Global Compact International Yearbook 2012

Inside ...
Agenda
CSR in Latin America
Latin America
Number of COPs Revised in the region (Graph 1)
(by dec. 2011)
The UN Global Compact
in Latin America – Trends
and Topics
7%
2%
4%
10%
3%
13%
2%
4%
18%
30%
2%
Argentina
Bolivia
Chile
Colombia
Mexico
Panama
Peru
Dominican Rep.
5%
Brazil
Ecuador
Paraguay
Uruguay
Source: Pacto Mundial. Elaboración: Centro Regional
Labor standards, human rights, environmental conservation,
and transparency – the core issues of the United Nations Global
Compact are especially vital in the developing economies.
Latin America and the Caribbean are remarkable examples. “El
Pacto Mundial en América Latina y el Caribe. Memorias 2011:
Informe de Gestión,” a publication of the Global Compact
Regional Center, gives a detailed view on the present situation
of the Global Compact in Latin America and the Caribbean.
The whole region includes more than 1,500 companies in 13
Local Networks. Thus, Latin America represents 9 percent of
the whole UN Global Compact, with a 5 percent rise in the last
year. After Europe it is the biggest regional network.
The actual situation of companies in the region is described by
the United Nations Economic Commission for Latin America
this way: After the global crisis in 2008/2009, GDP grew at a
significant rate of 5.9 percent in 2010. In 2011 it dropped to
4.3 percent, mainly because of three factors: the reduction
of global growth, measures in Brazil to reduce its internal
demand, and the insecurity of the markets. Countries with
the biggest economic growth were Panama, Argentina, and
Ecuador; those with the smallest growth were El Salvador,
Cuba, and Brazil.
In 2012 Latin America is facing a decline in growth of approximately
3.7 percent, basically because of the problems in
the euro zone. Experts consider the situation in Latin America
nevertheless as being robust for decent economic and social
development. What made this possible? The publication
“Memorias 2011” argues that the reasons are: good handling
Missing Elements in
the Beginner COPs (Graph 2)
in %
100
75
50
25
0
35
Letter by CEO
88
Evaluation of results
35
Human Rights
Source: Pacto Mundial. Elaboración: Centro Regional
Labor Standards
19 15
Environment
of public spending, high foreign currency reserves, and low
public debt as well as low external debt rates in most countries.
To stimulate regional growth and human development, the
United Nations Development Programme recommends the
following:
66
Anti-Corruption
• Better access to renewable energies and a global tax on
transactions in foreign currencies to finance the mitigation
and adaptation to climate change and to foster sustainability
and equality.
• Fuel consumption subsidies, which still are common in many
countries of the region, favor those with the means to own
an automobile, and at the same time create incentives for
the excessive depletion of resources. There are countless
cases where subsidies in agriculture, energy, and water are
linked to environmental damage.
• Some policies are conducive to meeting some targets, but
result in delays of others. An example: Although the coal
subsidy in developing countries promotes growth, it also
contributes to increased greenhouse gas emissions. Such
policies may have positive effects on global equity, but are
negative for sustainability.
• The situation might also be the opposite: Policies can improve
sustainability, but affect equity negatively. By example, some
regulations that restrict the access to goods in common use,
such as forests, may help to preserve the natural resource,
but deprive the poor their main sources of livelihood.
The work of the Global Compact
With this background, and against the backdrop of a new
global crisis, the Global Compact offers a strategic platform
for the active involvement of companies through collaboration
with its stakeholders. The initiative is seen as an effective
tool for addressing the challenges of business on sustainability.
However, Latin America is also the region with the highest
number of delisted signatories due to failure in sending its
Communications on Progress (COPs).
The COPs retain the integrity of the initiative, serve as the means
of communication between companies and their stakeholders,
and are the main reference point of the Global Compact. In
February 2011 the differentiation program entered into force
as a new policy of the COP, which classifies the reports into
three levels: Apprentice, Active, and Advanced. The analysis
of this year’s data shows that of 435 COPs, 69 percent are at
the level PM Active; 27 percent at the Apprentice level, and
4 percent at the Advanced PM level.
Finally, regarding the classification, the Office of the Global
Compact has shared the information available on the missing
elements in the COP categorized Apprentice level. Graph 2
shows that the biggest challenge of the COP at this learner’s
level is the evaluation of results and that the subject least
reported on is anti-corruption.
Compilation / Translation: Dr. Elmer Lenzen
68 Global Compact International Yearbook 2012 Global Compact International Yearbook 2012
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