How global is the Global Compact?

Abstract

Launched by the United Nations in 2000, the Global Compact (GC) promotes private sector compliance with 10 basic principles covering human rights, labour standards, the environment, and anti‐corruption. Its sponsors aim to establish a global corporate social responsibility (CSR) network based on a pledge to observe the 10 principles adopted by companies across the range of company size and regional origin, backed by a modest reporting system and collaborative programmes. The author analyzes the GC's progress toward building a global network from its launch through 2006 and finds that, while the GC's nominal membership base of nearly 3000 companies makes it the largest system among collective action institutions (CAIs) for corporate responsibility, the GC has not reached ‘critical mass’. Deficiencies in its nascent global network include limited market penetration among the largest corporations, a membership heavily weighted toward Western European companies, and major weaknesses in compliance with its reporting system. The author concludes that the GC must improve both penetration and compliance if it is to succeed in building a global standard for CSR.

Trust and the United Nations Global Compact

“…A recent survey of 766 Global Compact participants confirms that partnership and trustful collaboration are considered to be the key elements of approaching sustainability issues successfully (Lacy, Cooper, Hayward, & Neuberger, 2010). Briefly, two core aims of the Global Compact are to rebuild trust in the business sector overall and to promote higher standards of corporate responsibility (Bremer, 2008). In situations where stakeholders assume good intentions on the part of firms, the perceived likelihood of unexpected interactions and opportunistic behavior is smaller (Klijn, Edelenbos, & Steijn, 2010).…”

“…Since its inception, it has faced many allegations of weakness (see Arevalo & Fallon, 2008;Banerjee, 2007;Behnam & MacLean, 2011;Bremer, 2008;Gilbert & Rasche, 2008;Rasche, 2009a). Nevertheless, the Global Compact is by no means free from criticism.…”

Marketing fortification of business through crowdsourcing and social responsibility: focus on South African SMEs

“…These could also be described as deliberate relations between and within politics, economy and civil society, which prepares and standardize behavioral rules, norms and conventions in their specific field. (Bremer, 2008). …”

Linking CSR to Strategy: A Practical View

“…Despite these differences, conflicts, disputes, and doubts, which for years have characterized the relationships between strategy and ethics/CSR, there is a strong and continuous pressure exerted on organizations to include CSR in their activities (Bremer, 2008;Fassin, 2008 The European Commission (2011) has even delivered a political document entitled "A renewed EU strategy 2011-14 for Corporate Social Responsibility." The pressure exerted on organizations to assume the triple bottom line in their strategy or operational activities is justified by the will and the expectation of society, which states that business and all other institutions should assume social responsibility (Almeida and Sobral, 2007;Davis and Blomstrom, 1975).…”