The UN Global Compact Corporate Citizenship in The 21st Century

THE CASE FOR CC A Simple Truth “Corporate citizenship is not just about how money is spent, it’s also about how money is made.”

THE CASE FOR CC What 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 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.

THE UN GLOBAL COMPACT The UN & Business – Odd Couple? United Nations Building Markets Peace & Poverty Reduction Good Governance Profit & Growth Environment Global Health Security Deepening Interdependencies

THE 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 action Rooted in universally accepted conventions: Universal Declaration of Human Rights ILO Declaration Rio Declaration UN Convention Against Corruption

THE UN GLOBAL COMPACT The 10 Principles 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.  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.  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 The 10 principles Anti-Corruption Principle 10: Businesses should work against all forms of corruption, including extortion and bribery. 

THE UN GLOBAL COMPACT Vision and Mission “A more sustainable and inclusive global economy.” TWO COMPLEMENTARY OBJECTIVES Make the ten principles part of business strategy, operations and culture everywhere. Internalization Catalyze action in support of broad UN goals, including the Millennium Development Goals Contribution to Development

The UN GLOBAL COMPACT What It Is (Not) 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

THE UN GLOBAL COMPACT What is expected? Leadership Commitment (CEO) Letter from Chief Executive to UN Secretary-General Willingness to engage in continuous performance improvement Setting strategic and operational goals, measuring results Openness to dialogue and learning around critical issues Participate in events at local (and global), engage in stakeholder dialogue Commitment to transparency, accountability & public disclosure. Annual Communication on Progress (COP)

THE UN GLOBAL COMPACT The Business Case Investor Innovator Customer Operations Competitor Employee Society Change Agent stronger financial performance / improved relations with investment community enhanced employee productivity / creative and value-added solutions stronger relationships with community / credibility and trust / enhanced products & services operational efficiency / reduction of transaction costs / ’ethical’ supply management better reputation and branding vs. competitor / enhanced license to operate vs. competitor enhanced 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

THE UN GLOBAL COMPACT The Global Compact Today Equal participation from SME’s and large companies 6,200+ active business participants in 135 countries 90+ active local networks around the world 1800+ non-business participants from civil society, labour, academia Equal participation in developed and developing world 170 of the Financial Times Global 500 companies (by market cap) Note: the data is as of 2010

THE UN GLOBAL COMPACT Around the World

THE UN GLOBAL COMPACT Local Networks 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 COMPACT Networks and Participants over the years 15

THE UN GLOBAL COMPACT Who are the Participants? 16

What does responsibility mean? GC commitment 10 Principles HR Women Environment C4C Water AC Disclosure Labour Business & Peace MDG Core business BCtA Philanthropy PRSI Advocacy And there are many other platforms and initiatives that you can engage in with time.

THE UN GLOBAL COMPACT A Wealth of Resources

Thank You! www.unglobalcompact.org