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84On 31 Jan. 1999, UN Secretary-General Kofi Annan proposed a global compact between business leadersand the UN. (UN “Press Release: Secretary-General Proposes Global Compact on Human Rights, Labour,Environment, in Address to World Economic Forum in Davos” (SG/SM/6881). 1 Feb. 1999. 1.) Annan calledon businesses “… individually through [their] firms, and collectively through [their] business associations […] toembrace, support and enact a set of core values in the areas of human rights, labour standards, and environmentalpractices” (UN 2.). In exchange, the United Nations agreed to assist business and social groups to developsolutions for concerns in these areas (UN 3.). A year later, an interactive website was established to provideresource information on corporate citizenship. Then on July 26 2000, the Compact was formally launched(UN Global Compact. Global Compact Homepage. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org); to date, over 4300 businesses from 120 countries participate in the Compact (UN Global Compact.“Global Compact Participants.” 19 June 2008. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org/ParticipantsAndStakeholders/index.html). Initially the Global Compact included only nine principles in thesethree areas, but a tenth principle in the area of anti-corruption was added at the Global Compact LeadersSummit in June 2004 (UN Global Compact. “Corporate Leaders at Global Compact Summit Pledge to BattleCorruption.” 25 June 2004. Accessed on 14 Oct. 2008 from: www.unglobalcompact.org).85There are six UN agencies involved in the Global Compact: the Office of the High Commissioner for HumanRights (OHCHR); United Nations Environment Programme (UNEP); International Labour Organisation(ILO); United Nations Office on Drugs and Crime (UNODC); United Nations Development Programme(UNDP); and United Nations Industrial Development Organisation (UNIDO). The six agencies share resourcesand expertise and periodically meet to coordinate activities between themselves and the Global CompactOffice.86The ten principles are drawn from the Universal Declaration on Human Rights, the ILO 1998 FundamentalPrinciples on Rights at work, the Rio Declaration on Environment and Development and the United NationsConvention against Corruption (UN Global Compact. The Ten Principles. Accessed on 14 Oct. 2008 from:www.unglobalcompact.org).87It should be noted, this does not suggest the collective bargaining and discrimination principles are irrelevantto a discussion of CSEC. The argument could be made that collective bargaining enables workers to negotiatefare wages and a higher standard of living, meaning parents need not rely on their children to contribute to thefamily wage. Similarly, it could be argued that the discrimination principle protects children raised by singlemothers,a disabled parent, or in families of a minority group.88For example, a company using ‘a restricted legalistic interpretation,’ may limit those considered within its sphereof influence to employees and shareholders since they have a direct relationship to these parties. On the otherhand, a company using ‘a more contemporary view’ may expand its sphere of influence to include parties withwhom the company has political, economic, geographical or contractual relationships.89Four kinds of participating firms have been noted in the academic literature: First, companies forced toadopt corporate social responsibility because of pressure from activists; second, companies from developingcountries who wish to learn about potential private-public initiatives; third, companies interested in exploringfuture public-private initiatives and how international organisations may assist them; finally, benevolent firmsinterested in “making the world a better place”.90“Blue-wash” is a term coined by activists for companies taking part in the UN-sponsored Global Compact (thus,draping themselves in UN-blue) in order to cover up their own corporate misdeeds.91In 1998, the Sub-Commission on the Promotion and Protection of Human Rights (“Sub-Commission”)established a Working Group on Transnational Corporations (“Working Group”). The Working Group wasestablished for three years to research the effects of TNCs on human rights (UN Sub-Commission on thePromotion and Protection of Human Rights. The relationship between the enjoyment of economic, social and culturalrights and the right to development, and the working methods and activities of transnational corporations (E/CN.4/SUB.2/RES/1998/8). 8 Aug. 1998); its mandate was extended in 2001 and 2004 for three years, respectively(Sub-Commission. The effects of the working methods and activities of transnational corporations on the enjoymentof human rights (E/CN.4/SUB.2/RES/2001/3). 31 July 2001). Initially, the group’s mandate did not includedrafting a code of conduct, but David Weissbrodt began this task in 1999; in 2001, the Working Group’smandate officially included activities related to drafting a code (Sub-Commission 2001). In March 2003, theworking group presented a draft to the sub-commission, which was unanimously approved in August and112|Private Sector Accountability in Combating the Commercial Sexual Exploitation of Children