UN Global Compact: How it changes corporate sustainability

There is a plan for corporate sustainability now

Sustainability initiatives are, for better or for worse, dime a dozen these days.

There are countless organisations and non-profits from all over the world claiming to be sustainability leaders, each with its own policies and goals. While it is very much a good thing that more people are being made aware and action is being taken towards sustainability, if you are a business, it would be wise to try and work with the most recognised and relevant organisations advocating for sustainability. 

After all, there are considerable benefits to be had in communicating your business’ sustainability efforts to its stakeholders. 

And having your sustainability efforts be aligned with a recognisable global organisation and its goals is the best way to gain legitimacy in the eyes of concerned stakeholders. 

This is why this article will introduce you to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. With over 17000 participants from countries all around the world and comprised of organisations of all types, UNGC is an instantly recognisable brand in the corporate sustainability space. 

But what exactly is it that UNGC does? And what will your business gain by becoming a participant? 

What is the United Nations Global Compact?

Established in the year 1999, it initially worked towards the Millenium Development Goals, until 2015 when they expired. Since then, it has shifted its focus to the Sustainable Development Goals (SDGs), with the goals associated with SDGs for the year 2030 in focus. 

It is a voluntary organisation and does no policing of any kind. Instead, it allows any business (with some exclusions) to become a participant by fulfilling a few conditions. 

UNGC works on the foundation of the Ten Principles and requires all participants to implement them in their activities through strategy. The principles operate on a strategic level and are meant to guide the overall strategic direction of a business to incorporate sustainable development. 

There are also local networks for UNGC that support both local firms and subsidiaries of larger MNCs in implementing the principles in their business. 

It explicitly states that it is not legally binding in any way whatsoever. Rather, the efforts of the participants are meant to be voluntary and any participant can withdraw from the Global Compact at any time if they are unable to meet their commitment to the Ten Principles.

And since they do not implement any kind of policing, the reliance is on the participants to publish and submit in their annual report, the actions they have taken towards the principles.

How do the Ten Principles of UNGC guide corporate sustainability?

The Ten Principles are categorised under four primary areas of concern for corporate sustainability efforts. The four areas are Human Rights, Labour, Environment and Anti-corruption. 

Once implemented, they ensure that the business will meet internationally accepted standards in all of the aforementioned issues. 

The overall goal is to ensure that member businesses can pursue profits without compromising their integrity and values. The principles are as follows:

While the principles aim to be integrated at a strategic level, the intention is to integrate them at all levels of a business organisation, from the overall culture to the day-to-day. 

Why joining the UNGC will make your business sustainable

The principles are also a strong guide for companies wishing to incorporate ESG into their business, as investors concerned with sustainability issues grow in number and in value. There is now an increased understanding that sustainability issues present very real risks to many businesses, which means businesses must not carry such risks. 

And the UN Global Compact and its Ten Principles present a strong guide to implementing sustainability in your business. 

Joining a sustainability organisation that’s perhaps, the most recognisable one in the world, should be an easy decision to make for any business or NGO that pays attention to their sustainability. It is backed by most of the world’s nations and several large businesses, which means there is strong legitimacy to the organisation and its principles. 

A strong example is KPMG, which has been a signatory for the UNGC since 2002. And it is not just business organisations that support the UNGC. The American University of Sharjah is one such relevant example from the Middle East through its membership in the UNGC. 

There is also the added benefit of the principles being aligned with the United Nation’s SDGs, another increasingly important area of concern for sustainability issues. Together, they ensure that a business operates not with the sole purpose of generating profits, but with social and environmental issues in mind. 

For any business that aims to become sustainable, joining UNGC quickly gains legitimacy and recognition in their sustainability efforts. 

communicating business sustainability by using ungc

Joining UNGC is not only an easy decision but also a fairly easy thing to accomplish for any business with at least some amount of sustainability focus. 

However, to continue being a participant of the Global Compact, stronger measures towards corporate sustainability may be necessary. There is also the added challenge of communicating these measures to the relevant stakeholders and organisations. 

Your sustainability efforts can provide value in several different ways. It can save costs, resulting in increased productivity and a happier workforce, and much more.

However, the bulk of these benefits can be ameliorated by properly communicating your sustainability efforts to your stakeholders. This is where our expertise lies and where we can truly help your business. 

Contact us now, to learn more about how with specialised help, your corporate sustainability efforts can be improved and their benefits made greater through sustainability communication.