The UN-business Global Compact

In his speech to the Davos World Economic Forum in January 1999, UN Secretary-General Kofi Annan proposed a Global Compact between the UN and business to uphold and promulgate a set of core values in the areas of human rights, labour standards and environmental practice.

His proposal was made against the background of a developing constructive new relationship between the United Nations and business - a relationship reflected in two joint declarations agreed between the Secretary-General and the ICC, wherein each side recognized that their respective goals are mutually supporting.

The Global Compact was formally launched on 26 July 2000 at a meeting at the United Nations chaired by Kofi Annan and attended, among others, by senior officers of some 50 major companies.

The Compact is open for adherence by any company, large or small, wishing to do so. No formalities are involved. Companies are asked to demonstrate their adherence by taking corporate action to support the core values of the Compact.

Companies are free to publicize their adherence to the Compact, but are then expected to follow through with appropriate corporate actions. The core values of the Compact, and how to put them into practice are described on the UN's website (www.un.org - see site index - Global Compact).

The ICC is using its website to publicize how the private sector is fulfilling the Compact through corporate actions. Companies are invited to submit appropriate examples for posting.

Click here to read 'The Global Compact: Report on Progress and Activities' (PDF)

ABB: As part of ABB's social responsibility policy, the engineering group is working with a local initiative to help young people build a future free from gang-based violence and drugs.

Akzo Nobel: This international chemicals company makes health, safety and environmental protection an integral part of its business policy. Its website lists initiatives at plants in Europe and the United States to reduce, manage and recycle industrial waste.

Altos Hornos de Mexico: Mexico's largest steel-maker has set up a cyber based Environmental Management System open to its own staff and other companies. The company is determined to remain at the cutting edge of sustainable development.

Aventis: Thanks to Aventis' committment to the World Health Organization's fight against sleeping sickness progress is already being made.

British American Tobacco: Souza Cruz SA, the Brazilian subsidiary of BAT, has launched a programme to combat child labour. The programme, The Future is Now, seeks to ensure that children under the age of 16 receive a proper education.

BP: How the company seeks to contribute to the development of civil society by establishing clear ethical standards for itself and its contractors. The site includes community case studies covering environmental protection, education and health care, including initiatives in war-ravaged Angola.

Citigroup: Financial services giant Citigroup is encouraging sustainable enterprise in Latin America through its work with the World Resources Institute on the New Ventures initiative.

Credit Suisse Financial Services: The Swiss firm unites with UNICEF to launch the Ticket to Life campaign to ensure children everywhere have official papers, like birth certificates, thereby obliging governments to take responsibility for their welfare.

DaimlerChrysler: Through its POEMA project (Povery and Environment in the Amazon), DaimlerChrysler encourages small communities in the Brazilian rainforest to farm their land in a sustainable manner. The natural fibres are then used in vehicle production.

Deutsche Bank: The Deutsche Bank Microcredit Development (MDF) backs small loans for poor people in developing countries, giving them the chance to buy basic equipment and raw materials to set up or expand a business, thus breaking the poverty cycle.

DSM: One of many chemicals companies throughout the world that endorse Responsible Care, a voluntary international action programme set up by the chemical industry to improve safety, health and environmental performance.

Ericsson: The Swedish communications company has launched a humanitarian offensive to donate expertise and hardware to assist victims of disaster. The Ericsson Response campaign aims to provide on-the-ground assistance to the world's leading disaster relief agencies including the United Nations and the International Red Cross and Red Crescent Societies.

Fiat: The car maker has teamed up with the Italian Ministry for the Environment and the country's oil industry association Unione Petrolfera in a new drive to promote low-emission methane-powered vehicles and reduce air pollution in Italy's cities.

Fransabank: Lebanon's oldest bank is helping its country's development and reconstruction process. Fransabank's contributions range from large donations to help rebuild Lebanon's infrastructure, to the maintenance of public gardens and the promotion of tree-planting along the streets of Beirut.

Gerling: The German insurance group is providing financial and managerial support to an initiative that will alleviate the drinking water shortage threatening the Greek island of Milos.

GlaxoSmithKline: runs a worldwide good corporate citizenship programme, including:

• water supply projects for developing countries

• HIV patient communication initiatives

• community projects in South Africa to combat tuberculosis and other diseases.

H&M: Former child labourer Reena has set up a business making bags in Bangladesh, two years after graduating from a sewing course run by international clothes firm H&M.

HSBC Holdings plc: As part of a US$ 50 million contribution to Investing in Nature, a joint project with the conservation charities Earthwatch, WWF and Botanic Gardens Conservation International, this international banking and financial services organization will pay for its employees to help scientists collect data for environmental projects.

Levi Strauss: The company's Global Sourcing and Operating Guidelines help it to select business partners who follow work place standards and business practices that are consistent with company policies. These requirements are applied to every contractor who manufactures or finishes products for Levi Strauss & Co.

L'Oréal: L'Oréal has joined forces with the United Nations Educational, Scientific and Cultural Organization (UNESCO) to encourage women to pursue scientific careers. The programme awards annual prizes to eminent women scientists aswell as providing grants for young women researchers. The winners' research focuses mainly on alleviating human suffering through medical innovation or technologies that will increase food production.

Mondragón Corporación Cooperativa (MCC): The largest business corporation in the Basque Country, has stepped up support for a local university in the region - another example of how business is supporting the values of the UN-business Global Compact.

Nestlé: The world's biggest food company set up its first factory in China more than 10 years ago in the country's North-Eastern region, where the climate is one of harsh winters and hot summers. The milk products factory at Shuangcheng has brought many benefits to local farmers, including programmes for improved cattle breeding, better milk prices, better road systems between the farms and the factory and improvements in livestock feed to increase milk production.

Nike: In a mission statement, Nike pledges to lead in corporate citizenship through proactive programmes "that reflect caring for the world family of Nike, our teammates, our consumers and those who provide services to Nike." The site sets out policies, practices and programmes "affecting the lives and well-being of people making Nike products around the world."

Novartis: As partner of the "Global Alliance for the Elimination of Leprosy" Novartis donates drugs to the World Health Organisation. As part of its commitment to corporate citizenship, the company is also providing drugs for the "Roll Back Malaria" programme to the WHO at cost.

Ondeo: As part of its commitment to providing sustainable water supplies in developing countries, Ondeo, the international watercompany, has helped bring clean water to rural villages in South Africa. The scheme is self-financing and local communities participate in its management.

Reebok: A section devoted to human rights features on the Reebok site. The company reports on the code of conduct implemented in factories manufacturing Reebok products to ensure safe and healthy working conditions. Reebok says that factory workplace conditions are assessed with the assistance of external monitors.

Royal Dutch/Shell: Shell Brasil describes how it became the first gasoline distributor in Brazil to insert in its contracts with suppliers a ban on the use of child labour. By November 1999, the clause had been introduced in contracts with 39 distilleries.

TEPCO: The Tokyo Electric Power Company has taken its fight against global climate change and environmental degradation on to the world stage with innovative schemes in Australia, China, Indonesia, Russia and Thailand.

Unilever: The company is heavily engaged in sustainable farming, fisheries conservation and clean water stewardship. Initiatives range from tree planting in Thailand to adult literacy programmes in Brazil.

WebMD Foundation: This leading medical organization is using the Internet to spearhead a plan to deliver free, instant medical assistance to people in the world's least developed nations.

ICC's communications department welcomes contributions from companies to this Global Compact section. Please contact us at dbm@iccwbo.org.