World business responds to Kofi Annan’s challenge on shared goals with UN
Geneva, 5 July 1999 – World business leaders today agreed to cooperate with the United Nations in a global compact proposed by Secretary-General Kofi Annan to promote human rights, improve labour conditions and protect the environment.
Their response came in joint statement a issued after talks between Mr Annan, the heads of key UN bodies, and top executives of major companies that are members of the International Chamber of Commerce. ICC, the world business organization, has over 7,000 member companies and business associations in more than 130 countries.
The statement said that there was great potential for the goals of the United Nations – peace and development – and those of business – wealth creation and prosperity – to be mutually supportive.
The two sides noted that a stronger private sector worldwide, and particularly the positive impact of foreign direct investment, were already making an effective contribution to the attainment of the UN’s goals.
They agreed that companies can best promote human rights and improved labour and environmental standards by the way they conduct their own businesses and by the spread of good corporate practices.
"By creating wealth and jobs, companies help to defeat poverty – the enemy of the humanitarian values espoused by the United Nations and shared by business," the joint statement continued. However, it added that companies cannot be expected to take on responsibilities outside their own sphere of activity that are properly the preserve of governments.
The statement went on: "The participants recognized that the capability of companies to create wealth and to meet their responsibilities to their customers, employees and shareholders is indispensable to fulfilling the compact."
Headed by ICC President Adnan Kassar, the ICC delegation included leading executives from 27 major international companies in both the industrialized and developing countries. Among them were: Alcatel, Allied Zurich, Investor, Norsk Hydro, Reemtsma, Rio Tinto, Unilever, Royal Dutch/Shell and Siemens.
Senior UN officials participating included Juan Somavia, Director General of the International Labour Organization; Rubens Ricupero, Secretary General of the UN Conference on Trade and Development; Mary Robinson, UN High Commissioner for Human Rights, and Klaus Toepfer, Executive Director of the UN Environment Programme.
Today’s joint declaration responded to a call by Kofi Annan last January for a global compact with business to uphold a set of core values in the areas of human rights, labour standards and environmental practice.
Mr Kassar told a news conference after the talks that the UN Secretary General had shown "exceptional leadership, determination and vision" in establishing a fruitful new relationship between business and the United Nations. Mr Kassar, who became ICC President for a two-year term in January, is Chairman of Fransabank, a leading finance and banking group, with main offices in Lebanon.
Today’s statement welcomed the prospect of a new round of trade negotiations that is expected to be launched at the end of the year. The two sides considered that the early and successful conclusion of a new trade round would contribute to reinforcing the economic momentum generated by trade liberalization.
There was agreement that a renewed commitment to open markets and the effective treatment of labour issues, human rights questions and the protection of the environment are mutually reinforcing and should go hand in hand.
"However, the rules-based multilateral trading system was not designed to address these non-trade issues. To call on it to do so would expose the trading system to great strain and the risk of increased protectionism, while failing to produce the desired results," the statement said.
Both sides agreed that the UN and its relevant agencies were the right place to deal with the three issues. "Enhancing the authority, effectiveness and the resource base of these UN bodies is the most productive way forward," the statement said.
Full text of joint statement
Working with the United Nations