For more information about the event visit Business as an Agent of World Benefit homepage.
For more information about the Principles for Responsible Business Education click here.
Or for further information, please contact: Manuel Escudero at escuderom@un.org
Academic Institutions Agree to Develop Principles for Responsible Business Education
New York, 26 October 2006
Academic institutions from around the world have agreed to join forces with the United Nations Global Compact to develop Principles for Responsible Business Education, a framework for action for the academic community, based on the Global Compact’s ten principles in the areas of human rights, labour, environment and anti-corruption. The new principles are intended to help academic institutions function as a strategic partner in the advancement of good corporate citizenship worldwide.
The agreement was reached at the Business as an Agent for World Benefit Forum, held in Cleveland/Ohio this week. The Forum was organized by The Academy of Management, the Weatherhead School of Management at Case Western Reserve University, and the UN Global Compact. Among the institutions that agreed to participate in the project to draft the Principles for Responsible Business Education are the Academy of Management, the British Academy of Management, the Association to Advance Collegiate Schools of Business, the European Foundation for Management Development, the European Academy of Business in Society, as well as key initiatives in the field of responsible management education like the Global Responsible Leadership Initiative, Harvard University’s Social Enterprise Knowledge Network, the Caux Roundtable, and two global student associations, AIESEC and Net Impact.
As a next step, the Global Compact Office will convene a drafting group consisting of approximately 50 representatives from key stakeholders, the deans of Business Schools from both the developed and the developing world, and recognized scholars. The Principles will be launched at the Global Compact Leaders Summit, to be held in Geneva on 5-6 July 2007.
Following next year’s Summit, a Global Council for Responsible Business Education will be created as the body in charge of linking academic activities and local operations of the Global Compact in every country where the initiative is present. The Council’s goal will be to give new momentum to the development of learning capacities, stimulate new research, case studies, and provide technical support and added capacity to the Global Compact and responsible corporate citizenship worldwide.
For more information about the BAWB Forum, click here.
For more information, please contact: Manuel Escudero at escuderom@un.org
United Nations Secretary-General Sends Message to Business and Academic Communities
Cleveland, 23 October 2006
In a statement delivered 23 October 2006 by Georg Kell, Executive Director of the United Nations Global Compact, United Nations Secretary-General Kofi Annan presented his perspective on the role of business in advancing international peace and development, calling on the academic community to join in efforts to “sustain the momentum of the corporate responsibility movement”.
The opening statement was for the Business as an Agent of World Benefit Global Forum, held in Cleveland and convened by Case Western Reserve University’s Weatherhead School of Management, the Academy of Management and the UN Global Compact. The United Nations Global Compact, launched by the Secretary-General six years ago, has grown into the world’s largest voluntary corporate citizenship initiative with more than 3,000 participants in over 100 countries, offering a platform for learning, dialogue and partnership projects. As the Secretary-General stated, “the Compact has sought to make global markets more sustainable and inclusive”.
In his message, the Secretary-General further challenged the academic community “to establish a coalition committed to advancing the business case for responsible practices and universal principles”. The call to the academic community was coupled with the assertion that success is only possible when business can “operate in ways that benefit economies, societies and people everywhere”.
The Secretary-General’s comments will guide the dialogue at the Business as an Agent of World Benefit Global Forum, which runs through Wednesday, October 25.
For more information about the event visit
Business as an Agent of World Benefit homepage.
Meeting Addresses Discrimination and Equality in the Workplace
New York, 8 October 2006
On 6-7 October experts from companies,employer organizations, trade unions, non-governmental organizations and international organizations from around the world came together in London to discuss challenges and good practices related to implementation of Principle 6 of the UN Global Compact (elimination of discrimination in employment and occupation).
The Global Compact Policy Dialogue 2006 was convened by the International Labour Office and the UN Global Compact Office, with support from the London Development Agency.
Meeting workshops covered topics such as equal opportunities for men and women, ethnic discrimination, age discrimination, discrimination on the basis of HIV/AIDS status, and disability. A report is forthcoming.
