On July 5-6 in Geneva, Switzerland, the United Nations convened what it described as “history’s largest and most significant event on the topic of leadership and corporate citizenship”.
The work of the UN Global Compact continues apace. Business leaders from some of the world’s largest and most influential companies have committed to taking action across a range of social, environmental and economic issues. At one level it is obvious that these initiatives should be commended. This brief review shows how business is working with government and civil society to address climate change, human rights and water shortages – fundamental challenges that impact across the globe.
Practitioners know how difficult it is to get their CEOs to attend these events, given the many other calls upon their time. However, once they are there, they have the opportunity to hear from leading experts and share new intelligence on the big trends in corporate responsibility. Participants work in small groups with leaders across sectors. As is so often the case in such events the real value comes from the exchange of ideas and the shared learning that takes place.
Critics argue that while the Global Compact remains a voluntary initiative, it will always lack authority. Indeed, there might be some scepticism at yet more declarations of good intentions. But, on balance, as this special feature makes clear, there is a strong case to suggest that these good intentions will translate into concrete deeds. For those that want to participate in this move to action we would recommend exploring the GLN Implementation Tool. The entry level of this diagnostic framework is free to use and offers an insight into the relationship between the Global Compact principles and core business priorities.
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Declaration on responsible business practices
Business leaders from both developing and developed nations have pledged to comply with labour, human rights, environmental and anti-corruption standards by adopting The Geneva Declaration at the Global Compact Leaders Summit in Geneva.
The 21-point declaration was signed by the chief executives of companies such as Coca-Cola, Petrobas, Fuji Xerox, China Ocean Shipping Group and Tata Steel and it provides businesses, governments and UN Global Compact participants with a guideline of concrete actions that can be taken.
The declaration drives the Global Compact forward by outlining ways to move from principles to action – for investors, governments and business.
GLN Global Compact Implementation tool launched
The Global Leadership Network (GLN) used the Leaders Summit to announce the development of a tool to help companies integrate corporate citizenship into business strategy and performance. GLN is a partnership between the UNGC, the International Finance Corporation, AccountAbility and the Boston College Center for Corporate Citizenship.
The GLN Global Compact Implementation Tool draws on a database of good practice case studies, real-time benchmarking and automated reporting to provide companies with information on how to strategically align their efforts to embed responsible practices. It will enable users to:
1. Determine strengths, weaknesses, opportunities and threats;
2. Identify mission critical citizenship priorities;
3. Set plans for action, specify targets and communicate progress
The GLN now numbers over thirty leading businesses from various regions and sectors, including IBM, GE, Cemex, Diageo and Samsung. It has national networks in China, Brazil, India and now Europe with the addition of The Corporate Citizenship Company as a partner in the initiative.
Dalberg, the global development advisors, together with the UN Global Compact and the Financial Times, launched the Business Guide to Partnering with NGOs and the UN at the UNGC Leaders Summit.
The guide provides information to help companies in selecting appropriate NGO partners and aims to identify the leading non-profit social actors from around the world that have demonstrated skill and excellence in linking with business. It contains a list of the leading 100 non-profit organisations that have demonstrated excellent cross-sector partnerships. According to the authors, the guide provides “a market-based assessment of the competencies of partners from the NGO and UN communities”.
The UN also called for business schools around the world to be more proactive in encouraging corporate social responsibility as the Principles for Responsible Management Education were launched at the summit.
The principles call for academic institutions to develop the capabilities of students to be future generators of sustainable value for business and society and to work for an inclusive and sustainable global economy.
The initiative was devised by the UNGC as well as the Association to Advance Collegiate Schools of Business, the European Foundation for Management Development, the Aspen Institute’s Business and Society Programme, the Globally Responsible Leadership Initiative and Net Impact.
Statement on climate change
Companies committed to speeding up action on climate change by signing a statement – Caring for Climate: The Business Leadership Platform. This commits the 153 business signatories to take “practical actions to increase the efficiency of energy usage and to reduce the carbon burden of products, services and processes, to set voluntary targets for doing so, and to report publicly on the achievement of those targets annually”.
The CEOs of these companies also called on governments to take urgent action to agree “long-term and effective legislative and fiscal frameworks designed to make markets work for the climate, in particular policies and mechanisms intended to create a stable price for carbon”. The statement was developed by the UN Global Compact, the UN Environment Programme and the World Business Council for Sustainable Development.
These organisations jointly launched a report Caring for Climate: Tomorrow’s Leadership Today, which provides a collection of case studies of good practices by companies taking action on climate change.
The CEO Water Mandate
A group of CEOs representing some of the world’s most powerful companies have urged the business community to take action to address the emerging worldwide water crisis.
The CEO Water Mandate was announced by the CEOs of six corporations – The Coca-Cola Company, Levi Strauss & Co, Läckeby Water Group, Nestlé, SAB Miller and Suez – and is a project developed to help companies better manage their water use. According to the Human Development Report 2006, more than 1 billion people lack clean water for drinking, and 2.6 billion lack sanitation. The problems are set to get worse with population growth, increasing food production, changing consumption patterns, industrialisation, pollution, and climate change. Signatories to the mandate pledge to set water-use targets, to assist suppliers with water-efficiency practices, and to partner with governments, policy makers and community groups.
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