renewing a commitment to openness and inclusion; and

finding new ways to embed global market forces in universally shared social values, thereby allowing all countries and cultures a sense of ownership in the global economy.

At the 1999 World Economic Forum in Davos, UN Secretary-General Kofi Annan asked business to do its part by demonstrating good global citizenship wherever it operates. He proposed a "global compact" that addresses three areas of shared international agreement: human rights, labour standards, and environmental protection.

The Secretary-General accordingly challenged business leaders to embrace and enact nine principles derived from the Universal Declaration of Human Rights, the Declaration of the International Labour Organization on fundamental principles and rights, and from the Copenhagen Summit, and from the Rio Declaration of the 1992 UN Conference on Environment and Development (the Earth Summit):

Human Rights
1. Business should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and 2. make sure they are not complicit in human right abuses.

Labour
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4. the elimination of all forms of forced and compulsory labour; 5. the effective abolition of child labor; and 6. eliminate discrimination in respect of employment and occupation.

Environment
7. Businesses should support a precautionary approach to environmental challenges; 8. undertake initiatives to promote greater environmental responsibility; and 9. encourage the development and diffusion of environmentally friendly technologies.

Why should businesses adopt the Global Compact?

The Great Depression demonstrated that nations cannot be driven by unfettered market forces alone. The free market must be balanced by policies that support broad societal concerns and protect personal security.

A similar lesson may be drawn from the globalization and integration of economies. To be sustainable, globalization must be accompanied by the effective promotion and protection of human rights, labour standards and the environment.

The recent volatility of international financial markets, along with cultural and social side-effects that often are perceived negatively, have set off a backlash against liberalization. A return to market protectionism and unnecessary barriers against technical and commercial innovation is all too possible.

A clear demonstration that basic and broadly popular social values are being advanced as part and parcel of the globalization process will help ensure that markets remain open, and will truly bring the people of the world closer together.

Supporting and advancing the nine principles of the Global Compat is not only the right thing to do -- it makes good business sense.

What steps can businesses take?

Advocate for a strong UN
The United Nations is part of the solution. Strengthening the UN?s authority and resource base -- especially of agencies that address environmental, human rights and labor issues -- is the most sensible way forward.

Put universally accepted principles into practice. Although governments have primary responsibility for implementing internationally accepted values, corporations acting on their own can do a great deal to actualize these principles within their spheres of influence.

Work with UN agencies
The International Labour Organization, the Office of the High Commissioner for Human Rights and the UN Environmental Programme stand ready to work directly with corporations in advancing the Global Compact.