The Global Compact exists to close the gap between the outcomes of globalization and the needs of humanity. Nowhere can this disparity be seen more clearly, or is the work we do more urgent, than in Africa – a region which has been almost completely bypassed by globalization. Recent statistics paint a frustrating picture for human development in Africa – as indicated by health, education and income – particularly in Sub-Saharan Africa which accounts for 42 of the continent's 54 countries.

According to the UNDP's Human Development Report 2005, "in Sub-Saharan Africa the lethal interaction of economic stagnation, slow progress in education and the spread of HIV/AIDS has produced a free fall in [human development]". Perhaps one on the report's most stark findings is that "the chances of survival in Sub-Saharan Africa are not much better than in 1840s England".

Fortunately, these statistics do not tell the whole story; there are encouraging developments occurring across the continent. A rise in democracy and increases in foreign investment, however modest, are beginning to change the landscape for business, creating more opportunities for both small entrepreneurs and large companies. There is a growing consensus that, in the words of Secretary-General Kofi Annan, "it is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering". Therefore, promoting and supporting responsible entrepreneurship is the most effective way of overcoming poverty and improving human conditions. It is the surest, and arguably the safest way, to achieve successful development. Many articles in this Compact Quarterly provide direct evidence to support this view.

But responsible business practices will provide benefits to society only in an enabling environment. Business cannot grow or become competitive if public institutions are failing or ineffective. Men and women will not even attempt to grow their informal businesses into thriving small or medium-sized enterprises if bureaucrats punish them by seeking rents instead of offering effective support. Creating incentives in support of responsible entrepreneurship remains a huge challenge, but it is also holds the promise of enormous rewards.

The potential for improvement is greatest where the role of business is least established in society. And so, as the UN Global Compact prepares for our 4th International Learning Forum (Accra, Ghana on 22 - 24 November), we sincerely hope that by showing how businesses – large and small, foreign and local – can grow and prosper in Africa despite the many risks and challenges, we will give greater recognition to the fundamental role of business in society and thus help reinforce positive developments. A forthcoming publication, Africa Leads, will document the enormous entrepreneurial spirit that grows even where conditions are challenging.

The Global Compact firmly believes that through widespread replication of good business practices and the appropriate public policy to foster a more business-friendly climate, the statistics – and more importantly billions of lives – will improve.

Sincerely,

Georg Kell
Executive Director

Guinea – home to a third of the world’s known supply of the raw material for aluminum – is one of the world’s ten poorest countries. Many residents, like those in the village of Lamarana Diop, live much like their ancestors of a century ago. All that is about to change. Lamarana Diop is in the 700-square-kilometer concession area of Global Alumina, a Canadian-registered company, which is building a refinery to process bauxite into alumina. Journalist Tami Hultman explores the wide-ranging, positive impacts on society that could occur if Global Alumina manages to reach its explicit goal of setting a new standard for social responsibility, both for the water, land and air that have suffered from the caustic by-products of mining – and for the people who live near the operations.

Futhi Mtoba, Chairman of Deloitte Southern Africa, provides a look at where the corporate responsibility movement stands in South Africa, particularly as it relates to poverty alleviation. According to Mtoba, there is general understanding, and even genuine desire on the part of business to “do something”, but for various reasons implementation is lacking. One solution for increasing momentum, says Mtoba, is to develop better methods of measuring the impact on the ground resulting from good business practices and programs. Otherwise, “it remains simply an exercise in throwing money at the problem” without leading to meaningful change in society.

Average economic growth of more than five percent, record flows of foreign direct investment and stock markets that routinely outperform London, New York and Tokyo. This is Africa today. Readers of the western press would be forgiven for thinking otherwise. No other region of the world is described with such sweeping generalizations as the 54 countries of Africa. Indeed, negative perceptions are so entrenched that the positive stories struggle to be heard. Is it any surprise, then, that there is a widespread perception of the continent as a region in which it is difficult to conduct business? And yet the reality can be very different.

The editors of Nigeria’s Businessday and South Africa’s Mail & Guardian provide perspectives on the many critical roles that media can play today in Africa. Ferial Haffajee of the Mail & Guardian points to recent highs and lows of media freedom across the continent. According to Haffajee, “in the era of democracy in Africa which is still very young, the position of media freedom reflects that of good governance: it is filled with potential but at a tipping point”. Businessday Nigeria’s Stanley Egbochuku reveals the historical challenges faced by business journalists in his country and feels that “finally, business media in Nigeria will be able to appropriately focus on providing the information which is so critical for furthering the country’s emerging business climate”.

In the mid-1980’s, many De Beers operations and businesses had recognized that HIV/AIDS was both a business and social threat. A number of initiatives were put in place, but new infections continued to rise. Taking lessons from its early interventions, the company’s HIV/AIDS management is now reaching a new level of maturity, with a holistic HIV/AIDS workplace response in place that includes a comprehensive disease management program. And through the De Beers Community HIV/AIDS Programme, the company is extending what has already been implemented in the workplace into the communities around its operations.

