Presentation on theme: "The UN Global Compact Corporate Citizenship in"— Presentation transcript:
1The UN Global Compact Corporate Citizenship in The 21st Century
2THE CASE FOR CC A Simple Truth “Corporate citizenship is not just about how money is spent, it’s also about how money is made.”
3THE CASE FOR CC What exactly is CC? a long-term strategy to manage risks and discover opportunitiesan alignment of business strategy and operations with universal values.a potentially fundamental transformation of corporate strategies, operations, corporate culture, relationshipsproactive strategic planning, not defensive communicationfar more core business than philanthropy
4THE CASE FOR CC What 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.
5THE UN GLOBAL COMPACT The UN & Business – Odd Couple? United NationsBuilding MarketsPeace&PovertyReductionGood GovernanceProfit&GrowthEnvironmentGlobal HealthSecurityDeepening Interdependencies
6THE UN GLOBAL COMPACT Overview Launched on 26 July 2000 in New York with roughly 40 businesses“A more sustainable and inclusive global economy.”Multi-stakeholder platform for collective actionRooted in universally accepted conventions:Universal Declaration of Human RightsILO DeclarationRio DeclarationUN Convention Against Corruption
7THE UN GLOBAL COMPACT The 10 Principles Human RightsPrinciple 1: Businesses should support and respect the protection of internationally proclaimedhuman rights; andPrinciple 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 theright to collective bargaining;Principle 4: the elimination of all forms of forced and compulsory labour;Principle 5: the effective abolition of child labour; andPrinciple 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; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologiesThe 10 principlesAnti-CorruptionPrinciple 10: Businesses should work against all forms of corruption, including extortion and bribery.
8THE UN GLOBAL COMPACT Vision and Mission “A more sustainable and inclusive global economy.”TWO COMPLEMENTARY OBJECTIVESMake the ten principles part of business strategy, operations and culture everywhere.InternalizationCatalyze action in support of broad UN goals, including the Millennium Development GoalsContribution to Development
9The UN GLOBAL COMPACT What It Is (Not) Values-based Framework to Integrate Universal Principles into Organizational ChangeMulti-stakeholder Network Acting as a Platform for Learning and CollaborationInitiative Based on Internationally Accepted PrinciplesWhat It Is NOT...Regulatory InstrumentSubstitute for Codes/StandardsPublic Relations Initiative
10THE UN GLOBAL COMPACT What is expected? Leadership Commitment (CEO)Letter from Chief Executive to UN Secretary-GeneralWillingness to engage in continuous performance improvementSetting strategic and operational goals, measuring resultsOpenness to dialogue and learning around critical issuesParticipate in events at local (and global), engage in stakeholder dialogueCommitment to transparency, accountability & public disclosure.Annual Communication on Progress (COP)
11THE UN GLOBAL COMPACT The Business Case InvestorInnovatorCustomerOperationsCompetitorEmployeeSocietyChange Agentstronger financial performance / improved relations with investment communityenhanced employee productivity / creative and value-added solutionsstronger relationships with community / credibility and trust / enhanced products & servicesoperational efficiency / reduction of transaction costs / ’ethical’ supply managementbetter reputation and branding vs. competitor / enhanced license to operate vs. competitorenhanced employee relations (recruitment, motivation, retention, innovation, productivity)better relationship with community / credibility and trust in society / ‘license to operate’moral compass for organizational change / proactive action basis to minimize risks
12THE UN GLOBAL COMPACT The Global Compact Today Equal participation from SME’s and large companies6,200+ active business participants in 135 countries90+ active local networks around the world1800+ non-business participants from civil society, labour, academiaEqual participation in developed and developing world170 of the Financial Times Global 500 companies (by market cap)Note: the data is as of 2010
14THE UN GLOBAL COMPACT Local Networks Clusters of participants who have come together to advance the UNGC and its principles a local levelActivities:Identify local prioritiesAwareness-raising and recruitmentOrganize learning and dialogue eventsProduce learning materials in local languagesMobilize collective actionFacilitate partnership projects in support of MDGsSafeguarding overall UNGC integrity
15THE UN GLOBAL COMPACT Networks and Participants over the years 15
16THE UN GLOBAL COMPACT Who are the Participants? 16
17What does responsibility mean? GC commitment10 PrinciplesHRWomenEnvironmentC4CWaterACDisclosureLabourBusiness & PeaceMDGCore businessBCtAPhilanthropyPRSIAdvocacyAnd there are many other platforms and initiatives that you can engage in with time.