The Global Compact

What is it?

Launched by the UN in 2000, the Global Compact brings companies together with UN agencies, labour and civil society to support universal environmental and social principles.  It aims to achieve the Secretary Generals vision of creating a more sustainable and inclusive global economy.

The Global Compact asks companies to embrace, support and enact, with in their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption.

Where can I find the full text?

http://www.unglobalcompact.org

The Global Compact principles derive from the Universal Declaration of Human Rights, The International Labour Organisation’s Fundamental Principles of Rights at Work, and the Rio Principles on Environment and Development.

The Ten Global Compact Principles

Human Rights

• Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights 
• 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
• 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
• Principle 9: Encourage the development and diffusion of environmentally friendly technologies

Corruption

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

What kind of standard is it?

The Global Compact is a purely voluntary set of principles which companies, academia, labour and civil organisations can sign up to. Signatories of the Global Compact are expected to incorporate the principles into business operations, publicly advocate the principles via communications and report on ways in which it supports the principles.

"The Global Compact is not a regulatory instrument – it does not "police", enforce or measure the behaviour or actions of companies. Rather, the Global Compact relies on public accountability, transparency and the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles upon which the Global Compact is based."

Who uses it?

In December 2005 over 3000 bodies, including 2300 companies had signed up to the Global Compact. It is a network-based with initiatives at country or regional level across the world. 

At its core are the Global Compact Office, and six UN agencies. At the same time, the Global Compact involves all relevant social actors: companies, whose actions it seeks to influence; governments, labour, civil society organizations, and the United Nations,

What do the critics say?

At the World Social Forum in Brazil and World Summit on Sustainable Development in Johannesburg, the following was noted; "Critics of the initiative are concerned that it may be doing more to enhance the reputation of big business than aiding the environment and people in need. They are worried that companies with a reputation for malpractice have been welcomed into Global Compact, and that the conditions imposed on business to comply with the principles are very weak. Companies can pick and choose among the nine principles they want to address and there is no monitoring of compliance. The focus on best practices diverts attention from malpractice, “greenwash” and structural and other factors that encourage corporate irresponsibility or a “business-as-usual” attitude."

http://www.unrisd.org/unrisd/website/newsview.nsf/0/BC65635F3740379BC1256D010036BA3E?OpenDocument