The United Nations Global Compact : Achievements, Trends and Challenges

The United Nations Global Compact is a strategic policy initiative that encourages businesses to support ten universal principles in the areas of human rights, labor standards, the environment, and anti-corruption. It is the world's largest voluntary corporate responsibility initiative with more than 7,500 business and non-business participants in over 130 countries. This book reviews the first ten years of the Compact's existence (2000-2010) by presenting exclusively commissioned chapters from well-known scholars, practitioners from the business world and civil society, and Global Compact staff. They reflect on what the Global Compact has achieved, what trends it may have to respond to, and what challenges are ahead. The book contains not only up-to-date reflections but also debates recent changes to the structure of the Compact, including the Communication on Progress policy, the role of Global Compact Local Networks, and the role of emerging specialized initiatives. Half-title......Page 3 Title......Page 5 Copyright......Page 6 Contents......Page 7 Figures......Page 10 Tables......Page 12 Boxes......Page 13 Abbreviations......Page 14 Contributors......Page 19 Acknowledgements......Page 29 Foreword......Page 30 Why This Book Matters!......Page 31 Anti-corruption......Page 33 About This Book......Page 35 historical context......Page 36 Trends: shaping the corporate responsibility agenda......Page 40 Improving implementation of the ten Principles......Page 42 Advancing Communication on Progress (COP)......Page 43 Coping with changing global economic realities......Page 44 Organization of the book......Page 45 Part I: Achievements, trends and challenges: reflections on the Principles......Page 46 Part II: Participants and engagement mechanisms......Page 47 Part III: Governance and Communication on Progress......Page 50 Part IV: Local Networks: the emerging global–local link......Page 52 PART I: Achievements, trends and challenges: reflections on the Principles......Page 55 Introduction......Page 57 The start of a long journey......Page 58 The application of the UDHR to non-state actors: ‘every individual and every organ of society...’......Page 59 The business and human rights debate takes hold......Page 60 Human rights and business: a conceptual challenge......Page 61 Filling the conceptual gap......Page 62 The Ruggie framework: an emerging benchmark......Page 63 The corporate responsibility to respect......Page 65 ‘Complicity’......Page 66 Corporate leadership for human rights......Page 67 Managing corporate human rights responsibilities......Page 68 Adopting a human rights policy......Page 69 Assessing human rights impacts......Page 70 Developing and implementing a human rights strategy......Page 72 Measuring and Reporting on Performance......Page 74 Conclusions, outlook and recommendations......Page 75 Introduction......Page 78 In the beginning.........Page 79 Corporate responsibility......Page 83 Rule of law, governance and the ten Global Compact Principles......Page 85 Civil society and democracy......Page 89 Sustainable development and ‘short-termism’......Page 90 The future of the Global Compact: making its promise a reality......Page 91 Introduction......Page 93 The origins of the Global Compact environmental principles......Page 94 The rise of international environmental policy......Page 97 Business and global environmental governance......Page 99 The Global Compact environmental principles......Page 100 Global Compact Principle 7......Page 101 Global Compact Principle 8......Page 103 Global Compact Principle 9......Page 105 Global climate change and the impact of business......Page 106 Trends toward the future: case examples......Page 108 Challenge and opportunities......Page 113 Introduction: a moral issue......Page 114 Leadership and early action......Page 115 The 10 minute case for action......Page 116 A business call for an ambitious climate treaty......Page 123 And now 10 minutes for implementation guidance......Page 128 A revolution without chaos and crisis?......Page 134 The history of the 10th Principle......Page 135 Current status of implementation of the 10th Principle......Page 139 Challenges for voluntary initiatives and private sector corruption......Page 141 Going forward......Page 144 PART II: Participants and engagement mechanisms......Page 147 Introduction......Page 149 The business case for the United Nations Global Compact......Page 150 Reasons for participation......Page 152 Living the UN Global Compact Principles......Page 154 Implications for the future......Page 156 About PricewaterhouseCoopers......Page 158 Integration of Global Compact Principles in the company’s goals and mission