UN Global Compact (UNGC) Management Model

United Nations Updates Guidelines to improve Corporate Social Responsibility (CSR) by the Corporate

The United Nations has updated its guidelines for socially responsible businesses to make it easier for firms to implement environmentally sustainable and ethical policies. To read the full “UN Global Compact Management Model” Click Here : http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2010_06_17/UN_Global_Compact_Management_Model.pdf

The new guidelines aims to take account of the evolution of corporate social responsibility (CSR) practice since the scheme was initially launched in 2004. More than 5,000 companies have signed up to the compact, including high-profile blue chip firms such as Rio Tinto, Unilever, Infosys, and HSBC. Companies joining the group pledge to adhere to 10 principles [1] which require them to support human rights, promote good labour standards, display environmental responsibility and tackle corruption. However, despite its popularity, many firms have found it difficult to translate the principles into their business practices.

The Model represents management thinking with respect to translating the UN Global Compact’s principles into practice. Importantly, it draws on widely accepted and understood management practices, but is organized and orientated around maximizing corporate sustainability performance. It sets out a basic six-step programme detailing how companies can ensure they are operating in line with the UNGC's core principles. It focuses on the steps companies take once having made the commitment to the UN Global Compact. In addition, it is a dynamic and continuous process designed to assist companies in achieving higher levels of performance over time.These six steps are:

1. Commit
2. Assess
3. Define
4. Implement
5. Measure
6. Communicate

It is hoped that through the application of this Management Model, companies will attain ever-higher levels of performance and, in the process, generate real and lasting value for their business, stakeholders, and society at large.

Note [1]: The Ten Principles of the United Nations Global Compact

Human rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;
Principle 2: Make sure that they are not complicit in human rights abuses.
Labour 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 labour;
Principle 5: The effective abolition of child labour;
Principle 6: The elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility;
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.