Global Compact

Definition

The Global Compact is an international initiative proposed by former United Nations Secretary-General Kofi Annan at the 1999 World Economic Forum and adopted in 2000. Companies joining the compact agree to voluntarily support 10 principles in four areas-human rights, labor, the environment, and corruption prevention-and to work to realize a more ideal society around the world.

The Global Compact (GC) seeks to promote responsible corporate citizenship through the power of collective action based on the idea that the private sector-in partnership with other social actors-can help realize a more sustainable and inclusive global economy. GC is a network-based voluntary initiative led by United Nations Global Compact Office along with six UN agencies-the Office of the High Commissioner for Human Rights (OHCHR), International Labour Organization (ILO), United Nations Environment Programme (UNEP),

United Nations Office on Drugs and Crime (UNODC), United Nations Development Programme (UNDP), and United Nations Industrial Development Organization (UNIDO)-as well as more than 2,900 companies (as of March,2006), labor unions, and civil society organizations from around the world. Companies voluntarily adhere to the 10 GC principles, which are not regulatory instruments or legally binding *1. Companies are also currently being encouraged to join a partnership project with UN agencies and civil society organizations to accomplish the Millennium Development Goals (MDGsnew window) by the target date of 2015.