statement......Page 159 Implementation of UN Global Compact Principles in strategy and operations......Page 160 Leadership, governance and metrics......Page 162 Challenges moving forward......Page 163 Integration of Global Compact Principles into Symantec’s goals and mission statement......Page 164 Implementation of Global Compact Principles in strategy and operations......Page 165 Challenges moving forward......Page 167 Reasons for joining the Global Compact......Page 168 Integration of Global Compact Principles in the company’s goals and mission statement......Page 169 Implementation of Global Compact Principles in strategy and operations......Page 170 Challenges moving forward......Page 171 Dow Chemical Company sources:......Page 172 Environmental disclosure on management approach......Page 173 Labor practices disclosure on management approach......Page 174 Human rights disclosure on management approach......Page 175 Product responsibility disclosure on management approach......Page 176 Introduction......Page 178 The Principles for Responsible Management Education (PRME)......Page 180 PRME participant profiles and reports: learning from each other......Page 184 Assessing the categories of achievement criteria......Page 190 Conclusions: some tentative proposals for assessment......Page 192 PRME: 229 academic partners (52 are also Global Compact participants)......Page 193 UN Global Compact: 298 academic partners......Page 194 A situation of real failure......Page 195 Business schools are missing the point......Page 197 Towards a new approach to education......Page 201 Knowledge......Page 202 Stewardship: the steward as co-creator of an evolving social system......Page 203 Business schools as catalysts of a paradigm shift: the PRME ambition......Page 205 Conclusion......Page 206 Introduction......Page 208 Responsible management education: the impact of GRLI......Page 209 Rethinking the context of management education......Page 212 The role of an academic/corporate partnership......Page 214 Introduction......Page 216 Pointing out routes......Page 217 Creating a favourable environment......Page 219 Improving labour standards: case examples......Page 221 Defending the Amazon: case examples......Page 224 The power of example......Page 228 Origins of the PRI......Page 229 Development of the principles......Page 233 From words into action......Page 238 Clearinghouse......Page 242 Other initiatives......Page 244 Accountability mechanisms......Page 246 Looking forward: the need for global growth in responsible investment......Page 247 Introduction......Page 249 Striking a chord: what does it mean to be human in a globalized world?......Page 255 A 24/7 connected world......Page 257 Elders, technology and knowledge......Page 258 System and values change......Page 259 What is SEE change?......Page 260 System change and radical rethinking of companies......Page 261 Mission possible: entrepreneurs and boundary spanners......Page 263 Leadership of a different sort......Page 264 Concluding thoughts......Page 266 Globalization as the new context of global business firms......Page 268 Corporate responsibility and global governance......Page 269 Situating the Global Compact in the emerging global governance landscape......Page 272 How do corporations learn to manage CSR?......Page 274 Understanding growing and changing societal expectations......Page 277 Understanding how to implement CSR......Page 278 Ability to create dialogue with critical stakeholders......Page 279 What can the Global Compact do (and what does it do) in order to improve CSR learning?......Page 280 PART III: Governance and Communication on Progress......Page 283 Introduction......Page 285 Global Compact Advisory Council......Page 286 Governance review (2004–5) and governance framework......Page 287 Global Compact Leaders Summit......Page 288 Global Compact Board......Page 289 Annual Local Networks Forum......Page 290 Inter-Agency Team......Page 291 The Global Compact integrity measures......Page 292 Evaluation and monitoring......Page 293 The dialogue facilitation mechanism......Page 296 Need for accountability and transparency: origins and rationale......Page 299 A perfect model?: Assumptions and limitations......Page 301 Moving with the times: evolution of the COP policy......Page 303 Past and current trends in Communication on Progress......Page 305 Context of the current challenges......Page 308 Quality of the COP: the need for consistency......Page 309 Guidance on reporting and implementation......Page 310 Comparability/benchmarking of COPs......Page 311 Conclusion......Page 313 Introduction......Page 315 Petrobras’ Social and Environmental Report......Page 317 Building the Petrobras reporting model......Page 318 Improving