The good practices, tools and examples highlighted at the event will be elaborated in a joint ILO/Global Compact publication entitled "Valuing Diversity" to be published early in 2007. Companies and other interested in contributing good practice examples to the publication are invited to contact the Global Compact Office.
Download the meeting program.
Your Guide to the 2006 Global Compact Policy Dialogue - Combating Discrimination and Promoting Equality
For more information, please contact: Ursula Wynhoven, UN Global Compact Office at wynhoven@un.org
UN Global Compact and Global Reporting Initiative Form Strategic Alliance
in Move to Further Advance Responsible Corporate Citizenship
Amsterdam, 6 October 2006
The world’s two most significant international corporate citizenship initiatives announced today that they have united in a strategic alliance aimed at providing the global private sector with an opportunity to embrace a responsible business strategy that is at once comprehensive, organizing, integrated and enjoys near or total universal acceptance.
The United Nations Global Compact and the Global Reporting Initiative (GRI) said they will undertake advocacy and other partnership efforts to encourage companies and corporate responsibility organizations to support the synergistic platforms of the Compact and the GRI.
While the UN Global Compact covers citizenship “implementation” through its 10 universal principles in the areas of human rights, labour standards, the environment and anti-corruption, the GRI’s new “G3” Sustainability Reporting Guidelines provide guidance on transparency and how to report on performance results.
Leaders in the corporate sector expressed their support for the new alliance.
“Responsible corporate citizenship stands a crucial crossroads. The embedding of values and principles into organizational strategies and culture has been widely embraced by a critical mass of corporations around the world” said Petra van Hoeken, Global Head of Sustainable Development at ABN AMRO. “However, a bewildering array of codes, standards, and initiatives have arisen resulting in a state of fragmentation with respect to corporate citizenship strategy and execution. This alliance provides companies with a focused approach, covering principles, implementation and reporting”.
Georg Kell, Executive Director of the UN Global Compact, said the natural synergies between the Compact and the Global Reporting Initiative, along with the sheer volume of participants in these initiatives globally, made them a logical starting point for bringing some consolidation and harmonization to the field.
“Companies participating in both initiatives have long stressed the understanding that the GRI is a practical expression of the Global Compact”, Kell said. “While organizationally the Compact and GRI will remain separate and distinct, we believe that this alliance will increase the value proposition for companies around the world”.
The UN Global Compact today includes more than 3000 companies and stakeholders from approximately 100 countries, while nearly 1000 organizations from around the world are using the GRI Guidelines as the basis for reporting.
The first practical expression of this alliance is the release today of a tool (available online and in print) entitled “Making the Connection: Using GRI’s G3 Reporting Guidelines for the UN Global Compact’s Communication on Progress.” This guide shows how Global Compact participants can use the G3 Guidelines to fulfill their commitment to the Compact by reporting on their progress implementing the 10 principles.
To reinforce the alliance between the UN Global Compact and the GRI, a “call to action” has been issued from both parties to other leaders in the field. “The objective is to mainstream responsible corporate citizenship in order to build a more sustainable and inclusive world economy”, said Ernst Ligteringen, Chief Executive of the Global Reporting Initiative.
As part of the launch of the GRI’s G3 Guidelines, leaders gather today in Amsterdam to discuss the “call to action” by the UN Global Compact and the GRI, and to begin to map the way forward. They include: Elisabeth Dahlin (Swedish Ambassador, Global Responsibility); Dan Gagnier (Senior Vice President, Alcan), Björn Stigson (President, World Business Council for Sustainable Development), Simon Zadek (Chief Executive, Institute of Social and Ethical AccountAbility), Georg Kell (Executive Director, United Nations Global Compact), and Ernst Ligteringen (Chief Executive, Global Reporting Initiative).
Download "An Alliance to Mainstream Responsible Corporate Citizenship: A Call to Action from the UN Global Compact and the Global Reporting Initiative".
For more information, please contact Matthias Stausberg of the UN Global Compact at stausberg@un.org.
For further information about the the Global Reporting Initiative visit http://www.globalreporting.org/
Financiers Convene in Zurich
New York, 3 October 2006
On 27-28 September more than 100 leading financiers and investment professionals gathered at the UN Global Compact's third annual Who Cares Wins conference, convened in Zurich, Switzerland, in partnership with the International Finance Corporation and the Swiss Department of Foreign Affairs.
