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The UN Global Compact
Corporate 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?
Profit
&
Growth
Business United Nations
Peace
&
Poverty
Reduction
Deepening Interdependencies
Building Markets
Good Governance
Environment
Security
Global Health
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.”
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.
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
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
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?
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
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
THE UN GLOBAL COMPACTAround the World
• 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
THE UN GLOBAL COMPACTNetworks and Participants over the years
THE UN GLOBAL COMPACTWho are the Participants?
GC commitment
10 Principles
HR
Women
Environm
ent
C4C
Water
AC
Disclosure
Labour
What does responsibility mean?
THE UN GLOBAL COMPACTA Wealth of Resources