Global Compact Viet Nam team Information on the Global Compact
· · The attached Global Compact brochure and frequently asked questions. · · Understanding the Human Rights Principles: http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle1.html · · Understanding the Labour Principles: http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/labourStandards.html · · Understanding the Environment Principles: http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/environment.html · · Understanding the 10th principle (corruption): http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle10.html · · Implementing the Global Compact: http://www.unglobalcompact.org/docs/news_events/8.1/dk_book_e.pdf · · After the signature – what happens after you join: http://www.unglobalcompact.org/docs/news_events/8.1/GC_Welcome_Kit_final_260307.pdf · · Goldman Sachs study showing how CSR leaders outperform peers: http://www.unglobalcompact.org/docs/summit2007/gs_esg_embargoed_until030707pdf.pdf · · McKinsey UN Global Compact CEO participants Survey 2007: http://www.unglobalcompact.org/docs/summit2007/mckinsey_embargoed_until020707.pdf · · More information on Global Compact in general: www.unglobalcompact.org Frequently Asked Questions on Global Compact and Global Compact Viet Nam network General Questions on Global Compact
Q. What is the Global Compact?
As the world's largest, global corporate citizenship initiative, the Global Compact is first and foremost concerned with exhibiting and building the social legitimacy of business and markets.
Q. What are the ten principles?
Human Rights - Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
- Principle 2: make sure that they are not complicit in human rights abuses.
Labour Standards - Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
- Principle 4: the elimination of all forms of forced and compulsory labour;
- Principle 5: the effective abolition of child labour; and
- Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment - Principle 7: Businesses should support a precautionary approach to environmental challenges;
- Principle 8: undertake initiatives to promote greater environmental responsibility; and
- Principle 9: encourage the development and diffusion of environmentally friendly technologies
Anti-Corruption - Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Q. Where do the 10 principles come from?
They are derived from: 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 United Nations Convention Against Corruption.
Q. Are there many participants in the Global Compact network?
Currently, the GC is one of the major frameworks to implement corporate social responsibility activities in the world. Some 4,000 organizations in 116 countries are involved, including trade unions, non-governmental organizations (NGOs) and 3,100 businesses. Five hundred of these organizations are in the Asia and Pacific region.
Q. What benefits can I expect if I join the Global Compact? There are some well-established general arguments. For example, employee satisfaction and productivity often rise when companies apply the ten GC principles. As their reputations improve, they find opportunities opening up, including business opportunities in international supply chains. Global Compact networks provide assistance, new tools and resources to help businesses integrate the 10 principles into their operations. The Global Compact network will offer learning and dialogue meetings involving business, labour, and civil society. Through peer-to-peer interactions with top decision makers from all segments of the international community, business leaders have the opportunity to access intelligence on socio-economic and geopolitical megatrends to develop strategic frameworks to address a range of issues relating to cleaner technologies, human rights in the workplace and anti-corruption. The network also facilitates the formulation of partnerships, especially with the UN.
The list below summarizes some of the benefits of participation include:
Direct:
| Indirect...
|
| Managing risks by taking a proactive stance on critical issues. | Increased legitimacy and license to operate, particularly in the developing world, because business practices are based on universal values |
| Improving corporate/brand management, employee morale and productivity, and operational efficiencies. | Improved reputation and increasing brand value to consumers and investors – specifically in the context of changing societal expectations |
| Improving corporate PR due to demonstrating leadership by advancing responsible corporate citizenship. | Increased employee morale and productivity, and attracting and retaining the highest qualified employees |
| Reducing direct cost of doing business (corruption, inadequate health and educational systems) | Improved operational efficiency, for instance through better use of raw materials and waste management |
| Improving employer’s employee relations by providing a platform for dialogue. | Ensuring a company’s accountability and transparency through a public communication on progress. |
| Global and local opportunities to dialogue and collaborate with other businesses, NGOs, labour, and governments on critical issues | Easier access to partnerships with the UN's and through partnership, access to broad knowledge in development issues. |
| Exchange of experiences and good practices inspiring practical solutions and strategies to challenging problems |
|
Global Compact Viet Nam network
Q. What is the difference of being a signatory to the Global Compact and belonging to a Global Compact Viet Nam network?
A company can be a global member of the Global Compact, which means that it’s Chief executive officer has signed the letter expressing the company’s commitment to follow the ten Global Compact principles in company’s daily operations.
