Business supports Kofi Annan's Global Compact but rejects "prescriptive rules"
Budapest, 4 May 2000 - Business speakers at the World Congress of the International Chamber of Commerce reacted positively to the challenge of the Global Compact on shared core values between business and the United Nations proposed by United Nations Secretary General Kofi Annan.
They heard Mr Annan in a videotaped address from New York declare that global companies should display their commitment to global corporate citizenship. "This may vary depending on the circumstances, but the bottom line is a willingness to pursue, wherever possible and appropriate, good practices as defined by the broader community."
Mr Annan said the UN and ICC were "good, close partners". The two organizations were together trying to give globalization "more of a human face" by paying greater attention to three core values - human rights, core labour standards and the environment.
The UN Secretary General added: "In a short period of time we have made tremendous progress. The United Nations is the global institution. ICC is the global business association. Together let us continue this positive momentum."
In his inaugural address, ICC President Adnan Kassar said the Global Compact was a concept that had caught the imagination of many companies. He said the UN Secretary General was largely to be credited for developing a constructive new relationship between the United Nations and business.
But he added what he called an important proviso. "There must be no suggestion of hedging the Global Compact with formal prescriptive rules. We would resist any tendency for this to happen," Mr Kassar added. The ICC President described the Global Compact as a mosaic of actions by companies, showing how, in their own sphere of activity, they were contributing to the promotion of the three core values.
Phil Watts, a Managing Director of the Royal Dutch/Shell Group, said ICC had a huge opportunity to exert leadership through its unique position as the respected global voice of business. It could promote dialogue between business, governments, inter-governmental bodies and non-governmental organizations and promulgate the ICC codes that provide "an over-arching framework for companies own internal practices.
"And - perhaps the most important of all - we can raise the profile of business in relation to global governance by taking a lead in meeting the challenges posed by Kofi Annan in his Global Compact with business," Mr Watts said.
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