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8 section c group 8 - un global compact - 6 march 2014 - v1
- 1. Global CSR Reporting Standards Group8 – Section C Asif Hussain – 13P132 Chirag Nepalia – 13P137 Prabudh Jain – 13P155 Raman Mahajan – 13P160 Rochak Mathur – 13P163 Tarush Baldhi – 13P178
- 2. Table of Contents •Beforethe UN Global Compact •UNGC •Global Compact Network India •Case Study - Tata
- 3. UN GLOBAL COMPACT,1999 Without support, Globalization would remain elusive Possible to have mutually supportive goals Focus on Human rights, Labour standards and Environmental practices Imbalance would lead to social, economic and political crisis for many countries Kofi Annan’s Speech –
- 4. Reasons Path already laiddown Businessmen and women can make a real difference Sensitive areas if not paid attention, might lead to threat to multilateral trade Would replace restrictions and sanctions Mr. Kofi Anan, ex-UN General Secretary
- 5. Ways to implementit Traditional International Policy Arena Give resources and Let UN frame policies Integration is possible through UN The United Nations High Commissioner for Human Rights (UNHCHR) The International Labour Organization (ILO) The United Nations Environment Programme (UNEP)
- 6. Continued…. Modern approach more Impactful Direct implementation on yourown Through CSR activities in corporate sphere Creates more impact
- 7. Code of Conduct Upholdhuman rights in your organization both locally and globally Take initiative and implement good practices even in countries not having such laws No bonded labor or child labor, no exploitation of labor No discrimination based on race, creed, gender, ethnic or color Development of environment friendly technologies Empathetic in crisis – i.e. 2008 financial crisis
- 8. Contd.. No exploitation duringtimes of misery or crisis No victimization of poor or third world countries If not followed, it might lead to various “isms” like • protectionism; populism; nationalism; ethnic chauvinism; fanaticism; and terrorism.
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- 10. UN Global Compact Apolicy framework and a practical framework for companies that are committed to sustainability and responsible business practices Seeks to align business operations and strategies everywhere with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption What is it? AIM • Mainstream the ten principles in business activities around the world • Catalyze actions in support of broader UN goals, including the Millennium Development Goals (MDGs) Complimentary Objectives It is not a regulatory instrument, but rather a voluntary initiative that relies on public accountability, transparency and disclosure.
- 11. UNGC Fact Sheet •Office of the High Commissioner for Human Rights (OHCR) • ILO • UNODC • UNDP • UNIDO • UNIFEM 8000 corporate participants 140 countries 101 local networks Supporting UN institutions
- 12. The Ten Principlesof UN Global Compact (1/2) Labour Principal 1: RESPECT and support the protection of internationally proclaimed human rights Principal 2: ENSURE that they are not complicit in human rights abuses Principal 3: SUPPORT freedom of association and recognize to open collective bargaining Principal 4: ELIMINATE all forms of forced and compulsory labour Principal 5: ABOLISH all forms of child labour effectively Principal 6: ELIMINATE discrimination in respect of employment and occupation
- 13. The Ten Principlesof UN Global Compact (2/2) Principal 7: SUPPORT a precautionary approach to environmental challenges Principal 8: DEVELOP initiatives to promote greater environmental responsibility Principal 9: PROMOTE the development and diffusion of environmentally friendly technologies Principal 10: FIGHT corruption in all of its forms including extortion and bribery Environment Anti- Corruption
- 14. Benefits of Participation Establishedand globally recognized policy framework Sharing best and emerging practices to advance practical solution Advancing sustainability solutions in partnership with a range of stakeholders Linking the value chain with the UN Global Compact’s Local Network around the world Access to the UN’s extensive knowledge and experience with sustainability and developmental issues Utilizing UN Global Compact management tools and resources in the environmental, social and government realms