Sekem is a transliteration of a hieroglyph that means “vitality" and refers to the improvement of living conditions on earth. The SEKEM initiative was founded in Egypt in 1977 specifically to help realize the goal of sustainable human development. A producer of consumer products in the fields of natural pharmaceuticals, organic foods and textiles, the company was the first in the world to cultivate and harvest biodynamic cotton in 1991. A direct result of this achievement was a reduction in the use of synthetic pesticides on cotton in Egypt by over 90 percent, while the average yield of raw cotton increased by almost 30 percent.

For the first time, the Global Compact will be holding an International Learning Forum Meeting in Africa – to take place in Accra, Ghana on 22 – 24 November 2006. On the ground in Ghana, the UNDP and many Global Compact participants have volunteered to take up the challenges facing business and have joined the Steering Committee for the Meeting. Among the advocates in Ghana is Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines and a former Minister of State in Ghana. She shares her thoughts with the Compact Quarterly on why this gathering in Ghana can play a meaningful role in advancing corporate citizenship in Africa, and indeed around the world.

The Global Compact has been operating a Regional Learning Forum for sub-Saharan Africa since April 2005. Based in Pretoria/South Africa, the Regional Office focuses on awareness-raising, organizational development through local network support, capacity building for service providers, promotion of learning and dialogue, and the promotion of partnerships for development.

Recent news reported by the African GC Networks includes the launch of a Local Network in Nigeria during the 12th Annual Nigerian Economic Summit, the release of the latest "Bulletin" from the Zambian network which highlights several projects including an HIV/AIDS training course, new projects for development in Madagascar and growing interest in the Global Compact in Mozambique.

With critical mass gathering and myriad actions underway in the name of “corporate citizenship”, it is only appropriate – indeed responsible – to ask questions about progress and impact, to look at the hurdles standing in the way. The editor of the Compact Quarterly sat down with leading experts in the areas of human rights, labour, environment and anti-corruption to see just how much impact business has had – and, more importantly, can have – in addressing serious challenges facing society. While their areas are quite distinct, our experts all revealed a common insight: progress has been made, but not nearly enough.

Johnson Controls, a leader in automotive systems and facility management, provides sustainable solutions for reducing energy consumption and greenhouse gas emissions globally. An independent study conducted by the Leonardo Academy, Inc. reported, “…Johnson Controls energy efficiency projects implemented between 1990 and 2020 will provide $95 billion in energy savings and 1.3 billion tons of carbon dioxide emission reductions. To put this contribution to emission reductions in perspective, the US could achieve its Kyoto emission reduction goals by the year 2020, if only 25 more companies could deliver achievements equal to those of Johnson Controls and its customers”.

This third edition of the Resource Package is a comprehensive overview of the Global Compact. It contains background information on the Global Compact, as well as practical guidance on the integration of the ten principles into business operations. The Resource Package includes modules and case studies for each of the Global Compact’s four main issue areas – Human Rights, Labour, Environment and Anti-Corruption – as well as the Global Compact Performance Model. This includes implementation strategies and examples, case studies, and a separate resource directory for each issue area.

These guidelines provide information on how to design, develop and operate child labour monitoring along with practical examples that will help to adapt the model to specific child labour situations. The kit contains: a brochure on child labour monitoring, an overview of child labour monitoring and Guidelines for developing child labour monitoring processes.

Leading the Way provides Global Compact participants with inspiration and ideas on how to communicate their progress on implementing the ten principles.  It is the result of an ongoing dialogue between the Global Compact Office and many of our participating companies and other stakeholders. In particular, it reflects the experiences and perspectives shared by practitioners and users of Communications on Progress (COPs) during a two-day workshop held in March 2006 in Geneva.

Previously, it was thought that after the Global Compact had been successfully launched in a country and a significant number of companies had become champions of the initiative, then the development of a strong, business-led GC Local Network in that country would follow automatically. But there is a critical intermediate stage that must occur for a GC Local Network to develop into a mature, business-led, multistakeholder platform – where participants are willing to provide financial support for the network’s structure and activities and where business-related collective action is undertaken.

Elena Panova Global Compact Bulgaria

Today in Bulgaria, corporate social responsibility goes far beyond the “old” philanthropy of the past – donating money to good causes at the end of the financial year – and is instead increasingly a long-term strategy that companies voluntarily implement to integrate social and environmental considerations into their business operations. This change in business culture is in response to the increasing power of citizens – voters, employees and consumers, as well as other stakeholders – and the need to look for alternative competitive advantages. In the fast-moving world of the free-market, corporations have dramatically changed the way they get involved with communities. Business has taken steps to protect human and natural resources by building new systems of self-regulation beyond those required by law or encompassed by traditional philanthropy.

Read Local Network News from around the world. Recent news includes network launches in Belgium and Nigeria, a roundtable event on the environment in France, a campaign on employment in Lithuania, Turkey's first meeting of the Steering Committee, regional network meetings in Latin America, Europe and Asia, and much more.