
The Evolution of Social Relations: The UN Global Compact and New Criteria for a Multipolar World
22.07.2024
118
Ideological Confrontations and Economic Transformations
The struggle for justice and equal rights intensified in the 19th century and took on a clearly ideologically directed form. The processes of introducing new categories of labor and capital interaction, as well as socio-public relations, were revolutionary in nature. Changes in state governance formats and regulations occurred through armed means and were accompanied by significant human casualties. A unique example of such a radical shift is the Great October Socialist Revolution in Russia. Its foundation was the communist ideas of Marxism-Leninism, according to which the working class needs the philosophy of dialectical and historical materialism to theoretically and practically master the world and understand its role in historical development.
Political economy attempts to provide scientific proof that the socialist social system will replace the economic social formation of capitalism based on objective laws. Scientific communism within Marxism-Leninism plays the role of political theory, showing the working class how to fight for liberation from capitalist oppression and exploitation and how to organize socialist and communist construction. Thus, for the first time, a method of forming state governance not based on tribal or financial principles, but on democratic determination based on the theory of class contradiction, was implemented in practice.
Revolutionary Changes and New Social Models
Clear violations of the rights of the world's main population by a small layer of beneficiaries triggered revolutionary changes and the creation of a broad international movement. State governance systems failed to ensure social justice. The presence of colonial rule and slave labor created basic prerequisites for seeking new options for existence and social structure.
As a result of the armed change in the apparatus of power in the Soviet Union, scientific methods of analysis and fundamental research in planning, from production activities and commodity consumption to effective social-oriented methods, began to be applied. This resulted in planned production/consumption, systematic dispensarization (medical examinations by a certain circle of specialist doctors), labor protection (workplace safety), gender equality of men and women, the absence of interracial privileges, and many other important aspects of social life. The introduction of non-financial reporting standards begins from this moment.
In turn, the countries of the collective West focused on maximizing profit extraction, improving trade methods, social advertising, and organizing state and private interaction through tax and other tools impacting company owners. The common threat to them was state socialist planning methods with the absence of private property and state governance on a comprehensive basis, taking into account economic efficiency and social-public effect combined with personal well-being.
Relying on the practical methods of effective advertising on the masses and the honed methodology of targeted impact in the fight for commodity markets, the propaganda of "Western" values in the lifestyle of a person won over the minds of the majority of the socialist camp's population. Continuous funding of projects to discredit socialist management methods and bribery of civil servants involved in state management, aimed at influencing the situation as a whole (introducing agents of influence and creating an entire agent network connected with the decision-making center abroad), led to the defeat of the main competitor of the capitalist system — the Soviet Union.
After these events, ideological confrontation receded to the background, and a unified idea of capital distribution rules through private institutional units began to dominate. Using the prerequisites created by the Comintern, the Global Compact of the UN emerged. The Comintern sought to establish worldwide rules and control political processes at the international level. At the first Comintern congress in 1919, 52 delegates from 35 parties and groups from 21 countries attended. In his manifesto, Trotsky noted: "The financial capital that plunged humanity into the abyss of war itself suffered a catastrophic change in this war. The dependence of monetary signs on the material basis of production was finally disrupted. Losing its significance as a means and regulator of capitalist commodity turnover..." The main driving force was the elimination of class inequality and social injustice.
The Concept of the Global Compact
The concept of the Global Compact was proposed:
"I propose to you, business leaders, and to us, the United Nations, to initiate a global compact of our common values and principles that will give the global market a human face" (Kofi Annan at the World Economic Forum in Davos, 1999).
The UN Global Compact, in its intention to influence global development, declares goals:
"Forms and demonstrates a new approach to the very nature of business, which moves away from the dogma of profit at any cost and aligns with society, sharing and creating common values with it in the interests of people and nature, humanity and the planet. The UN Global Compact has significantly influenced the reliability and prospects of any business being evaluated in economic, environmental, social, and ethical terms in their conscious interconnection…”
Local Networks of the UN Global Compact
Local networks are independent and self-governing organizations that closely cooperate with the headquarters of the UN Global Compact in New York. They act as a contact office for participants of the Global Compact in a specific country based on a Memorandum signed between the initiative's leadership and the leadership of local networks.
Intellectual Property Rights
Any intellectual property developed by the "National Network of the Global Compact" Association to achieve the goals of the Agreement signed with the Global Compact Office grants the Global Compact Office an indefinite, worldwide, irrevocable, and royalty-free license to any such intellectual property, which will remain effective after the Agreement's termination.
Contribution to Corporate Sustainable Development
The UN Global Compact, as a precursor of the corporate sustainable development movement in the global business sector, has played a vital role in stimulating positive changes in business world expectations and behavior. With broad support from all 193 member states of the UN General Assembly, the UN Global Compact remains a single global normative body and a guide for actions and leadership within the growing global movement for corporate sustainable development.
Corporate sustainability starts with a company's value system and a principles-based approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in human rights, labor, environment, and anti-corruption areas.
