Communicating the Global Compact

Barcelona, 25 September 2006

04/21/23 2

What Exactly is CSR?

“Corporate Social Responsibility is not about how money is spent, it’s about how money is

made.”-- Anonymous

04/21/23 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.

04/21/23 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 DeclarationRio DeclarationUN Convention Against Corruption

04/21/23 5

The Ten Principles

Human RightsPrinciple 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 StandardsPrinciple 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.  

EnvironmentPrinciple 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-CorruptionPrinciple 10: Businesses should work against all forms of corruption, including extortion and bribery. 

04/21/23 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”

04/21/23 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

04/21/23 8

Managing Expectations

The Global Compact Is …A voluntary initiative to promote sustainable development and good corporate citizenshipA set of values based on universally accepted principlesA network of companies and other stakeholders

The Global Compact is NOT …MandatoryA method for monitoring company behaviorA standard, management system or code of conductA regulatory instrumentPR or philanthropy

04/21/23 9

Managing ExpectationsHow Can we Join?

Letter of participation from the company’s top executive to the Secretary-General of the UNCommitment to make the 10 principles part of business strategy, operations and cultureWillingness 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.

04/21/23 10

Managing ExpectationsWhat else is expected?

Communication on Progress (COP): Annual public statement on the implementation of the GC principlesDemonstration of transparency and

accountabilityCommunication with stakeholdersSafeguarding the integrity of the GC

04/21/23 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

04/21/23 12

Why Should We Participate?Creating Value through CSR

Human Rights

Community

Workplace

Environment

Anti-Corruption

Reputation and brands

Operationalefficiency

Innovation

Access to new/existing markets

Access to knowledgeand skills

Access tokey resources

Litigation andregulatory risk

Operational risks

Riskpremiums

Revenues

Exposure to ESG Issues

Transmission Factors

Financial Value Drivers

Costs

Source: Conference Board/GC Working Group, 2005

04/21/23 13

Strateg

y, Po

licy, Man

agem

ent S

ystems

Why Should We Participate?Creating Value through CSR

Human Rights

Community

Workplace

Environment

Anti-Corruption

Reputation and brands

Operationalefficiency

Innovation

Access to new/existing markets

Access to knowledgeand skills

Access tokey resources

Litigation andregulatory risk

Operational risks

Riskpremiums

Revenues

Exposure to ESG Issues

Transmission Factors

Financial Value Drivers

Costs

CSR Engagement

Source: Conference Board/GC Working Group, 2005

04/21/23 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.

04/21/23 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 marketsTraining tomorrow’s CSR leaders – integration of CSR in academic trainingSectoral alliances and initiatives to tackle CSR challengesLobbying reformDevelopment of an Academic NetworkGlobal Compact Cities Programme

04/21/23 16

Communicating the GC: Some Basic Considerations

04/21/23 17

Governments

UNDP/ GC Network

Media Civil Society

Public at Large

Business

Know Your Target Groups

04/21/23 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 anglesMedia: Focus on issues, not companiesPublic: Address consumer-relevant globalization concernsCompanies: Establish business case, share best practicesGovernments: National competitivenessCivil Society: Partnerships, contribution to global governance

Develop narratives, not activity reportsCommunicate challenges

04/21/23 19

Strategize – Act – Measure

Introductory Briefings with the MediaAwareness-raising workshops with the Business

CommunityPanel discussions around CSREditorials by championsCampaignsNewslettersAward SchemesElectronic databases of best practices

04/21/23 20

Strategize – Act – Measure

Monitoring of Media Coverage (Clipping Service)Database of Outreach Contacts & ChampionsWeb Metrics

“What gets measured gets managed”

04/21/23 21

www.unglobalcompact.org