In our idyllic community of Carlsbad we often feel as though the world revolves around us … or we feel we need not pay too much attention to that which is happening in Europe, Asia or even Latin America, despite our close proximity to the border. Yet even some of our smallest chamber members are affected by global events, trends and actions.
Although it was not reported in our local media, business leaders from developed and developing countries recently pledged to comply with labor, human rights, environmental and anti-corruption standards during a two-day conference in July in Switzerland.
This was the second meeting of the United Nations Global Compact Leaders Summit. Top executives from corporations such as Coca-Cola, Petrobras and Fuji Xerox adopted the 21-point Geneva Declaration, which spells out actions for business, governments and United Nations Global Compact participants.
Some 4,000 organizations from 116 countries have subscribed to the Global Compact, pledging to observe ten universal principles related to human rights, labor rights, the environment and the struggle against corruption.
The Geneva Declaration expresses the belief that “globalization, if rooted in universal principles, has the power to improve our world fundamentally, delivering economic and social benefits to people, communities and markets everywhere.”
“The need for action is urgent,” the document states. “Poverty, income inequality, protectionism and the absence of decent work opportunities pose serious threats to world peace and markets.
“Business, as a key agent of globalization, can be an enormous force for good,” the Declaration continues, adding that companies, by committing themselves to corporate citizenship can create and deliver value in the widest possible terms. Globalization can thus act as an accelerator for spreading universal principles, creating a values-oriented competition for a “race to the top.”
Secretary-General Ban-ki Moon told participants that, “Through several groundbreaking reports, you have made it abundantly clear that market leadership and sustainability leadership go hand-in-hand. This will help us build the supportive measures needed to create more sustainable markets. And it will ultimately help improve the lives of many people around the world.”
“Together, through the Geneva Declaration, we have deepened our collective commitment to embedding universal values in economies and markets,” Moon said. “Let us each do our share to give practical meaning to the Declaration.”
On the role of business in society, the Declaration notes that responsible business practices contribute to social and economic inclusion, helping to advance international cooperation, peace, development and human rights protection. It invites businesses to establish partnerships and collaboration with governments, civil society and labor, and the Declaration states that in countries afflicted by conflict or weak governance, investors and companies can play a more helpful role by engaging rather than divesting, provided they act in line with the Global Compact principles.
Investors should encourage companies to be transparent and to pursue responsible business practices, the Declaration says, while lenders should ensure that their loans are in line with international standards. Also, investors should urge governments to act responsibly and uphold laws and international norms.
Global, as well as local initiatives, were launched at the Summit. Through the “Caring for Climate” platform, CEOs of 150 companies from around the world, including 30 from the Fortune Global 500, pledged to speed up action on climate change and called on governments to agree as soon as possible on Kyoto follow-up measures to secure workable and inclusive climate market mechanisms.
The CEOs of six corporations, The Coca-Cola Company, Levi Strauss & Co., Lackeby Water Group, Nestl? S.A., SABMiller and Suez, urged their business peers everywhere to take immediate action to address the global water crisis. They launched “The CEO Water Mandate,” a project designed to help companies better manage water use in their operations and throughout their supply chains.
Also launched at the Summit, the Principles for Responsible Investment seek to disseminate the tenets of corporate citizenship among capital markets. The Principles for Responsible Management Education seek to take the case for universal values and business into business schools around the world.
While some readers of the Carlsbad Business Journal may dismiss these events as unrelated to their business interests, I believe that there are many in our local business community who may not have heard of this important summit and its outcomes and would be interested in understanding how their business might stack-up against the “Ten Principles” of the Global Compact.
The “Ten Principles” of the Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.
Labor Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition of child labor; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Although it was not reported in our local media, business leaders from developed and developing countries recently pledged to comply with labor, human rights, environmental and anti-corruption standards during a two-day conference in July in Switzerland.
This was the second meeting of the United Nations Global Compact Leaders Summit. Top executives from corporations such as Coca-Cola, Petrobras and Fuji Xerox adopted the 21-point Geneva Declaration, which spells out actions for business, governments and United Nations Global Compact participants.
Some 4,000 organizations from 116 countries have subscribed to the Global Compact, pledging to observe ten universal principles related to human rights, labor rights, the environment and the struggle against corruption.
The Geneva Declaration expresses the belief that “globalization, if rooted in universal principles, has the power to improve our world fundamentally, delivering economic and social benefits to people, communities and markets everywhere.”
“The need for action is urgent,” the document states. “Poverty, income inequality, protectionism and the absence of decent work opportunities pose serious threats to world peace and markets.
“Business, as a key agent of globalization, can be an enormous force for good,” the Declaration continues, adding that companies, by committing themselves to corporate citizenship can create and deliver value in the widest possible terms. Globalization can thus act as an accelerator for spreading universal principles, creating a values-oriented competition for a “race to the top.”
Secretary-General Ban-ki Moon told participants that, “Through several groundbreaking reports, you have made it abundantly clear that market leadership and sustainability leadership go hand-in-hand. This will help us build the supportive measures needed to create more sustainable markets. And it will ultimately help improve the lives of many people around the world.”
“Together, through the Geneva Declaration, we have deepened our collective commitment to embedding universal values in economies and markets,” Moon said. “Let us each do our share to give practical meaning to the Declaration.”
On the role of business in society, the Declaration notes that responsible business practices contribute to social and economic inclusion, helping to advance international cooperation, peace, development and human rights protection. It invites businesses to establish partnerships and collaboration with governments, civil society and labor, and the Declaration states that in countries afflicted by conflict or weak governance, investors and companies can play a more helpful role by engaging rather than divesting, provided they act in line with the Global Compact principles.
Investors should encourage companies to be transparent and to pursue responsible business practices, the Declaration says, while lenders should ensure that their loans are in line with international standards. Also, investors should urge governments to act responsibly and uphold laws and international norms.
Global, as well as local initiatives, were launched at the Summit. Through the “Caring for Climate” platform, CEOs of 150 companies from around the world, including 30 from the Fortune Global 500, pledged to speed up action on climate change and called on governments to agree as soon as possible on Kyoto follow-up measures to secure workable and inclusive climate market mechanisms.
The CEOs of six corporations, The Coca-Cola Company, Levi Strauss & Co., Lackeby Water Group, Nestl? S.A., SABMiller and Suez, urged their business peers everywhere to take immediate action to address the global water crisis. They launched “The CEO Water Mandate,” a project designed to help companies better manage water use in their operations and throughout their supply chains.
Also launched at the Summit, the Principles for Responsible Investment seek to disseminate the tenets of corporate citizenship among capital markets. The Principles for Responsible Management Education seek to take the case for universal values and business into business schools around the world.
While some readers of the Carlsbad Business Journal may dismiss these events as unrelated to their business interests, I believe that there are many in our local business community who may not have heard of this important summit and its outcomes and would be interested in understanding how their business might stack-up against the “Ten Principles” of the Global Compact.
The “Ten Principles” of the Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.
Labor Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition of child labor; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.