Guide to corporate sustainability.

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SHAPING A
SUSTAINABLE
FUTURE
GUIDE TO CORPORATE
SUSTAINABILITY
THE UNITED NATIONS
GLOBAL COMPACT
WORKS WITH
BUSINESSES IN THE
REALMS OF HUMAN
RIGHTS, LABOUR,
ENVIRONMENT
AND
ANTI-CORRUPTION TO
TRANSFORM OUR WORLD.
WE’RE SHAPING A
SUSTAINABLE FUTURE,
AND YOU NEED TO BE A
PART OF IT.
4
1
PRINCIPLED
BUSINESS
2
STRENGTHENING
SOCIETY
WHAT IS CORPORATE
SUSTAINABILITY?
Aligning with
Ten Principles on Human
Rights, Labour, Environment
and Anti-Corruption
10
Taking action and
collaborating with
others to advance global
challenges
28
A primer on the ve
dening features of
corporate sustainability
06
TABLE OF
CONTENTS
UNI TED NATI ONS GLOBAL COMPACT
5
5
LOCAL
ACTION
4
REPORTING
PROGRESS
ANNEX
Viewing
sustainability
through
a local lens
42
Transparency in
business practice is crucial
for sustainability
38
A look at who is
committed to the Global
Compact and where they
are located
46
3
LEADERSHIP
COMMITMENT
Effecting long-term
change begins with a
company’s leadership
34
GUI DE TO CORPORATE SUSTAI NABI LI TY
5 THINGS
SUSTAINABLE
COMPANIES
DO
PRINCIPLED BUSINESS
STRENGTHENING SOCIETY
LEADERSHIP COMMITMENT
REPORTING PROGRESS
LOCAL ACTION
7
5 THINGS
SUSTAINABLE
COMPANIES
DO
PRINCIPLED BUSINESS
STRENGTHENING SOCIETY
LEADERSHIP COMMITMENT
REPORTING PROGRESS
LOCAL ACTION
The connection between the bottom-
line and a company’s environmental,
social and governance practices is
becoming clear. The well-being of work-
ers, communities and the planet is
inextricably tied to the health of the
business. The smart choice is to proac-
tively manage a company’s operations
and value chain – looking at risks and
opportunities through a wide lens.
At the same time, our world’s chal-
lenges – ranging from climate, water
and food crises, to poverty, conflict
and inequality – are in need of solu-
tions that the private sector can help
to deliver. Businesses are responding,
moving beyond their basic respon-
sibilities and going further into a
strategic opportunity space. This in-
cludes business models, products and
services with a joint societal and eco-
nomic return; publicly advocating for
government policies that advance
sustainability priorities; and, impor-
tantly, collaborating with peers to make
systemic changes.
The Global Compact is the world’s
largest global corporate sustainability
initiative, with over 8,000 companies
and 4,000 non-business participants
based in over 160 countries. A van-
guard of companies in all key markets
is taking action. Our participants rep-
resent nearly every industry sector and
size, and come equally from developed
and developing countries. The idea
and practice of responsible business is
rooted in all continents. We have over
85 country networks that are conven-
ing companies to act on sustainability
issues at the ground level.
At the Global Compact we help com-
panies, whether beginners on the
sustainability journey or recognized
champions, to meet their commit-
ments to operate responsibly and
support society. We do this through a
range of activities at the international
and local levels – from raising aware-
ness and developing resources and
best practices, to facilitating partner-
ships and developing action initiatives
on critical issues like climate, water
and women’s empowerment.
Corporate sustainability is imperative for business today –
essential to long-term corporate success and for ensuring that
markets deliver value across society. To be sustainable, companies
must do ve things: Foremost, they must operate responsibly
in alignment with universal principles and take actions that
support the society around them. Then, to push sustainability
deep into the corporate DNA, companies must commit at the
highest level, report annually on their efforts, and engage locally
where they have a presence.
WHAT IS
CORPORATE
SUSTAINABILITY?
GUI DE TO CORPORATE SUSTAI NABI LI TY
8
This guide lays out
ve dening features
of corporate
sustainability, which
the Global Compact
asks businesses to
strive towards –
looking at why each
element is essential,
how business can
move forward and
what the Global
Compact is doing
to help.
1: PRINCIPLED BUSINESS
For any company seeking to be sus-
tainable, it begins with operating with
integrity – respecting fundamental
responsibilities in the areas of human
rights, labour, environment and anti-
corruption. The Global Compact’s
Ten Principles provide a universal
language for corporate responsibility
– understood and interpreted in 160
countries around the world by over
8,000 companies – and a framework to
guide all businesses regardless of size,
complexity or location.
Respecting principles in business
operations and supply chains is a base-
line for corporate sustainability. Yet,
principles are about far more than
compliance. They provide common
ground for partners, a moral code for
employees, an accountability measure
for critics. A growing number of com-
panies are seeing beyond risk, finding
real value in actively addressing social,
environmental and governance issues.
2: STRENGTHENING SOCIETY
Sustainable companies look beyond
their own walls and take actions to
support the societies around them.
Poverty, conflict, an uneducated work-
force, and resource scarcity, for exam-
ple, are also strategic issues for business
success and viability. With business
activity, investments and supply chains
reaching all corners of the earth,
companies are choosing to be ac-
tive stakeholders in societies for the
long run, knowing that they cannot
thrive when the world around them
is deteriorating.
Companies are aligning core business
activities, philanthropy and advocacy
campaigns with UN goals and issues.
Collaboration, in particular, is essen-
tial. Companies and stakeholders are
coming together to provide a collec-
tive voice and share risks in tackling
major challenges that no single player
can overcome, such as corruption, cli-
mate change and discrimination.
WHAT
COMPANIES
WANT FROM
THE GLOBAL
COMPACT
Good practice
examples
Tools & guidance
Trainings
1
2
3
BUSINESS PARTICIPANTS AROUND THE WORLD
600
AFRICA & MENA
364
NORTHERN AMERICA
1,267
ASIA & OCEANIA
4,345
EUROPE
1,712
LATIN AMERICA
82%
of companies attribute progress on their sustain-
ability work to participating in the Global Compact
UNI TED NATI ONS GLOBAL COMPACT
9
TOP 3 REASONS
WHY COMPANIES
PARTICIPATE
IN THE GLOBAL
COMPACT
79%
Increase trust in
company through
commitment to
sustainability
59%
Universal nature of
the principles
56%
Promotes action on
sustainability within
the company
3: LEADERSHIP COMMITMENT
Effecting change begins with the
company’s leadership. A public com-
mitment by the chief executive, with
support from the Board of Directors,
is required to participate in the Glob-
al Compact. Leadership must send a
strong signal throughout the organi-
zation that sustainability counts, and
all responsibilities are important.
This means instigating action in key
areas: Board ownership of the agenda;
adjustments to policies and practices;
alignment of government affairs;
training and motivating employees;
pushing sustainability into the sup-
ply chain; and disclosing efforts and
outcomes. Leaders also recognize they
cannot shift systems alone, working
with others to shatter barriers and
increase the odds of success. Sustain-
ability requires a long-term vision and
commitment to ongoing efforts, both
to ensure progress and keep pace with
a rapidly changing world.
4: REPORTING PROGRESS
Non-financial reporting expectations
have evolved from a feel-good supple-
ment to a strategic report showing
measurable gains and losses. As a chief
accountability measure, signatories
to the Global Compact are required to
produce an annual Communication
on Progress (COP), typically included
as part of their sustainability or an-
nual report, providing the company’s
stakeholders with an account of their
efforts to operate responsibly and
support society. Over 28,000 COPs can be
found on the Global Compact website.
A number of stakeholders are driving
businesses to be more transparent
– from investors and consumers, to
citizens and civil society groups. A
top priority is to find ways to better
measure sustainability impacts,
which will help to direct effective
corporate strategies, inform com-
munity and stakeholder dialogues,
and guide investor decision-making.
5: LOCAL ACTION
While the Global Compact principles
are universal, companies exist and act
within nations and communities with
highly varying expectations of what
responsible business means. Addition-
ally, the types of issues a company
faces and how it can actively support
local and national priorities ranges
greatly. To help business navigate
sustainability on the ground, we have
Global Compact Local Networks in ap-
proximately 85 countries.