- 15. Participation in UNGlobal Compact • Make its principles an integral part of business strategy, day-to-day operations and organizational culture • Incorporate its principles in the decision-making process of the highest level governance body • Engage in partnerships to advance broader development objectives • Integrate in its annual report a description of the ways in which it implements the principles and supports broader development objectives • Advance responsible business practices through advocacy and active outreach to stakeholders Corporate Commitment • Sends a letter signed by the chief executive to the Secretary-General of the UN, expressing support for the Global Compact and its principles • Complete the online registration form on its website and uploads a digital copy of chief executive’s letter of commitment Method of Joining Financial Contributions Annual Sales/Revenue Suggested Contribution >= USD 1 billion USD 10,000 USD 250 million – USD 1 billion USD 5,000 < USD 250 million USD 500
- 16. Maximizing Engagement Local Networks •Local network in over 80 countries • They support companies in implementing Global Compact while creating opportunities for further engagement • Play a key role in facilitating participant’s communication on progress and safeguarding its overall integrity and brand Dialogues and Learning • Fostered and promoted dialogue between business and other stakeholders around critical challenges • These dialogues take place at global, regional and local levels Specialized Workstreams • Launched several specialized work streams on critical issues like climate change, water and management education • Offered participants additional engagement opportunities, aiming to advance both practical solution and sensible public policy development Partnership Projects • Identify common ground between private and public sectors, and to combine their resources, skills and expertise to improve results • Partnership focus where both sectors can engage in a win-win situation, such as poverty reduction, health, education and community development
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- 18. Amsterdam Declaration on Transparencyand Reporting, 2009 • Adopted by the Board of the Global Reporting Initiative • Asks governments to introduce policies on reporting on ESG performance by companies (environmental, social and governance) or explain why companies have not done so • Mr. Kishor A Chaukar, MD, Tata Industries, was a director on the board • GRI promotes the use of sustainability reporting • The Framework proposed by GRI (which includes the Reporting Guidelines, Sector Guidance and other resources) enables greater organizational transparency and accountability
- 19. ISO 26000 • Itis an offer, voluntary in use, and encourages organizations to discuss their social responsibility issues and possible actions with relevant stakeholders • Sustainability can be targeted by either legislation or complete freedom; ISO 26000 is like a middle path • It promotes respect and responsibility based on known reference documents without stifling creativity and development It’s a guideline, not a requirement standard; hence it can’t be certified Note
- 20. UNGC – TheIndian Context
- 21. UNGC India • GlobalCompact Network India (GCNI) is a platform, for businesses, private sector organizations, civil society organizations public sector and institutions UNGC’s Indian local network was launched in December 2000 Registered as a legal entity as ‘Global Compact Network India’ in 2003 GCNI currently has its local chapters in 5 major Indian cities Mumbai (2009) Hyderabad (2010) Chennai (2012) Kolkata (2013) Bangalore (2013) Timeline for local Chapters
- 22. Objective • ‘To expandand extend the Global Compact Movement in India and scaling up of the efforts to bring together the organizations, companies and corporate on a platform to facilitate mutual sharing and learning’ • It is a platform to display commitment to CSR nationally and internationally
- 23. GCNI Initiatives India CEOforum on Human Rights, Women Empowerment Principles National Convention Monthly meetings Lectures Ethical Corporate Governance project The UNGC Collective Action Project was launched in five countries, Nigeria, South Africa, Brazil, Egypt and India UNGC Collective Action Project • Road map to increase awareness on anti-corruption strategies among key stakeholders in India • The project activities include research study, seminars, workshops, and national and stakeholder consultations.
