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UN PHOTO / MARK GARTEN
the role of the un global compact
A NEW STAGE OF COLLAB ORATION
As the UN is opening up for collaboration with business, what has been the role of the Global Compact in catalysing this change? Former UN Secretary-General Kofi Annan’s speech at the World Economic Forum in 1999 paved the way for institutional change in the UN, and when the Global Compact was launched a year later, the door for UN-private sector engagement was opened. Since then, the Global Compact has been instrumental in nurturing understanding, trust and collaboration between the Organisation and business. Accepting the value of voluntary Today, the UN has largely accepted that business engagement can complement rather than pre-empt regulation, and that business competencies and resources can be harnessed to meet the objectives of the Organisation. Through convening numerous platforms for engagement, the Global Compact has enabled this shift in perception, and it is also increasingly working as an entry point for UN agencies and business seeking collaboration. Bringing business to the table Over the years, the Global Compact has strengthened the voice of business at international negotiations previously only attended by governments. One of the most significant institutional innovations of the Secretary-General was to bring CEOs to the UN for the “UN Private Sector Forum”. Organised by the Global Compact in collaboration with other UN partners, it was one of the first opportunities CEOs had to engage directly with governments on priority issues.
Building capacity and competence Together with UN partners, the Global Compact has played an important role in cultivating the architecture required for the UN to more effectively partner with business, whilst at the same time, safeguarding the UN brand. Almost 400 business participants have reported that they have partnerships with the UN. Through the annual UN System Private Sector Focal Point meetings, a learning platform for interaction between UN staff and business, and the monthly UN-business focal point newsletter, the Global Compact has largely contributed to bringing about institutional change. Working particularly through its Local Networks, the Global Compact’s wide range of practical resources and events have provided the basis for improving partnership effectiveness and expanded collaboration across sectors and geographies. They have also responded to government requests for more training and institutional capacity-building to drive partnership effectiveness. Sharpening due diligence A significant change has been the system-wide creation of internal due diligence processes based upon the ten principles and other tools developed by the Global Compact. However, many UN entities are still partnering with companies without conducting a proper ESG assessment, and there seems to be a significant opportunity for the UN to enforce stricter measures to ensure that prospective partners are aligned with UN values. This includes introducing participation in the Global Compact as a requirement for partnerships.