2. Table of Contents
•Before the 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 laid down
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 implement it
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)
7. Code of Conduct
Uphold human
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 during times 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.
10. UN Global Compact
A policy 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 Principles of 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 Principles of 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
Established and 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 UN Global
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
18. Amsterdam Declaration on
Transparency and 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
• It is 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
21. UNGC India
• Global Compact 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 expand and 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 CEO forum 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 Council elected 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 GCNI to 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
Entrance fees
(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
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
30. Let industry established in 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 are encouraged 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 of Conduct- 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, Feb 2008
Tata Corporate Sustainability Leadership Profile:
Process of Deployment
34. • Climate change incorporated 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
36. Interesting Reads
• The UN 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 the class
• 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….
