BAET 30510 Lecture Notes - Lecture 7: United Nations Global Compact

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8 Feb 2017

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Session 7
#9 - What is the role of the UN Global Compact according to “Investors Against
Genocide?” According to Georg Kell, Executive DIrector of the UNGC? According to the
Global Compact Board Meeting of July 24, 2009?
Issue: Chinese government, in order to be able to keep extracting its oil from
Sudan, supplied weapons to Sudanese government to kill of the rebels in the
west (and these weapons are used to “kill the fish by draining the sea” [so killing
of the civilians of West Sudan to stop the rebels]).
According to the UN Global Compact
According to Georg Kell: Letter from Georg Kell
Wants to put China on probation with the Global Compact because of the
lack of ethics mentioned above
According to the Global Compact Board Meeting: UNGC’s response
Would not handle this case as an issue because if you single out China, it
wouldn’t be fair because not the only one doing things like this (supplying
weapons to Sudan government to kill the rebels in Sudan)
Took the role of engagement rather than investing
Don’t want to deny China the right to learn and grow within the
UNGC role was a guide rather than a watchdog
So not really responsible for regulating business performance, so
they took the role that UNGC exists to help companies better
communicate with their stakeholders according to the UNGC
So UNGC feels they shouldn’t interfere with China’s government’s actions
So they didn’t put them on probation because then they’d have to do that
for a lot of other countries.
They want to help companies that are under attack and involved in
conflict situations. China wanted help, since they needed to oil supply and
in order to get it, they had to act wrongly.
So they said they will try to stabilize Sudan and Darfur. One of the
reasons Darfur is so upset is because they’re not getting certain things.
UN agreed that they will help build those things and meet the needs of
Darfur, and peacekeepers did and are still there.
They actually put in the infrastructure.
Want to bring together companies to try to help.
Because if they simply expel every company that might be directly
involved in violence, they would have a lot of companies expelled
and could not help those situations.
So they would rather use their agency to solve the problems.
Now, if there’s a participant of the Global Compact has been accused of violating
Global Compact principles, they’re required to sit down with the accuser and
other key leaders, hear the complaints, and then respond to them.
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