The United Nations Global Compact offers a framework of universal and voluntary commitment, articulated around Ten principles relating to human rights, international labour standards, the environment and the fight against corruption.
The Ten Principles of the United Nations Global Compact are derived from the Universal Declaration of Human Rights, the Declaration of the International Labor Organization, the Rio Declaration on Environment and Development and the United Nations Convention against Corruption.
This Principle sets out the UN Global Compact’s overarching expectation of business on human rights, namely, to respect and support human rights. Respecting human rights means a business should use due diligence to avoid infringing human rights (“do no harm”) and should address adverse human rights impacts with which they are involved. In addition, beyond respecting human rights, business is encouraged to take action to support human rights. This means seeing the opportunity to take voluntary action to make a positive contribution towards the protection and fulfillment of human rights whether through core business, strategic social investment/philanthropy, public policy engagement/advocacy, and/or partnerships and other collective action.
Action to support human rights should be a complement to and not a substitute for action to respect human rights. Special attention should be paid to the rights of vulnerable groups, including women, children, people with disabilities, indigenous peoples, migrant workers, older persons etc.
What can companies do?
Organizations are advised to take proactive and voluntary steps to support and promote respect for human rights beyond the mere acknowledgement of them. Such steps could include making a positive contribution through their core business, strategic social investments, corporate philanthropy policies, public policy commitments, partnerships, and other collective actions. These measures to support human rights should be viewed as a complement to, rather than a substitute for, corporate action.
Particular attention should be paid to the rights of vulnerable groups, including women, children, people with disabilities, indigenous peoples, migrant workers, the elderly, and so on.
The United Nations Global Compact requires its Participants to uphold and promote human rights, such as the right to education, freedom of expression, and a healthy environment, within their sphere of influence. Respecting human rights entails being vigilant in identifying potential direct or indirect negative impacts of the organization and taking corrective action. All human beings should enjoy their rights without discrimination based on race, colour, gender, language, religion, political or other beliefs, national or social origin, property, birth, or any other status.
What can companies do?
Respecting human rights is a crucial responsibility for companies, and it is a key element of sustainable business practices. Principle 1 of the UN Global Compact and the UN Guiding Principles on Business and Human Rights requires companies to uphold and protect human rights. One way for companies to fulfil this obligation is by avoiding complicity in any human rights abuses.
The concept of freedom of association involves acknowledging the entitlement of employers and employees to create and join groups that advocate for their professional interests without external interference. They are free to establish, operate, and become members of their own organizations, without any interference from the state or other entities. Furthermore, all individuals, including employers, possess the right to express their opinions on trade unions, as long as their exercise of this right does not violate the employees' right to freedom of association.
What can companies do?
For workers to make autonomous decisions, it is crucial to have a work environment that is devoid of violence, coercion, intimidation, and menace.
Not only does Forced labour violate is fundamental human rights, but it also has negative effects on societies by hindering the development of skills and human resources, as well as the education of children for future labour markets. Its consequences are not limited to individuals, particularly children, but also affect society and the economy at large.
Forced labour diminishes productivity levels and contributes to less secure investments and slower economic growth by impeding the proper development of human resources. The interruption of regular employment or income-generating activities, resulting in loss of income, reduces the potential earnings of breadwinners, leading to the deprivation of food, shelter, and healthcare for entire families.
Although legally operating companies generally refrain from forced labour practices, they can still indirectly engage in such practices through subcontractors. Consequently, it is imperative for all employers to understand the different forms and causes of forced labour in various industries.
What can companies do?
To determine whether forced labour exists in their industry and operations, organizations must conduct an assessment. It is crucial to note that while high-profile cases are often associated with developing countries, forced labour is a global problem that also affects developed countries.
The initial step in addressing forced labour is to comprehend its causes. Once identified, individuals involved in forced labour should be removed from the work and provided with necessary support and services to facilitate their transition into appropriate alternatives.
In general, a comprehensive strategy involving both workplace and community-based measures is essential to eliminate forced labour practices.
Child labour is a form of exploitation that violates a recognized human right as defined by international instruments. The international community and nearly all governments have banned child labour. It interferes with a child's physical, social, mental, psychological, and spiritual development by occurring at too young an age. Such labour deprives the child of their childhood and dignity, and denies them an education while potentially separating them from their family. Any child who fails to complete basic education is at risk of illiteracy and never acquiring skills that would allow them to work and contribute to the development of a modern economy. Consequently, child labour leads to a workforce with insufficient or non-existent qualifications and is detrimental to the professional advancement of the labour force.
The ILO conventions (Convention concerning the Minimum Age for Employment, No. 138, and Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No. 182) provide a framework for national legislation and require the establishment of a minimum working age, which is generally set at 15 years, corresponding to the end of compulsory education. However, international standards distinguish between acceptable and unacceptable types of work for children at different ages and stages of development. The minimum age for hazardous work is higher, at 18 years in all countries.
What can companies do?
Performing work at a young age has negative impacts on the physical, social, mental, psychological, and spiritual development of a child. Child labour strips children of their childhood and dignity, while preventing them from obtaining an education and potentially separating them from their families. Failure to complete primary education results in illiteracy and insufficient skillsets for securing employment, thereby hindering the development of a modern economy and creating a pool of under- and unskilled workers.
