UN Global Compact "To help create a more sustainable and ...

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  • Do not just think of the media as a conduit, but as a target itself (often arrogant, cavalier attitude that treats media as a channel to reach wider audiences) Nurture the relationship
  • Do not just think of the media as a conduit, but as a target itself (often arrogant, cavalier attitude that treats media as a channel to reach wider audiences) Nurture the relationship
  • Do not just think of the media as a conduit, but as a target itself (often arrogant, cavalier attitude that treats media as a channel to reach wider audiences) Nurture the relationship
  • This is the Global Compact definition of CSR and it leads to the following key statements about CSR…
  • Do not just think of the media as a conduit, but as a target itself (often arrogant, cavalier attitude that treats media as a channel to reach wider audiences) Nurture the relationship
  • UN Global Compact "To help create a more sustainable and ...

    1. 1. UN Global Compact “ To help create a more sustainable and inclusive global economy” 2006 AVCA Conference Dakar, Senegal
    2. 3. Why the UN & Business Different Purposes, Overlapping Objectives Building Markets Good Governance & Security Environment Peace Poverty Reduction Profit Growth Social Inclusion Business Global Health Deepening Interdependencies
    3. 4. Why the UN and Business <ul><li>Business at the heart of development </li></ul><ul><li>Public-Private partnership : human rights, environment, </li></ul><ul><li> corruption, disease, poverty, etc. </li></ul><ul><li>Globalization: companies confronting these issues </li></ul><ul><li>Enlightened self-interest to care: </li></ul><ul><li> societal expectations </li></ul><ul><li> risk management </li></ul><ul><li> business opportunities </li></ul><ul><li>Sustainable societies and markets for all </li></ul>
    4. 5. <ul><li>Voluntary corporate citizenship initiative </li></ul><ul><li>Based on 10 universal principles: </li></ul><ul><ul><li>Human Rights </li></ul></ul><ul><ul><li>Labour Conditions </li></ul></ul><ul><ul><li>Environment </li></ul></ul><ul><ul><li>Anti-Corruption </li></ul></ul><ul><li>A multi-stakeholder platform </li></ul>UN Global Compact
    5. 6. The Objectives <ul><li>Make the 10 principles part of business strategy, operations and culture everywhere </li></ul><ul><li>Facilitate partnerships toward UN goals – MDGs </li></ul><ul><li>Vision: </li></ul><ul><li>“ Sustainable and inclusive global economy” </li></ul>
    6. 7. How the Global Compact Works : The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption: <ul><li>Human Rights </li></ul><ul><li>Principle 1 : Businesses should support and respect the protection of internationally proclaimed human rights; and </li></ul><ul><li>Principle 2 : Make sure that they are not complicit in human rights abuses.   </li></ul><ul><li>Labour Standards </li></ul><ul><li>Principle 3 : Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; </li></ul><ul><li>Principle 4 : The elimination of all forms of forced and compulsory labour; </li></ul><ul><li>Principle 5 : The effective abolition of child labour; and </li></ul><ul><li>Principle 6 : The elimination of discrimination in respect of employment and occupation.    </li></ul><ul><li>Environment </li></ul><ul><li>Principle 7 : Businesses should support a precautionary approach to environmental challenges; </li></ul><ul><li>Principle 8 : Undertake initiatives to promote greater environmental responsibility; and </li></ul><ul><li>Principle 9 : Encourage the development and diffusion of environmentally friendly technologies.    </li></ul><ul><li>Anti-Corruption </li></ul><ul><li>Principle 10 : Businesses should work against all forms of corruption, including extortion and bribery. </li></ul>Organisational Change Actions, Projects Communication on Progress Leadership committee to embrace and enact
    7. 8. 3,200 companies from over 100 countries Global labour and civil society organizations Academic networks and other partners Global Compact Network Key Components Leaders Summit triennial UN GCO Agencies Governments Board Business Labour Civil Society Local Networks Forum Argentina (205) Brazil (164) U.S.A. (144) UK (91) Nordic Group (80) Spain (346) Italy (132) China (70) Switzerland (40) France (424) Egypt (38) India (121) Japan (47) GC networks GC networks with a governance model GC participants but no network Philippines (143) Panama (88) Peru (66) Bulgaria (73) Turkey (73) Sri Lanka (44) Mexico (195) Lithuania (39) Germany (82) <ul><li> </li></ul><ul><li>Smaller Networks: </li></ul><ul><li>Austria </li></ul><ul><li>Belgium </li></ul><ul><li>Bosnia and Herzegovina </li></ul><ul><li>Chile </li></ul><ul><li>Cameroon </li></ul><ul><li>Dominican Republic </li></ul><ul><li>Ghana </li></ul><ul><li>Hungary </li></ul><ul><li>Indonesia </li></ul><ul><li>Kazakhstan </li></ul><ul><li>Kenya </li></ul><ul><li>Macedonia </li></ul><ul><li>Mozambique </li></ul><ul><li>Netherlands </li></ul><ul><li>Nigeria </li></ul><ul><li>Poland </li></ul><ul><li>Romania </li></ul><ul><li>Singapore </li></ul><ul><li>South Africa </li></ul><ul><li>South Korea </li></ul><ul><li>Thailand </li></ul><ul><li>Ukraine </li></ul><ul><li>Venezuela </li></ul><ul><li>Zambia </li></ul>GC networks < 35 participants Colombia (60) Pakistan (61)
