmap for XXI century business: sustaining environment, society and business in Lithuania” (impact: creating awareness in the country on GC/CSR; providing tool for mainstreaming GC principles into business practice – could be used also outside Lithuania); • Organizing the First Learning Forum for National Network of Responsible Business and Members of the Global Compact from Lithuania (impact: promoting exchange of experiences not only within business community in the country, but also exchange of experiences from the region; strengthens networking with other actors within and outside Lithuania); • Training of social auditors (impact: tools and expertise created within business community to evaluate their business practices; could be further replicated in other countries launching similar initiatives); • Outreach on GC/CSR in different regions of Lithuania (impact: creating enabling environment for GC/CSR throughout the country); • Creation, launching and maintenance of a website on GC and CSR tools (impact: easy access to information on these issues, possibility for exchange of experiences on-line, promoting the spread of good practices in the region); • Preparation and dissemination of a quarterly electronic newsletter on GC/CSR news in Lithuania and abroad (impact: up-to date and relevant for the country information on these issues, contributing to better awareness on GC/CSR). • Planned joint projects: In autumn 2005, plan to start the first external partnership project on behalf of the Network “Evaluation of Lithuanian legislation in view of anti-corruption efforts” (project description is under preparation by us now and preliminary commitment for cost-sharing from companies agreed; project duration – 2005-2006). • MANAGEMENT STRUCTURE: • Currently the network is facilitated by business (Group of Initiative, with administrative back up of UNDP) • Currently the network consists of businesses only, but it is envisaged that in the future it will have multi-stakeholder nature • The network meets regularly, once per two months or more frequently according to the need; meetings so far have been attended mostly by senior managers.

11. MACEDONIA Focal point: Zlatka Stamboliska – Popovska, Project Manager, zlatka.popovska@undp.org.mk; tel: +389 2 3116 335Website: http://www.undp.org.mk/default.asp?where=weblinksm&link=92 • BACKGROUND: • The Global Compact was launched during a public event in December 2004. • The Global Compact national network was launched in May 2005 • It was organized by the Macedonian Corporate Governance Council and Global Compact Network in Macedonia, supported by UNDP and funded by USAID. The Conference brought together high government officials: the Vice Prime Minister, the Minister of Labour and Social Policy, the Minister of Environment and Physical Planning, the Mayor of Skopje city, Trade Unions representatives, as well as representatives from business community in Macedonia (some of Macedonian largest and well-known firms as well as small and medium enterprises), and civil society groups, business associations, NGOs, donor community, medias, almost 150 people. • OBJECTIVES • To promote corporate social responsibility among the Macedonian companies and also general public. • MAIN PARTNERS Macedonian Corporate Governance Council, USAIDCOMPANIES. Over 40 companies signed up to the network • PAST/ ON-GOING ACTIVITIES • Survey conducted among companies to assess what kind of GC/CSR type activities most demanded by local companies • Preparation for follow up activities, based on the survey results • PLANS FOR 2005/6 • Main goal: to strengthen the Macedonian network Main activities planned: • Learning events: implementation of GC principles, preparation of COP. • Policy dialogues: • Code of ethics – round tables with Corporate Governance Council, • Anti-corruption policies in companies • Jointly with the government, public debate on changing law on profit tax

12. POLANDFocal point: Kamil Wyszkowski, kamil.wyszkowski@undp.org; GSM: +48 600 437 577; Website: http://www.globalcompact.org.pl/ • GC LAUNCHING EVENT • The Polish network was launched in 2001, jointly with the Ministry of Labour and Social Policy • OBJECTIVES • To promote the GC principles and corporate responsibility in Poland • MAIN PARTNERS: Forum for Responsible Business (local NGO)COMPANIES 23 (mostly transnational corporations) • PAST/ ON-GOING ACTIVITIES • Joint Projects: • School for Leaders – training and education programmes for young public / civic leaders • Support to local sustainable development – support for selected municipalities in implementing local sustainable development strategy • A.T.W. training project • Joint publications and presentations on CSR conferences PLANS FOR 2005/6 Main goal: to expand the network and increase number of partnership projects • Re-boosting the initiative in Poland: • Developing new partnership projects • MANAGEMENT STRUCTURE • GC Steering Committee in Poland is led by CEOs, meets once a year to decide on strategic issues. Working group meets to execute decisions of the Steering Committee, four times a year. • At the moment the GC network in Poland is informal, but the possibility of establishing formalized structure is being discussed (there is need for financing GC activities on regular basis). • Currently facilitation and administrative back up activities provided by UNDP • Permanent contact with GC members maintained through regular e-mails

13. TURKEYFocal point: Lara Romaniuc, Programme Manager, lara.romaniuc@undp.org; Tel: +90.312. 454 1134 • BACKGROUND: • The UNDP CO in Turkey, together with local stakeholders, officially launched the Global Compact in Istanbul in 2002. • OBJECTIVES • To promote the GC principles and CSR among the Turkish companies and civil society. MAIN PARTNERS Corporate Governance Association of Turkey • PAST/ ON-GOING ACTIVITIES • Preparing a practical guide for the Turkish companies on how to participate in the GC • PLANS FOR 2005/6 • To boost up and re-invigorate the GC in Turkey and establish a functioning network through which strategies/ideas/best practices/lessons learned on implementing the principles can be exchanged. • Main activities include: • Mobilizing companies and establishing core group of companies that will lead the network • Identification of expertise on how to implement the GC principles • Holding of the first of three workshops. The objective of the first is to define the structure, representation (the inclusion of women entrepreneurs etc) and role of the network, and the strategies and activities you plan to undertake which best suit the interests of the GC participants in Turkey.  An established network would hopefully then in turn assist in deepen the engagement of participants through the implementation of the principles. • Participation in the Global Compact Network conference (with the participation of at least two Turkish representatives/companies, ideally one woman and one man, willing to share Turkish case studies and best practices with other participants at the conference) The holding of the second workshop, that would focus on the issues involved in reporting the implementation of the principles and the implementing the principles for SMEs, with tool provision. • The holding of the third and final workshop to review activities, share learning and decide how best to move forward with a view to network sustainability and the scaling up of activities already undertaken. • MANAGEMENT STRUCTURE • Currently the network is supported and facilitated by UNDP. It is envisaged that in early 2006, the network will establish its management structure.