The Global Compact launched the Who Cares Wins initiative in June 2004 with the aim of assisting the mainstream financial community with the integration of environmental, social and governance issues into investment analysis and management. The initiative has been endorsed by the CEOs of more than 20 of the world's largest investment companies and played a role in this year's launch of the Principles for Responsible Investment -- today endorsed by asset owners and asset managers representing more than $5 trillion (see www.unpri.org)
The third annual conference focused on the interface between investment analysts and corporations, with a number of senior executives of major companies in attendance.
"It is evident that better communication is needed between companies and the mainstream financial markets around the tenets and benefits of corporate citizenship", said Gavin Power, head of financial-markets initiatives at the Global Compact. "There is clearly an opportunity for companies to better explain how the implementation of their citizenship policies link to the value drivers of the business -- from the standpoint of both risks and opportunities. At the same time, analysts and fund managers have a role to play in encouraging companies to adopt relevant policies and disclose results in ways that are meaningful".
At the conference a document was released describing the major developments that have occurred in this field during the past year. (See below)
A full report of the conference will be published within the next several months.
Click here to access agenda of conference.
Click here to access list of participants.
Click here to access chronology of achievements.
Click here to access remarks by Gavin Power.
For more information, please contact: Gavin Power, Head of Financial Markets Initiative at powerg@un.org
GRI Conference to Feature Next Version of Reporting Guidelines
New York, 25 September 2006
On 5 October 2006, the Global Reporting Initiative (GRI) will officially launch the Third Generation (“G3”) version of the GRI reporting guidelines. The new comprehensive disclosure framework will assist companies and organizations alike to communicate their sustainability performance. The G3 Guidelines will be introduced during GRI’s three-day international conference “Reporting: A Measure of Sustainability” taking place in Amsterdam from 4-6 October 2006.
“The release of the G3 Guidelines is a significant development for everyone working to advance corporate citizenship,” said Georg Kell, Executive Director of the UN Global Compact, who will be speaking at next week’s conference. “The new guidelines enable companies to produce more effective, high-quality reports on responsible business practices – a step that strengthens our collective ability to create more sustainable and inclusive markets.”
For more information on the GRI conference, please visit http://www.grig3.org/
New Resource: Leadership Template to Maximize Engagement
New York, 20 September 2006
The UN Global Compact presents a unique and potentially powerful platform for participating companies to demonstrate true leadership with respect to corporate citizenship strategy and implementation.
To help companies maximize their engagement in the Global Compact – and, therefore, attain the greatest strategic benefits – the Global Compact Office has developed a Leadership Template, which outlines a comprehensive approach grouped into five categories: Internalization; Leveraging Global Supply Chain and UNGC Local Networks; Advocacy and Awareness; Partnerships and Collective Action; and Philanthropy.
“Many companies have asked us to suggest an outline for engagement that will help them realize their aspirations related to responsible corporate citizenship”, said Georg Kell, Executive Director of the UN Global Compact. “The Leadership Template is an answer to that request and should go a long way in assisting companies in their strategic leadership efforts, while also helping to build the capacities and resources of the Global Compact”.
Please click here to access the Leadership Template
For more information, please contact: Gavin Power, UN Global Compact Office at powerg@un.org
First Civil Society Coordinator Joins the Global Compact
New York, 11 September 2006
The Global Compact is gearing up its efforts to collaborate with civil society and has appointed the first Civil Society Coordinator for the initiative. Former Executive Director of Amnesty International in South Africa, Ms. Olajobi Makinwa, begins her engagement with the Global Compact this week.
Ms. Makinwa, originally from Nigeria, joins the Global Compact after having worked a number of years for Amnesty International in South Africa, initially as its Human Rights Education Coordinator and later as its Executive Director. She has extensive experience from several UN organizations, with particular expertise in the field of environment, development and human rights.
Civil society organizations have already made valuable contributions to the initiative. Currently there are 42 global and over 200 local organizations actively participating in the initiative. In addition, of the newly established Global Compact Board, four members represent civil society.
