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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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Agenda<br />

<strong>Global</strong> <strong>Compact</strong> Inside<br />

each country will be represented by both<br />

a member of a government entity and a<br />

representative from the corporate world.<br />

The current members of the Steering<br />

Committee aim to convene at least three<br />

times a year, with the location of the<br />

meeting rotating between them.<br />

The UNGC Local Network’s activities<br />

The UNGC Local Network has been off to<br />

a flying start. Introducing the UNGC in<br />

the region that was largely unfamiliar<br />

with the Initiative and its principles,<br />

we initially set out to raise awareness<br />

among our existing members and the<br />

general public. Support has been steadily<br />

growing and we consequently rolled out<br />

a number of lectures, workshops, and<br />

documentation to further familiarize<br />

organizations in the region with the<br />

UNGC.<br />

We also provide our participants with<br />

access to CSR experts and resource speakers<br />

to further strengthen their own CSR<br />

practices. The Local Network has represented<br />

the UNGC at three international<br />

forums; the First Alliance of Civilizations<br />

Annual Forum (Madrid, January 15–16,<br />

2008), the Second Forum of Ministers for<br />

Social Development (Amman, November<br />

12–14, 2008), and the Business for the<br />

Environment <strong>Global</strong> Summit (Singapore<br />

April 22–23, 2008).<br />

In addition to officially representing<br />

the UNGC at high-level events, we have<br />

committed ourselves to lobby for greater<br />

UNGC participation whenever the (speaking)<br />

opportunity arises. Perfect examples<br />

of such opportunities were the <strong>International</strong><br />

Business Forum (Doha, November<br />

28, 2008) and the CSR networking event<br />

hosted by the Dubai Chamber of Commerce,<br />

where the EEG chairperson, in<br />

the capacity as guest speaker, encouraged<br />

businesses to join the UNGC.<br />

In addition to public speaking engagements,<br />

the Local Network Steering Committee<br />

convened twice in the past year.<br />

The Local Network was also represented<br />

at the UNGC board meeting, with Mrs.<br />

Al Marashi present in New York (April<br />

30–May 1, 2008).<br />

UNGC Local Network participants<br />

The UNGC Local Network for the GCC<br />

states was launched under the patronage<br />

of Sheikh Hamdan bin Mohammed<br />

bin Rashid Al Maktoum, Dubai’s Crown<br />

Prince and the chairman of the Executive<br />

Council. His involvement with the UNGC<br />

Local Network and with its launch has<br />

been extremely beneficial to the Network<br />

in terms of credibility and publicity. In<br />

this region, having the government’s<br />

seal of approval is crucial to engaging<br />

key players in society, and the Crown<br />

Prince’s patronage has proven to be very<br />

helpful in this process.<br />

The UNGC Local Network currently has<br />

34 active participants spread out over<br />

five GCC states, while the applications<br />

for two more memberships are currently<br />

being processed. The participants are<br />

heterogeneous, with MNC’s, SME’s, and<br />

local companies all participating. Reflecting<br />

the GCC’s economy, the majority<br />

of participants are Construction and<br />

Engineering companies, with the Professional<br />

and Scientific and Oil&Gas<br />

enterprises coming in second and third<br />

place, respectively.<br />

As a relatively young Local Network, the<br />

UNGC Local Network for the GCC set out<br />

with a dual policy: to actively recruit new<br />

participants to the UNGC and to engage<br />

those businesses that had already signed<br />

up globally to become active participants<br />

locally. In this it has largely been successful.<br />

Businesses across the region are<br />

becoming more aware of the benefits of<br />

participating in a Local Network, and the<br />

Local Network focal point, in turn, has<br />

been stepping up its efforts to actively<br />

engage its Local Network participants.<br />

This too has paid off. UNGC global initiatives<br />

such as the CEO Water Mandate, the<br />

Caring for Climate statement, the CEO<br />

statement on the UN Convention against<br />

Corruption, and the CEO statement on<br />

Business and Human Rights were all<br />

endorsed by businesses from the GCC. In<br />

addition to these initiatives, one of the<br />

GCC Local Network participants became<br />

the first business from the Middle East<br />

to donate to the UN Central Emergency<br />

Response Fund (CERF) by answering the<br />

Secretary General’s call to donate to the<br />

Gaza Relief Fund.<br />

Among the participants of the UNGC<br />

Local Network for the GCC, there are<br />

varying motivations for joining the Network.<br />

In a participant survey held in<br />

2008, respondents cited the desire to<br />

build knowledge and capacity for CSR<br />

as their top reason for joining the UNGC.<br />

Improving stakeholder relationships and<br />

building trust came in as a close second.<br />

The fact that companies cite these objectives<br />

as being more important than just<br />

networking opportunities and PR value<br />

is a clear sign that the long-term value of<br />

responsible business is sinking in with<br />

companies in the region.<br />

The UNGC and CSR in the current<br />

financial climate<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong> 51

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