The United Nations Global Compact is a strategic initiative that supports global companies committed to responsible business practices in human rights, labor, environmental sustainability, and anti-corruption. This UN-led movement advocates for activities aligned with sustainable development goals to build a better world.
Key Takeaways
- The United Nations Global Compact invites global corporations to commit to responsible business practices in human rights, labor conditions, environmental sustainability, and anti-corruption.
- The Compact outlines 10 foundational principles to guide these values.
- For instance, a corporation associated with the UN Global Compact might commit to providing free Wi-Fi access in underserved regions worldwide.
Embracing Ethics: Understanding the United Nations Global Compact
The UN Global Compact operates on 10 guiding principles that shape a company’s values and business strategies. These principles find their roots in the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the UN Convention Against Corruption. Member companies are encouraged to adopt practices benefiting both people and the planet while maintaining profitability with integrity.
The Pillars of Ethical Action: The United Nations Global Compact’s 10 Principles
As detailed on the UN Global Compact’s platform, the 10 principles for businesses include:
- Principle 1: Support and respect the protection of internationally proclaimed human rights.
- Principle 2: Ensure that business practices are not complicit in human rights abuses.
- Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining.
- Principle 4: Eliminate all forms of forced and compulsory labor.
- Principle 5: Abolish child labor.
- Principle 6: Eliminate discrimination in employment and occupation.
- Principle 7: Adopt a precautionary approach to environmental challenges.
- Principle 8: Conduct environmentally responsible activities.
- Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
- Principle 10: Fight corruption in all forms, including extortion and bribery.
Companies joining the Compact pledge to incorporate these principles into their strategies, culture, and operations and to share progress updates with stakeholders. Participation is voluntary and honors a commitment to these non-legally binding principles.
Acting Responsibly: Member Company Responsibilities of the UN Global Compact
Member companies are expected to act responsibly toward climate change, water and sanitation, energy, biodiversity, and agriculture. They need to understand the connection between environmental issues and social and developmental priorities.
The focus on social sustainability includes human rights concerning labor, women’s empowerment and gender equality, children’s rights, indigenous people, individuals with disabilities, and those living in poverty. While governments have the primary duty to protect human rights, businesses are encouraged to contribute positively or at least avoid causing harm.
Potential contributions to human rights by businesses include creating jobs, offering products and services that meet people’s basic needs, promoting policies supporting social sustainability, collaborating with other businesses, and making strategic social investments.
Unleashing Potential: Incentives for Businesses to Support the UN Global Compact
Businesses might join the Compact to strengthen relationships with customers, employees, and other stakeholders while avoiding regulatory issues. Companies may pursue being part of the Compact for the greater good besides recognizing that operating in poverty-stricken and unequal areas with weak rule of law can damage their reputation and financial performance.
Further dedication to sustainability can unlock advantages such as untapped markets, attracting and retaining business partners, creating novel products and services, and enjoying a lower-risk operating environment while boosting employee satisfaction and productivity.
An inspiring example of a member company’s sustainable action could be supporting inclusive, equitable, quality education and promoting lifelong learning opportunities for all. A company might team up with governments and other enterprises to create open-source technology to deliver education to unreachable communities and develop cost-effective learning resources for underfunded schools.
Related Terms: corporate social responsibility, sustainability, human rights, environmental responsibility.
