Business firms gloss over corruption, human rights issues - UN survey

MANILA, Philippines - Corruption and human rights issues continue to be neglected by companies despite ongoing interest in United Nations-led efforts to ensure ethical corporate conduct, according to the findings of a new United Nations (UN) survey that seeks to foster responsible business practices.

The UN Global Compact surveyed a total of 1,044 businesses in 97 countries,  representing nearly 20 percent of all of the initiative’s participants last year, and key findings include that while a majority of companies reported implementation of key labor and environment policies, only 31 percent had done the same for human rights and 32  percent for corruption.

The Compact is a policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment and anti-corruption. The aim is to ensure that corporations influence markets, commerce, technology and finance in ways that benefit economies and societies across the world.

UN Global Compact Executive Director Georg Kell said some of the issues are lagging behind notably anti-corruption and human rights.

Ninety-four percent of companies responding to the UN Global Compact survey said that the relevance of their participation in the initiative did not decrease last year despite the global economic downturn, with 25 percent considering the initiative more relevant.

Overall, only 36 percent of companies reported having a corporate responsibility or ethics officer – down from 39-percent in 2008.

About 78 percent of respondents said “increasing trust in the company” was the main   reason for their remaining engaged in the Global Compact.

The survey also showed that ensuring supply chain partners of businesses adhered to the Global Compact principles is rising on the agenda of companies of all sizes, although it remains a challenge to translate policy into action.

Half of all respondents reported engaging in partnerships linked to development and the Millennium Development Goals (MDGs) – the internationally agreed social development targets that countries are trying to achieve by 2015 – with projects on the environment, gender equality and poverty reduction being the top areas of focus.