March 2007 VOLUME 2007 ISSUE 1  
Local Network News

Armenia   Belarus   Bolivia   Columbia   Georgia   Kenya   Korea   Mexico
Moldova   Nigeria    Poland   Spain   Sri Lanka   United Kingdom


Final Report of Annual Local Networks Forum Now Available

In November 2006, the final report of the 4th Global Compact Annual Local Networks Forum was released and is now available for download.



Armenia

Armenian Businesses and Civil Society Organizations Join the UN Global Compact
The United Nations Development Programme (UNDP), the Ministry of Trade and Economic Development of Armenia and 19 private companies and civil society organizations officially launched the UN Global Compact in Armenia in November 2006. Ara Petrsoyan, Deputy Minister and Consuelo Vidal, UN resident coordinator and UNDP resident representative presented the initiative to attendees at the ceremony in Yerevan.

At the event, two other important agreements were signed: The first one was on the establishment of an Arts and Crafts Training and Production Center for Disabled Children. Global Compact participants and UNDP partner K-Telecom/VivaCell decided to support this project. Also, a memorandum of understanding was signed with the Union of Manufacturers and Businessmen of Armenia to enhance cooperation with the UN Office in Armenia through a number of joint initiatives.

"UNDP strongly believes that private sector has a very crucial role to play in the development of the country and UNDP is partner in this sense," Ms. Vidal said in her speech. "We would like to invite more private sector companies to engage in this initiative and sign up to become members of the Armenian network. Jointly we can do more for your business, for Armenia and for its future."

For more information, please contact Mr. Aramazd Ghalamkaryan at aramazd.ghalamkaryan@undp.org


Belarus

Global Compact Launched in Belarus
In December 2006, over 170 participants representing business, government, civil society organizations and media launched the Global Compact in Minsk, Belarus. During the event, 26 Belarusian companies collectively committed to the principles and working jointly on establishing a Global Compact network in the country. Among the largest enterprises in Belarus have joined the initiative, including AtlantM from the automotive industry, Savushkin product from the diary industry, Milovitsa from the textile inndustry, as well as Belarusian Business Union of Entrepreneurs and Employers, and Coca Cola Belarus.

The event was attended by the Deputy Prime Minister of Belarus Mr. Andrei Kobyakov. Mr. Kobyakov said “Belarusian organizations have an experience of realization of social projects in different spheres, but the further implementation of the social oriented politics, which is allied to the Global Compact principles, is very important to our country”. He also expressed hope that the network would soon grow, including more companies from Minsk and other regions in the country.


 

Bolivia

Global Compact Launched in Bolivia
The Global Compact was formally launched in Bolivia on 14 November 2006, during the III Foro de Responsabilidad Social Empresarial organized by the Chamber of Industry, Commerce and Tourism. Thirty-five Bolivian companies of the mining, forestry, industrial, manufacturing, finance and banking sectors, subsidiaries of multinational companies, as well as academic institutions and civil society organizations committed themselves to the ten Global Compact principles. In the ceremony, the new participants handed over their letter of support to Dr. Manuel Escudero, Head of Global Compact Networks and to Mr. Alfredo Marty, Deputy Resident Representative of the UN system in Bolivia.

According to Alfredo Marty, “Bolivia is one of the countries in most in need of this type of initiatives. Democracy it is still weak in Bolivia, as a result of the fact that society has not reached an adequate degree of social and civic development in order to solve the problems of poverty, inequality and lack of social justice. The Global Compact reinforces local citizenship, and builds bridges between civil society and business in order to make possible a sustainable development."

Dr. Escudero emphasized that the Global Compact is a way of engagement where business demonstrate that “value for the company and for society can go hand in hand”. Concerning the specific situation in Bolivia, Dr. Escudero pointed out that “the current trend of political and social change in the country should not be seen by business as a threat but as a huge opportunity in order to legitimize the role of the private sector vis-à-vis Bolivian society”. In this context, he suggested three basic attitudes to business participating in the Global Compact: act always first with their own example; partner with civil society in projects where the role of business as good corporate citizens can be best illustrated; and establish open and frank dialogue with public authorities.

