Monitoring Policy Making at the United Nations |
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Articles on UN and Business
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| 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | Archived Articles and Documents 2008
Ahead of the Curve (April 22, 2008)
This article claims that the growing importance of transnational actors, such as NGOs and businesses, threatens to undermine the founding UN principle of “division of nation-states.” The author advises the UN to cooperate more closely with these organizations, in order maintain its moral and intellectual leadership. Otherwise, new actors, including governments, companies or NGOs may step in to fill the role the UN currently holds. (Harvard Political Review)2007
Global Compact with Business 'Lacks Teeth' – NGOs (July 6, 2007)
A group of NGOs criticized the UN Global Compact for giving legitimacy to companies even when they violate the initiative’s ten principles on labor, human rights, the environment and anticorruption. The NGOs said that the most critical aspect is the complete lack of legal enforceability. Companies who join the initiative benefit from being associated with the UN, but they face no consequences when not adhering to the principles. A Greenpeace spokesperson stated that “the world needs action and binding global codes for corporate behaviour.” (Inter Press Service)United Nations and Transnational Corporations: A Deadly Association (April 4, 2007)
John Ruggie, UN Special Representative on transnational corporations and advisor to the Global Compact, stated in his February 2007 report to the Human Rights Council that transnational corporations “should not be placed under international law.” The author argues that Ruggie’s ideas are in line with the philosophy behind the Global Compact, which promotes weak voluntary guidelines rather than binding international regulation requiring companies to respect basic human rights and labor standards. The article criticizes Ruggie’s – and the UN’s – failure to acknowledge the “serious economic, political and social problems represented by the disproportionate power of large transnational corporations.” (Transnational Institute)2006
Putting Teeth in Corporate Social Responsibility (November 21, 2006)
Programs such as the ‘Extractive Industries Transparency Initiative’ and the ‘UN Global Compact’ have helped create public debate and possibly higher levels of corporate and political awareness about human rights and environmental problems. But as the initiatives are voluntary and unsanctioned, skeptics argue they just allow companies to appear socially responsible while not fundamentally changing operations. The author of this Policy Innovations article sees a future for genuine corporate social responsibility in legally-binding loan agreements incorporating respect for human rights and environmental standards. These would exist between transnational corporations and the private banks financing them that have a “lower reputational risk tolerance.”The Contrarian: Are NGOs Playing Both Sides of the Human Rights Abuse Debate? (July 18, 2006)
The author of this Ethical Corporation piece argues that NGOs should not blame multinational firms for human rights violations but instead seek accountability from states. However, such an argument overlooks how big companies sometimes push governments for “favorable deals” that further corporate interests. NGOs demand that UN Special Representative on Business and Human Rights John Ruggie call for “universally recognized standards and effective accountability mechanisms” in his final report.UN Global Compact: Financial Markets the Next Big Target (June 2006)
The UN Global Compact calls on participating corporations to embrace corporate social responsibility through its ten principles on human rights, labor standards, the environment and fighting corruption. In this interview, Executive Head Georg Kell tells Ethical Corporation that the Compact’s next campaign focuses on transforming capital markets by developing tools to better prepare organizations “to manage risks and opportunities” in investment. Critics will likely challenge the legitimacy of this initiative, as core funding will come from Compact participants.Big Business In Reform School, But Is It Sticking? (May 8, 2006)
Instead of “trumpeting” the limited success stories of responsible corporate behavior the UN should keep better tabs on corporate responsibility. The sourcing of companies’ products and services from abroad makes it increasingly difficult to regulate corporate activity on a national level. Activists also argue that the UN must pay more attention to environmental issues, such as the right to water, and prevent corporations profiting from these resources. (Inter Press Service)Global Business and Human Rights (April 5, 2006)
Since national governments regulate human rights standards, multinational corporations often abuse human rights and labor in countries with weak legislation. While some corporations adhere to a reasonable labor standard, others may claim to do so just as a public relations stunt intended to further corporate profits. The author calls for binding international standards to create and enforce labor standards throughout the world. (Business and Human Rights Resource Center)2005
The Myth of CSR (November 11, 2005)
Transnational corporations represent the most powerful actors on globalization’s scene. Social responsibilities should accompany their economic power. This article argues that initiatives like the United Nations “Global Compact,” based on a “voluntary” approach, are not able to guarantee decent human and labor rights standards. Instead, mandatory rules on companies could address this challenge. (onPhilanthropy)Volcker: UN Scandal Exposes Corruption (October 29, 2005)
The final report of the investigation into the Oil-For-Food program found that over 2,200 corporations worldwide had a role in the scandal. A number of these corporations, which paid bribes and kickbacks to Saddam Hussein’s regime, are also members of the UN Global Compact. When signing the Global Compact, businesses pledge to “work against corruption in all its forms, including extortion and bribery.” (Associated Press)The UN Can Help Business Help Itself (August 18, 2005)
