The UN Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights, labour, the environment and anti-corruption.
[8] The UN Global Compact was announced by UN Secretary-General Kofi Annan in an address to the World Economic Forum on 31 January 1999[9][10][11] and was officially launched at UN Headquarters in New York City on 26 July 2000.
[13] Human Rights Labour Environment Anti-Corruption The Ten Principles represent a set of core values drawn from major international agreements.
[14] The Ten Principles and the UN Sustainable Development Goals (SDGs) are considered to be strongly aligned with Pope Francis' Encyclical Laudato Si', sharing "a common vision for business".
Instead, as mentioned in a 2015 interview with then-Executive Director, Lise Kingo, "we are the guide dogs, not the watchdogs", with the organization seeking to prioritize providing resources and support instead of attempting to enforce discipline.
The second Global Compact Leaders Summit, chaired by Secretary-General Ban Ki-moon, was held on 5–6 July 2007 at the Palais des Nations in Geneva.
It begins by drawing the resources of government, business and civil society into a cross-sector partnership in order to develop a practical project that addresses a seemingly intractable urban issue.
These networks help companies and non-profit organizations understand what responsible business means within diverse national, cultural, and linguistic contexts.
Critics argue that in the absence of effective monitoring and enforcement provisions, the Global Compact fails to hold corporations accountable.
[60][61] Bluewashing refers to the alleged practice of companies claiming their membership or participation in philanthropic and charity-based activity as an excuse, and perhaps as an entry door to increase corporate influence upon international organizations.
[62] Peter Utting, deputy director of UNRISD, and Ann Zammit emphasize the importance of critically examining UN-Business Partnerships.
[65] Similarly, the Alliance for a Corporate-Free UN, which also no longer exists, was a campaigning organization led by Corpwatch that highlighted weaknesses in the principles underlying the Global Compact.
[66] The Global Compact was also criticized by Maude Barlow, senior adviser on water issues to the President of the United Nations General Assembly in December 2008, for bluewashing.
For example, Leaders of the tribe Ayoreo Indians in Paraguay wrote to the UN Global Compact saying they are "concerned and frustrated" by its inclusion of a controversial Brazilian ranching company, Yaguarete Porá.
[71] The Global Compact provides a list of over 20,000 active participant organizations, composed of roughly 16,000 businesses and 4,000 non-business entities on its website.
[73] Notable companies who have signed on the Global Compact include, but are not limited to, Starbucks,[74] L'Oreal,[75] Bayer AG,[76] Coca-Cola,[77] 3M,[78] Deloitte,[79] and Zurn.