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Global Compact International Yearbook 2009

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “ Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “

Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

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Otto Group<br />

Our Commitment Against<br />

Child Labour in India<br />

Around the globe, some 300 million children aged between five and fourteen work.<br />

In India, 59 million children do not have the chance to go to school. Instead, most<br />

of them have to herd goats, crush rocks, collect rubbish, sew sequins onto textile<br />

articles, clean the houses of rich families, or do other menial jobs to survive.<br />

By Andreas Streubig<br />

What has caused this shocking number<br />

of child workers in India? Child labour<br />

is mostly the result of the severe poverty<br />

of families, where every cent counts<br />

– no matter who earns it. But by working,<br />

these children forfeit their chance<br />

to break out of the poverty trap later.<br />

Moreover, there simply are not enough<br />

schools, teachers, and books for them,<br />

especially in structurally poorer regions.<br />

Many children in school do not receive<br />

enough support at home – particularly<br />

if they are the first in the family to go<br />

to school at all.<br />

Trading companies in the West that<br />

import goods from India and want to<br />

avoid unethical social behaviour in their<br />

production processes are also having to<br />

confront the issue of child labour. One of<br />

these is the Otto Group, a globally active<br />

trade and services group based in Hamburg,<br />

Germany. The Group developed<br />

its Code of Conduct back in 1996, based<br />

on <strong>International</strong> Labour Organization<br />

conventions. In cooperation with the<br />

Europe-based Business Social Compliance<br />

Initiative (BSCI), the Otto Group is<br />

working to guarantee the implementation<br />

of its Code of Conduct, with the aid<br />

of supplier audits and training within<br />

a carefully designed social management<br />

system. Preventing child labour is a key<br />

focus of this effort; nevertheless, it is<br />

impossible to be completely sure that<br />

children are not still being exploited as<br />

cheap labour, as this malaise is still too<br />

deeply rooted in the Indian market.<br />

This is why in March 2008 the Otto Group<br />

launched a development policy project<br />

in partnership with the human rights<br />

organization terre des hommes to combat<br />

child labour in India. It is initially set to<br />

run for three years and will be managed<br />

by terre des hommes, financially supported<br />

by the Otto Group, and implemented<br />

locally with project partners in the respective<br />

Indian regions. “Our project is<br />

aimed at tackling the problem of child<br />

labour on the deeper-lying, structural<br />

level,” explains Sibylle Duncker, Social<br />

Compliance Team Lead at the Group’s<br />

Hamburg head office. “We want to give<br />

children and adolescents access to a<br />

school education and so provide them<br />

with the basis for a professional future<br />

and genuine prospects in life.”<br />

This innovative project has two regional<br />

focal points in India: the capital, New<br />

Delhi, and the poverty-stricken northern<br />

state of Bihar, where most child workers<br />

in the urban industrial centres of New<br />

Delhi, Mumbai, and Calcutta come from.<br />

Working closely with state schools and<br />

local authorities, the project is designed<br />

to tackle the problem of child labour<br />

on a structural level in both project<br />

regions, but with a different emphasis<br />

in each. In rural Bihar prevention is the<br />

main priority – to stop children moving<br />

away and into the labour market<br />

at all. In New Delhi the goal is to show<br />

children and adolescents who are already<br />

in the labour market that they have<br />

clear alternatives – and to re-motivate<br />

them to go to school or even to take a<br />

skills-training course.<br />

“To combat child labour we’ve developed<br />

a whole range of interlinked measures,”<br />

explains Barbara Küppers, who is responsible<br />

for Child Labour / Social Standards<br />

at terre des hommes. “In Bihar the first<br />

step was to launch schooling campaigns,<br />

to get as many kids as we could into<br />

school.” In the West Champaran district,<br />

staff from the Jesuit aid organisation Rural<br />

Education and Development (READ),<br />

who are also involved in the project’s<br />

work, went from door to door to gradually<br />

gain families’ trust through a per-<br />

58<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong>

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