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Business Participation
The United Nations Global Compact presents a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship. Structured as a public–private initiative, the Global Compact offers a policy framework for the development, implementation and disclosure of sustainability principles and practices related to its four core areas: human rights, labour, the environment and anti-corruption. Indeed, managing the enterprise risks and opportunities related to these areas is today a widely understood aspect of long-term “value creation” — value creation that can simultaneously benefit the private sector and societies at large.
With over (7700 business participants) and other stakeholders from more than 130 countries, the Global Compact offers participants a wide spectrum of specialized workstreams, management tools and resources, and topical programmes and projects — all designed to help advance sustainable business models and markets in order to contribute to the initiative’s overarching objective of helping to build a more sustainable and inclusive global economy.
The Corporate Commitment
The Global Compact is a leadership initiative, involving a commitment by a company’s Chief Executive Officer (or equivalent), and supported by the highest-level Governance body of the organization (eg, the Board).
Participation in the Global Compact is a widely visible commitment to the implementation, disclosure, and promotion of its ten universal principles. A company joining the initiative is expected to:
Make the Global Compact and its principles an integral part of business strategy, day-to-day operations and organizational culture;
Incorporate the Global Compact and its principles in the decision-making processes of the highest-level governance body (i.e. Board);
Contribute to broad development objectives (including the Millennium Development Goals) through partnerships;
Integrate in its annual report (or in a similar public document, such as a sustainability report) a description of the ways in which it implements the principles and supports broader development objectives (also known as the Communication on Progress); and
Advance the Global Compact and the case for responsible business practices through advocacy and active outreach to peers, partners, clients, consumers and the public at large.
Financial Contribution
In addition to these actions, participating companies are asked, upon endorsement, to make a regular annual financial contribution to help support the work of the Global Compact. The general contribution levels are set as follows:
For companies with annual sales/revenues of USD 1 billion or more, the suggested annual contribution is USD 10,000;
For companies with annual sales/revenues between USD 250 million and USD 1 billion, the suggested annual contribution is USD 5000;
For companies with annual sales/revenues of less than USD 250 million, the suggested annual contribution is USD 500.
Companies are asked for these annual contributions as part of their participation in the Global Compact. (Additionally, sponsorship opportunities are available related to events and specialized workstreams.) The Foundation for the Global Compact, a registered 501(c)(3) organization, serves as the financial intermediary for all contributions.
Benefits of Participation
Participation in the Global Compact offers numerous benefits:
Adopting an established and globally recognized policy framework for the development, implementation, and disclosure of environmental, social and governance policies and practices.
A platform to share and exchange best and emerging practices to advance practical solutions and strategies to common challenges.
The opportunity to advance sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labour, and other non-business interests.
The opportunity to link business units and subsidiaries across the value chain with Global Compact Local Networks around the world — many of these in developing and emerging markets.
Access to the UN’s extensive knowledge of and experience with sustainability and development issues.
Utilizing Global Compact management tools and resources, and the opportunity to engage in specialized workstreams in the environmental, social and governance realms.
The Importance of Voluntarism
A more detailed analysis of the benefits of participation in the Global Compact can be found in The Importance of Voluntarism — which also focuses on the importance of voluntary initiatives as complements rather than substitutes for regulatory regimes.
http://www.unglobalcompact.org/HowToParticipate/Business_Participation/index.html
(Last Update 18 May 2010)