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The UN Global Compact Corporate Citizenship in The 21 st Century

The UN Global Compact Corporate Citizenship in The 21 st Century

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Page 1: The UN Global Compact Corporate Citizenship in The 21 st Century

The UN Global Compact

Corporate Citizenship in

The 21st

Century

Page 2: The UN Global Compact Corporate Citizenship in The 21 st 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.”

Page 3: The UN Global Compact Corporate Citizenship in The 21 st Century

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

Page 4: The UN Global Compact Corporate Citizenship in The 21 st Century

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.

Page 5: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTThe UN & Business – Odd Couple?

Profit

&

Growth

Business United Nations

Peace

&

Poverty

Reduction

Deepening Interdependencies

Building Markets

Good Governance

Environment

Security

Global Health

Page 6: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTOverview

Launched on 26 July 2000 in New York with roughly 40 businesses Launched on 26 July 2000 in New York with roughly 40 businesses

UN Convention Against Corruption UN Convention Against Corruption

Rooted in universally accepted conventions:Rooted in universally accepted conventions:

Universal Declaration of Human RightsUniversal Declaration of Human Rights

ILO Declaration ILO Declaration

Rio Declaration Rio Declaration

Multi-stakeholder platform for collective action Multi-stakeholder platform for collective action

“A more sustainable and inclusive global economy.”“A more sustainable and inclusive global economy.”

Page 7: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTThe 10 Principles

Anti-Corruption

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

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

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. 

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. 

Page 8: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTVision and Mission

Catalyze action in support of broad UN goals, including

the Millennium Development Goals

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

Page 9: The UN Global Compact Corporate Citizenship in The 21 st Century

The UN GLOBAL COMPACTWhat It Is (Not)

What It Is...

Values-based Framework to Integrate

Universal Principles into Organizational

Change

Multi-stakeholder Network

Acting as a Platform for Learning

and Collaboration

Initiative Based on Internationally

Accepted Principles

What It Is NOT...

Regulatory Instrument

Substitute for Codes/Standards

Public Relations Initiative

Page 10: The UN Global Compact Corporate Citizenship in The 21 st Century

Leadership Commitment (CEO)Leadership Commitment (CEO)

Commitment to transparency, accountability & public disclosure.Commitment to transparency, accountability & public disclosure.

Openness to dialogue and learning around critical issuesOpenness to dialogue and learning around critical issues

Willingness to engage in continuous performance improvementWillingness to engage in continuous performance improvement

Letter from Chief Executive to UN Secretary-General Letter from Chief Executive to UN Secretary-General

Setting strategic and operational goals, measuring resultsSetting strategic and operational goals, measuring results

Participate in events at local (and global), engage in stakeholder

dialogue

Participate in events at local (and global), engage in stakeholder

dialogue

Annual Communication on Progress (COP)Annual Communication on Progress (COP)

THE UN GLOBAL COMPACTWhat is expected?

Page 11: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTThe Business Case

Investor

Innovator

Customer

Operations

Competitor

Employee

Society

Change Agent

stronger financial performance / improved relations with investment communitystronger financial performance / improved relations with investment community

enhanced employee productivity / creative and value-added solutions enhanced employee productivity / creative and value-added solutions

stronger relationships with community / credibility and trust / enhanced products & servicesstronger relationships with community / credibility and trust / enhanced products & services

operational efficiency / reduction of transaction costs / ’ethical’ supply managementoperational efficiency / reduction of transaction costs / ’ethical’ supply management

better reputation and branding vs. competitor / enhanced license to operate vs. competitor better reputation and branding vs. competitor / enhanced license to operate vs. competitor

enhanced employee relations (recruitment, motivation, retention, innovation, productivity)enhanced employee relations (recruitment, motivation, retention, innovation, productivity)

better relationship with community / credibility and trust in society / ‘license to operate’better relationship with community / credibility and trust in society / ‘license to operate’

moral compass for organizational change / proactive action basis to minimize risksmoral compass for organizational change / proactive action basis to minimize risks

Page 12: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTThe Global Compact Today

Equal participation from SME’s and large companiesEqual participation from SME’s and large companies

6,200+ active business participants in 135 countries6,200+ active business participants in 135 countries

90+ active local networks around the world90+ active local networks around the world

1800+ non-business participants from civil society, labour, academia1800+ non-business participants from civil society, labour, academia

Equal participation in developed and developing worldEqual participation in developed and developing world

170 of the Financial Times Global 500 companies (by market cap)170 of the Financial Times Global 500 companies (by market cap)

Note: the data is as of 2010

Page 13: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTAround the World

Page 14: The UN Global Compact Corporate Citizenship in The 21 st Century

• 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 COMPACTLocal Networks

Page 15: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTNetworks and Participants over the years

Page 16: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTWho are the Participants?

Page 17: The UN Global Compact Corporate Citizenship in The 21 st Century

GC commitment

10 Principles

HR

Women

Environm

ent

C4C

Water

AC

Disclosure

Labour

What does responsibility mean?

Page 18: The UN Global Compact Corporate Citizenship in The 21 st Century

THE UN GLOBAL COMPACTA Wealth of Resources

Page 19: The UN Global Compact Corporate Citizenship in The 21 st Century

Thank You!

www.unglobalcompact.org