Our networks exist to support business
participants – large, small, foreign
and local firms. They are organized
and run locally – led by business, but
always bringing key stakeholders to
the table from civil society, labour and
academia. Global Compact networks
foster learning, reporting, network-
ing, partnerships and advocacy – all
with the goal of advancing sustain-
ability understanding and perfor-
mance country by country.
CORPORATE
SUSTAINABILITY
IS A COMPANY’S
DELIVERY OF
LONG-TERM
VALUE IN
FINANCIAL,
ENVIRONMENTAL,
SOCIAL AND
ETHICAL TERMS.
GUI DE TO CORPORATE SUSTAI NABI LI TY
11
Human Rights
1 Businesses should support
and respect the protection of
internationally proclaimed human
rights; and
2 Make sure that they are not
complicit in human rights abuses.
Labour
3 Businesses should uphold the
freedom of association and the
effective recognition of the right to
collective bargaining;
4 The elimination of all forms of
forced and compulsory labour;
5 The effective abolition of child
labour; and
6 The elimination of discrimination
in respect of employment and
occupation.
Environment
7 Businesses should support
a precautionary approach to
environmental challenges;
8 Undertake initiatives to
promote greater environmental
responsibility; and
9 Encourage the development and
diffusion of environmentally friendly
technologies.
Anti-Corruption
10 Businesses should work against
corruption in all its forms, including
extortion and bribery.
_____
The UN Global Compact’s Ten Principles
are derived from: the Universal Declaration
of Human Rights, the International
Labour Organization’s Declaration on
Fundamental Principles and Rights at
Work, the Rio Declaration on Environment
and Development, and the United Nations
Convention Against Corruption.
Corporate sustainability starts with a company’s value system
and a principled approach to doing business. This means
operating in ways that, at a minimum, meet fundamental
responsibilities in the areas of human rights, labour,
environment and anti-corruption. Responsible businesses enact
the same values and principles wherever they have a presence,
and know that good practices in one area do not offset harm in
another. By incorporating the Global Compact principles into
strategies, policies and procedures, and establishing a culture
of integrity, companies are not only upholding their basic
responsibilities to people and planet, but also setting the stage
for long-term success.
THE
POWER OF
PRINCIPLES
1: PRINCIPLED BUSINESS
THE TEN PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT
GUI DE TO CORPORATE SUSTAI NABI LI TY
BUSINESS
INCREASINGLY
TAKING ACTION
ON HUMAN
RIGHTS
(2009-2013)
10%
Increase in specific
corporate principles
on human rights
8%
Increase in complaint
mechanisms
5%
Increase in operational
guidance notes
Some Key Business
& Human Rights
Guidance Materials
Business & Human
Rights Learning Tool
Human Rights
Management
Framework
Human Rights &
Business Dilemmas
Forum
How to Develop a
Human Rights Policy
Guide to Human
Rights Impact
Assessment &
Management
Human Rights
Reporting Guidance
Business Reference
Guide to the UN
Declaration on the
Rights of Indigenous
Peoples
Human Rights &
Labour Webinar
Series
RESOURCES
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Respecting and supporting human rights remains one of the most
challenging areas of corporate sustainability. Yet in an increasingly
interconnected world with closer scrutiny of corporate impact on
people and communities, more businesses are coming to realize
their legal, moral and commercial need to do so within their
activities and business relationships.
Beyond the minimum responsibility to respect human rights,
companies are also nding that voluntary actions which support
social development – such as creating diverse and inclusive
workplaces, investing in communities and public policy advocacy,
and engaging stakeholders – have business benets as well.
The Global Compact brings clarity to this eld by demonstrating
the business case and emphasizing practical solutions. We help
companies navigate a range of challenges through resources,
ranging from guidance documents, webinars and online forums,
to special initiatives on the rights of groups – such as women,
children, indigenous peoples and persons with disabilities.
Working in close cooperation with the UN Ofce of the High
Commissioner for Human Rights and leaders in the field, and in
alignment with the Guiding Principles on Business and Human
Rights, we are putting forward approaches that are good for
business and for human rights.
HUMAN RIGHTS
PRINCIPLES 1-2
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GUI DE TO CORPORATE SUSTAI NABI LI TY
Human
Rights
Checklist
Following are the types of
policies and practices essential
for rooting human rights
into a company’s strategies,
operations and culture.
Data shown represents the
percentage of Global Compact
companies that indicate taking
a specific action.
Specific human rights code
35%
Within overall corporate code
72%
Risk assessment
21%
Impact assessment
14%
Operational guidance notes
24%
Complaint mechanism
39%
Employee training &
awareness
44%
Supply chain arrangements
27%
Employee performance
assessment
36%
Monitor & evaluate
performance
31%
Public disclosure of policies
& practices
29%
Multi-stakeholder dialogue
22%
Human
Rights and
Business
Dilemmas
Forum
Implementing human
rights principles can
raise a number of
practical dilemmas for
business. The Human
Rights and Business
Dilemmas Forum helps
companies tackle
questions related to
approximately 25 human
rights and business
themes, such as migrant
workers, security
forces, gender equality,
community relocation,
product misuse and
privacy. The multi-
stakeholder online forum
is designed to stimulate
discussion, enhance
HOW
WE ARE
HELPING
BUSINESS
collective understanding
of human rights themes,
and identify practical
approaches to real-
world dilemmas. At the
forum you can explore
an expanding list of
human rights themed
dilemmas that are
relevant to business,
including explanation of
the risks to business and
suggestions for how to
approach the dilemma.
Photo: Chris De Bode/Panos Pictures
15
Gender equality is a fun-
damental and inviolable
human right; it is also
essential to expand eco-
nomic growth, promote
social development and
enhance business per-
formance. The Women’s
Empowerment Princi-
ples – Equality Means
Business initiative is
engaging over 800 com-
panies from all sectors
and regions to advance
gender equality and
women’s empowerment
in the workplace, mar-
ketplace and community.
A joint initiative with
UN Women, the WEPs
outline seven steps to
empower women and
highlight how full partic-
ipation by women in eco-
nomic life is essential to
build strong economies;
establish more stable
and just societies; im-
prove quality of life also
for men, families and
communities; and propel
business objectives.
Children’s
Rights and
Business
Principles
Human rights apply to
all children, and safe-
guarding these rights
helps build the strong,
well-educated commu-
nities vital to creating
a stable and productive
business environment.
The Children’s Rights
and Business Principles
identify actions that all
companies should take
to respect and support
children’s rights through
core business, strategic
social investments, ad-
vocacy, public policy and
partnerships. Such
action can help companies
address risk manage-
ment, build reputation,
and enhance the social
license to operate. De-
veloped in collaboration
with Save the Children
and UNICEF, the CRBPs
call on the business
community to evaluate
and take responsibility
for their impact on the
well-being of children.
Women’s
Empowerment
Principles
Photo: Mark Henley/Panos Pictures
Photo: UNICEF/NYHQ2009-1240/Pirozzi
BUSINESS
WORKING
TOWARDS
HIGHER
STANDARDS
(2009-2013)
15%
Increase in
mechanisms for age
verification
8%
Increase in monitoring
& evaluation of
performance
†
6%
Increase in vocational
training & counseling
Guide to the Labour
Principles of the UN
Global Compact
Eliminating Child
Labour – Guides for
Employers
Child Labour
Monitoring
Resource Kit
E-Learning Tool on
Human Trafficking
Human Trafficking
& Business
Combating Forced
Labour
Disability in the
Workplace
Addressing the
Retention of Identity
Documents
Occupational Safety
& Health in the
Supply Chain
RESOURCES
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Decent working conditions, including those that protect the
safety and health of workers, are far from assured in today’s global
business community. The illicit use of child labour and forced
labour remains a risk as global supply chains extend to distant
regions. Hazardous workplaces continue to exist, particularly in the
mining, manufacturing and construction industries.
Companies everywhere need to look deeper into their own
operations and value chain to uphold labour standards. By
promoting decent work and inclusive employment opportunities,
business also plays a role in advancing societal priorities, including
by partnering with workers to improve industrial relations and
building more resilient economies and communities.