socially responsible corporate management......Page 320 The COP as a management tool......Page 322 Searching for continuous improvement of the COP Report......Page 323 Final remarks......Page 325 Introduction......Page 327 A short history of Corporate Social Responsibility......Page 328 The current context......Page 330 Brickbats and bouquets......Page 336 The next decade......Page 338 A bird in the hand?......Page 343 A CSR Ruggie?......Page 345 PART IV: Local Networks: the emerging global–local link......Page 349 Introduction......Page 351 Defining Local Networks......Page 352 Reasons for engagement and types of activities......Page 354 Outreach activities......Page 356 Policy dialogues and partnership facilitation......Page 359 The ‘early days’ of Local Networks......Page 363 2003: first gathering of Networks......Page 364 2004: consensus on minimum requirements for Networks......Page 365 2005: Networks develop first policy document linked to governance......Page 366 2006: role of ALNF in Global Compact governance solidified......Page 367 2009: strengthening Networks’ roles and responsibilities......Page 368 Formalizing organizational structures......Page 369 Regional Network gatherings......Page 370 Conclusion......Page 371 Introduction......Page 374 Creation and Design of Local Networks......Page 375 Minimum requirements for Local Networks......Page 376 Activities of Local Networks......Page 377 Communication on Progress (COP) and Local Networks......Page 378 Challenges for Local Networks......Page 379 A Brief Introduction to Network Theory......Page 380 A Critical Analysis of Local Networks from a Network Theory Perspective......Page 382 Knowledge-sharing routines in Local Networks......Page 383 Effective governance system in Local Networks......Page 385 Conclusion......Page 387 Introduction......Page 389 Building a Network and Global Compact brand in Germany......Page 390 Professionalizing our work......Page 391 Define the target group: struggling change agents......Page 392 Infusing ideas and proposing tools......Page 394 Focus on selected topics......Page 395 Coach: in-depth sessions among business representatives......Page 396 Reaching out: raising awareness in the interested public......Page 397 Looking for niches......Page 398 Spotlight: large enterprises......Page 399 The mix is crucial: The Global Compact in Germany is a multi-stakeholder forum......Page 400 Opportunity-driven: the Global Compact as a framework brand......Page 401 Concluding remarks......Page 402 The United Nations Global Compact and Networks’ Communication on Progress......Page 404 The Argentinean Global Compact Network: Local characteristics, composition and members.......Page 405 Number of COP Reports in Argentina......Page 407 Argentinean COPs and their geographical distribution......Page 408 Size and sector of communicating businesses......Page 409 Areas of action reported by the businesses......Page 410 A close analysis of the Global Compact Principles......Page 412 Integrated or independent COP reporting?......Page 413 Sharing the Report with stakeholders......Page 415 A responsible corporate citizenship agenda: a proposal for debate......Page 416 22 Concluding remarks: from alleviating the negative impacts of globalization to transforming markets......Page 420 Role of governments and stakeholders......Page 426 Quantitative and qualitative growth......Page 427 Brand value......Page 428 Governance framework......Page 429 Note:......Page 431 Bibliography......Page 437 Index......Page 457 The United Nations Global Compact Is A Strategic Policy Initiative That Encourages Businesses To Support Ten Universal Principles In The Areas Of Human Rights, Labour Standards, The Environment And Anti-corruption. It Is The World's Largest Voluntary Corporate Responsibility Initiative With More Than 7,300 Business And Non-business Participants In Over 130 Countries. This Book Reviews The First Ten Years Of The Corn Pact's Existence (2000-10) By Presenting Exclusively Commissioned Chapters From Well-known Scholars, Practitioners From The Business World And Civil Society, And Global Compact Staff. They Reflect On What The Global Compact Has Achieved, What Trends It May Have To Respond To And What Challenges Are Ahead. The Book Not Only Contains Up-to-date Reflections But Also Debates Recent Changes To The Structure Of The Compact, Including The Communication On Progress Policy, The Role Of Global Compact Local Networks And The Role Of Emerging Specialized Initiatives.'this Timely Book Reviews The Un Global Compact's Strengths And Shortcomings Over Its First Decade And Provides Helpful Guidance For All Committed To Mainstreaming Responsible Business Practices And Achieving Real Change Through Multistakeholder Initiatives.'