Ideally, the driver for a Global Compact Local Network should be national company signatories, but in almost every case it depends on a dedicated and enthusiastic individual to take the initiative and gather other signatories and stakeholders. Experience in the current 70+ Local Networks varies considerably. Sometimes, as in the United Arab Emirates, the driving force is an energetic individual from an environmental organization keen to join with business to address local issues. In others it may be the Global Compact Office, a representative of a UN agency such as the United Nations Development Programme (UNDP) or even a government minister who sees the great value of the Global Compact and encourages local companies to join.
Not surprisingly, depending on the initial driver, one or more stakeholder groups may be poorly represented initially. For example, labour is too often not a participant. The reasons vary from network to network. Sometimes it is because business in a given country does not naturally sit down with representatives of labour organizations and thus does not make great efforts to invite them to join. At other times, when invited labour organizations are lacking resources or relevant information and need convincing of the value of engaging with the network. Efforts need to be made all around. And, unfortunately, there are a number of countries where the formation of labour organizations is discouraged by governments or actually against the law. In spite of these difficulties, the Board of the Global Compact is absolutely clear that the objective is that every Local Network should be truly multi-stakeholder in nature and practice. We should steadily work towards this objective.
2. Although each of the ten principles of the Global Compact is of equal priority, the degree of shortfall in the application of a particular principle will vary from country to country. For example, in some countries it may be working conditions or even forced labour in certain sectors of the economy. In another, it might be the environment or discrimination and human rights. And all too often, corruption in its many forms destroys trust and undermines sound business practices.
Regrettably, in some countries there may be serious shortfalls in all of these. In a truly multi-stakeholder Local Network it is often possible, within the framework of local culture and practice, to agree and prioritize actions by different groups to make progress.
Take, for example, the participation of labour or free association of workers, which too often are thorny issues for networks. Indeed, it is important to the sound and sustainable functioning of any business that all those within it can express their views freely and gather to discuss matters relating to the business and employment. Thus, in line with Global Compact Principle 3, I believe it is incumbent on any business to support – in principle – free association in every country. Of course, business and other stakeholders should express such views in line with the culture of the country concerned and not in an aggressive or confrontational way. Similarly, when employees democratically elect collective representation, this should be respected. While recognizing that business must not create any impediment to collective bargaining, I absolutely do not take the position adopted by some labour colleagues that it is incumbent on signatories of the Global Compact to promote collective bargaining.
It is my personal view that while members of a company should be free to choose how they wish to conduct discussions on matters of employment, in a perfect world of free and open communication within organizations, organized labour would be unnecessary. Of course, in many cases we are very far from being in the world of open communication towards which we should strive. In the interim, in the absence or restriction of union activity, it remains particularly important that employees be given the opportunity to discuss freely with their colleagues and with management (who are often also employees) ways of making work more effective, harmonious, inclusive, safe and flexible. Local Networks can play an important part in demonstrating best practice and showing the way towards improvements in the workplace in any culture.
3. A further important characteristic of Local Networks relates to the nature of reporting on implementation of the Global Compact principles through the Communications on Progress (COP). Small companies sometimes find it burdensome to develop a COP. Yet, unless we measure progress we are unlikely to know whether or not the situation is improving, or even regressing. It is quite possible for a Local Network to help businesses address a particular critical issue, perhaps one relating to working conditions or the environment, by advocating certain practices as preferred or leading. Progress could then be measured by the proportion of members that adopt such a practice. In this way, progress could be reported and monitored collectively rather than individually.
Additionally, Local Networks are in a good position to advise on another COP-related issue that currently has no clear boundaries: the need for reporting by local subsidiaries of global companies. There are cases where different business divisions of a global company report locally, but for others it may not be compatible with operational structure. But where a global company is a major player in a local economy, it would be strange not to have some local report on the interaction of that affiliate with the local economy and society.
Similarly, when questions arise over the compatibility of a particular company’s practices or performance with respect to the Global Compact principles, Local Networks can provide a forum for discussion and, hopefully, resolution of such disputes.
4. Local Networks are an ideal place to get collaborative actions off the ground – to initiate partnerships and projects that bring together the complementary strengths of the participants and the stakeholders of the network. There is now an impressive record of activities underway locally that tackle many challenges, ranging from anti-poverty projects and community investments to supply chain initiatives and environmental action. Many networks have shown that when participants work together, the Global Compact is at its strongest and impact is greatest.
