UN Global Compact

The UNGC is an internationally recognised set of principles that set out key areas that businesses must focus on in order to ensure that "markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere". The basis of the Compact is in an increasingly globalised world, businesses have real responsibilities and must adhere to certain standards so that they have a positive impact on the international community.

The Compact outlines what each principle entails, why it is so important, and also gives businesses guidance as to how they can ensure they successfully incorporate values and principles within their business practices. The 10 principles are often seen as a foundation to other important Corporate Responsibility standards and guidelines. The principles are as follows:

Human Rights:

1. Businesses must support and protect human rights
2. Businesses must ensure they are not complicit in human rights abuses

Labour:

1. Businesses should uphold the freedom of association and the right to collective bargaining for their employees
2. No forced or compulsory labour
3. Abolition of child labour
4. No discrimination of employment or occupation

Environmental:

1. Businesses should take a 'precautionary approach' to environmental challenges
2. Businesses should undertake initiatives to promote greater environmental responsibility
3. Businesses should encourage the development and diffusion of environmentally friendly technology

Anti-corruption:

1. Businesses should work against all forms of corruption, extortion and bribery.

The UNGC website has details of the principles as well as advice on how and why they are so relevant to businesses. Although these are not legally binding the Compact had been signed-up to by over 5200 businesses in over 130 countries, so does have real significance.

Complementary to the UNGC is the Communication on Progress (COP). This initiative encourages participants to monitor and report their progress with respect to the principles (this includes the recording of action taken, as well the subsequent results measured). While the UNGC do offer guidance on this, the GRI has also developed UNGC COP Guidelines.