The Global Compact’s labour principles are championed by the
International Labour Organization (ILO). A range of guidance exists,
especially related to child labour, forced labour and discrimination.
The Global Compact focuses on disseminating these resources
among business participants and supporting related projects.
Additionally, because labour issues have important cross-cutting
implications, much work also falls under our human rights and
supply chain portfolios.
LABOUR
PRINCIPLES 3-6
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GUI DE TO CORPORATE SUSTAI NABI LI TY
Labour
Checklist
Child
Labour
Platform
The Child Labour
Platform is a multi-
sector, multi-stakeholder
forum for sharing
experiences and
lessons learned in
eliminating child labour,
particularly in the supply
chain. The Platform
delivers training and
capacity support to
address obstacles
and key dilemmas
faced by business,
links with global
and local initiatives
against child labour,
and fosters practical
action that can make a
difference in affected
communities. Co-chaired
by the International
Trade Union
Confederation (ITUC)
and the International
Organisation of
Employers (IOE), and
coordinated by the ILO
and the Global Compact,
companies and relevant
organizations are
encouraged to join the
Child Labour Platform.
Right to organize
81%
Collective bargaining
43%
No forced labour
64%
No child labour
67%
Non-discrimination
85%
Equal opportunity
79%
Risk assessment
35%
Impact assessment
23%
Safe working conditions
82%
Mechanisms for age
verification
43%
Employee training &
awareness
59%
Supply chain arrangements
28%
Monitor & evaluate
performance
53%
Public disclosure of policies
& practices
41%
Multi-stakeholder dialogue
26%
Following are the types of
policies and practices essential
for rooting labour standards
into a company’s strategies,
operations and culture.
Data shown represents the
percentage of Global Compact
companies that indicate taking
a specific action.
Photo: Nyani Quarmyne/Panos Pictures
HOW
WE ARE
HELPING
BUSINESS
19
ILO
Helpdesk for
Business
The ILO Helpdesk for
Business is a free service
to assist company
managers and workers
on how to better align
business operations
with international labour
standards. The Help-
desk offers individual
assistance – provided
confidentially by email
or over the phone – from
labour experts at the
ILO. The Global Compact
promotes the Helpdesk
to business participants
as a resource for improv-
ing their understanding
of the labour principles
and other labour topics.
Webinar
Series
The Global Compact
hosts a Webinar Series
on specific labour
topics. Each webinar
is conducted by ILO
experts and engages
business participants
with practical guidance
and relevant tools and
resources for advancing
the labour principles.
Several cross-cutting
topics have explored the
workplace dimensions of
human rights including
gender equality and
women’s empowerment,
indigenous peoples’
rights, children’s rights
and the rights of persons
with disabilities.
Photo: Stefan Boness/Panos Pictures
Photo: Kieran Dodds/Panos Pictures
COMPANIES
COMING
CLEAN ON
ENVIRONMENT
(2009-2013)
8%
Increase in public
disclosure of policies
and practices
6%
Increase in reporting
of emissions and
strategic climate data
6%
Increase in setting
consumption and
responsible use
objectives
Environmental
Stewardship
Strategy
Action Hubs:
Climate, Energy
& Water
Business and
Climate Change
Adaptation
Guides for
Responsible
Corporate
Engagement on
Climate & Water
Policy
Respecting the
Human Right to
Water & Sanitation
Corporate Water
Accounting
Guide to Water-
Related Collective
Action
Scaling Up Global
Food Security
and Sustainable
Agriculture
Framework for
Corporate Action
on Biodiversity and
Ecosystems
RESOURCES
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The world today is facing unprecedented, interconnected
environmental challenges in areas including climate change,
water, energy, biodiversity and agriculture. With business relying
on natural resources directly and via supply chains, new corporate
efforts are needed to address environmental responsibilities,
value natural capital, and better understand the linkages
between resources.
To prepare for this increasingly challenging landscape, the
Global Compact’s Environmental Stewardship Strategy is designed
to help companies develop a holistic and comprehensive strategy. It
recognizes the growing linkages among various environmental issues
as well as their connections to social and development priorities.
The Global Compact pushes companies to move beyond traditional
approaches based largely on compliance and narrow risk
assessments. We ask business to actively address environmental
risks and opportunities, and have major efforts underway with
business in the areas of climate, water and food. As a result, we
are seeing businesses around the world preparing for a more
sustainable future and becoming part of the solution.
ENVIRONMENT
PRINCIPLES 7-9
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GUI DE TO CORPORATE SUSTAI NABI LI TY
Environment
Checklist
Caring for
Climate
Businesses are seeing
climate change not
as a stand-alone
environmental issue,
but rather as a global
cross-cutting challenge
to which they need to
adapt in order to remain
profitable. Caring for
Climate is the world’s
largest business and
climate initiative,
providing a framework
to implement practical
solutions and help shape
public policy.
Nearly 400 companies
from 60 countries have
signed on to Caring
for Climate – led by
the Global Compact,
UN Environment
Programme (UNEP)
and the secretariat
of the UN Framework
Convention on Climate
Change (UNFCCC). Chief
executives who endorse
the initiative agree to
set goals, develop and
expand strategies and
practices, and publicly
disclose emissions.
Also companies commit
to advocate for a
global climate change
agreement in global and
local policy discussions.
Setting a price on carbon
that reflects the toll that
fossil fuels are taking on
the planet is a key step
to limit greenhouse gas
emissions and get ahead
of the climate change
curve. Our Business
Leadership Criteria
on Carbon Pricing
challenges companies
to integrate carbon
pricing into corporate
long-term strategies
and investment
decisions, advocate
for carbon pricing, and
communicate progress.
Management systems
65%
Technology assessment
44%
Life-cycle assessment/
costing
29%
Water footprinting
34%
Risk & impact assessment
50%
Performance targets/
indicators
64%
Cleaner & safer production
61%
Consumption & responsible
use targets
66%
3R (reduce, re-use, recycle)
60%
Employee training &
awareness
62%
Supply chain arrangements
31%
Monitor & evaluate
performance
53%
Report emissions
38%
Public disclosure of policies
& practices
49%
Multi-stakeholder dialogue
26%
Following are the types of
policies and practices
essential for rooting
environmental stewardship
into a company’s strategies,
operations and culture.
Data shown represents the
percentage of Global Compact
companies that indicate taking
a specific action.
HOW
WE ARE
HELPING
BUSINESS
23
Food +
Agriculture
Business
Principles
As the world’s popula-
tion grows to nine billion
by 2050 and demand
on global food systems
intensifies, business will
be a critical partner in
designing and delivering
effective, scalable and
practical solutions for
food security and sus-
tainable agriculture.
To advance the positive
impact of business in
this space and enable
principle-based part-
nerships, the Global
Compact facilitated the
development of the Food
+ Agriculture Business
Principles, the first set
of global voluntary
business principles for
the food and agriculture
sector. The FAB Princi-
ples reflect common,
fundamental elements
of existing voluntary
standards and technical
compliance platforms in
the industry, and cover
issues ranging from food
security, health and
nutrition, to human
rights, good governance,
and environmental
stewardship, as well as
ensuring economic via-
bility across the entire
value chain.
The principles offer a
basis for all responsible
businesses – regardless
of size, crop or location
– to collaborate with the
UN, governments, civil
society and others to
deliver global food
security solutions and
align their operations
with sustainable devel-
opment goals.
CEO
Water
Mandate
Advancing water
stewardship to address
shared risks is essen-
tial. The CEO Water
Mandate brings together
companies, both leaders
and learners, interested
in addressing the global
water crisis. Endorsed
by approximately 130
companies, the CEO
Water Mandate assists
companies in the devel-
opment, implementation
and disclosure of water
sustainability policies
and practices.
The Mandate helps
companies to share best
and emerging practices
and to forge partner-
ships addressing access
to water and sanitation.
The initiative’s tools and
resources help compa-
nies tackle water-related
business risks, commu-
nicate their policies and
practices to stakehold-
ers, and contribute
to the sustainable
management of shared
freshwater resources.