    8. 9. Country Networks
    9. 10. Financial Markets are Catching Up <ul><li>Beyond “Ethical Investing” (Screening) </li></ul><ul><li>Mainstream investment actors: </li></ul><ul><li>asset management firms </li></ul><ul><li>investment banking – sell-side analysts </li></ul><ul><li>pension funds – public and private </li></ul><ul><li>re-insurance companies </li></ul><ul><li>private equity </li></ul><ul><li>Stock exchanges – SRI Indices </li></ul><ul><li>Multilaterals: IFC (Equator Principles) </li></ul>
    10. 11. Financial Markets: Mission Critical <ul><li>Capital and finance drive global economy </li></ul><ul><li>New approach on Investor responsibility - Pockets of SRI, but not mainstream. </li></ul><ul><li>From “trading” to “investing”. </li></ul><ul><li>ESG factors material in long-range investing </li></ul>
    11. 12. Expanding Risk Management- Why? Geopolitical Regulatory Currency/Credit Peace/Social Environment Governance Terrorism Poverty Health/Disease
    12. 13. Short-Term focus…… Revenue Quarterly Earnings Cost Control Asset Deployment Misc. Business Success Drivers
    13. 14. …to a Longer-Term View Short-Term Drivers Environmental Social Corporate Governance Ethical Business Success Drivers
    14. 15. The Principles for Responsible Investment <ul><li>Developed by global institutions (public pensions) </li></ul><ul><li>Address investment mandates, ownership </li></ul><ul><li>Launch: 27 April, New York Stock Exchange </li></ul><ul><li>Global rollout: public and private funds </li></ul>
    15. 16. Who Cares Wins - Principles for Responsible Investment “ Better investment markets and more sustainable societies” US $5 Trillion aligned with PRI as of June 2006 New York Stock Exchange April 27th, 2006
    16. 17. Signatories to the Principles <ul><li>There are three main categories of signatory: </li></ul><ul><li>Commitment - top-level leadership of the organisation across the whole investment business. </li></ul><ul><li>Asset owners : </li></ul><ul><li>principal category - pension funds, government reserve funds, foundations, endowments, insurance and reinsurance companies and depository organizations - BT Pension Scheme, UN Pension Fund </li></ul><ul><li>Investment managers : </li></ul><ul><li>Investment management companies that serve an institutional and/or retail market and manage assets as a third-party provider) - ABN AMRO Asset Management, Advantage Asset Managers (Pty) Limited, SA. </li></ul><ul><li>Professional service partners : Organizations that offer products or services to asset owners and/or investment managers -FTSE-UK, Vigeo, France. </li></ul>
    17. 18. Principles for Responsible Investment (PRI) <ul><li>We will incorporate ESG issues into investment analysis and decision-making processes. </li></ul><ul><li>We will be active owners and incorporate ESG issues into our ownership policies and practices. </li></ul><ul><li>We will seek appropriate disclosure on ESG issues by the entities in which we invest. </li></ul><ul><ul><li>Ask for standardised reporting on ESG issues (using tools such as the Global Reporting Initiative) </li></ul></ul><ul><ul><li>Ask for ESG issues to be integrated within annual financial reports </li></ul></ul><ul><ul><li>Ask for information from companies regarding adoption of/adherence to relevant norms, standards, codes of conduct or international initiatives (such as the UN Global Compact) </li></ul></ul><ul><ul><li>Support shareholder initiatives and resolutions promoting ESG disclosure </li></ul></ul><ul><li>We will promote acceptance and implementation of the Principles within the investment industry. </li></ul><ul><li>We will work together to enhance our effectiveness in implementing the Principles. </li></ul><ul><li>We will each report on our activities and progress towards implementing the Principles. </li></ul>
    18. 19. The Global Compact - Benefits of Participation <ul><li>Good corporate governance - creation of an enabling environment for investment opportunities </li></ul><ul><li>Multi-stakeholder dialogue and problem-solving </li></ul><ul><li>Addressing issues before crisis ( e.g. Anti -corruption, environmental care ) </li></ul><ul><li>Manage globalization’s new risks/opportunities </li></ul><ul><li>Improved risk profile (legal liabilities) </li></ul><ul><li>Role of the private sector is central to national development and poverty alleviation - contribution to economic growth, income generation & etc. </li></ul><ul><li>Restore trust - corporate reputation - Trust-building in the developing countries </li></ul><ul><li>Public-Private sector alliance - partnership in infrastructure projects. </li></ul>
    19. 20. An invitation…….. <ul><li>“ Let us choose to unite the power of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations” </li></ul><ul><li>Secretary-General Kofi Annan </li></ul>
    20. 21. For more information, please visit: www. unglobalcompact. org

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