“As a multi-stakeholder initiative, it is of great importance that the Global Compact foster close cooperation with civil society organizations in a spirit of constructive collaboration”, says Ms. Makinwa. “I believe that deepening this crucial relationship will bring into the Compact fresh perspectives that will ultimately lead to the development of innovative approaches to responsible corporate citizenship.”
With the appointment of Ms. Makinwa, the Global Compact invites civil society organizations worldwide to engage more actively in the initiative, to participate in multi-stakeholder dialogues, to provide expertise on issues areas, and to assist in knowledge development that will contribute to enhance the quality and integrity of the Global Compact initiative.
Contact
For more information, please contact: Ms. Olajobi Makinwa at makinwa@un.org
Global FDI Set to Surge Past US$1trn in 2006, Despite Fears of Backlash
New York, 5 September 2006
World foreign direct investment (FDI) inflows in 2006 will reach some US$1.2trn, a 22% increase over the 2005 total of US$955bn, and the first time since 2000 that global FDI will have surpassed the US$1trn mark, according to World Investment Prospects to 2010: Boom or Backlash, released today. The report, published jointly by the Economist Intelligence Unit and The Columbia Program on International Investment (CPII), predicts that FDI flows will rise moderately through to the end of decade to US$1.4trn. However, it also cites a range of risks that could undermine this growth, and a backlash against FDI cannot be ruled out.
The report, which covers 82 countries, includes estimates of FDI flows in 2006, and also provides forecasts until 2010 for global and regional investment trends. Highlights include a contribution by Jeffrey D. Sachs, Director of the Earth Institute at Columbia University, on the policies that governments in developing countries should adopt to attract more FDI to promote their economic development as encapsulated in the United Nations´ Millennium Development Goals (MDGs). Says Sachs: "Increased FDI inflows will be vital to success in meeting the MDGs. FDI is needed to ensure the adequate job creation, capital accumulation and export growth required to end extreme poverty." Active investment promotion in particular is important.
Although FDI flows are expected to grow further, there are various indications that a number of developed countries (and increasingly also emerging markets) are re-evaluating the balance of costs and benefits of FDI. Warns Karl P. Sauvant, Executive Director of Columbia´s Program on International Investment: "It would be ironic if developed countries, which have led the liberalization drive in FDI policies during the past two decades, were to initiate a backlash against FDI.”
“We foresee neither boom nor backlash, but a period of constrained globalization. But there remain a range of potential risks—economic, political and geopolitical—which could undermine the globalization process, and with it FDI flows,” commented Robin Bew, Editorial Director for the Economist Intelligence Unit.
The main findings include the following:
- World foreign direct investment inflows surge in 2006, and will continue rising through to 2010. In 2006 FDI flows will reach some US$1.2trn, a 22% increase over 2005. Thereafter, global FDI flows will continue to rise, but the rate of growth is expected to slow. As a consequence, it will be 2010 before FDI flows again match the peak seen in 2000.
- Emerging markets will disappoint. The pattern of 2004-05, when emerging markets drove the global FDI recovery, will be reversed in 2006 and beyond. The bulk of inflows will be in the form of M&A between developed markets.
- The US is expected to be the world’s most powerful FDI magnet. The US will attract almost one-quarter of the world's FDI in 2006-10. But it is Europe which is the most outward looking region, with the EU remaining the largest direct investor in foreign markets. FDI flows will remain geographically concentrated. The top ten recipient countries are expected to account for more than two-thirds of global FDI inflows. In general, the developed world will attract most investment, but China, Brazil, Mexico, Russia and India all make it into the top 20.
- China will see the fastest rates of FDI growth. While the emerging markets as a whole will disappoint, FDI into Asia is expected to rise at rates comparable to those experienced in the mid-1990s. China will be central to the story. A large pipeline of commitments suggests that FDI into China will exceed US$80bn in 2006 and inflows expected to remain at or above that level over the medium term.
