Ag-IP-news, July 10, 2007

BUSINESS LEADERS ADOPT GENEVA DECLARATION ON RESPONSIBLE PRACTICES

[Rachel's introduction: On July 9, hundreds of transnational corporations pledged to adopt a precautionary approach -- voluntarily, of course.]

GENEVA -- The second UN Global Compact Leaders Summit concluded on Friday with a pledge by hundreds of business leaders from developed and developing countries to comply with labor, human rights, environmental and anti-corruption standards.

"Over these two days, it has been heartening to see such a prominent group of leaders from business, Government, civil society, labor, academia and the United Nations, display such a deep and broad commitment to the principles of the Global Compact," UN Secretary General Ban Ki-moon said in his closing speech.

"I am encouraged by your willingness to share and openly discuss actions, experiences and challenges. Working together across sectors in this way to address the most pressing issues facing business and society is the hallmark of the Global Compact," he added.

Top executives of corporations such as Coca-Cola, Petrobras, Fuji Xerox, China Ocean Shipping Group, Tata Steel, L M Ericsson and Banco Bilbao Vizcaya Argentaria adopted the 21-point Geneva Declaration.

Delivered by UN Global Compact Vice Chair Talal Abu-Ghazaleh, the Declaration stressed that "It is unprecedented in history to have the objectives of the international community and the global business community so aligned. Common goals, such as building sustainable markets, combating corruption, safeguarding human rights and protecting the environment, are resulting in new levels of partnership and openness among business, civil society, labor, governments, the United Nations, and other stakeholders."

The Declaration spells out concrete actions for business in society, governments and UN Global Compact participants.

Some 4,000 organizations from 116 countries -- among them trade unions, non-governmental organizations (NGOs) and about 3,100 businesses -- have so far subscribed to the Global Compact, pledging to observe ten universal principles related to human rights, labor rights, the environment and the fight against corruption.

Addressing the business sector, Abu-Ghazaleh said "Your support will exemplify your own commitment to Corporate Social Responsibility (CSR)."

"It will advance its principles and goals, will provide a concrete principle-based approach to CSR, will contribute to a more inclusive and sustainable economy, and will demonstrate your championship for the fundamental goals the United Nations," he further noted.

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in these areas, these principles are:

In human rights: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

While in labor standards: 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; and Principle 6: the elimination of discrimination in respect of employment and occupation.

In environment: Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Finally in anti-corruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

A Ministerial Roundtable chaired by General Assembly President Sheikha Haya Rashed al Khalifa discussed the role of governments in promoting responsible corporate citizenship. Six parallel sessions focused on human rights, labor, climate change and the environment, UN-business partnerships, corruption and responsible investment were held.

Global as well as local initiatives were launched at the Summit. Through the "Caring for Climate" platform, Chief executive officers (CEOs) of 150 companies from around the world, including 30 from the Fortune Global 500, pledged to speed up action on climate change and called on governments to agree as soon as possible on Kyoto follow-up measures to secure workable and inclusive climate market mechanisms.

The CEOs of six corporations -- The Coca-Cola Company, Levi Strauss & Co., Läckeby Water Group, Nestle S.A., SABMiller and Suez -- urged their business peers everywhere to take immediate action to address the global water crisis. They launched the "CEO Water Mandate," a project designed to help companies to better manage water use in their operations and throughout their supply chains.

Also launched at the Summit, the "Principles for Responsible Investment" seek to disseminate the tenets of corporate citizenship among capital markets. The "Principles for Responsible Management Education" aim to take the case for universal values and business into business schools around the world.

Over 1,000 people registered for the Summit -- most from companies, but also from government entities, international organizations, international business organizations, international non-governmental organizations (NGOs), academia, foundations and international labor organizations.

The first Global Compact Leaders Summit took place in New York in 2004, and the next is scheduled for 2010.

Copyright 2006 ag-IP-news