EuropaWorld 2/11/2001 London Hosts Global Compact Initiative

Two months before the UN's Millennium Summit held in New York (in what seems now another age but was actually September 2000) another new initiative trickled from the fertile pen of UN Secretary-General, Kofi Annan. This was the Global Compact for Business - an initiative that started with a few enthusiastic backers and a wide audience of sceptics but one that has since steadily gained momentum and respect.

This week the Global Compact is the subject of a conference being held in London which has attracted participants from a wide segment of business and labour interests. The event, hosted by British Petroleum (BP), will review the Compact's progress among businesses worldwide.

The Compact is a voluntary agreement into which businesses enter freely. In a word businesses are invited to pledge that they will behave ethically, or at least move in that direction. This means that they agree to respect nine guiding principles drawn from the Universal Declaration of Human Rights, the International Labour Organisation's Fundamental Principles on Rights at Work, and the Rio Principles on Environment and Development.

If the Compact has a rationale it is this. That the UN - and for this purpose include the whole UN agenda - should not be only about inter-governmental relations, but about governments and civil society. The UN Charter, after all, speaks of 'we, the peoples'- not 'we, the governments.' Preserving the environment, therefore, or eliminating child labour is a duty that is not just confined to governments.

By signing the Compact businesses agree to respect such principles. Of course there are cynics and some businesses may have no difficulty in signing the Compact with the right hand while the left is still busy abusing human or environmental rights through some distant subsidiary in a far flung land. Because of this, some see the Compact as a worthless exercise. But to abandon it for that reason would be to let the best become the enemy of the good. Much of value has already been achieved. For the best companies it has, in only a short time, become a benchmark.

It will be the aim of the London conference to address some of these issues. Participating companies will be sharing their experiences in working with the Compact's nine guiding principles. The conference will also explore how the internet can be used to disseminate information and commentary on corporate citizenship. There will be encouragement for others to join. Business is not always amoral.