United Nations Global Compact Indonesia Global Compact Network (IGCN) Josephine Satyono Executive Director

Transcription

1 United Nations Global Compact Indonesia Global Compact Network (IGCN) Josephine Satyono Executive Director

2 United Nations Global Compact Voluntary movement, Corporate Leaders, Academic Institutions and NGOs in the world, who are committed to implement the UN Global Compact 10 principles and supporting the UN program Business can be part of the solution to the challenges of globalization With over 14,000 signatories from 170 countries, Global Compact is now the world s largest corporate responsibility initiative, and a vehicle for linking profits and social advancement.

3 The 10 Global Compact Principles Business should Support and Commit to implement: 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 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 pre-cautionary 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.

4 Membership Anatomy 50+ Corporation 45+ NGO 25+ Academia Stakeholders Business Industry Associations Investors Civil Society Labor Academia Government Total Members: 125 Per 31 October 2016 Academia (25) 20% NGO (46) 37% Platforms and Programmes Human Rights & Labour Children s Rights and Business Principles Child Labour Platform Caring for Climate CEO Water Mandate Food + Agriculture Business Principles Anti Corruption Business for Peace Business for the Rule of Law Business and Education Supply Chain Sustainability Global Compact LEAD

5 Global Compact Vision and Objectives A more sustainable and and inclusive global global economy economy Make the ten principles part of business strategy, operations and culture everywhere Take action in support of UN goals and issues Internalization Contribution to society/ development UN Goals and Issues Peace & Security Water Security and Sanitation Human Rights Children s Rights Gender Equality Development Health Food Security Ecosystems and Biodiversity Climate Change Mitigation and Adaptation Water Security and Sanitation Employment and Decent Working Conditions Anti-Corruption

6 For a More Sustainable and Inclusive Global Economy Act Responsibly Contribute to Development

7 IGCN Priorities - SDGs Focus No. Thematics SDGs Goals UNGC Principles Platforms 1 Business for Peace 16, 5, 10, Women Empowerment for Better Job Opportunities Education for Responsible Management 1, 5,10 4 Water Mandate 6, 16 Abbreviations B&HRWG Business & Human Rights Working Group CRBPWG** Children s Rights & Business Principles Working Group WEPWG** Women Empowerment Principles Working Group SMEWG** Small and Medium Enterprises PRMEWG** PRME Working Group IWMWG Indonesia Water Mandate Working Group BLEWG* Better Living Environment Working Group BE&GWG Business Ethics & Governance Working Group OPGWG Open Government Partnership Working Group Human Rights P1&P2, Labor P4&P6 Human Rights P1&2 Labor P6 B4P UNGPs CRBP WEP SME PRME CEO WM C4C B4P, UNGPs, CRBP WEP, SME Working Groups B&HRWG, CRBPWG** WEPWG** SMEWG** 4 ALL PRME PRMEWG** Human Rights P1, Environment P7, 8 & 9 CEO WM IWMWG 5 Better Living Environment 13 Environment P7&8 C4C BLEWG* 6 Business Ethics and Governance 16, 17 Anti Corruption P10 Anti Corruption, UNGPs, CRBP BE&GWG, OGPWG Business for Peace UNGPs on Human Rights Children s Rights & Business Principles Women Empowerment Principles Small and Medium Enterprises Principles of Responsible Management Education CEO Water Mandate **On Progress Caring for Climate * Plan

8 Background Principle 10 th Adopted in 2004 Avoid bribery, extortion and other forms of corruption Proactively develop policies and concrete programs to address corruption internally and within their supply chains Entered into force of the UNCAC in 2005 The UNCAC is the underlying legal instrument for the 10th Principle Transparency International's definition of corruption is "the abuse of entrusted power for private gain". This can mean not only financial gain but also non-financial advantages. The United Nations Convention against Corruption (UNCAC)

9 Businesses face high ethical and business risks and potential costs when they fail to effectively combat corruption in all its forms. LEGAL RISKS Not only are most forms of corruption illegal where they occur but it is also increasingly becoming illegal in a company s home country to engage in corrupt practices in another country. REPUTATIONAL RISKS Companies whose policies and practices fail to meet high ethical standards, or that take a relaxed attitude toward compliance with laws, are exposed to serious reputational risks. Often it is enough to be accused of malpractice for a company s reputation to be damaged even if a court subsequently determines the contrary.

10 Businesses face high ethical and business risks and potential costs when they fail to effectively combat corruption in all its forms. FINANCIAL COSTS There is clear evidence that many countries lose close to $1 trillion due to fraud, corruption and shady business transactions and in certain cases, corruption can cost a country up to 17% of its GDP, according to the UN Development Programme in This undermines business performance and diverts public resources from legitimate sustainable development. EROSION OF INTERNAL TRUST AND CONFIDENCE Erosion of internal trust and confidences unethical behaviour damages staff loyalty to the company as well as the overall ethical culture of the company.

11 Rising Business Tide Against Corruption ( ) 14% 11% 13% Increase in policies related to corruption Increase in zerotolerance policy Increase in anti-corruption management systems Findings are based on the Global Compact Annual Implementation Survey. In November 2013, all companies in the Global Compact were invited to take the anonymous online survey. 1,486 companies from 116 countries responded. The survey has been conducted annually since 2007

12 Anti-Corruption Checklist Following are the types of policies and practices essential for rooting anticorruption into a company s strategies, operations and culture. Data shown represents the percentage of Global Compact companies that indicate taking a specific action.

13 Sources: pact.org/takeaction/action/anticorruption-collectiveaction World Bank

14 Advisory in Alliance for Integrity Train-the-Trainer Compliance Officer with experience in implementing effective anti-corruption prevention systems are trained as trainers Private sector: PT Asuransi Allianz Life Indonesia, Merck Group, PT Siemens Indonesia, Indonesia Business Links Civil society: Global Compact Network Indonesia, Transparency International Indonesia International Organisations: United Nations Office on Drugs and Crime Regarding the activities for 2016 in Indonesia, the Advisory Group recommended that the initiative should focus on undertaking capacity building programmes and engaging in awareness creation including public-private dialogue. Furthermore the Alliance for Integrity in Indonesia will complete a strategy for the network in Indonesia and create a mapping of ongoing initiatives and activities in Indonesia.

15 Join Statement: CSO Key Recommendation for ASEAN Level Implementation of SDGs Goal 16 IGCN support and involved in Transparency International effort in constructing ASEAN Integrity Dialogue, the mechanism to promote anti-corruption work proposed in the ASEAN recognise the importance of Sustainable Development Goal (SDG) 16 as a strong and effective mechanism to fight corruption in the ASEAN region together with promoting transparency, accountability and people s participation in governance. work plan Asian Democracy Network Asian Forum for Human Rights and Development Centre to Combat Corruption & Cronyism, Malaysia Cooperation Committee for Cambodia Luta Hamutuk and TI Focal Point, East Timor Myanmar Alliance for Transparency and Accountability Proright Foundation, Thailand The NGO Forum, Cambodia Transparency International Cambodia Transparency International Indonesia Transparency International Malaysia Towards Transparency Vietnam Transparency International Secretariat Yone Kyi Yar, Myanmar Indonesia Global Compact Network

16 IGCN Secretariat c/o PT Transjavagas Pipeline MNC Tower, 24th Floor, Jl. Kebon Sirih 17-19, Jakarta