As a next step following the launch of the Global Compact, a Promotion Committee is being set up as a coordinating body of the GC Bolivian Network. Its purpose will be to decide on future collective activities and to increase the number of companies and institutions participating in the Global Compact.

For more information, please contact Mr. Alvaro Bazan, the GC Focal Point in Bolivia, at alvaro.bazan@emprender.org

Columbia

Regional GC Centre for Latin America and the Caribbean to be Established in Bogotá

On 6 February 2007, the Republic of Colombia’s Minister of Foreign Affairs, Mrs. Maria Consuelo Araujo, accepted the designation of Colombia as the seat of the Latin American and Caribbean Centre in support of the UN Global Compact. The ceremony was attended by the diplomatic representations accredited in Colombia, leading members of National Association of Colombian Employers (ANDI) and 70 executives of companies participating in the UN Global Compact.

Mr. Guillermo Carey, member of the UN Global Compact Board, and Dr. Manuel Escudero, Head of GC Networks, thanked the Colombian Government and ANDI for their initiative and support in locating the centre in Colombia.

According to Dr. Escudero, the Centre will serve three main purposes: first, as a regional platform for outreach to countries where the UN Global Compact still does not have a GC Network; second, for the consolidation, sustainability and capacity-building of existing Networks in the region; and, finally, for inspiring and enhancing collective action on the objectives of the UN Global Compact at the regional level. The Centre will also be a point of convergence, open to the new trends and initiatives in the region.

The Centre is the result of the outstanding dynamism and natural drive towards regionalization experienced by GC Local Networks in Latin America and the Caribbean. In that respect, it will have a strong link to national governing bodies of GC Networks, their activities and engaged companies. The Centre will have also a Founders Committee with the participation of key stakeholders and donors. It is expected that the Centre will be fully operational by September 2007.

For more information please contact Dr. Manuel Escudero at escuderom@un.org


Georgia

First Meeting of the Global Compact in Georgia

The first informal working meeting of the Global Compact local network in Georgia was held in Tbilisi on 19 December. Thirty four participants, a majority from the business sector joined by educational institutions and civil society organizations, discussed priorities of the new local network.

The meeting was chaired by Mr. Robert Watkins, UN Resident Coordinator. Among the outcomes were an agreement among companies to raise awareness about responsible business practices in view of companies’ plans to expand the economy and putting it on path of sustainable and competitive growth. Plans for the future include learning events where participants exchange experiences on good practices.

For further information, please contact Irakli Chkonia at irakli.chkonia@undp.org.ge or Nino Tavadze at nino.tavadze@undp.org.ge



Kenya

Kenya Network Launched as Platform for Public-Private Dialogue
In February 2007, A UN Global Compact Network was launched in Kenya as part of a larger Public-Private effort titled “A Compact for Nation-Building and Competitiveness”. The Kenya Network is being implemented by the United Nations Development Programme (UNDP) in partnership with the Federation of Kenya Employers (FKE), Kenya Association of Manufacturers (KAM) and the Kenya Private Sector Alliance (KEPSA).

In a statement delivered by Kenya’s Minister for Finance, President Mwai Kibaki said, “I welcome and appreciate the initiative taken by these associations, in working with my government to develop a partnership that sets the stage for a formalized framework for dialogue”. He announced the creation of a public-private forum to address the core issues affecting business in Kenya that will meet every two months, and will be chaired by the President at least twice a year. President Kibaki stated that in order for the country to achieve a targeted growth rate of ten percent in gross domestic product over the next 20 years, Kenya must adopt global practices that will focus attention on private sector development especially in manufacturing and services.

Mr. Kemal Derviş, UNDP Administrator and Chair of the UN Development Group, was in attendance and spoke of the need for governments to “regulate and create incentives for the private sector in such a way that business also delivers goods and services to the poor and engages the poor in the process”. He said businesses can contribute to inclusive growth and poverty alleviation in many ways, including strategic social investments, the development of innovative business models that deliver solutions, and philanthropic activities that lead to broader development priorities in countries and communities.

