UN Global Compact
What is the Global Compact?
In the World Economic Forum held on January 31, 1999 the United Nations (UN) Secretary General Kofi Annan called on the leaders of the business world for an international initiative called the Global Compact within the scope of the “Millennium Development Goals”, which would gather companies, the UN, workers’ unions and non governmental organisations under one roof , in order to support universal environmental and social principles.
Ten main principles were determined within the scope of the project under the titles of human rights, labour, environment and anti-corruption areas. Global Compact Project came to life on June 26, 2000 at the UN Headquarters in New York. Today, thousands of companies, workers’ unions and non governmental organisations from all around the globe are joining the Global Compact, by declaring that they will make these global principles a part of their business strategies, operations and cultures.
Turkey’s participation to the Global Compact began officially with an ad hoc meeting held on October 15, 2002 in collaboration with the United Nations Development Programme (UNDP) Turkey Office, and Turkish Confederation of Employer Associations (TİSK). Currently, there are 160 institutions from Turkey which have undersigned the UN Global Compact.
TÜSİAD has also undersigned the Global Compact at the “Global Compact Leaders Gala Dinner” held in İstanbul on November 12, 2007 within the scope of the 16th Quality Congress.
Ten Principles of the Global Compact:
The UN Global Compact’s ten principles in the areas of human rights, labour, the environment and anti-corruption are derived from international declarations with a universal consensus. The Global Compact asks companies to embrace, support and enact these principles.
Human rights:
Principle 1: Business should support and respect the protection of internationally proclaimed human rights,
Principle 2: Make sure that they are not complicit in human right abuses,
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining,
Principle 4: The elimination of all forms of forced and compulsory labor,
Principle 5: The effective abolition of child labor,
Principle 6: The elimination of discrimination in respect of employment and occupation,
Principle 7: Business should support a precautionary approach to environmental challenges,
Principle 8: Undertake initiatives to promote greater environmental responsibility,
Principle 9: Encourage the development and diffusion of environmentally friendly technologies,
Principle 10: Business should work against all forms of corruption, including extortion and bribery.
What do the businesses need to do to participate in the Global Compact and Remain as a Participant?
The UN Global Compact is a voluntary initiative, aiming at participation from various business groups or organisations. In order to take part in the Global Compact, the CEO of a company needs to submit the letter to be found online at the internet site, http://www.unglobalcompact.org/HowToParticipate/index.html, addressed to UN Secretary General Kofi Annan.
A company joining the initiative is expected to:
Determine the change in the functioning of the company to make the Global Compact and its principles an integral part of its business strategy, organisational culture and day-to-day operations,
Clear disclosure of its advocacy for the Global Compact and its principles through the press,
And publish an annual report like the annual company reports to elaborate upon how it advocates for the Global Compact and its principles.
In order to ensure sustainability and reliability, the system expects companies, aligned with the ten global principles, to reach out to stakeholders and wider masses at least on an annual basis. The participating companies need to report the changes in their work and their impacts on the daily operations annually. “Practical Guide to Communication on Progress - Advice for Global Compact participating companies preparing their Communication on Progress” could support companies about the reporting, and it is required that companies share their experience and what they have gained relevant to their program through communication tools.
Following the participation in the Compact, companies which do not provide any information within two years, are removed from the list of members of the Global Compact and are transferred to an inactive status until they take the aforementioned step.
Nonetheless, the Global Compact is an initiative that does not monitor companies’ actions and does not impose strict control mechanisms on the participants. The only sanction is the companies’ removal from the list. The system is formed in a way that ensures the self-control mechanism of the country networks.
Neither is the Global Compact a performance evaluation mechanism. There are no approvals or performance appraisal. Still, high quality and integrity are required in the company activities. The communication on progress reports are shared transparently with everyone while at the same time encouraging such reports from similar companies and other stakeholders.
Global Compact and Turkey
National Network of Turkey ranks among the top ten national organisations in the world within the scope of the Global Compact. There is increasing support and interest from the public, businesses, media, academic circles and the state.
An Executive Board, comprising of representatives from organisations which attach importance to the Global Compact and carry out effective efforts was set up in order to strengthen the Global Compact National Network all around Turkey and to represent the network at an international scale. Dr. Yılmaz ARGÜDEN is the representative of the Executive Board; other Board members are Aksa Akrilik representative Sibel Bekler, Koç Holding representative Aylin Gezgüç, Sabancı Holding representative Suat Özyaprak, TİSK representative Burcu Şenel, TÜSİAD representative Melda Çele and ZED Publicity representative Füsun Uzunoğlu.
