Wednesday
Apr082009
UN Global Compact delists companies who practice corruption and fraudulent behavior
Wednesday, April 8, 2009 at 12:23PM
The global financial crisis has furthered international community concerns for business ethics and for corporations to adopt responsible business practices. The UN Global released a new report today that highlights how the Compact seeks to fill the gaps that remain in effective engagement between businesses in the private and public sector and the programs implemented in countries.
"The fallout of the financial crisis has put a spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for the modern corporation" said Georg Kell, Executive Director of the Compact. "One of the causes of the crisis in the first place was the short-term profit maximization, rather there is a need now to consider medium to long term value proposition. We need to get a handle on the risk dimensions. We need to take into account global interdependence-climate change, water shortages, and natural disasters" he said.
The Compact is the largest voluntary business sector program in the world with over 5,000 corporations signed up to date. Water regulation, human rights and anti-corruption are key issues this year--with hopes that of the few growing markets in China and India, will help to better build partnerships with other countries in need of investments and engagements. Corporate Responsibility Practice (CRP) is our mandate" said Gavin Power, Deputy Director of the Compact.
The top ten countries participating include France, Spain, Mexico, Brazil, USA, China, India, Argentina, Colombia and Germany.
" We promote social vetting, public disclosure, accountability and transparency" said Kell. The Compact "delists" companies who sign on yet after a year, do not disclose company CSR policies commitments to the public. To date, 800 companies have been delisted for bankrupcy, mergers, failure to perform, lack of brand visibility fraudulent behavior and use of the Global Compact for other than its stated goals.
"We use the Compact's ten principles (anti-corruption, human rights, labor, environment etc) as a way of changing organizational behavior" added Kell. In 2008, the Compact welcomed a record number of 1473 companies-up 30 percent from 2007.
Go to: http://www.unglobalcompact.org
"The fallout of the financial crisis has put a spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for the modern corporation" said Georg Kell, Executive Director of the Compact. "One of the causes of the crisis in the first place was the short-term profit maximization, rather there is a need now to consider medium to long term value proposition. We need to get a handle on the risk dimensions. We need to take into account global interdependence-climate change, water shortages, and natural disasters" he said.
The Compact is the largest voluntary business sector program in the world with over 5,000 corporations signed up to date. Water regulation, human rights and anti-corruption are key issues this year--with hopes that of the few growing markets in China and India, will help to better build partnerships with other countries in need of investments and engagements. Corporate Responsibility Practice (CRP) is our mandate" said Gavin Power, Deputy Director of the Compact.
The top ten countries participating include France, Spain, Mexico, Brazil, USA, China, India, Argentina, Colombia and Germany.
" We promote social vetting, public disclosure, accountability and transparency" said Kell. The Compact "delists" companies who sign on yet after a year, do not disclose company CSR policies commitments to the public. To date, 800 companies have been delisted for bankrupcy, mergers, failure to perform, lack of brand visibility fraudulent behavior and use of the Global Compact for other than its stated goals.
"We use the Compact's ten principles (anti-corruption, human rights, labor, environment etc) as a way of changing organizational behavior" added Kell. In 2008, the Compact welcomed a record number of 1473 companies-up 30 percent from 2007.
Go to: http://www.unglobalcompact.org
Reader Comments