Without standards of accountability, the Global Compact is “mere window dressing” for corporate social responsibility, writes Thorsten Benner of the Global Public Policy Institute. Although Secretary General Kofi Annan continues to ensure that the UN “remains open for business,” corporations should be involved in international law only under strict oversight. (International Herald Tribune)UN Global Compact Participants Report Progress So Far (July 19, 2005)
The UN Global Compact Office has announced the first results of a policy requiring corporate participants to annually report their progress in implementing the Compact’s Ten Principles. Although over 60% of committed companies failed to produce the Communication on Progress report, this landmark measure will hopefully be more than a public relations tool and actually raise the bar on corporate transparency and accountability. (GreenBiz)Corporate Social Responsibility as Business Strategy (January 1, 2005)
According to this article, the business sector has systematically invoked voluntary codes of conduct such as the UN Global Compact “to quell widespread public concern” with unregulated corporate activity. By virtue of being non-binding and business-driven, such codes make it difficult to curb destructive corporate behavior. Therefore, the author warns, advocates for social and economic justice as well as the United Nations itself should cast a cautious rather than optimistic eye on corporate efforts at accountability. (Center for Global, International and Regional Studies)2004
UNESCO and Microsoft Sign Accord to Help Bridge Digital Divide (November 17, 2004)
Microsoft has joined other large companies in supporting UNESCO’s global strategy to boost education and social and economic development with the help of information and communication technologies. Microsoft will exchange experiences and knowledge with UNESCO and the coalition of companies intends to develop projects supporting education. (United Nations News Service)UN Examines Human Rights Responsibilities of Transnational Corporations (November 5, 2004)
In a report focusing on the responsibilities of transnational corporations, the UN’s High Commission for Human Rights will draw attention to the protection and promotion of human rights in businesses. The report will look at both binding and non-binding approaches to corporate accountability. (EurActiv.com)Letter from the Executive Head of Global Compact (August 3, 2004)
In his response to the “Joint Civil Society Statement on the Global Compact and Corporate Accountability,” Georg Kell, Executive Head of Global Compact, maintains that voluntary approaches like the Global Compact can contribute to legally-binding corporate social responsibility.UN Pact with Business Lacks Accountability (June 24, 2004)
Ahead of the Global Compact Leaders Summit at the United Nations, NGOs at a counter-summit voiced their concern about the growing influence of corporations within the UN. NGOs charged that the Compact delivers a public relations “smokescreen” for corporations by allowing them to “hide” behind ten principles on human rights, labor, corruption and environmental issues, without holding them accountable for their actions. (Inter Press Service)Nike Complaint Spotlights UN Partnership with Business (April 29, 2004)
In a letter of complaint to the UN, labor unions accused Nike, a UN Global Compact member, of preventing workers from forming unions in its overseas factories. The Global Compact, a body that promotes corporate responsibility, rejected the complaint saying that it is not their role to “interfere” in labor disputes. (Inter Press Service)Shell Leads International Business Campaign against UN Human Rights Norms (March 15, 2004)
Corporate lobby groups and big businesses, such as the International Chamber of Commerce and Shell are opposed to the UN Norms on Businesses and Human Rights, arguing that the Norms transfer responsibility for human rights from states to business. The Norms are more specific than the Global Compact’s general principles on human rights and suggest further steps toward corporate accountability. (UN Observer & International Report)2003
Raising the Heat on Business over Human Rights (August 18, 2003)
The UN's new guidelines for business will advance human rights, but some textual gray areas may allow corporations to avoid raising the quality of their working conditions. (Ethical Corporation)Rights Groups Hail New UN Guidelines for Business (August 14, 2003)
New UN guidelines for transnational corporations would protect human and labor rights, as well as the natural environment. Rights groups have welcomed the standards as an important step toward curbing corporations' abuses. (OneWorld)A Path to Helping the Poor, and His Investors (August 10, 2003)
UN Secretary General Kofi Annan has announced the possibility to include the private sector in the fight against world poverty, further encouraging microfinancing initiatives. This New York Times article highlights the risks of private sector involvement, as microfinancing ventures primarily seek profits rather than poverty reduction.UN Secretariat Replies to NGO Concerns over Global Compact (June 26, 2003)
UN Deputy Secretary-General Louise Fréchette encourages NGOs to hold the private sector accountable by monitoring whether the companies in the Global Compact are reporting on their activities. (Ethical Corporation)Balancing Trade Rules, the Environment and Sustainable Development (February 1, 2003)
From the WTO’s Doha “development” trade round to public-private “partnerships” for development, members of the world business community have begun to promote themselves as purveyors of poverty alleviation. But this interview with the General Manager of the Environmental Protection Authority of Ethiopia reveals the wariness with which poor countries receive such rhetoric. (allAfrica)