A Global Compact Viet Nam network is a body facilitating the awareness raising on the ten principles, encouraging the companies to take part in the Compact and implement the ten principles their in normal operations. The local network also creates opportunities for multi-stakeholder engagement and collective action. Membership in Global Compact Vietnam Network means being part of a community of more than 60 nations from more than 3000 leading corporations.
The UN together and VCCI are about to launch a local Global Compact network in Viet Nam. The network will consist of businesses and other relevant stakeholders, and it will work to raise awareness on the ten principles, to facilitate the development of sustainability strategies and programs and to align business operations to the ten principles. In addition, the Global Compact Viet Nam network will be a platform to encourage innovative initiatives and partnerships with civil society, governments and other stakeholders.
Q. Why is there a need to promote Global Compact in Viet Nam? In Viet Nam, many companies are performing exceptionally well in all of the four areas of the Global Compact and at the same time performing very well financially. Some companies are even going beyond implementing the principles in their core operations and also promote the principles among their suppliers and subsidiaries. Many businesses are also engaged in philanthropic activities locally or even nationwide.
However, relatively few companies have adopted business practices that duly reflect social and environmental considerations. Exploitative labour practices, corruption and pollution are still too common in Viet Nam.
Q. Why should Vietnamese companies, NGOs, government and other stakeholders be interested in the Global Compact and broader CSR agenda? It is important to promote transparent debate on CSR issues in Viet Nam. Understanding concepts and international practices is useful as an introduction to the subject matter. It is even more important to understand the implications of CSR in the specific context of Viet Nam. What does CSR entail for executives striving to develop their businesses? For workers aspiring to more rewarding jobs and safer working conditions? For public authorities formulated strategies for sustainable socio-economic development? For consumers purchasing products and services? For society at large due to potential contribution businesses can have to the overall socio-economic development of the country? Responsible corporate citizenship can be encouraged through the power of collective action: consumers, government at all levels, related organizations and businesses all have a role in determining how positive or negative the effect of the business community in the overall development of the country can be. Ideally, business should not be seen part of the problem but rather as part of solution to the challenges faced in Viet Nam today.
Joining the Global CompactQ. Who can join the Global Compact? - Business Participation
- Academic Participation
- Business Associations
- Labour
- Civil Society
- Cities
Q. How do I join the Global Compact?
Print the generic Global Compact letter on letter headed paper, get it signed by the Chief Executive Officer (CEO) of the company and send it either to the UNDP Hanoi office, 25-29 Phan Boi Chau st. Ha Noi – Viet Nam (
partnerships@undp.org.vn) or directly to the UN Global Compact office: Secretary-General / Global Compact, United Nations
New York, NY 10017, USA.
- The letter is signed by the highest executive of your company;
- The letter is on official company letterhead;
- The enclosed information sheet is complete, correct and legible.
In addition to the letter, your company should send general information regarding the company, as well as the contact person responsible for relations with the office of the Global Compact.
For the standard letter and instructions, please see Annex 1 or access:
http://www.globalcompact.org/docs/how_to_participate_doc/Global_Compact_Sign_On_Letter.doc Q. Can NGO and other non-business participants get involved?Yes. As equal partners and important stakeholders, civil society and other non-business organisations can participate through a number of Global Compact engagement mechanisms.
Q. Why should a company that has already established its own code of conduct participate in the Global Compact?
The Global Compact is not a code of conduct. Rather, it offers a policy framework for organizing and developing corporate sustainability strategies while offering a platform - based on universal principles - to encourage innovative initiatives and partnerships with civil society, governments and other stakeholders.
