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2.4.2.1.1 United Nations initiativesThere are currently two major UN initiatives relevant to the discourse on business andhuman rights: Global Compact (Compact) and the Norms on the Responsibilities ofTransnational Corporations and Other Business Enterprises 81 (Norms). While the Compactand the Norms articulate some similar human rights obligations, the two instruments aresignificantly different. Interestingly, these are not the UN’s first attempt to address thehuman rights responsibilities of corporations. The United Nations Centre on TransnationalCorporations (UNCTC), established in 1975, began negotiating a Draft Code of Conducton Transnational Corporations in 1977. The Code set out general, economic, financial andsocial rules regarding the activities of MNCs and rules on disclosure of information. TheCode also described rights of MNCs in the host state, urged intergovernmental cooperationand asked states to disseminate the code and report on implementation. The Code wasneither finalised nor adopted by the UN General Assembly. The commission and centrewere both terminated in 1994.Over the past decade there has been a renewed interest in regulating the activities of privatecorporations through international law. In 2004, the Commission on Human Rightseffectively stalled further development of the Norms; however, in the same document,the Commission recognised the importance of studying the impact of transnationalcorporations on human rights. In 2005, the Office of the High Commissioner for HumanRights requested that the Secretary-General appoint a special representative to study theissue of human rights and transnational corporations and other business enterprises. 82 TheSpecial Representative’s mandate is extensive and spans two years. 832.4.2.1.1.1 Global CompactThe Global Compact is not born out of a UN resolution, nor is it a formal declaration;rather, it is a voluntary initiative launched by the former Secretary-General. 84 The Compactis designed to promote “responsible corporate citizenship.” Several commentators discussthe meaning of this term, but essentially, it signals corporations are subject to obligations,born out of their desire to reduce the negative impact of their operations. Once acompany signs onto the Compact, it is expected to change its business operations andpublic communications. Furthermore, companies are encouraged to enter into partnershipprojects with the UN and other stakeholders to support the Compact’s principles.The Compact is principally characterised as a network. It is a network among differentstakeholders and UN agencies. 85 Additionally, as participation increased, country networkshave developed. Finally, the Compact operates as a ‘learning network’ for business. TheGlobal Compact Office and UN agencies form the nucleus of the network, with academia,business, labour and civil society organisations surrounding them on the periphery.28|Private Sector Accountability in Combating the Commercial Sexual Exploitation of Children