UN GLOBAL COMPACT
What is UN Global Compact?
The UN Global Compact is a voluntary initiative promoted by the United Nations, in which companies and organizations commit to aligning their strategies and operations with ten universally accepted Principles in four thematic areas: human rights, labor rights, environment, and anti-corruption. Furthermore, the UN Global Compact aims to fulfill the 2030 Agenda, based on the 17 Sustainable Development Goals (SDGs), which were approved in the United Nations General Assembly in 2015 with the participation of over 200 authorities from different countries. This Agenda sets the path for the next 15 years, and its success will largely depend on the collaborative efforts of all stakeholders in society.
The United Nations Global Compact aims to create a sustainable global economy. In order to achieve this, the initiative encourages companies to: Conduct business responsibly by aligning their strategies and operations with ten principles concerning human rights, labor, environment, and anti-corruption; and Take strategic actions to advance the broader goals of society, such as the United Nations' Sustainable Development Goals, with an emphasis on collaboration and innovation.
By encouraging companies to operate responsibly and take strategic actions that contribute to society, the Global Compact works to ensure that business activity adds value not only to the bottom line but also to people, communities, and the planet. Considering the above, companies are urged to adopt a comprehensive approach to sustainability and design five essential elements: Firstly, companies should (1) operate responsibly in alignment with universal principles and (2) take strategic actions that support the society around them. In order to drive sustainability into corporate identity, companies should (3) engage at the highest level, (4) annually report on their activities, and (5) engage locally in Global Compact Networks. It is important to highlight that the Global Compact closely involves civil society and other critical stakeholders, including investors, academia, consumers, and policymakers, to help create an enabling environment for responsible business. As part of the United Nations, it carries the voice of businesses to major UN summits and negotiations.