Q. What is the role of the Government in promotion of the Global Compact principles? Regulation and enforcement are of course necessary to ensure that all businesses follow the law with respect to labour relations, environmental protection and all other areas relevant to their operations. But awareness of CSR and the vital role of business is national development is also important. The more businesses know about CRS, the more they will recognize that ethnical business is good business.
The role of the Government in promoting sustainable business practices is extremely important. Governments can put in place an enabling environment, actively draw attention to general issues, aspects, and benefits of corporate responsibility and stimulate public debate. Governments can highlight best practices, as well as endorse or invite business and wider community support for voluntary corporate responsibility programmes, activities, or initiatives, such as the UN Global Compact. When they have the resources to do so, Governments can directly contribute resources to help voluntary initiatives to maximize their impact. In addition, the adoption and enforcement of laws and regulations rests with governments.
Business-led efforts can only be sustained and brought to scale if public institutions, the rule of law, and transparent and predictable regulation support responsible business practices.
Q. Can company subsidiaries join the Global Compact Vietnam Network?
If the CEO of a company's global parent (holding, group, etc.) embraces the Global Compact by sending a letter to the UN Secretary-General, the Global Compact will post only the name of the parent company on the global list assuming that all subsidiaries participate as well. Subsidiaries that wish to directly send a letter to the Secretary-General, to underline their commitment, will be listed as participants, and are invited to become active in the Global Compact Vietnam network.
Q. I operate a business with less than 10 employees. Can I still participate in the Global Compact?
No. Due to administrative constraints, companies with less than ten direct employees (micro enterprises) will not be entered into the database of participating companies.
The responsibilities of Global Compact membership Q. What do I commit my company to if I commit to the Global Compact?
By joining the Global Compact, your company has to express it’s intent to support and advance the 10 principles within the company’s sphere of influence.
The company commits itself to making the Global Compact and its principles part of the company’s strategy, culture and day-to-day operations and commits to make a clear statement – to employees, partners, clients and to the public – of this commitment.
Your company, in addition, to submit an annual submission of a Communication on Progress (COP) that describes the company’s efforts to implement the ten principles. due to the Global Compact’s support to public accountability and transparency, the company is expected to report on progress within two years of joining the Global Compact, and every year thereafter according to the Global Compact COP policy.
For more information on the COP, please access: http://www.globalcompact.org/COP/index.html
Q. What happens after my company has joined the Global Compact Viet Nam network? Your company will be included on the Global Compact Viet Nam database, and you will be kept informed on all the Global Compact related updates: learning events, meetings, partnership opportunities. You will have a unique access to all the services offered by the network.
Q. Is my company likely to face any challenges after committing itself to follow the Global Compact principles?
The implementation of the Global Compact principles in business operations is not always a simple matter. Companies need to conduct a careful analysis of their practices and develop plans to improve their performance. The Global Compact does not judge companies’ performance. Instead, the emphasis is on building the commitment of the private sector to the principles and achieving a community wide consensus on their importance to sustainability and development.
We need to recognize that the business sector may sometimes need guidance or assistance. For this reason, the Global Compact programme seeks to promote collaborative multi-stakeholder dialogue to assist in developing corporate responsibility programmes, guidelines, and recognition specifically designed to encourage sustainable business development.
Q. Is the Global Compact legally binding?
No. The Global Compact is a purely voluntary initiative. It does not police or enforce the behavior or actions of companies. Rather relies on public accountability, transparency and the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles.
Q. If there is no monitoring or enforcement, how does the Global Compact know that a company is truthfully portraying its actions?
The Global Compact is not a performance or assessment tool. It does not provide a seal of approval, nor does it make judgements on performance. The Global Compact believes that this sort of openness and transparency encourages good practices by participants.
Q. Are there any financial obligations in becoming a Global Compact participant?
No. The Global Compact is a voluntary initiative, not a formal membership organization.