Photo: Tim Dirven/Panos Pictures
Photo: Georg Gerster/Panos Pictures
Business Against
Corruption: A
Framework for
Action
The Fight Against
Corruption
E-Learning Tool
Anti-Corruption
Tools Inventory
Guidance on Anti-
Corruption Risk
Assessment
Reporting Guidance
on the 10th Principle
against Corruption
Resisting Extortion
& Solicitation
in International
Transactions
Practical Guide
to Help Prevent
Corruption in the
Supply Chain
Fighting Corruption
in Sport Sponsorship
& Sport Related
Hospitality
Anti-Corruption
Collective Action
Hub
RESOURCES
RISING BUSINESS
TIDE AGAINST
CORRUPTION
(2009-2013)
14%
Increase in policies
related to corruption
11%
Increase in
zero-tolerance policy
13%
Increase in
anti-corruption
management systems
P
h
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t
o
:
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t
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a
r
t
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d
m
a
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/
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a
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o
s
P
i
c
t
u
r
e
s
Corruption has considerable impacts on business: impeding
growth, escalating costs and posing serious legal and reputational
risks. It is also a major hindrance to advancing societies, with
a disproportionate impact on poor communities. Corruption
raises transaction costs, undermines fair competition, distorts
development priorities, and impedes long-term foreign and
domestic investment.
New and tougher anti-corruption regulations continue to emerge
worldwide, prompting companies to focus on measures to protect
their reputations and the interests of their shareholders. Investors
are acknowledging that corruption can negatively impact value
and pose nancial, operational and reputational risks to their
investments. All companies need robust anti-corruption measures
and practices as part of their corporate sustainability strategy.
The Global Compact and our partners are working to help
companies on a range of anti-corruption issues, including risk
assessment, reporting and supply chain practices. Additionally,
we are mobilizing business to provide a united voice against
corruption, as collective action is essential for bringing an end to a
systemic issue that is too complex for any company to tackle alone.
ANTI-CORRUPTION
PRINCIPLE 10
P
h
o
t
o
:
S
t
u
a
r
t
F
r
e
e
d
m
a
n
/
P
a
n
o
s
P
i
c
t
u
r
e
s
GUI DE TO CORPORATE SUSTAI NABI LI TY
Anti-Corruption
Checklist
Public
Reporting
Public reporting sends
a strong signal to
employees, investors
and consumers that
a company is serious
about its commitment
to transparency and
responsible business
practices. The
Reporting Guidance
on the 10th Principle
against Corruption
equips business with
a practical means to
report on anti-corruption
policies and actions
comprehensively and
effectively. It includes a
broad set of reporting
elements and is rooted
in existing practice,
including indicators
of initiatives such as
PACI, FTSE4Good,
Transparency
International, the Global
Reporting Initiative
and the International
Corporate Governance
Network. To help
companies of all sizes
and at all stages, the
matrix provides guidance
for reporters on a basic
and a desired level. 
Within overall corporate code
71%
Zero-tolerance policy
54%
Management systems
47%
Specialized unit
32%
Risk assessment
27%
Impact assessment
15%
Policy is publicly accessible
45%
Anonymous hotline for
reporting corruption
32%
Sanction system for
breaches
35%
Employee training &
awareness
46%
Supply chain arrangements
28%
Record instances of
corruption
31%
Monitor & evaluate
performance
30%
Public disclosure of policies
& practices
32%
Multi-stakeholder dialogue
16%
Following are the types of
policies and practices essential
for rooting anti-corruption
into a company’s strategies,
operations and culture.
Data shown represents the
percentage of Global Compact
companies that indicate taking
a specific action.
Risk
Assessment
Assessing risks is a
crucial step to implement
corporate sustainability
successfully, decrease the
exposure to various risks
and avoid costly damages.
Good compliance starts
with a comprehensive
understanding of a
company’s corruption
risks. The Guidance
on Anti-Corruption Risk
Assessment provides
practical steps on how to
complete an assessment:
establish the process,
identify the risks, rate the
risks, identify mitigating
controls, calculate
remaining residual risk and
develop an action plan.
Photo: Mark Henley/Panos Pictures
HOW
WE ARE
HELPING
BUSINESS
27
Supply
Chain
Businesses all over the
world are exposed daily
to corruption risks in
the supply chain, and
increasingly recognize
the associated costs and
risks – including repu-
tational, financial and,
under some legislation,
legal consequences.
The challenge of fighting
corruption is compound-
ed by the significant
gap in resources and
capacities that exists be-
tween large companies
and smaller ones. Stand
Together Against Cor-
ruption helps companies
reduce corruption risks
in their supply chains,
outlining the business
case and providing
pragmatic guidance on
policies, procedures and
practices.
Call to
Action
The Global Compact is
mobilizing companies
around the world to
join our Call to Action:
Anti-Corruption and the
Global Development
Agenda – an appeal by
the private sector to gov-
ernments to promote an-
ti-corruption measures
and implement policies
that will establish
systems of good gover-
nance. It underscores
that anti-corruption and
good governance are
fundamental pillars of a
sustainable and inclusive
global economy, and
must be included in the
global development
agenda in order to
prevent development
efforts from being
further undermined by
corruption. All compa-
nies are encouraged to
sign the Call to Action
and continue to advance
best practices within
their sphere of influence.
Photos: ABOVE Philippe Lissac/Godong/Panos Pictures BOTTOM RI GHT Giacomo Pirozzi/Panos Pictures
The most fundamental contribu-
tion a company can make towards
achieving societal priorities is to be
financially successful while uphold-
ing a high standard of ethics and
treatment of employees, the envi-
ronment and the community. Doing
business responsibly – in line with
the Global Compact principles – can
be a tall order for companies of all
sizes – whether a multinational with
operations in 100 countries, a busi-
ness heavily reliant on suppliers in
markets with substandard norms, or
a small company located in an under-
developed or conflict-prone country.
At the same time, companies are seeing
that economic, social and environ-
mental issues matter, not just in the
communities where they are located,
Strong markets and strong societies go hand in hand. Even
the most principled companies are challenged to thrive in
communities marked by instability, to nd skilled labour where
adequate education is lacking, or to withstand disasters stemming
from climate change. Companies are looking to their core
business, as well as philanthropy, advocacy and partnerships, to
support society in ways that also contribute to protability. With
the United Nations expected to launch a ground-breaking set of
global sustainable development goals in 2015, business will have
a newly relevant framework to guide their efforts towards society
– representing a huge opportunity to drive sustainable business.
EVERYONE
BENEFITS
FROM A BETTER
WORLD
2: STRENGTHENING SOCIETY
GUI DE TO CORPORATE SUSTAI NABI LI TY
but also for long-term business viabil-
ity. Therefore, companies are increas-
ingly taking actions and partnering
with peers and other stakeholders to
actively support societal goals.
CORE BUSINESS Companies can have
an enormous impact when they
decide to tackle sustainability chal-
lenges through their core business.
Finding marketable solutions and
developing business models that
help deal with the risks of our time,
for example related to climate, wa-
ter scarcity or youth unemployment,
is a huge opportunity for business
growth and building new markets.
Examples include companies focused
WHO COMPANIES PARTNER WITH MOST OFTEN
Non-governmental
organizations
Companies
1
2
Academia Government
3 4
SMART COMPANIES LOOK
AT THE WORLD AROUND
THEM, SEE THAT THE
STAKES COULDN’T BE ANY
HIGHER, AND BECOME
PART OF THE SOLUTION.
Society
Checklist
Following are the types of
actions companies can take
to strategically support
societal goals. Data shown
represents the percentage of
Global Compact companies
that indicate taking a
specific action.
Align core business strategy
59%
Develop products & services
or business models
51%
Tie philanthropic
contributions to core
competencies
61%
Coordinate & not duplicate
philanthropy efforts
44%
Consider impacts of
funding efforts
40%
Publicly advocate need
for action
55%
Participate in events on
public policy
33%
Implement partnership
projects
73%
Local partnerships*
92%
Global partnerships*
45%
*of those companies
implementing partnerships
Core Business
Social Investment
Advocacy
Partnerships
31
on developing energy efficient solu-
tions, as well as those that are looking
to deliver affordable life-improving
products to the poor.