- Risks of an FDI backlash remain. Crossborder M&A deals are increasingly encountering resistance as host countries fear a threat to their national security, cultural identity or economic development. The European Commission's takeover directive was watered down compared to initial drafts, while there are two bills under discussion in the US Congress which would subject foreign takeovers to more rigorous scrutiny. Meanwhile, some emerging market governments have been questioning the terms of pre-existing contracts with foreign multinational firms operating in their countries. While these reactions to FDI do not yet add up to a backlash, the dangers of complacency are clear. Attitudes to FDI have changed in the past, and could do so again.
The full version of World Investment Prospects to 2010 is available
from http://www.store.eiu.com and is priced at £50/$95
A free Special Edition is available from http://www.eiu.com/wip or http://www.cpii.columbia.edu
About the Economist Intelligence Unit
The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through our global network of over 500 analysts, we continuously assess and forecast political, economic and business conditions in 195 countries. As the world’s leading provider of country intelligence, we help executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies. More information about the Economist Intelligence Unit can be found on the Web at http://www.eiu.com
About the Columbia Program on International Investment
The Columbia Program on International Investment (CPII), headed by Karl P. Sauvant, is a joint undertaking of the Columbia Law School, under Dean David M. Schizer, and The Earth Institute at Columbia University, directed by Jeffrey D. Sachs. It seeks to be a leader on issues related to foreign direct investment (FDI) in the global economy. The CPII focuses on the analysis and teaching of the implications of FDI for public policy and international investment law. Its objectives are to analyze important topical policy-oriented issues related to FDI, develop and disseminate practical approaches and solutions, and provide students with a challenging learning environment. More information about the Program can be found on the Web at http://www.cpii.columbia.edu
For more information please contact Matthias Stausberg, Global Compact Office, at stausberg@un.org.
Seminar on Responsible Investment in South Africa
New York, 1 September 2006
On the 30th of August, Unisa Centre for Corporate Citizenship (CCC) in co-operation with the UN Global Compact Regional Learning Forum started an initiative intended to educate the South African market about responsible investment with an interactive seminar featuring some of the most important players in responsible investment.
According to CCC director, Derick de Jongh, responsible investment is becoming an increasingly important issue globally, and also for South African companies. A number of leading company and investment management company representatives from South Africa participated in the event.
Key issues that were discussed at the seminar were the need to incorporate environmental, social and corporate governance (ESG) into investment decisions, the need to become an active asset owner and the need to seek appropriate disclosure from companies being invested in.
Download the full meeting report here.
For more information please contact Matthias Stausberg, Global Compact Office, at stausberg@un.org.
UNEP Produces First UN Sustainability Report
New York, 28 July 2006
The first UN entity has now prodused a report on progress made in critical areas of sustainability. The 2004-2005 Sustainability Report entitled ‘Learning by Doing’ presents a shapshot overview of the organizational sustainability performance of the United Nations Environmental Programme Division of Technology, Industry, and Economics (UNEP/DTIE).
The report has been developed by the internal Sustainability Team of UNEP/DTI over the last two years, following agreement by the UNEP Executive Director. The result presents a model that can be considered by other UNEP Divisions and UN offices, including UN managers involved in internalizing the UN Global Compact principles. It is the 1st sustainability report based on the GRI Guidelines by a UN office.
The report includes a number of references to the UN Global Compact, and presents for instance the following results:
- evidence of the indirect economic impact of the organization as can be seen in high benefit-to-cost ratios of investments in selected Rural Energy Enterprise Development (REED) projects;
- mission / travel-related, carbon dioxide emissions of 348 tonnes in 2004 and 406 tonnes in 2005 for the Paris office;
- an estimated 9,52 tonnes of office waste (paper, plastic containers, bottles etc) produced by the Paris office in 2005;
- early steps taken to green meetings, e.g. arranging public transport tickets for our major annual meetings’ participants;
- social performance findings from our 2004 “Express Yourself” employee survey with a 55% response rate, including the largest portion (30%) of respondents giving highest priority to further training in “computer skills”.
The report is a comprehensive, foundational report on which we can build. It will be posted on UNEP DTIEs website, as annex to the UNEP DTIE Activity and Performance Report. Alternatively, you can download the report here.
For more information please contact Matthias Stausberg, Global Compact Office, at stausberg@un.org.