Nine companies signed on to the Global Compact during the event, bringing the total number of Global Compact Kenya Network members to twenty-one.

For more information please contact Lydia Murimi, UNDP Kenya, Gigiri, at lydia.murimi@undp.org


Korea

Multi-stakeholder Conference on the Global Compact in Seoul
United Nations Development Program (UNDP) and Korea Chamber of Commerce and Industry (KCCI) jointly hosted a seminar on “Corporate Social Responsibility and UN Global Compact” in Seoul, Republic of Korea, on 16 November 2006. Mr. Zhe Yang, Representative of UNDP, Mr. Kim Soon Mu, Chairman of Ethical Management Committee of KCCI, and Mr. Kim Sang-Yeol, President & CEO of KCCI welcomed some 100 representatives from Korean companies, business organizations, academia, governmental and non-governmental organizations, as host organizations.

Mr. Frederick Dubee, Senior Advisor of UN Global Compact Office, made a keynote presentation on UN Global Compact: “Currently, about 3,000 companies in 100 countries have joined the Global Compact, and about 50 local networks have been established in order to promote joint efforts to internalize the 10 Principles in the areas of human rights, labor, environment and anti-corruption and support broad United Nations goals, specifically the MDGs. However, in Korea, only 14 companies and organizations have joined the Compact, which is rather low considering the quality and business leadership of Korean companies.”

Mr. Thomas Thomas, Honorary Secretary, Singapore Compact for CSR, shared the experiences and good practices of Singapore: “In Singapore, the concept of CSR has been recently introduced, but about 140 companies and organizations joined the Compact, through which information sharing, joint education and training activities have been actively organized.”

Prof. Park Tae-kyu, Yonsei University, presented on “Current situation and challenges of CSR in Korea”:“CSR Standardization Process led by international organizations is expected to give considerable impact on private sector, and Korean companies need to voluntarily announce the roadmap of CSR to express their will and play an active role.”

In addition, a representative from Korea Electronic Power Corp., the first Korean company to support the Global Compact shared their experiences in working for sustainable business and implementing the Global Compact principles.

The Seminar provided a good opportunity for a well rounded exploration of CSR and the relevance of the UN Global Compact for Korean companies. This dialogue proved to be an important step in the preparation for the official Global Compact launch in Korea in early 2007.

For more information, please contact Ok-Soon Lee at ok-soon.lee@undp.org


Mexico

Mexican Global Compact on the Governors’ Agenda
The Mexican GC Network has developed a strategy to integrate state-level administrations as GC participants. As of December 2006, four states had joined the initiative: Chihuahua, Michoacán, Sonora and Yucatán. Also, a GC model for local and state-administrations is under construction in collaboration with the International City Management Association (ICMA).

The National Governors Convention (CONAGO) is the collective space in which the nation’s governors discuss strategic topics on the national agenda. At a recent CONAGO meeting, held on 16 February, UNDP Resident Representative Thierry Lemaresquier was invited for the first time to talk about UNDP programs and the Global Compact. Attending the meeting were Mexico’s President, Felipe Calderón, six State Ministers, and 28 of 32 governors. During the plenary session Mr. Lemaresquier outlined the GC principles as a tool to: enhance the competitiveness of states and the nation; and facilitate the articulation of public-private alliances that contribute to the reduction of social inequities and the construction of a favorable environment in today's increasingly competitive global economy.

For more information, please contact Diana Chávez at diana.chavez@undp.org.mx.


Moldova

Global Compact Launched in Moldova
Representatives from government, the private sector, civil society and the donor community met in November in Chisinau, Moldova, to launch a Local Network of the Global Compact and the Growing Sustainable Business (GSB) initiative. The network’s creation has been spearheaded by a group of leading companies in Moldova to promote corporate responsibility in the country. These include the State Winery “Mileştii Mici”, Sun Communications, COVOARE Ungheni, ROMPETROL, ACOREX WINE, BIOPROTECT, ARHICONI GRUP, MOLDCELL, VOXTEL, Moldova Agroindbank S.A., Union Fenosa, Endava and Efes Vitanta Moldova.

