Communication On Progress Via UN Global Compact
Framework For Socially Responsible Business Practices
Oct 27, 2009
The concept of corporate citizenship has been endorsed by the United Nations through the UN Global Compact, a voluntary initiative providing a framework for socially responsible business practices. The ten UN Global Compact principles relate to human rights, labour practices and reducing environmental impact and have been drawn from major United Nations declarations.
Human Rights Principles Enshrined in the UN Global Compact
The principles set out in the Universal Declaration of Human Rights are reflected in Principles 1 and 2 of the UN Global Compact. Principle 1 requires business to protect international human rights and principle 2 to ensure that the business is not involved in human rights abuses. It is appropriate for business to consider the actions of their supply chain partners and ensure that laws applicable to the country of business operation are respected.
Practical ways that businesses can incorporate principles 1 and 2 into daily business operations include:
- providing a safe workplace;
- avoiding the use of forced or child labour;
- working with communities to advocate on human rights issues including forced removal;
- undertaking assessments for human rights risks; and
- ensuring policies are implemented to protect the human rights of the business’ employees and of supply chain employees.
Labour Policies Are the Focus of Principles 3, 4, 5 and 6
Principle 3 of the UN Global Compact requires that business uphold freedom of association and collective bargaining rights of employees. Freedom of association refers to the right to create and join associations, such as trade unions. Collective bargaining is used to increase the benefits and working conditions of all employees through the employer negotiating with employee representatives.
Principles 4 and 5 contain requirements that forced child labour is ended. Day to day practices that the UN suggest to ensure that forced and child labour is avoided include:
- adopting policies that express forced and child labour will not be used;
- having an awareness of the areas in which child and forced labour may be used; and
- supporting community based training schemes for forced labour and education schemes for children.
The 6th principle of the UN Global Compact requires that business eliminate discrimination in the workplace and occupation. This includes discrimination based on race, gender, colour, religion, HIV/Aids status, sexual orientation, disability, political affiliation and age.
Principles to Reduce Environmental Impacts of Business Operations
Socially responsible businesses are aware of the environmental impact their operations have and take steps to reduce it. Principles 8, 9 and 10 of the UN Global Compact relate to environmental impacts and the need to invest in technology that is environmentally friendly.
Principle 7 recommends that a “precautionary” approach be taken and that environmental risk assessment procedures should be adopted and followed. This is to ensure that the least amount of environmental damage occurs. Principle 8 requires business to promote environmental responsibility and has been taken from the Rio Declaration.
Principle 8 relates to the development of environmentally friendly technologies and production methods. Strategies to achieve principle 8 include modifying current plant and equipment, developing new processes and working in collaboration amongst industry to promote eco-efficient technology and methods.
Anti-Corruption Measures Complete 10 Principles of UN Global Compact
Stopping corruption, bribery and extortion in business dealings is the focus of the 10th principle of the UN Global Compact. A three way approach is suggested to business to deal with corruption at an internal, external and collective level. Adopting a policy of no corruption in dealings can result in avoiding legal and financial risks, blackmail and negative impacts on reputation.
Communication on Progress Required Annually
A business that has become a member of the UN Global Compact is required to report annually via the Communication on Progress; which sets out the measures the business has taken towards complying with each of the 10 principles. Failure to file a Communication on Progress can lead to termination of membership.
The principles contained within the UN Global Compact provide a mechanism for businesses to adopt socially responsible practices in day to day operations. A Communication on Progress can be incorporated into a GRI G3 Guidelines corporate social responsibility report.
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