-mary Robinson, President Of Realizing Rights: The Ethical Globalization Initiative, Former President Of Ireland And Un High Commissioner For Human Rights. 'by Orders Of Magnitude, The Global Compact Is The World's Largest Corporate Citizenship Initiative - And One Of The United Nations' True Success Stories. As Such, It Deserves A Comprehensive Analysis. With This Book, It Has Got It. Encyclopedic In Scope, The Volume Touches On All Facets Of The Global Compact's Ideas, Ideals, Innovative Organizational Modalities And Impact. It Will Be An Indispensable Reference Work, And An Inspiration To Global Norm Entrepreneurs Every Field, For Many Years To Come. It Is A Must -read For Anyone Interested Sustainable Globalization, Which Includes Most If Not All Of Us.'-professor John G. Ruggie, Harvard University And Special Representative Of Un Secretary-general On Business And Human Rights Andreas Rasche Is Assistant Professor Of Business In Society At Warwick Business School And, Since 2007, Has Worked As A Consultant To The United Nations Global Compact Office In New York. He Received His Ph. D. In Strategic Management And Corporate Responsibility From The European Business School, Germany. His Research Focuses On Global Governance And Transnational Organizational Regulation In The Context Of Contested Global Issues. He Has Published Widely In Leading International Journals On Corporate Responsibility And Has Guest-edited Special Issues Of Various Journals. Georg Kell Is The Executive Director Of The United Nations Global Compact. His Career With The United Nations Began In 1987 At The Un Conference On Trade And Development (unctad) In Geneva. In 1997, Mr Kell Joined The Office Of The Un Secretary-general In New York, Where He Spearheaded The Development Of New Strategies To Enhance Private Sector Engagement With The Work Of The United Nations. As One Of The Global Compact's Key Architects, He Has Led The Initiative Since Its Launch In 2000. A Native Of Germany, He Holds Advanced Degrees In Economics And Engineering From The Technical University Of Berlin.--back Cover. Achievements, Trends And Challenges : Reflections On The Principles. Making Sense Of The United Nations Global Compact Human Rights Principles / Klaus Leisinger, Aron Cramer And Faris Natour ; The Promise Of The United Nations Global Compact : A Trade Union Perspective On The Labour Principles / Guy Ryder ; The United Nations Global Compact Environmental Principles : Achievements, Trends And Challenges / Gregory C. Unruh ; 'caring For Climate' : The Business Leadership Platform / Claude Fussler ; Anti-corruption : Challenges And Trends / Huguette Labelle -- Participants And Engagement Mechanisms. Implementing The United Nations Global Compact / Carolyn Y. Woo ; Academic Institutions And The United Nations Global Compact : The Principles For Responsible Management Education / Regina Wentzel Wolfe And Patricia H. Werhane ; Corporate Responsibility And The Business School Agenda / Birgit Kleymann And Pierre Tapie (with A Comment By Eric Cornuel) ; Ngos And The United Nations Global Compact : The Link Between Civil Society And Corporations / Oded Grajew ; Financial Markets And The United Nations Global Compact : The Principles For Responsible Investment / James Gifford ; Learning From The Roundtables On The Sustainable Enterprise Economy : The United Nations Global Compact And The Next Ten Years / Malcolm Mcintosh And Sandra Waddock ; The United Nations Global Compact As A Learning Approach / Guido Palazzo And Andreas Georg Scherer -- Governance And Communication On Progress. The United Nations Global Compact's Governance Framework And Integrity Measures / Ursula Wynhoven And Matthias Stausberg ; The United Nations Global Compact Communication On Progress Policy : Origins, Trends And Challenges / Uzma Hamid And Oliver Johner ; Cop Reporting In Action : The Case Of Petrobras / Ana Paula Grether Carvalho ; The United Nations Global Compact And The Global Reporting Initiative / Paul Hohnen -- Local Networks : The Emerging Global-local Link. Building The United Nations Global Compact Local Network Model : History And Highlights / Nessa Whelan ; The United Nations Global Compact As Network Of Networks / Dirk Ulrich Gilbert ; Running A Global Compact Local Network : Insights From The Experience In Germany / Constanze J. Helmchen ; Building Corporate Citizenship Through The United Nations Global Compact : Contributions And Lessons Learned From The Argentinean Local Network / Flavio Fuertes And Nicolás Liarte-vejrup ; Concluding Remarks : From Alleviating The Negative Impacts Of Globalization To Transforming Markets / Ernst A. Brugger And Peter Maurer. Edited By Andreas Rasche And Georg Kell. Includes Bibliographical References And Index.