STRATEGI C PHI LANTHROPY In the
past, a company’s philanthropic efforts
were often mistaken for a corporate re-
sponsibility approach. There are clear
differences, and each has value. Using
the wealth of business to support socie-
tal causes has made a difference on key
issues, such as education and health.
And employees often place value in
their company’s philanthropic work,
both through financial giving and vol-
unteering. But many companies are
now taking a more strategic approach,
which mean ensuring that contribu-
tions are connected to core business,
not duplicating the efforts of others,
and taking responsibility for the unin-
tended effects of funding in areas like
local customs, traditions and religions.
ADVOCACY Business “statesmanship”
is essential for raising the urgency of
sustainability issues at the global and
local levels. Advocacy by business lead-
ers can influence peers, consumers
and, importantly, governments on the
need to tackle societal crises and how
responsible business practices can
help. In the realms of carbon pricing
and transparent public procurement,
for example, the collective voice of
business can encourage policy makers
to move rapidly in the right direction.
PARTNERSHI P Increasingly, companies
are understanding that they must
collaborate and coinvest in solu-
tions to shared, systemic challenges.
In a major shift over the past 15 years,
stakeholder groups –including business,
investors, governments, UN, civil soci-
ety and labour – are increasingly joining
forces on common objectives covering
all societal goals from poverty alle-
viation and peace, to disaster relief,
environmental protection and equality.
For business, this also means a willing-
ness to move beyond first-mover
approaches and embrace partnerships
and collective action efforts that pool
resources, share risks and aim to find
solutions faster.
COMPANIES BELIEVE THEY CAN HAVE A POSITIVE IMPACT
ON SUSTAINABLE DEVELOPMENT CHALLENGES
Growth & employment
83%
Education
59%
Energy
57%
Climate change
51%
Health
42%
Corruption
37%
Inequalities
36%
Water and sanitation
35%
Poverty eradication
32%
Urbanization
18%
Food security
17%
Peace and security
15%
A Global Compact
for Development
UN-Business
Partnerships
Handbook
Catalyzing
Transformational
Partnerships
Framework for
Action – Social
Enterprise & Impact
Investing
Guidance on
Responsible
Business in
Conflict-Affected
& High-Risk Areas
Responsible
Business Advancing
Peace: Case Examples
Water as a Casualty
of Conflict
RESOURCES
CEOS SAY
BUSINESS
SHOULD DO
MORE
††
84%
of Global Compact
CEOs believe
companies should
play a leading
role in addressing
global sustainability
challenges, but...
33%
feel that business
is currently making
sufficient efforts
GUI DE TO CORPORATE SUSTAI NABI LI TY
32
Business
Partnership
Hub
To make an impact on
critical goals, we must
unite interested parties
around projects and
solutions that can be
rapidly scaled up. The
UN Global Compact
Business Partnership
Hub aims to do just
that, utilizing digital
technology and map-
based analytics to bring
partners to the table.
This interactive, online
platform is designed
to connect business
with potential partners
in support of societal
goals. Through the Hub,
companies and other
Climate and Energy
Accelerating
collective action and
partnerships on
climate change
mitigation, adaptation
and finance
Social Enterprise
Facilitating partnerships
with social enterprises
to scale promising
solutions
Water
Assisting stakeholders
to identify collaborators
to improve water
management in regions of
strategic interest
organizations can
find partners for their
own projects or join
existing ones.
There are currently over
200 projects and 200
organizations on the Hub,
populating it with needs
and offers across sectors,
issues and geographies.
The hub currently features
the following topics:
Anti-Corruption
Countering corruption
through collective
action to enhance good
corporate practices in a
region or sector
UN-Business
Partnerships
Matching business
resources with needs
from UN organizations
and allowing
companies to make
commitments to
support the UN
Photo: UNICEF/BANA2013-00254/Haque
HOW
WE ARE
HELPING
BUSINESS
33
Peace
Conflict and instability
not only impact people
and the environment,
but also pose risks to
all parts of the business
sector. Building on over a
decade of work, Business
for Peace supports
business to implement
the Global Compact
principles in challenging
environments and
catalyzes collaborative
action to advance peace.
Over 100 business
participants from 30
countries are engaged in
our Business for Peace
initiative. They seek to
advance peace in the
workplace, marketplace
and local communities
by paying heightened
attention to the Global
Compact principles;
taking action to advance
peace individually and
in collaboration with
others; and annually
communicating on their
progress.
Because sources
of instability vary
depending on the local
context, the work of
Global Compact Local
Networks is key, with
17 networks taking
action. Their areas of
focus include: natural
resource management;
training programmes
to increase human
capital, especially for
ex-combatants and
youth; encouraging
entrepreneurship and job
creation; and fostering
inter-religious and inter-
cultural understanding.
Rule
of Law
Like peace and stabil-
ity, the rule of law is
essential for sustainable
and inclusive economic
growth. Where the rule of
law is weak, it is harder
for businesses to function
and meet their corporate
responsibilities.
In collaboration with the
UN Secretary-General’s
Rule of Law Unit, the
Business for the Rule of
Law initiative is working
to provide guidance
on how business can
support the rule of law
and reinforce business
respect for the Global
Compact principles.
Poverty
The Global Compact
and Oxfam are develop-
ing a Poverty Footprint
tool, which will enable
companies and civil
society organizations to
work together to assess
corporate impacts – both
positive and negative
– on people living in
poverty. With the goal
of helping companies
contribute to poverty
alleviation, this assess-
ment tool is designed to
promote business model
innovation, cross-orga-
nizational learning and
corporate transparency.
Education
Education is ranked the
most urgent sustainability
challenge by Global Com-
pact companies – recogniz-
ing that education equips
individuals with knowl-
edge and skills critical to
development and economic
growth. Our Framework for
Business Engagement in
Education guides business
to create education and
learning opportunities
for children, youth and
adults. Developed with
the UN Special Envoy on
Education, UNICEF and
UNESCO, the goal is to
help companies identify the
business case and carry out
engagement activities in a
responsible manner.
Among other things,
the rule of law includes
legal systems that foster
economic investment by
increasing the security
of contracts, lowering
levels of corruption,
and allowing for timely,
fair, transparent and
predictable resolution of
disputes. It is also con-
cerned with legal identi-
ty and empowerment for
individuals and organiza-
tions, enabling transition
from the informal sector
into the formal economy.
Such individuals and
organizations are at the
base of many companies’
supply chains.
Photos: LEFT Mark Henley/Panos Pictures TOP CENTER Ami Vitale/Panos Pictures
TOP RI GHT UN Photo/Kibae Park BOTTOM RI GHT UN Photo/Martine Perret
GUI DE TO CORPORATE SUSTAI NABI LI TY
The Global Compact requires a compa-
ny to be committed at the highest level
in order to participate in our initiative.
To effect change, a company’s leader-
ship needs to send a clear message that
shifting towards sustainability is a stra-
tegic priority. Once companies make
the commitment, we aim to put them
on a path of continuous improvement.
Whether a beginner or a seasoned lead-
er in the field, there is a constant need
to act, reflect, adjust and even innovate
in order to meet responsibilities and
keep up with a rapidly changing world.
To help our participants progress, the
Global Compact’s Management Model
guides companies of all sizes through
the process of committing to, assessing,
defining, implementing, measuring
and communicating a corporate sus-
tainability strategy. The model forms
a circular process by which companies
can continuously adjust and improve
alignment with the Ten Principles and
other sustainability priorities.
The Global Compact is working hard
to support business in relation to the
Board of Directors, General Counsel,
and the supply chain. These areas – at
opposite ends of the corporate ladder
– are essential for embedding sustain-
ability into business, yet currently
are not adequately addressed. Also,
educating business students – the lead-
ers of tomorrow – on the centrality of
sustainability is essential with serious
efforts underway, thanks to the global
reach of the Principles for Responsi-
ble Management Education (PRME).
Breaking through in these areas will
define future sustainability leadership.