Although the issue of child labour is complex, companies must handle it sensitively and avoid actions that may compel children to participate in more exploitative forms of labour. Principle 5 emphasizes that companies should strive to eradicate child labour within their sphere of influence.
To take action against child labour, companies should first raise awareness of its causes and consequences. Identifying the use of child labour can be difficult without proper documentation, but local nongovernmental organizations, development organizations, or UN agencies can be enlisted to aid in the process. Once identified, children should be removed from the workplace and provided with viable alternatives. This typically entails enrolling children in school and offering income-generating opportunities for parents or family members of working age.
Treating individuals differently based on characteristics unrelated to their abilities or job skills is known as employment discrimination. National laws typically identify these characteristics as skin colour, gender, religion, political opinion, national origin, social origin, age, disability, union affiliation, and sexual orientation. Discrimination can cause social unrest both within a company and in society at large. Furthermore, companies that engage in discriminatory employment and occupational practices limit their access to a larger pool of talented workers and a diverse set of skills and competencies. Discrimination also generates negative emotions such as hurt and resentment that can affect the performance of both individuals and teams within the organization. Despite this, Principle 6 may allow companies to consider other factors that could lead to discrimination in employment and occupation.
Discrimination can arise in a variety of work-related activities, such as:
What can companies do?
To ensure non-discrimination in employment, companies must prioritize selecting employees based on their ability to perform the job, without any distinction, exclusion, or preference based on other factors. Discrimination can negatively impact both an individual's professional and personal life.
The 1992 Rio Declaration's Principle 15 introduced the precautionary principle, which mandates that States must widely apply precautionary measures to protect the environment based on their capabilities. Even in cases where there are threats of irreversible or serious harm, the lack of complete scientific certainty should not be used as an excuse to delay cost-effective measures aimed at preventing environmental degradation.
The precautionary principle requires the systematic application of risk assessment, management, and communication. If there is a reasonable suspicion of harm, decision-makers must act with caution and take into account the degree of uncertainty that results from scientific assessment.
From a business perspective, the key to the precautionary approach is prevention, not remediation. In other words, it is more economically efficient to take early action to ensure that environmental damage does not occur.
What can companies do?
In order to promote a precautionary approach, companies should communicate potential risks to consumers and provide comprehensive information about these risks to the public. Furthermore, companies should seek prior authorization before releasing certain products that are considered potentially dangerous to the market.
To implement this approach, companies could take the following steps:
The 1992 Rio Earth Summit, as outlined in Chapter 30 of Agenda 21, defined the role of business and industry in the sustainable development agenda. It stated that businesses and industries should increase self-regulation and adopt appropriate codes, charters, and initiatives that are integrated into all aspects of their planning and decision-making. Additionally, it encouraged businesses to foster openness and dialogue with employees and the public.
According to the Rio Declaration, businesses have a responsibility to ensure that their activities do not harm the environment within their own operations. It is expected that businesses act as good citizens in the community, and their legitimacy comes from meeting the needs of society. There is a growing expectation for businesses to adopt more environmentally sustainable practices in response to society's demands.
What companies can do?
Steps that the company could take to promote environmental responsibility would be the following:
In doing the above, the existence of appropriate management systems is crucial in helping the company to meet the organizational challenge.
Agenda 21 of the Rio Declaration defines environmentally sound technologies as those that protect the environment, use resources more sustainably, recycle more waste, and handle residual waste in a more acceptable manner than the technologies they replace. These technologies encompass a range of cleaner production processes and pollution prevention techniques, as well as end-of-pipe and monitoring technologies. They include know-how, procedures, goods and services, equipment, and organizational and managerial practices.
Where production processes generate waste and residues due to inefficient resource usage, the application of environmentally sound technologies can minimize operating inefficiencies, reduce emissions of environmental contaminants, limit worker exposure to hazardous materials, and decrease the risk of environmental disasters.
What can companies do?
Improvement in technology at the plant or base unit level can be attained through a variety of means such as altering the manufacturing process or technique, modifying raw materials, design or product components, or adopting on-site material reuse practices.
To implement these changes, the following strategic approaches can be utilized:
In 2004, the adoption of the tenth anti-corruption principle by UN Global Compact participants not only requires them to avoid corrupt practices such as bribery and extortion, but also to proactively develop policies and programs to address corruption within their own organization and supply chains. The principle also challenges companies to collaborate with civil society, the United Nations, and governments to create a more transparent global economy.
The UN Convention Against Corruption (UNCAC), which came into force in 2005, is a significant global tool for fighting corruption, and the 10th Principle is based on it. Corruption can take various forms, ranging from the minor use of influence to institutionalized bribery. Corruption is defined by Transparency International as the "abuse of entrusted power for private gain," which can include not only financial gain but also non-financial advantages.
According to the OECD Guidelines for Multinational Enterprises, extortion occurs when a demand for bribery is accompanied by threats that endanger the personal integrity or life of those involved. Transparency International's Business Principles for Countering Bribery defines bribery as offering or receiving any gift, loan, fee, reward, or other advantages to induce someone to engage in dishonest, illegal, or untrustworthy conduct in the conduct of the company's business.
What can companies do?
To combat corruption and uphold the tenth principle, the UN Global Compact recommends that its members focus on the following three aspects:
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