Among the issues discussed at the event were the benefits of participating in the Global Compact for companies in Moldova; particularly regarding the message that participation sends to consumers and the media about the company's interest in the welfare of its workers, society at large, and the environment. Also discussed were the potential of participation to enhance companies’ public recognition and strengthening their ties with government and non-governmental organizations. The event also familiarized participants with the Growing Sustainable Business mechanism, which facilitates business-led enterprise solutions to poverty and provides a framework through which the risks associated with specific private sector investments in developing countries can be mitigated. The discussions focused on how business can help Moldova improve its domestic investment environment, grow the domestic business sector and meet the development targets spelled out in the Economic Growth and Poverty Reduction Strategy (EGPRS).

Valeriu Streleţ, Chairman of the Global Compact network in Moldova said: “The Global Compact network in Moldova will play an important role in ensuring a continuous dialogue on the participation of the Moldovan companies in meeting the development priorities of the country and creating a better life for all citizens of Moldova”. Echoing this, Yusuf Baykan, General Manager, MOLDCELL said: "For us, Corporate Social Responsibility is important because we owe the success of our business to this country, to the people of Moldova".

For more information, please contact Ludmila Tiganu, Communications Officer UNDP Moldova, at ludmila.tiganu@undp.org


Nigeria

Corporate Social Responsibility in the 21st Century Nigeria
An international conference "Corporate Social Responsibility in the 21st Century Nigeria" took place in Abuja, Nigeria, on 5-7 March 2007. The conference was organized by the UN Global Compact Local Network in Nigeria. The meeting was attended by nearly 200 participants from all stakeholder groups, including a presidential representative, business executives and civil society.

In a message to conference participants, President Obasanjo underscored the importance of the Global Compact principles. He stated that the Global Compact “is one of the largest and most widely embraced voluntary corporate citizenship initiatives. I am pleased that a good number of Nigerian companies have signed on to the Global Compact principles and I want to encourage others who have not done so to join the Network for the good of the society.... Businesses can no longer shy away from their responsibility towards the preservation of the well-being of the people".

Please find more information on the conference website: www.unglobalcompact.com/NetworksAroundTheWorld/nigeriacsrevent/index.htm


Poland

Annual GC Workshop: "Does cooperation pay off?"
Representatives from almost 40 companies and organizations gathered in the PricewaterhouseCoopers Warsaw office to attend the Local Network's members and friends annual meeting on 9 February 2007. The goal of this workshop was to bring business, public, non-governmental organizations and media representatives together around the idea of corporate social responsibility. 
 
The meeting included a simulation game, designed to help participants reflect upon the common responsibility for the environment and to demonstrate the importance of communication between different market players in order to achieve long-term business, social and individual profits. 



Spain

Spanish Multinational GC Participants Launch MDG Campaign
In Janaury 2007, eleven Spanish multinationals participating in the Global Compact launched a campaign in support of the Millennium Development Goals (MDG) addressing 650,000 employees in over 100 countries, as well as 780 million consumers worldwide.

The campaign, entitled “2015, a better world for Joana”, was first introduced at the Forum for Corporate Reputation (Foro de Reputacion Corporativa) in Madrid on 11 January, in a ceremony chaired by Her Royal Highness, Princess Cristina of Spain and her husband, the Duque of Palma. Joanna is the name of a nine-year-old Spanish girl who symbolizes millions of children around the world who will reach the age of 18 in 2005, the target year for the achievement of the MDGs. Until then, Joana will be the voice and the conscience of the MDGs.

