Russia’s Private Sector joins UN Global Compact Network

By Zafar Salmanov


UN Secretary-General Ban Ki-moon welcomed the launch of a Global Compact network in the Russian Federation on 10 April, noting that the country’s private sector had joined thousands of businesses in more than 120 countries that embrace the UN Global Compact’s vision of a more inclusive global economy.

Business, trade and investment are crucial elements for development and peace among nations, according to the UN Global Compact. Business practices, however, in many cases encounter serious problems such as corruption, exploitative practices, income equality and factors that discourage innovative and entrepreneurial behaviour. The Compact’s objective, therefore, is to engage businesses in a framework based on ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption in support of broader UN objectives, such as the Millennium Development Goals (MDGs).

The first two principles, embracing human rights issues, state that businesses should support and respect the protection of internationally proclaimed human rights and make sure that they are not complicit in human rights abuses. The next four principles are related to labour standards and address the freedom of association and the effective recognition of the right to collective bargaining; elimination of all forms of forced and compulsory labour; abolition of child labour; and elimination of discrimination in respect of employment and occupation. The principles on the environmental issues call on the businesses to support a precautionary approach to environmental challenges, undertake initiatives to promote greater environmental responsibility; and encourage the development and diffusion of environmentally friendly technologies. The issues of corruption are touched upon in the last principle which urges the businesses to work against corruption in all its forms, including extortion and bribery.

Secretary-General Launches Russian Federation Global Compact Network

Secretary-General Ban Ki-moon with UN Resident Coordinator and UNDP Representative Marco Borsotti (left) and Deputy Minister for Foreign Affairs of the Russian Federation, Alexander Grushko (right) launch a local United Nations Global Compact with the Russian business leaders, Moscow. (UN Photo/Eskinder Debebe)

The Global Compact’s stakeholders and supporters include Governments, labour and civil society organizations and companies, as well as the United Nations. The benefits of being in the network consist of, among others: demonstrating leadership by advancing responsible corporate citizenship; managing risks by taking a proactive position on critical issues; developing practical solutions to the issues of globalization; sustainable development and corporate responsibility; accessing the UN's broad knowledge in development issues; sharing best practices and knowledge; improving corporate and brand management, employee morale, productivity, and operational efficiencies.

“By joining the Global Compact, you have signalled your readiness to embrace this path to success”, the Secretary-General said. He told the group of Russian business leaders at the launch, “and you have demonstrated that Russia’s businesses are ready and eager to claim their place in the international economy”. Alexander Shohin, head of RSPP, said that “the priority of Russian business is to ensure a solid position in national and global economies through improving competitiveness based on responsible business practices”.

For the Russian Federation’s industry, as Mr. Ban pointed out, the benefits would be managing risk, higher productivity, and increase in operational efficiency and establishing more trustful and solid relationships among Russian companies at home and abroad. “At the same time”, he continued, “the Global Compact provides a universal platform for addressing some of the broader problems confronting the world, such global challenges as armed conflict, persistent poverty, the growing water crisis, the rise of HIV/AIDS”.

According to the UN Global Compact, many top Russian corporations are already involved in corporate citizenship activities, including the United Company Russian Aluminum, the Russian Railways, Interros Group of companies, Renova, Sistema and the Russian Union of Industrialists and Entrepreneurs (RSPP), as well as non-governmental organizations. This is a good indication that corporate citizenship in the country is gradually becoming a significant part of corporate governance and management.

The Global Compact was launched on 26 July 2000, when several dozen business leaders came together at UN Headquarters to join an international initiative that would bring companies together with UN agencies, labour and civil society to advance universal social and environmental principles. As of early April 2008, the Global Compact’s participants include some 3,600 businesses in over 100 countries making it the world’s largest voluntary corporate citizenship initiative.

The Global Compact officially launched in Russia in November 2001 during a round table jointly organized by the Ministry of Foreign Affairs and the Russian Union of Industrialists and Entrepreneurs in partnership with UNDP and other UN agencies representatives. This meeting provided an opportunity to present and discuss the future implementation of the Global Compact in the country, to mobilize the business community and to establish supporting mechanisms for the development of private-public partnerships in Russia. Apart from the Russian Federation’s recent entry, a new regional network of Global Compact participants in the countries of the Gulf Cooperation Council was launched in Dubai three days earlier.

Resources:

Back to the top Back to the top.