3: LEADERSHIP COMMITMENT
Full buy-in from the chief executive and the Board of Directors is
essential to orient a company towards sustainability for the long
term. The good news is that this agenda is increasingly resonating
with top leadership, with the majority of CEOs considering
sustainability important to the future success of their business
(93%), a route to competitive advantage in their industry (80%),
and an opportunity for growth and innovation (78%).
††
Also, by
choosing a path of sustainability, leaders are taking responsibility
for our shared future – making sure that business plays a key role
in solving our world’s biggest challenges.
LEADING
FOR THE
LONG TERM
GUI DE TO CORPORATE SUSTAI NABI LI TY
BOARD OF DIRECTORS
Boards of Directors have been largely
absent from the discussion on sustain-
ability, and we are working hard to
change that precedent. Boards unique-
ly can set a company’s long-term goals
and lay out strategies that allow for
investments and adjustments neces-
sary over time to shift towards a truly
sustainable operation. As the material
impact of non-financial issues is rec-
ognized by investors, getting Boards
tuned in to sustainability is not just
good business sense but also increas-
ingly their fiduciary duty linked to risk
management, growth opportunities
and stakeholder interests.
Through our Global Compact Board
Programme, we are supporting Boards
to be in the best position to lead on
sustainability. Developed together
with PRME in collaboration with BCG,
DLA Piper and BSR, our programme
helps Boards: achieve alignment on
the company’s business case for sustain-
ability; agree on company ambitions
for integration into strategy and busi-
ness model innovation; and create an
action plan for embedding sustain-
ability into Board responsibilities and
structures.
The Board Programme is tailored to
each company and delivered in-house
by a roster of experts. It is the first pro-
gramme of its kind to support Boards
of Directors to oversee and help drive
their company’s sustainability strate-
gy, with a view to protect and support
financial value creation.
TOP
CHALLENGES
TO IMPROVING
PERFORMANCE
Extending strategy
throughout the
supply chain
Lack of financial
resources
Implementing
strategy across
business functions
THE GLOBAL COMPACT MANAGEMENT MODEL
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L
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rship commitment to
Supply Chain
Checklist
1
2
3
Expect suppliers to adhere
to sustainability principles
83%
Include expectations in
supplier documents
60%
Incorporate expectations into
procurement staff training
42%
Train relevant staff
31%
Conduct sustainability due
diligence on potential suppliers
36%
Assist suppliers in setting/
reviewing goals
17%
Provide training for suppliers
17%
Regular business review
38%
Supplier self-assessment
36%
Audit(s) by company staff
34%
Verification of remediation
activities
12%
Audit(s) by third party
17%
Reward supplier
sustainability performance
13%
Following are the types of
policies and practices essential
for rooting supply chain
sustainability into a company’s
strategies and operations.
Data shown represents the
percentage of Global Compact
companies that indicate taking
a specific action.
37
SUPPLY CHAIN
Global Compact participants rank
supply chain practices as the biggest
challenge to improving their sustain-
ability performance. Extending the
Ten Principles into the supply chain
is a difficult endeavor – often due to
the size of the supply chain, distance
from suppliers, and partners operat-
ing where there are lower standards.
Progress can be made when the priori-
ty is set at the top of the organization.
If the chief executive sees the supply
chain as an extension of their work-
force and community, then expecta-
tions can be set related to best prac-
tices in key areas such as selection,
training, auditing and remediation.
This includes broader understanding
within an organization of how deci-
sions made – beyond procurement
– have impacts on the supply chain,
for example by legal staff, product de-
velopers and marketing. In addition,
companies must look at their supply
chain as a whole, including suppliers
beyond their first tier that may have
the most significant risks or challeng-
es in addressing sustainability issues.
To help, the Global Compact hosts
a website that is a one-stop shop for
materials, initiatives and business
practices on supply chain sustain-
ability. Additionally, we develop guid-
ance, for example our recent Guide
to Traceability, and host webinars on
topics such as gender equality and
occupational health and safety in the
supply chain.
LEADERSHIP BLUEPRINT
The Global Compact sets leadership
targets that all companies can work
towards, while hoping to inspire ad-
vanced performers to reach the next
level of sustainability. The Blueprint
for Corporate Sustainability Leader-
ship provides a plan for business in
relation to implementing the Ten
Principles and taking action in sup-
port of societal goals – identifying
50 criteria for leadership. Through
our Global Compact LEAD platform,
approximately 60 companies have
committed to implement the Blue-
print and report against its criteria –
with the aim to achieve higher levels
of performance, tackle challenging
and frontier corporate sustainability
issues, and also encourage greater ac-
tion by the broader business universe.
IT ISN’T EASY TO WALK THE TALK
IT ISN' T EASY TO WALK THE TALK
29%
Align government affairs and
lobbying with sustainability
commitments
60%
Advocate for policy action on
sustainability issues
WHAT BOARDS
SHOULD DO
Approve reporting
on corporate
responsibility
57%
Appoint
sub-committee/
individual member
responsible
54%
Establish or approve
sustainability targets
51%
Discuss and act on
these issues as part of
regular agenda
39%
Provide corporate
responsibility training
for board members
15%
Link executive
remuneration
packages to
sustainability
performance
9%
LEADERS
SPEAK UP
ON ISSUES
OF PUBLIC
CONCERN,
AND HELP
SHAPE
POLICIES
THAT
SUPPORT
SOLUTIONS.
IT ISN' T EASY TO WALK THE TALK
29%
Align government affairs and
lobbying with sustainability
commitments
60%
Advocate for policy action on
sustainability issues
GUI DE TO CORPORATE SUSTAI NABI LI TY
WHY REPORT? A powerful driver of
non-financial reporting is the investment
community. Mainstream investors are
increasingly pushing companies to
act and report – thanks to the work of
groups such as the Principles for Re-
sponsible Investment (PRI) – with 1,200
investors managing assets up to $40
trillion – and the Sustainable Stock
Exchanges (SSE) initiative – now counting
16 exchanges representing over 17,000
listed companies with market capi-
talization surpassing USD 36 trillion.
These players are increasingly looking
for information from business on the
materiality of sustainability, and are
starting to value environmental, social
and governance (ESG) factors.
Also, consumers, local communities
and civil society organizations are
demanding more transparency by
business – on their sourcing, labour
practices or carbon emissions, for ex-
ample. ESG disclosure has become a
key tool for societal engagement. For
consumers, this information can direct
purchasing decisions towards more re-
sponsible and sustainable companies –
which still holds enormous potential for
rewarding corporate responsibility.
Once only a voluntary activity, there is a
trend towards mandatory non-financial
reporting. For example, in South Africa,
China, Denmark, Finland, Indonesia,
and most recently the European Union
there are requirements in place for com-
panies – be they large, publicly-listed or
state-owned companies – to disclose ESG
practices. The Global Compact’s COP
reporting framework serves as a good
4: REPORTING PROGRESS
Reporting to stakeholders in a transparent and public manner
is fundamental for companies committed to sustainability. The
Global Compact requires participating companies to produce an
annual Communication on Progress (COP) that details their work
to embed the Ten Principles into their strategies and operations,
as well as efforts to support societal priorities. To date, over 28,000
COPs have been posted to the Global Compact website. This
growth – both in terms of the sheer number of reports and their
sophistication – is largely driven by demand from key stakeholders
including investors, civil society, governments and consumers.
Sustainability reporting has gone mainstream.
TRANSPARENCY
BUILDS TRUST
GUI DE TO CORPORATE SUSTAI NABI LI TY
40
A STEADY RISE IN REPORTING BY
GLOBAL COMPACT COMPANIES
167 646
2004* 2005
877 1374
1668 2150
2006 2007
2008 2009
2609 3375
4526 5017
2010 2011
2012 2013
REPORTING BY
NON-BUSINESS
PARTICIPANTS
Over 4,000 non-
business organizations
participate in the
Global Compact.
These stakeholders
are asked to submit
a Communication on
Engagement (COE)
every two years as a
way to express their
commitment to the
Global Compact and
communicate the
ways they advance
the initiative.
*The COP policy was introduced in 2004.
A STEADY RISE IN REPORTING BY
GLOBAL COMPACT COMPANIES
167 646
2004* 2005
877 1374
1668 2150
2006 2007
2008 2009
2609 3375
4526 5017
2010 2011
2012 2013
starting point, and in many cases meets
government requirements.
