Business in society Making a positive and responsible contribution A ...

The three declarations were cited by United Nations Secretary General Kofi Annan in his speechat Davos in January 1999, inviting business to adopt universally agreed values in the areas ofhuman rights, labour standards and environmental protection as a “Global Compact for the 21stCentury”. ICC has welcomed Mr Annan’s appeal. Various initiatives are under way among theUN, ICC and other business organizations to demonstrate how companies are contributing tothese values in the way they conduct their business. The Global Compact can play a useful rolein promoting best corporate practice in response to the challenges of globalization, sustainablegrowth and responsible business conduct.ICC applauds the primacy accorded to human rights by the United Nations; however, themaking and enforcement of laws for protecting human rights are tasks for governments.A voluntary approachA company must develop its own understanding of how its principles or behaviour relate toexternal expectations or to external codes or guidelines. Internal monitoring of compliance,external reporting of performance and independent assurance are matters that should be decidedby the companies themselves.Relations with suppliersSupply chain responsibility is an issue of growing concern for companies, particularly in thosesectors in which production is largely outsourced (for example clothing and footwear).While, in most cases, companies cannot be held legally accountable for their suppliers’ conduct,a responsible business approach encourages companies — where reasonable and appropriate —to engage in a constructive dialogue and direct cooperation with their suppliers andsubcontractors, especially in developing countries. Companies should encourage their suppliers toabide by the same business principles that they themselves uphold, thereby promoting goodpractice throughout the supply chain. This can be done using several incentives, includinginformation and training, as well as audits of the supplier’s practices. Corporate buyers increasinglyrequest their suppliers to provide comprehensive social and environmental information on theproducts and materials that they purchase.