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The U'N' Global Compact Principles

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... U.N. Global Compact Principles. and. Multinational ... General Requirements of the Global Compact ... 'Novartis and the U.N. Global Compact Initiative,' p.742. ... – PowerPoint PPT presentation

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Title: The U'N' Global Compact Principles


1
Human Rights and the Private Sector Novartis
Foundation for Sustainable Development 27
November 2003
  • The U.N. Global Compact Principles
  • and
  • Multinational Corporate Standards

Lee A. Tavis
2
Establishing a Business Enterprise Human Rights
Stance
  • 1. Strategic Positioning
  • 2. Policy Framework
  • 3. Implementation
  • Human rights integral part of long-term
    sustainable corporate development
  • Two critical human rights distinctions
  • - Uniform standards versus flexible response
  • - Levels of response to deprivation
  • Reflect strategy and policy distinctions

3
1. Strategic Positioning
  • Goal
  • Long-term sustainable corporate development
  • Necessary Condition
  • Efficient and competitive business model
  • Sufficient Condition
  • Respond to evolving societal expectations

4
Novartis Strategic Positioning
  • Selected human rights and UNGC as standard for
    social response
  • Articulated in Corporate Citizenship Policy
  • The Policy was developed in response to our
    commitment to the Global Compact InitiativeOur
    Policy on Corporate Citizenship outlines our
    pledge, and it is both a strategic business
    initiativeand the right thing to do.
  • Dr. Daniel Vasella
  • Novartis and Global Compact Initiative, p.
    741

5
2. Policy Framework Human Rights Distinctions
  • Network uniformity versus business unit
    flexibility
  • Levels of response to deprivation
  • U.N. Global Compact Principles provide guidance
    for both

6
First Policy Distinction Network Uniformity and
Business Unit Flexibility
  • A Component of most multinational policies

7
First Policy Distinction Network Uniformity and
Business Unit Flexibility
  • The uniform/flexible distinction reflects
  • Philosophical debate over Universalism versus
    Relativism
  • Juridical debate over Universal Standards versus
    the Margin of Appreciation
  • For Human Rights U.N. Global Compact makes this
    distinction

8
Uniform Requirements of the Global Compact
  • Labour Principles 3 - 6
  • Environmental Principles 7 - 9
  • Principles are uniform standards to be applied to
    all business units across the multinational
    network

9
General Requirements of the Global Compact
  • 1. Secretary-General asks world business to
    support and respect protection of internationally
    proclaimed human rights within their sphere of
    influence.
  • 2. Secretary General asks world business to
    make sure they are not complicit in human rights
    abuses.
  • General Principles call for unique cultural
    sensitivity and response on part of business units

10
Novartis Example of Uniform Standards versus
Business Unit Flexibility
  • Subcontractor pregnancy testing job applicants
    without their knowledge
  • Local management supports position
  • Human rights argument opposes
  • Complication Government owned and managed
    facility, as well as whole free trade zone.
  • Decision The Novartis Executive Committee set
    voluntary testing standard

11
Second Policy Distinction Levels of
ResponseCorrelative Duties
  • Distinct levels of Correlative Duties associated
    with the deprivation of any fundamental right
  • First Duties to avoid deprivation
  • Second Duties to protect from deprivation
  • Third Duties to aid the deprived

Principle 2 not complicit in human rights
abuses
Principle 1 support and respect the
protection of internationally proclaimed human
rights
Not included in the UNGC Principles
12
3. Implementation of Strategy and Policy
Decisions
  • Network Outreach Programs
  • Network-Wide Uniform Standards
  • Unique Business Unit Sensitivity and Response

13
Network Outreach Programs
  • Incorporating duties to aid the deprived
  • Novartis programs on access to medicine
  • Novartis Foundation developmental activities
  • Novartis and the U.N. Global Compact
    Initiative, pp. 752-757.

14
Operating Procedures To Ensure Network-Wide
Uniform Standards
  • Procedures to ensure complianceto avoid and
    protect from deprivation
  • Process at Novartis
  • Articulate vision
  • Process that ratchets toward vision
  • Transparency
  • Novartis and the U.N. Global Compact
    Initiative, p.742.
  • Process modeled on 20 years of experiences with
    Health, Safety, and Environment initiatives

15
Empower Business Unit Unique Cultural Sensitivity
and Response
  • Protecting the deprived requires involvement of
    business unit with local institutions
  • Success with local initiatives is a matter of
    business culture
  • Business culture is enhanced through effective
    procedures to implement uniform human rights
    policies across the enterprise network

16
ENDING NOTES
  • Social response, the sufficient condition for
    long-term corporate development.
  • UNGC Principles effectively provide a human
    rights response framework
  • -- Legitimacy of Universal Declaration of Human
    Rights
  • -- Provide basis of Network Uniformity and
    Business Unit Flexibility
  • -- Define levels of correlative duties
  • Implementation reflects policy distinctions
  • -- Outreach to aid the deprived
  • - Uniform Network standards to avoid deprivation
  • - Business Unit flexibility to protect against
    deprivation
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