THE UN GLOBAL COMPACT

MODULE 1
ENVIRONMENTAL PRINCIPLES

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 INTRODUCTIONS
AND
ICE BREAKER

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 The Global Compact
Course Objectives

1. To introduce the Global Compact and its three

environmental principles – for existing and new members to
the Compact, as well as for prospective signatories

2. To convince managers that it is in their company’s interests

to undertake activities in support of the Global Compact

3. To help companies to develop strategies and programmes

that support the three principles

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 The Global Compact
Course Structure

Module 1 – Introducing the Global Compact (GC)

Module 2 – Business Case for the GC Environmental Principles

Module 3 – Understanding the GC Environmental Principles

Module 4 – From Principle to Practice

Module 5 – Business and Sustainability Initiatives: An Overview

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 The Global Compact
Background to the GC
Announced in a speech by UN Secretary General Kofi
Annan at the World Economic Forum in Davos,
Switzerland, in 1999
“I propose that you, the business leaders, and we, the
United Nations, initiate a global compact of shared values
and principles, which will give a human face to the global
market.”

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 The Global Compact
Understanding the UN Global Compact
– An international initiative designed to bring companies together
with UN agencies, labour, NGOs, and other civil society actors
with the aim of fostering action and partnerships for a more
sustainable and inclusive global economy

– Relies on the enlightened self-interest of companies, labour

organisations and civil society bodies to initiate and share
substantive action in pursuing the principles

– Seeks to provide a contextual framework to encourage innovation,

creative solutions, and good practices among participants

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 The Global Compact
Benefits of participating in the Global Compact
– Provides access to practical solutions to globalisation,
sustainable development and CSR problems

– By engaging, business leaders demonstrate leadership with

regards to responsible corporate citizenship

– Provides companies with access to UN expertise

– Offers simple framework for engagement without expensive

certification and intrusive monitoring

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 The Global Compact
Ten principles – based on inter-governmental agreements
– Human Rights
• Universal Declaration of Human Rights

– Labour
• ILO Declaration of Fundamental Principles & Rights at Work

– Environment
• Rio Declaration on the Environment

– Anti-corruption
• UN Convention Against Corruption

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 The Global Compact
The Environmental Principles

Business should:
7. Support a precautionary approach to environmental
challenges

8. Undertake initiatives to promote greater environmental

responsibility

9. Encourage the development and diffusion of

environmentally friendly technologies

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 The Global Compact
Key characteristics of the Global Compact
– A learning approach

– A diversity of actors and approaches

– A decentralised network

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 The Global Compact: Key Characteristics

A Learning Approach
– Learning focus on how business can respect universal
values

– Many ways to achieve goals

– Underlying objective of encouraging innovation and

creative solutions

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 The Global Compact: Key Characteristics

Diversity of Actors and Approaches

– Companies
– Business organisations
– Workers’ organisations
– NGOs (Human Rights, Environment, Development)
– Academic Institutions
– United Nations and the ILO

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 The Global Compact: Key Characteristics

A Decentralised Network

– The UN Global Compact Office (in New York) and

various agency focal points

– Not a large bureaucracy

– The Global Compact relies on the actions of those

involved

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 The Global Compact

The UNEP Division of Technology, Industry and Economics

Key activity areas of the UNEP DTIE:

Chemicals management http://www.chem.unep.ch/

Ozone management http://www.uneptie.org/ozonaction/

Energy and transport http://www.uneptie.org/energy/

Environmentally sound technologies http://www.unep.or.jp/

Economics, finance and trade http://www.unep.ch/etu/index.htm

Sustainable production & consumption http://www.uneptie.org/pc/home.htm

Industry outreach partnerships http://www.uneptie.org/outreach/business/business.htm

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 The Global Compact: Key Characteristics

The Global Compact is not:

– A code of conduct

– A mechanism to check compliance

– A mandatory set of guidelines

– A regulatory system

– An attempt to shift governmental responsibilities to

business

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 The Global Compact

Useful Additional References:

– UN Global Compact Resource Package
• www.uneptie.org/pc/pc/tools/globalcompact.htm

– Raising the Bar (edited by Fussler, C; 2004)

– Employer’s Guide to the Global Compact

• Developed by International Organisation of Employers (2001)
• www.ioe-emp.org/ioe_emp/pdf/

– Global Compact Self-assessment Tool

• Developed by Business for Social Responsibility (2004)
• www.bsr.org

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