Global Compact

The Global Compact was launched by United Nations Secretary General Kofi Annan in January 2000 at the World Economic Forum in Davos. The UN Global Compact aims to unite the power of the market with the authority of individual ideals to encourage companies to take responsibility for their actions. The UN Global Compact aims to have businesses operate in compliance with 10 basic principles: 1- Support and respect the protection of internationally proclaimed human rights; 2- Make certain that businesses are not complicit in human rights abuses; 3- Uphold freedom of association and effectively recognize the right to collective bargaining; 4- Eliminate all forms of forced and compulsory labour; 5- Effectively abolish child labour; 6- Eliminate discrimination in matters of employment and occupation; 7- Support a precautionary approach to environmental challenges; 8- Undertake initiatives to promote greater environmental responsibility; 9- Encourage the development and diffusion of environmentally friendly technologies; 10- Endeavour to stamp out corruption. Companies, professional organization and unions may sign on to the Global Compact. There are no mechanisms for oversight or sanction, however, meaning that any commitment to the Global Compact is non-binding. Since 2005, participants have been required to issue so-called ‘Communications on Progress’ to demonstrate that they are implementing the principles of the Global Compact. Adherents which choose not to are listed as inactive.