Q. Is the Global Compact a substitute for existing regulatory approaches?
No. The Global Compact views itself as complementing other voluntary initiatives and regulatory approaches by helping to establish the business case for human rights, labour standards, environmental stewardship and the fight against corruption.
Q. What are Vietnamese businesses supposed to do to act in a socially responsible manner? We strongly recommend that companies interested in improving their corporate social responsibility related performance become members of the Global Compact network. Their membership provides them access to information and resources though Global Compact networks and opportunities to participate in Global Compact-sponsored initiatives and programmes. To become a member, the Chief Executive Officer of the company should send a
letter to the Secretary-General of the United Nations expressing support for the Global Compact and its principles.
After becoming a Global Compact member, it is good to start by conducting a base line survey – how the company is performing in different areas of corporate social responsibility. The survey should investigate areas in which the company is already performing well and where it needs improvement. It should also consider why problems and issues have not been addressed in the past.
The next step should consist of a road map and action plan to spell out activities to develop the company’s operations in a more sustainable direction. The challenging task is to set in motion changes to business operations to inculcate Global Compact principles into the corporate strategy and culture. Commitment from top leaders to the plan is seen as a key to successful implementation.
After one year, an evaluation of the performance should be carried out and programmes / targets should be adjusted to changing conditions, if needed. Global Compact members often publish a description of the ways in which they support the Global Compact and its principles in their annual reports or similar public corporate publications.
We encourage companies to contact supporting organizations, such as the local Global Compact office (to be opened soon) as well as thematic organizations such as cleaner production centres. Support to companies’ efforts can be obtained thought various other sources. The important thing is to take the first step and get involved!
Contact details Q. Where can I find more information? To learn more ab
out Global Compact Vietnam Network, please contact at
partnerships@undp.org.vn or visit
www.unglobalcompact.org Annex 1: Sample Entry Letter to join the Global Compact (for COMPANIES ONLY )[Company letter-head]
[Date]Secretary-General
United Nations
New York, NY 10017
USA
Dear Mr. Secretary-General,
I am pleased to confirm that _____
[name of company] supports the ten principles of the Global Compact in respect to human rights, labour rights, the protection of the environment and anti-corruption. With this communication, we express our intent to support and advance those principles within our sphere of influence. We commit to making the Global Compact and its principles part of the strategy, culture and day-to-day operations of our company and undertake to make a clear statement of this commitment - both to our employees, partners, clients and to the public. We support public accountability and transparency and will report on progress made in a public manner.
Please find attached some general information regarding our company as well as the contact person responsible for contacts with the office of the Global Compact.
Sincerely yours,
[Signature]
[Name Mr. /Ms. _____] [Title* CEO/Managing Director] * The letter must be signed by the highest executive in the company Company Information to the Global Compact
Please type or use print capitals
Type of organisation ☐ Company ☐ Labour
☐ Business Association ☐ NGO
☐ CSR Organisation ☐ City
☐ Other (please specify) __________________________
Name of the organisation______________________________________________________
Address __________________________________________________City_________________
State/province___________________ Zip/postal code______________ Country_____________
Telephone: _______________ Fax: ______________ Website: __________________________
Number of employees _____________ (direct)
Type of activity/s _______________________________________________________________
Name and title of highest executive
Mr/Ms_________________________________ (name) __________________________ (title)
Name and title of contact person
Mr/Ms_________________________________ (name) __________________________ (title)
Telephone: ________________ Fax: ______________ Email: _____________________
Check if applicable: ☐ Subsidiary of ___________________
☐ Subsidiaries located in (list countries) ___________________________
☐ Publicly traded company
☐ “Financial Times 500” company
Sector (please highlight only one):
☐ Aerospace & Aviation
☐ Automobiles & Auto Components
☐ Agriculture
☐ Chemical
☐ Commercial Services & Supplies
☐ Commerce & Distribution
☐ Construction & Engineering
☐ Containers & Packaging
☐ Construction Materials
☐ Education
☐ Finance & Insurance
☐ Health Care Services & Supplies
☐ Food & Drink
☐ Industrial Conglomerates
☐ Internet & E-commerce
☐ IT Consulting & Software
☐ Leisure Equipment & Products
☐ Machinery
☐ Media & Communications
☐ Metals & Mining
☐ Oil and Gas
☐ Professional, Scientific and Technical Services
☐ Pharmaceutical & Biotechnology
☐ Paper & Forest Product
☐ Personal Care & Household Products
☐ Real Estate
☐ Technology Hardware & Electrical Equipment
☐ Textile, Apparel & Luxury Good
☐ Transportation & Storage
☐ Telecommunication
☐ Tourism and Leisure
☐ Utilities
☐ Other
If ‘Other’ please specify ____________________________________
- The letter is signed by the highest executive of your company;
- The letter is on official company letterhead;
- The enclosed information sheet is complete, correct and legible.