ABOUT THE COP
Business participants in the Global Com-
pact commit to issue an annual COP, a
public disclosure to their stakeholders
on progress made in implementing
the Ten Principles into strategies and
operations, and in supporting society.
Companies that fail to report or to
meet the criteria over time may be
removed from the initiative.
EACH COP MUST CONTAIN:
1 A statement by the chief executive
expressing continued support for the
Global Compact and renewing the par-
ticipant’s ongoing commitment to the
initiative and its principles.
2 A description of practical actions
that the company has taken or plans
to undertake to implement the Global
Compact principles.
3 A measurement of outcomes re-
garding the degree to which targets/
performance indicators were met, or
other qualitative or quantitative mea-
surements of results.
The overall format of a COP is flexi-
ble and COPs can be prepared in any
language. The COP should be fully
integrated into the company’s main
stakeholder communications, most
often their annual or sustainability re-
port. If the company does not publish
formal reports, a COP can be created as
a standalone document, with a Basic
COP Template available for those new
to reporting.
The Global Compact provides guidance
on sustainability reporting ranging
from introductory material on how
to fulfil the requirements to more
advanced resources which help compa-
nies develop comprehensive and inte-
grated reports.
Based on a company’s self-assessment,
COPs are categorized as GC Advanced,
GC Active or GC Learner depending on
the depth of their disclosure.
The number of companies reporting
is increasing – for example, nearly 50%
more reports were submitted in 2013
than 2011 – and the quality of report-
ing is also improving. The percentage
of COPs at the GC Learner level is
diminishing, down to roughly 10%. At
the same time, less than 10% of compa-
nies are submitting reports at the GC
Advanced level – with clear room for
improvement at the top end.
REPORTING STANDARDS & FRAMEWORKS
The Global Compact collaborates with
other frameworks – for example, the
Global Reporting Initiative (GRI), CDP
and ISO 26000 – to ensure that stan-
dards are aligned and that meeting the
requirements of one framework helps
to comply with the others. The Global
Compact encourages companies to use
complementary reporting frameworks,
with the goal of facilitating more
quality reporting with less duplication.
For example, the GRI guidelines are
widely used, with the Global Compact
and GRI providing a “Making the Con-
nection” document to illustrate how
the two initiatives complement each
other. Likewise, Global Compact par-
ticipants are encouraged to use the
new International <IR> Framework.
The primary purpose of an integrat-
ed report is to explain to providers of
financial capital how an organization
creates value over time.
BRIEFING INVESTORS
As investors call for more disclosure,
they are seeking to better under-
stand the link between sustainability
and financial performance. Developed
with PRI, the Value Driver Model
provides key metrics that compa-
nies can use to illustrate how their
sustainable business strategies con-
tribute to overall performance – in
terms of revenue growth, productivity
and cost savings, and reducing risk –
and how investors can consider this
data in their investment decisions.
Companies are encouraged to host
ESG Investor Briefings – modelled
on a quarterly financial call – using
the Value Driver Model as a basis
for communicating ESG return on
investment to an audience of main-
stream investors.
UNI TED NATI ONS GLOBAL COMPACT
41
INVESTORS
ARE
PUSHING
COMPANIES
TO ACT AND
REPORT ON
SUSTAIN-
ABILITY.
COMPANIES IDENTIFY BENEFITS OF SUSTAINABILITY REPORTING
Helps integrate corporate
responsibility into business operations
Improves reputation
73%
Demonstrates active participation
in the Global Compact
67%
Enhances stakeholder
relations
63%
Enhances commitment by
the CEO
63%
Promotes internal
information sharing
62%
Provides information for
investors
49%
79%
Introductory
reporting
resources
Basic Guide to the
Communication on
Progress
Basic COP Template
(Available in 11
languages)
Advanced reporting
resources
Making the
Connection - Using
GRI’s Guidelines to
Create a COP
Your Path to External
Assessment
Issue-specific
reporting
resources
Human Rights COP
Reporting Guidance
The Women’s
Empowerment
Principles: Reporting
on Progress
Caring for Climate
and The Carbon
Disclosure Project
Corporate Water
Accounting
Reporting Guidance
on the 10th Principle
Against Corruption
RESOURCES
COMPANIES IDENTIFY BENEFITS OF SUSTAINABILITY REPORTING
Helps integrate corporate
responsibility into business operations
Improves reputation
73%
Demonstrates active participation
in the Global Compact
67%
Enhances stakeholder
relations
63%
Enhances commitment by
the CEO
63%
Promotes internal
information sharing
62%
Provides information for
investors
49%
79%
GUI DE TO CORPORATE SUSTAI NABI LI TY
efforts. Local Networks carry out a
range of activities to help:
NETWORKING
Participation in a Local Network pro-
vides companies the opportunity to
interact and network with a variety of
stakeholders, including other busi-
nesses, civil society, government,
academia, business associations and
investors – sharing experiences and
challenges related to advancing their
work on Global Compact issues. Local
Networks can be a valuable resource
for subsidiaries.
LEARNING
Local Network workshops and train-
ings provide learning opportunities for
Global Compact participants to gain a
better understanding of the Ten Princi-
ples, as well as the issues, opportunities
Global Compact Local Networks bring
together companies of all sizes – foreign
and domestic – with key stakeholders
to identify sustainability challenges
and opportunities, and provide practi-
cal guidance for action. A number of
Global Compact Local Networks are
strong, established entities with ca-
pability to convene, organize and
implement major business-led solu-
tions, and facilitate collaboration
5: LOCAL ACTION
On the ground, companies face unique challenges to operating
responsibly and have different opportunities to make a
positive impact. Companies with operations and supply chains
extending around the world need to understand locations far
from headquarters and view sustainability through a local lens.
Our Local Networks advance corporate sustainability at the
grassroots level – in over 85 countries – by helping companies
understand what responsible business means within a national
context. Through our networks, companies can make local
connections and receive guidance to put their sustainability
commitments into action.
A LOCAL LENS
FOR GLOBAL
CHANGE
GUI DE TO CORPORATE SUSTAI NABI LI TY
44
Local
Snapshot
In the past year, Local Networks carried
out over 600 activities. This map
provides a snapshot of the topics and
locations where Local Networks are
helping business and other stakeholders
to take action. In many cases, individual
networks are undertaking numerous
activities on a range of issues.
LEARN MORE
unglobalcompact.org/networks
and challenges most relevant in a given
country. Networks play an especially
important role supporting company
efforts to fulfil the annual COP report-
ing requirement through training and
peer review.
POLICY DIALOGUE
Increasingly political and public issues
are relevant to a company’s commer-
cial future. Local Networks convene
multi-stakeholder policy dialogues,
allowing businesses to engage with
local and national government – both
to urge them to create policies that
will incentivize sustainability and to
understand how to comply with legis-
lation that affects sustainability.
PARTNERSHIPS
Ninety percent of all partnerships are
formed locally. Local Networks play
a key a role in facilitating collective
action and partnerships. For example
over the past year, networks in Brazil,
Colombia, India and Kenya piloted a
Local Network Partnership Capacity
Building Project, which was successful
in enhancing their ability to broker
and support an increased number of
collaborations.
TOOLS
Networks provide participants with a
number of tools ranging from trans-
lations of global resources, especially
on the Ten Principles and reporting,
to those addressing local topics. In 2013
the following networks developed tools
for participants: Argentina, Austria,
Azerbaijan, Bosnia-Herzegovina, Colom-
bia, Ecuador, Egypt, France, Germa-
ny, Japan, Namibia, the Netherlands,
Peru, Russia, Singapore, Spain and the
United Kingdom.
UNI TED NATI ONS GLOBAL COMPACT
KEY
LABOUR
HUMAN
RI GHTS
SOCI ETY
REPORTI NG
GLOBAL
COMPACT
ENVI RONMENT
ANTI -
CORRUPTI ON
SUPPLY
CHAI N
N
S
E W
GUI DE TO CORPORATE SUSTAI NABI LI TY
46
ABOUT DATA IN THE GUIDE
Findings are based on the Global Compact
Annual Implementation Survey, unless
otherwise noted. In November 2013, all
†
Data on monitoring and evaluating labour
performance not available for 2009.
