*{Partnering for the Future: Lessons from the Global Compact [http://www.weforum.org/site/knowledgenavigator.nsf/Content/Partnering%20for%20the%20Future%3A%20Lessons%20from%20the%20Global%20Compact?open&topic_id=300250000&theme_id=300]

            29.01.2001

            Annual Meeting 2001}

            Operational only since last July, the UN’s Global Compact with Business is an attempt to form a common platform with governments, businesses and civil society to identify corporate responsibility as a first step towards resolving some of the complex issues that have arisen with globalization. Moderator John Ruggie, Assistant Secretary-General, United Nations, New York, recalled that the initiative has three principal components. First, a learning approach to see what constitutes good corporate practice when dealing with human rights, environmental and labour issues; second, the promotion of policy dialogues to address critical dilemmas such as the role of companies operating in conflict areas; and third, the development of partnership projects.

            Kenneth J. Costa, Vice-Chairman, UBS Warburg, United Kingdom, cited John Le Carre’s latest novel, The Constant Gardener, which is critical of the role of multinationals in the developing world, as an indication of the issues that are beginning to emerge with globalization. Dealing with the world’s poor, he said, now represents the biggest challenge to business. In order to end mass poverty, he added, we need to attain rapid sustained growth using the best of what we have. "The greatest threat, however, is if we don’t take action," he commented. Costa noted that the corporate world needs to recognize changing investor and employment perspectives. In addition, it must integrate corporate responsibility and transparency in daily management approaches. This should include a bid to invite non-governmental and other organizations to "track us, not trust us," even if such critical monitoring may prove embarrassing, because ultimately it would help companies adopt appropriate remedies. "People need to know what is happening on the ground," he said.

            William B. Jordan, General Secretary, International Confederation of Free Trade Unions (ICFTU), Brussels, suggested that tackling the "unacceptable face of globalization" is currently frustrating because of delays in the time needed to move from an idea to reality. Speaking as a trade unionist, Jordan said he does not feel that developing the Compact will undermine positive globalization, but rather reinforce it in a positive sense by encouraging partnerships. Certain companies have already recognized the Compact, he said, "but there are still battalions of companies out there who must act and not stand on the sidelines." He added that it has already been clearly shown that conscientious employers and organized labour can become good partners. Finally, he maintained, one needs to recognize that the real suffering of the silent majority, not demonstrations, is what galvanizes action. 

            Azim H. Premji, Chairman, Wipro Limited, India, observed that companies need to appreciate the magnitude of the globalization problem, such as dealing with education for children in poor villages. In India, he noted, there is a heavy prevalence of child labour. Parents fail to see the relevance of education. Furthermore, regional governments do not enforce a ruling of the Supreme Court guaranteeing the right to education for all. Companies could help make an enormous difference in the long term here, he said. One suggestion has been for companies to commit funds over a five-year period in return for government pledges to undertake specific actions, such as ensuring that sufficient and qualified teachers are appointed.

            Pierre Sané, Secretary-General, Amnesty International, United Kingdom, criticized the World Economic Forum for going along with Swiss authorities’ actions banning demonstrations, harassing NGO representatives, photographing demonstrators and forcing people back over the border. He asked whether, in line with the Compact, sanctions should not be imposed against those who allow repressive actions, such as in Davos, to take place. Sané also urged that action be considered against pharmaceutical companies that refuse to sell or distribute drugs on an affordable basis to AIDs and other patients in Africa. He also suggested that measures be applied against banks that demand repayment of debts by poor countries at the expense of health or education. Amnesty International, he said, supports the Compact initiative but he added that it needs to be credible to be effective.
                       *{Contributors:       Browne of Madingley       Costa Kenneth J.
                  Jordan William B.
                  Premji Azim H.
                  Ruggie John
                  Sané Pierre}