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The United Nations has come in for a lot of stick lately, not least for
its failure to agree on substantial reform at last month's World Summit
in New York. But it can justifiably claim credit for three important
developments. On the Global Compact, the Norms on the Responsibilities
of Transnational Corporations and other Business Enterprises, and the
Millennium Development Goals, the UN has taken positive action.
First, the 'integrity measures' of its Global Compact (see page one). The absence of any monitoring mechanism over the five years of the Compact's existence seriously damaged the credibility of the Compact Office and signatories alike. It was in effect a club anyone could join. It still is, but the new mechanism should highlight those not acting in the spirit of the rules. In establishing a complaints procedure, the UN Global Compact Office has bowed to the inevitable. Investors have for quite a while wanted some teeth put into this international initiative. Now Innovest, the SRI research and advisory firm, has created a product to meet the demand. Its Global Compact Plus research tool will assess company performance and identify the best. Such external monitoring will keep the companies involved - more than 2400 at last count - as well as the Compact itself on their toes.
It remains to be seen whether the Compact becomes a lightning-rod for pressure group gripes. The OECD's guidelines on multinational behaviour have attracted numerous complaints, and some are taking years to resolve. The two initiatives are not strictly comparable, but the Compact Office now runs the same risk.
Second, the appointment of John Ruggie as a special UN representative to guide the development of the Norms (see page seven). Besides being an old UN hand, Ruggie played an important role in creating the Global Compact and is heavily involved in CSR education. He is well placed to advise on thorny issues such as the extent to which companies should be held to account for the actions of their subsidiaries.
Third, the Millennium Development Goals. These were singled out in the World Summit's final declaration. All countries have now said they will put in place 'comprehensive national development strategies' for internationally agreed objectives, 'among them the Millennium Development Goals'. Of course, saying is one thing, doing another. But this is an opportunity for business to show leadership. Some companies, like Diageo in its latest corporate citizenship report, already specifically link their CSR effort with the eight ambitious goals on poverty, education, disease and the environment. Many more need to do so.
First, the 'integrity measures' of its Global Compact (see page one). The absence of any monitoring mechanism over the five years of the Compact's existence seriously damaged the credibility of the Compact Office and signatories alike. It was in effect a club anyone could join. It still is, but the new mechanism should highlight those not acting in the spirit of the rules. In establishing a complaints procedure, the UN Global Compact Office has bowed to the inevitable. Investors have for quite a while wanted some teeth put into this international initiative. Now Innovest, the SRI research and advisory firm, has created a product to meet the demand. Its Global Compact Plus research tool will assess company performance and identify the best. Such external monitoring will keep the companies involved - more than 2400 at last count - as well as the Compact itself on their toes.
It remains to be seen whether the Compact becomes a lightning-rod for pressure group gripes. The OECD's guidelines on multinational behaviour have attracted numerous complaints, and some are taking years to resolve. The two initiatives are not strictly comparable, but the Compact Office now runs the same risk.
Second, the appointment of John Ruggie as a special UN representative to guide the development of the Norms (see page seven). Besides being an old UN hand, Ruggie played an important role in creating the Global Compact and is heavily involved in CSR education. He is well placed to advise on thorny issues such as the extent to which companies should be held to account for the actions of their subsidiaries.
Third, the Millennium Development Goals. These were singled out in the World Summit's final declaration. All countries have now said they will put in place 'comprehensive national development strategies' for internationally agreed objectives, 'among them the Millennium Development Goals'. Of course, saying is one thing, doing another. But this is an opportunity for business to show leadership. Some companies, like Diageo in its latest corporate citizenship report, already specifically link their CSR effort with the eight ambitious goals on poverty, education, disease and the environment. Many more need to do so.
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