8% increase based on 2010-2013 data.
††
UN Global Compact-Accenture
CEO Study 2013
companies in the Global Compact were
invited to take the anonymous online
survey. 1,486 companies from 116 countries
responded. The survey has been conducted
annually since 2007.
OUR SIGNATORIES
8,000
+
COMPANI ES
4,000
+
NON-BUSI NESS
160
+
COUNTRI ES
NUMBER OF PEOPLE EMPLOYED BY GLOBAL COMPACT COMPANIES
58,600,000
ANNEX
NON-BUSINESS
PARTICIPANTS
BY TYPE
ACADEMI C
17%
BUSI NESS
ASSOCI ATI ON
19%
FOUNDATI ON
9%
LABOUR
1%
NON-
GOVERNMENTAL
ORGANI ZATI ON
47%
PUBLI C
SECTOR/CI TY
7%
SIZE OF BUSINESS
PARTICIPANTS
BY EMPLOYEE #
10-249
EMPLOYEES
( SME)
57%
250-4, 999
EMPLOYEES
29%
5, 000-50, 000
EMPLOYEES
11%
OVER 50, 000
EMPLOYEES
3%
GLOBAL COMPACT GROWTH
TOTAL
BUSI NESS
NON-BUSI NESS
2000 2014 YEAR:
0
12, 759
8, 288
4, 471
BUSINESS PARTICIPANTS BY REGION & SIZE
EUROPE
LATI N AMERI CA
ASI A & OCEANI A
NORTH AMERI CA
MENA
AFRI CA
COMPANY
1, 712
1, 267
364
257
343
4, 345
SME
UNI TED NATI ONS GLOBAL COMPACT
47
© 2014 United Nations Global Compact
Two United Nations Plaza
New York, NY 10017, USA
globalcompact@un.org
Designed by Hyperakt
Published December 2014 | 10.0M
RELATED INITIATIVES
Deeply connected to the Global Compact
are initiatives which bring mainstream
investors, stock exchanges, business schools
and municipalities into the fold of corporate
sustainability.
The Global Compact Cities Programme is
dedicated to the promotion and adoption of
the Global Compact Ten Principles by cities,
and provides a framework for translating the
principles into day-to-day urban governance
and management. The Cities Programme,
with an international secretariat based at
RMIT University in Melbourne, Australia,
focuses on collaboration between all levels
of Government, business and civil society to
enhance sustainability, resilience, diversity
and adaptation within cities and in the face of
complex urban challenges. Approximately 80
cities across regions are engaged.
www.citiesprogramme.com
The United Nations-supported Principles
for Responsible Investment (PRI) initiative
is a network of international investors
working together to put the six Principles for
Responsible Investment into practice. The PRI
were devised by the investment community
and reflect the view that environmental,
social and governance (ESG) issues can affect
the performance of investment portfolios
and therefore must be given appropriate
consideration by investors if they are to
fulfil their fiduciary (or equivalent) duty. In
implementing the Principles, signatories
contribute to the development of a more
sustainable global financial system. Launched
in 2006 by UNEP Finance Initiative and
the UN Global Compact, the PRI provide a
voluntary framework by which all investors can
incorporate ESG issues into their decision-
making and ownership practices and so better
align their objectives with those of society at
large. Over 1,200 investment institutions have
become signatories, with approximately US$ 45
trillion assets under management.
www.unpri.org
The Principles for Responsible Management
Education (PRME) is a UN Global Compact
sponsored initiative with the mission to inspire
and champion responsible management
education, research and thought leadership
globally. Higher education institutions become
signatories to the six Principles for Responsible
Management Education. The PRME are
inspired by internationally accepted values
and provide an engagement structure for
academic institutions to advance corporate
sustainability by incorporating universal values
into curricula and research. PRME seeks to
establish a process of continuous improvement
among institutions of management education in
order to develop a new generation of business
leaders capable of managing the complex
challenges faced by business and society in
the 21st century. Approximately 600 signatory
institutions from 80 countries have engaged
with the initiative.
www.unprme.org
Sustainable Stock Exchanges (SSE) is a
peer-to-peer learning platform for exploring
how exchanges, in collaboration with investors,
regulators, and companies, can enhance
corporate transparency and performance
on ESG issues and encourage sustainable
investment. The Sustainable Stock Exchanges
initiative is convened by the UN Conference
on Trade and Development (UNCTAD), the
UN Global Compact, the UN Environment
Programme’s Finance Initiative (UNEP FI), and
the Principles for Responsible Investment (PRI)
and currently counts 16 partner exchanges
from around the world.
www.sseinitiative.org
ABOUT THE
UNITED NATIONS GLOBAL COMPACT
The United Nations Global Compact is a call to
companies everywhere to voluntarily align their
operations and strategies with ten universally
accepted principles in the areas of human
rights, labour, environment and anti-corruption,
and to take action in support of UN goals and
issues. The UN Global Compact is a leadership
platform for the development, implementation
and disclosure of responsible corporate policies
and practices. Launched in 2000, it is largest
corporate sustainability initiative in the world,
with over 8,000 companies and 4,000 non-
business signatories based in 160 countries.
www.unglobalcompact.org
TOP 20 COUNTRIES
TOP 10 SECTORS
1 SPAI N
2 FRANCE
3 BRAZI L
4 MEXI CO
5 COLOMBI A
6 USA
7 GERMANY
8 DENMARK
9 UK
10 JAPAN
11 CHI NA
12 SWEDEN
13 KOREA, REP. OF
14 ARGENTI NA
15 TURKEY
16 I NDI A
17 MYANMAR
18 I TALY
19 I RAQ
20 NETHERLANDS
COMPANY SME
1, 221
949
408
332
219
153
89
280
175
137
397
240
170
93
304
200
138
271
172
108
1 SUPPORT SERVI CES
2 CONSTRUCTI ON & MATERI AL
3 GENERAL I NDUSTRI ALS
4 SOFTWARE & COMPUTERS
5 FI NANCI AL SERVI CES
6 FOOD PRODUCERS
7 MEDI A
8 GENERAL RETAI LERS
9 ELECTRONI C EQUI PMENT
10 TRAVEL & LEI SURE
1, 324
688
645
456
432
382
321
280
255
231
GUI DE TO CORPORATE SUSTAI NABI LI TY
HUMAN RI GHTS
BUSI NESSES SHOULD SUPPORT
AND RESPECT THE PROTECTI ON
OF I NTERNATI ONALLYPROCLAI MED
HUMAN RI GHTS; AND
MAKE SURE THAT THEY ARE
NOT COMPLI CI T I N HUMAN
RI GHTS ABUSES.
LABOUR
BUSI NESSES SHOULD UPHOLD
THE FREEDOM OF ASSOCI ATI ON
AND THE EFFECTI VE RECOGNI TI ON
OF THE RI GHT TO COLLECT
BARGAI NI NG;
THE ELI MI NATI ON OF ALL
FORMS OF FORCED AND
COMPULSORY LABOUR;
THE EFFECTI VE ABOLI TI ON OF
CHI LD LABOUR; AND
THE ELI MI NATI ON OF
DI SCRI MI NATI ON I N RESPECT OF
EMPLOYMENT AND OCCUPATI ON.
ENVI RONMENT
BUSI NESSES SHOULD SUPPORT A
PRECAUTI ONARY APPROACH TO
ENVI RONMENTAL CHALLENGES;
UNDERTAKE I NI TI ATI VES TO
PROMOTE GREATER
ENVI RONMENTAL
RESPONSI BI LI TY; AND
ENCOURAGE THE DEVELOPMENT
AND DI FFUSI ON OF
ENVI RONMENTALLY FRI ENDLY
TECHNOLOGI ES.
ANTI -CORRUPTI ON
BUSI NESSES SHOULD WORK
AGAI NST CORRUPTI ON I N ALL I TS
FORMS, I NCLUDI NG EXTORTI ON
AND BRI BERY.
1
2
3
4
5
6
7
8
9
10
TEN PRINCIPLES
OF THE UNITED
NATIONS GLOBAL
COMPACT