What is the United Nations Global Compact
3 min read
- United Nations Global Compact was established to drive corporations and businesses to operate with guiding principles rooted in sustainability.
- The Global Compact has 10 guiding principles in the areas of human rights, labour, environment, and anti-corruption
- 20 years later, the compact remains as one of the most important tools to drive positive changes in the global economy
What is the UN Global Compact?
Created in 2000, the United Nations (UN) Global Compact was established to drive corporations and businesses to operate with sustainability factors in mind and work in collaboration with other commitments such as the United Nations Sustainable Development Goals. In the 20 years since its inception, the compact has gained over 12,000 signatories in 160 countries, making it the world’s largest and most widespread corporate commitment to sustainability. The 10 guiding principles, divided into 4 sections, of the global compact are as follows:
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.
Labour
- 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 labour;
- Principle 5: the effective abolition of child labour; 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.
Why is the Global Compact Important?
Even 20 years later, the global compact remains as one of the most essential modes of corporate sustainability in a largely profit driven world. Oftentimes, issues such as climate change require difficult solutions that entail sacrifices in profit. While these very crucial decisions, such as the reduction of a company’s fossil fuel emissions, involve short term sacrifice, they aid in the long term benefit of the entire human race. With this in mind, as we approach 2021, it is essential that the signatories turn their commitment to the compact into tangible action. Corporations can be an essential part of improving the many problems our world faces today. Join Physis today to make a difference!
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