- 24. Structure • Governing Councilelected every two years by members • The Governing Council members include President, Vice Presidents representing four regions (North, South, East, West), Treasurer, Secretary, co-opted members and special invitees. • GC meets in practice once every four months, in a meeting convened by the Secretary Governing Council Administration Committee Meets six times a year or as the need may be. Council Representatives from Coal India, EIL, M&M, JSW, BHEL, IOCL, SAIL, TCS, CII, FICCI, AIMA Current President Mr. Sudhir Vasudeva Chairman & MD, ONGC
- 25. Reporting by GCNIto UNGC • Achievements are reported to the UNGC on an annual basis to through the report on Communication of Progress (CoP). It contains: A measurement of outcomes and the results that have been achieved Expressing continuous support to the initiative and the principles of the Global Compact Description of actions taken by the company to implement the Global Compact principles in the areas of human rights, labor, environment, anti-corruption
- 26. Membership Fees Membership Category Entrancefees (in Rs.) Annual Fees (in Rs.) Lifetime Membership (in Rs.) 1 Corporate Members Upto Rs. 500 Crores in the preceding year 25,000 25000 2,50,000 2 Above ` 500 Crores 50,000 50,000 5,00,000 3 SME Members 10,000 10,000 1,00,000 4 Institutional Members 10,000 10,000 1,00,000 5 NGO Members 10,000 10,000 1,00,000 Source: Global Compact India Website
- 27. Some members ofGCNI
- 28. Critique’ of UNGC •Low level of monitoring and enforcement • No mechanism to issue sanctions against non- compliant organisations • Membership is based on money paid and not deeds • Admission of companies with questionable human rights records • Result – MNC’s can use the image of UN for PR purposes Barrick Gold, the Canadian mining giant joined the Global Compact in 2005 • Violated human and environmental violations in Papua New Guinea and Tanzania • Additionally, Barrick Gold was fined for USD 16 million for environmental violations in the Chilean- Argentinean border region. Example
- 29. Case Study -Tata
- 30. Let industry establishedin the countryside adopt villages in its neighbourhood. It is clearly in its interests that the surrounding areas be healthy, prosperous and peaceful. J.R.D. Tata I believe that the Tata Group has long held the view that our companies are not in existence just to run our businesses and make profits, but that we are responsible and good corporate citizens over and above our normal operations. Ratan Tata Founder’s Vision Carried Forward Even Today
- 31. Group companies areencouraged to: • Demonstrate responsibility and sensitivity to biodiversity and the environment in which they operate • Comply with regulations relating to environment • Apply state-of-the-art processes to comprehensively address larger issues of climate change and global warming • Continually illustrate performance in preventing pollution, ensure the optimum use of resources, and minimise harmful impacts of products and production processes throughout the supply chain • Create sustainable livelihoods and build community outreach programmes in health, education, empowerment of women and youth, employee volunteering, that can be measured in terms of their having more lasting benefits, serving a larger national or regional purpose, and also making it more meaningful to all involved in the endeavour Group CSR Policy
- 32. TATA Code ofConduct- Mandates good governance and ethical behaviour by organisations and employees TATA Council for Community Initiatives- Provides the superstructure for CSR efforts across the group First signatory of the UN Global Compact Founder-Member of the Global Business Coalition on HIV/AIDS Member of the Global Reporting Initiative Board- First Indian Company to publish a CSR report as per GRI guidelines Group CSR Policy- Implementation
- 33. Source: TCCI, Feb2008 Tata Corporate Sustainability Leadership Profile: Process of Deployment
- 34. • Climate changeincorporated as an area of emphasis in the Tata Business Excellence Model (TBEM) assessment • 100% treatment of waste water, discharged it from the point of collection • “Thousand Trees for Thousand Days”- Millennium gift for future generations, resulted in 1.6mn trees being planted • Significant reduction in raw material consumption • All production units, town services certified to ISO:14001 Environment Management Standards Sustainable Business Strategies
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- 36. Interesting Reads • TheUN Global Compact-Accenture CEO Study on Sustainability 2013 • Anti corruption guidance material – UNGC website • GCNI Annual Report, 2012-13 • Tata Council for Communities Initiative
- 37. Questions to theclass • How can UNGC impose sanctions in its current state? • How can GCNI work with the government to efficiently use the opportunity provided by the New Companies Act? • Should MDI be a part of it? - Xavier Institute of Management and Entrepreneurship is….
- 38.