United Nations Compact for a New Century
The UN Global Compact (UNGC) is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption (United Nations, 2010). The framework was developed to help international organizations develop responsible corporate leadership and implement policies that are favorable to the world's population. The UNGC brings business leaders together with other institutions to hold conferences, discuss best practices, and finds ways to promote responsible corporate citizenship (Janney, Dess, and Forloni, 2009). The UNGC was launched in July 2000 and has 6,000 participating businesses in 130 countries worldwide (United Nations, 2010). The Compact has had a positive effect on international businesses and in developing countries.
The UNGC is both voluntary and visible; firms who join it are publicly pledging support to the values that the UNGC sets forth and member firms must regularly publish a Communication on Progress (COP) report (Janney, Dess, and Forloni, 2009). The COP requires firms to self-audit their progress toward supporting each of the 10 principles (Rothlin, 2010). The COP represents a commitment by companies to transact business in a transparent and accountabile manner. Failing to publish a COP can cause a firm's status to be listed as inactive, forbidding them from using the trademarks and affiliations of the UNGC (Janney, Dess, and Forloni, 2009).
One of the goals of the UNGC is for businesses to be self-governing, which will benefit other stakeholders...
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