The United Nations and Transnational Corporations: the Politics of Organising for Corporate Social Responsibility
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University of Edinburgh
The United Nations and Transnational Corporations: The Politics of Organizing for Corporate Social Responsibility
Andreas Rasche Warwick Business School, University of Warwick
19 March 2012
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Agenda
1 Looking into History: From Code to Compact
2 The UN Global Compact: Retrospect and Prospect
3 Looking into the Future: Beyond Rio+20
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Davos, World Economic Forum, 31 January 1999
“I propose that you, the business leaders, and we, the United Nations, initiate a global compact of shared values and principles, which will give a human face to the global market.”
Former UN Secretary-General Kofi Annan © WEF
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UN-Business Relations: From Code to Compact
70s 80s 90s 2000
Group of Eminent Persons (GEP)
(1972-1974)
UN Center on TNCs
(1975-1992)
Final Rejection of Code (1992)
UN Global Compact
(2000 onwards)
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The UN Global Compact - An Initiative Based on Partnership
Addressing Governance
Gaps
&
Creating Sustainable
Markets
Profit &
Growth
Business
Deepening Interdependencies
United Nations
Peace &
Poverty Reduction
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Agenda
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2 The UN Global Compact: Retrospect and Prospect
3 Looking into the Future: Beyond Rio+20
Looking into History: From Code to Compact
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‘A Moral Compass’ – The Compact’s Ten Principles
Business should support and respect the protection of international human rights; and
make sure they are not complicit in human rights abuses. Human Rights
Business should uphold the freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced and compulsory labor;
the effective abolition of child labor;
the elimination of discrimination in respect of employment and occupation.
Labour Rights
Business should support a precautionary approach to environmental challenges;
undertake initiatives to promote greater environmental responsibility; and
encourage the development and diffusion of environmentally friendly technologies.
Environ-ment
Business should work against all forms of corruption, including extortion and bribery. Anti-Corruption
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• over 6900 business participants in over 135 countries • 3100 non-business participants – NGOs, academia, and labour • mix of large TNCs and SMEs (50% of participants are SMEs)
The Global Compact in 2012 – Some Key Facts
Participants
• requirement to file annual report on implementation progress • delisted participants (until March 2012): over 3100 • reporting not standardized (GRI recommended)
Accountability
• clusters of participants interacting at the national level • established or emerging networks in over 90 countries • good presence in developing/transition economies
Local Networks
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Multi-Level Governance in the Context of the Global Compact
Emerging Network
Local Network
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UN Global Compact – Participant Growth
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What Has Influenced the Continued Growth of the Initiative?
Political Support
• Several GA resolutions as political back up
• Leadership support by Kofi Annan and Ban Ki-Moon
• Secured access to UN system
Governance Structure
• Governance is network-based and multi-stakeholder
• Participant ownership vital for success
• Enabled responsive management
Global-Local Link
• Loosely coupled networks as “contextualizers”
• Local networks brought in SMEs and globalized debate
• Networks gave access to BRICs
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The Debate Around the UN Global Compact
• Principles miss precision and hence offer no clear guidance for implementation
Vague Principles
• Absence of independent monitoring and verification mechanisms
Lack of Accountability
• Global Compact allows businesses to capture UN agenda – privatization of UN
UN Capture
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Agenda
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Looking into the Future: Rio+20 and Beyond 3
Looking into History: From Code to Compact
The UN Global Compact: Retrospect and Prospect
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Which Challenges Remain Ahead to Further Develop the Global Compact?
Promote Balance
• Balance quantitative (participant) and qualitative (impact) growth
• Provide assistance to non-OECD SMEs regarding COP reporting
• Strengthen role of non-business participants
Build Links
• Growing corporate responsibility “infrastructure” (e.g. ISO 26000)
• Better link existing initiatives and specify value propositions
• Link along: types, regions, and sectors to reduce ambiguity
Differentiate
• Acknowledge leaders, let laggards catch up, and punish free riders
• Differentiation must acknowledge firm context (e.g. size and regions)
• Use differentiation to build “participant clusters”
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Rio+20 as a Chance to Deepen UN-Business Relations
How does the UN involve the private sector in achieving sustainable development?
1. Solutions based on international law are unlikely to emerge in the near future due to a lack of political support.
2. Strong growth of bilateral UN-business partnerships in the context of MDGs (e.g., between UNICEF and businesses).
3. The Global Compact will play a vital role in giving UN-business relations ‘a face’ and providing a platform for companies to learn how to partner.
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