United Nations Global Compact

What it is

The United Nations Global Compact is a voluntary, UN-led initiative that encourages businesses to adopt responsible practices in human rights, labor, the environment, and anti‑corruption. It asks companies to align their strategies and operations with universal principles and to advance broader sustainable development goals.

Origins

The Compact’s principles draw from established international agreements, including:
* The Universal Declaration of Human Rights
* The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work
* The Rio Declaration on Environment and Development
* The UN Convention Against Corruption

The 10 Principles

Member companies commit to uphold these principles:

1. Support and respect internationally proclaimed human rights.
2. Avoid complicity in human rights abuses.
3. Uphold freedom of association and recognize the right to collective bargaining.
4. Eliminate all forms of forced and compulsory labor.
5. Abolish child labor.
6. Eliminate discrimination in employment and occupation.
7. Adopt a precautionary approach to environmental challenges.
8. Undertake initiatives to promote greater environmental responsibility.
9. Encourage the development and diffusion of environmentally friendly technologies.
10. Work against corruption in all its forms, including extortion and bribery.

Member expectations and responsibilities

Companies that join the Compact are expected to:
* Integrate the ten principles into corporate strategy, culture, and daily operations.
Publicly advocate the principles and engage stakeholders on progress.
Act responsibly across environmental areas such as climate, water, biodiversity, energy, and food systems.
* Advance social sustainability—protecting human rights and addressing issues affecting workers, women, children, indigenous peoples, people with disabilities, and those living in poverty.

The Compact does not create legal obligations; participation is voluntary and relies on corporate commitment and transparency.

Why businesses join

Companies join for a mix of ethical and practical reasons:
* Strengthen reputation and trust with customers, employees, investors, and partners.
Reduce operational, regulatory, and reputational risks in challenging environments.
Access new markets and innovation opportunities tied to sustainable products and services.
Improve employee engagement and attract talent.
Collaborate with peers, governments, and civil society to scale positive social and environmental impact.

Examples of corporate actions

Member companies can contribute in many ways, such as:
* Integrating human‑rights due diligence into supply chains.
Deploying low‑carbon or resource‑efficient technologies.
Supporting inclusive education and lifelong learning through partnerships and open‑source tools.
Investing in community programs that improve livelihoods and access to basic services.
Implementing anti‑corruption policies and transparent governance practices.

Conclusion

The UN Global Compact provides a framework for companies to commit publicly to core principles of human rights, labor standards, environmental stewardship, and anti‑corruption. While non‑binding, the Compact fosters corporate accountability, collaboration, and contribution to sustainable development.