Sample Entry Letter for COMPANIES ONLY
[Company letter-head]
[Date]Secretary-General
United Nations
New York, NY 10017
USA
Dear Mr. Secretary-General,
I am pleased to confirm that _____
[name of company] supports the ten principles of the United Nations Global Compact in respect to human rights, labour rights, the environment and anti-corruption. With this communication, we express our intent to support and advance those principles within our sphere of influence. We commit to making the Global Compact and its principles part of the strategy, culture and day-to-day operations of our company and undertake to make a clear statement – to our employees, partners, clients and to the public – of this commitment.
We recognize that a key requirement for participation in the Global Compact is the annual submission of a Communication on Progress (COP) that describes our company’s efforts to implement the ten principles. We support public accountability and transparency, and therefore commit to report on progress within two years of joining the Global Compact, and every year thereafter according to the Global Compact COP policy.
Attached please find general information regarding our company, as well as the contact person responsible for relations with the office of the Global Compact.
Sincerely yours,
[Signature]
[Name Mr. /Ms. _____] [Title* CEO/Managing Director] * The letter must be signed by the highest executive in the company Company Information to the Global Compact
Please type or use print capitals
Type of organisation ☐ Company ☐ Labour
☐ Business Association ☐ NGO
☐ CSR Organisation ☐ City
☐ Other (please specify) __________________________
Name of the organisation______________________________________________________
Address __________________________________________________City_________________
State/province___________________ Zip/postal code______________ Country_____________
Telephone: _______________ Fax: ______________ Website: __________________________
Number of employees _____________ (direct)
Type of activity/s _______________________________________________________________
Name and title of highest executive
Mr/Ms_________________________________ (name) __________________________ (title)
Name and title of contact person
Mr/Ms_________________________________ (name) __________________________ (title)
Telephone: ________________ Fax: ______________ Email: _____________________
Check if applicable: ☐ Subsidiary of ___________________
☐ Subsidiaries located in (list countries) ___________________________
☐ Publicly traded company
☐ “Financial Times 500” company
Sector (please highlight only one):
☐ Aerospace & Aviation
☐ Automobiles & Auto Components
☐ Agriculture
☐ Chemical
☐ Commercial Services & Supplies
☐ Commerce & Distribution
☐ Construction & Engineering
☐ Containers & Packaging
☐ Construction Materials
☐ Education
☐ Finance & Insurance
☐ Health Care Services & Supplies
☐ Food & Drink
☐ Industrial Conglomerates
☐ Internet & E-commerce
☐ IT Consulting & Software
☐ Leisure Equipment & Products
☐ Machinery
☐ Media & Communications
☐ Metals & Mining
☐ Oil and Gas
☐ Professional, Scientific and Technical Services
☐ Pharmaceutical & Biotechnology
☐ Paper & Forest Product
☐ Personal Care & Household Products
☐ Real Estate
☐ Technology Hardware & Electrical Equipment
☐ Textile, Apparel & Luxury Good
☐ Transportation & Storage
☐ Telecommunication
☐ Tourism and Leisure
☐ Utilities
☐ Other
If ‘Other’ please specify ___________________________________________________