the united nations and transnational corporations: the politics of organising for corporate social...
DESCRIPTION
This presentation discusses corporate responsibility in the context of the United Nations (UN) system. Starting with a historical perspective, the presentation shows how the relationship between the business sector and the UN has moved from an era on confrontation to an era of collaboration. In particular, discussions will focus on a recent UN-based public-private partnership: the Global Compact. Additionally, the presentation will also consider the institutional context, achievements, and constraints of the Global Compact as a UN-backed initiative and critically examine its role in the wider context of corporate responsibility and sustainability. The analysis positions the Global Compact as a network-based global governance arrangement reflecting a rapprochement between the UN system and the business community. Overall, the presentation connects the corporate responsibility discourse to scholarly work in the area of political science and international relations.TRANSCRIPT
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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.