The companies co-sponsoring the campaign are Abertis, Grupo Agbar, BBVA, Ferrovial, Gas Natural, Iberdrola, Iberia, Novartis, RENFE, Repsol YPF, and Telefonica. Cesar Alierta, Chairman of Telefonica and Chair of the Foro de Reputacion Corporativa in 2006, explained that the campaign idea followed from the companies’ commitment to good corporate citizenship and to partnership with the UN in order to create wealth and well-being in all their countries of operation.

Mr. Soren Petersen, representing the United Nations Development Programme (UNDP) at the event, highlighted the importance of partnerships with the private sector for the achievement of the MDGs. Dr. Manuel Escudero, speaking on behalf of the Global Compact, emphasized the unique importance of the campaign while explaining that the MDGs and the Global Compact represent two sides of the same coin, as the MDGs will only be reached with the active participation of companies that have embraced the cause of corporate citizenship.

For more information on the campaign, visit http://www.2015unmundomejorparajoana.com/en/ or contact Dr. Manuel Escudero at escuderom@un.org


Sri Lanka

Sri Lankan Accounting Organization to Facilitate Local GC Growth
In December 2006, the Chartered Institute of Management Accountants Sri Lanka Division (CIMA SL) and the Global Compact Office announced an agreement to collaborate on awareness-raising efforts with companies in Sri Lanka about the corporate citizenship initiative. With the support of the Global Compact Office, CIMA SL will organize and conduct outreach events and training programs focused on the Global Compact. Additionally, CIMA SL plans to assist companies with the practical implementation of the ten principles into business practices. A focus of their efforts will be to train Sri Lanka-based Global Compact participants on compliance with the Global Compact’s annual reporting requirement – the Communication on Progress (COP).

In association with the soon-to-be established Global Compact Network in Sri Lanka, CIMA SL will recognize business organizations with an annual awards program for responsible corporate practices in each of the core principle areas – human rights, labour, environment and anti-corruption.

For more information, please contact Melissa Powell at powell1@un.org or Aruna Alwis at Colombo@cimaglobal.com


United Kingdom


UK Network Launches New Website

A new website for the Global Compact Network in the UK was officially launched on 6 December 2006, at a reception hosted by the Foreign and Commonwealth Office on behalf of the UK Local Network. The new website, developed jointly by the International Business Leaders Forum (IBLF) and the UK Local Network, is designed to improve communication among the Global Compact participating companies in the UK and will serve to promote the Global Compact in the United Kingdom. Around 50 executives from UK companies attended the event.

The reception was officially opened by the Minister of State at the Foreign and Commonwealth Office, Dr. Kim Howells, speaking about the relevance of the principles, particularly on corruption, for UK companies and about the support of the UK government for the Global Compact.

Marcia Balisciano, of Reed Elsevier and Head of the UK Network Communications Group, presented the key features of the website. The site provides information on the Global Compact and on the 38 companies participating in the UK Network. In addition, the site contains case studies of how some of the companies apply the Global Compact principles. The website also includes a membership page that provides information about UK Network activities for the Local Network participants.

Visit the UK website:
http://www.ungc-uk.net/

For more information about the UK network contact Cecilie Hultmann, hultmann@un.org

 


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The Ten Principles

The Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:

• 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
• The United Nations Convention against Corruption


View the 10 Principles


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About the Compact Quarterly


The Compact Quarterly endeavors to provide Global Compact participants, stakeholders and observers with a range of thought-provoking articles, interviews and updates on topics related to the initiative, as well as to corporate responsibility in general. Produced by the Global Compact Office, the Compact Quarterly is published four times a year in electronic form. A printed compendium of the Compact Quarterly is produced at the end of each calendar year.

2007 SCHEDULE: Due to the Global Compact Leaders Summit (July 2007), the Compact Quarterly will be produced only three times in 2007. Issues of the publication are scheduled for release in March, September and December. A regular schedule will resume in 2008.

Readers are encouraged to contact Carrie Hall, Editor, at hallc@un.org with comments and suggestions, as well as to express interest in contributing to future issues of the Compact Quarterly.

Editor's Note

For more information on the Global Compact, please visit our website at www.unglobalcompact.org.

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