Sustainable Development Goals (SDGs) and the Role of Business
The adoption of the Sustainable Development Goals (SDGs) in 2015 led to the creation of a global consensus on a framework for a better world. Engaging the business community in this agenda is crucial. Achieving the Global Goals and the Paris Agreement's targets requires the business community, from large transnational corporations to small and medium-sized enterprises, to purposefully integrate the Ten Principles into their operations. The UN Global Compact leads this movement, encouraging ambition and developing a "roadmap" for enterprises to contribute to these global efforts.
Commitments of Global Compact Participants
Each participant of the Global Compact has committed to making progress in integrating the Ten Principles into their operations. Companies are at different stages on their path to sustainable development, and the Global Compact includes them as long as they commit to continuing this path and demonstrating progress. The UN Global Compact engages with all companies, whether international or national, large or small.
Strategic Goal in the Decade of Action
In this Decade of Action, the strategic goal of the Global Compact is to accelerate and scale up the global collective impact of business by adhering to the Ten Principles and achieving the SDGs through accountable companies and ecosystems that drive change.
Lead and Shape
Our main priority is to lead and shape the adoption and application of the Ten Principles in the areas of human rights, labor, environment, and anti-corruption. As the DNA of the Global Compact, we will prioritize the adoption of these principles and the continuous improvement of their achievement as the primary means of change, progress, and improvement. Additionally, the Global Compact is uniquely positioned to lead and shape business community progress and actions towards five priority Sustainable Development Goals (SDGs):
- SDG 5: Gender Equality
- SDG 8: Decent Work and Economic Growth
- SDG 13: Climate Action
- SDG 16: Peace, Justice, and Strong Institutions
- SDG 17: Partnerships for the Goals
Program Activities
The issues of "Lead and Shape" will form the basis of the UN Global Compact's program activities. In these priority areas, the Global Compact will strive to drive significant behavioral change in business through large-scale targeted programs. We will:
- Curate best practices, knowledge, and tools that empower the business sector
- Engage in thought leadership or encourage external research when beneficial
Pathways to Influence
This influence is advanced in two ways, namely:
- Collaborating with others
There are six SDG areas where the Global Compact is best positioned to collaborate with other leading organizations. The Global Compact will bring the greatest benefit by leveraging existing momentum and selectively engaging the business sector. The SDGs in this category include:
- SDG 6: Clean Water and Sanitation
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 10 : Reduced Inequalities
- SDG 12: Responsible Consumption and Production
- SDG 14: Life Below Water
- Following and Amplifying
In the remaining six SDG areas, the Global Compact is best suited to continue and amplify existing efforts. The Global Compact will bring the greatest benefit by disseminating case studies, best practices, and opportunities for private sector involvement. The SDGs in this category include:
- SDG 1: No Poverty
- SDG 2: Zero Hunger
- SDG 3: Good Health and Well-being
- SDG 4: Quality Education
- SDG 11: Sustainable Cities and Communities
- SDG 15: Life on Land
Core Programs and Implementation
Core programs will be created in collaboration with local networks and implemented through them, while the UN Global Compact Office will play a supportive role through digital platforms and targeted expertise. This adaptation will be guided by our central leadership with experts in labor, human rights, gender equality, anti-corruption, and institutions, climate and environment, as well as the integration of the Sustainable Development Goals (SDGs).
Core programs will aim to support companies in implementing the Ten Principles. Specifically, in the area of climate and environment, programs will emphasize the importance of achieving carbon neutrality to meet the commitments of the Paris Agreement and provide recommendations on developing scientifically-based plans to transition to net-zero emissions by 2050. In the area of human rights and labor, the program will include guidance on the practical implementation of the UN Guiding Principles on Business and Human Rights and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
Objectification of ESG Reporting Principles
The objectification of ESG reporting principles and the definition of criteria and approaches for publishing non-financial reports include the following aspects:
Environmental Criteria (E — environmental)
- Define how much the company cares about the environment.
- Include issues such as greenhouse gas emissions, environmental pollution, natural resource use, and compliance with environmental laws.
- An effective ESG strategy involves tackling operational costs such as raw material, water, or carbon consumption, which can positively impact the company's profit.
Social Criteria (S — social)
- Reflect the company's attitude towards personnel, suppliers, customers, and partners.
- Include employee health and safety, the use of child and slave labor, employee professional development, harmful working conditions, compliance with human rights, and responsibility to customers for product quality.
- A well-thought-out ESG strategy helps a company attract and retain competent employees, increase staff motivation, and enhance labor productivity.
Governance Criteria (G — governance)
- Are related to leadership effectiveness, the reasonableness of executive compensation, shareholder rights, audit quality, fraud, and corruption.
The UN Global Compact and Its Principles
Reporting is based on the UN Global Compact — a UN initiative aimed at promoting business social responsibility and providing reports on implementing such policies. The UN Global Compact declares ten principles in the areas of human rights, labor relations, environmental protection, and anti-corruption.
The Ten Principles of the UN Global Compact:
Human Rights
- Businesses should support and respect the protection of internationally proclaimed human rights.
- Businesses should make sure that they are not complicit in human rights abuses.
Labor Standards
- Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
- Businesses should support the elimination of all forms of forced and compulsory labor.
- Businesses should support the effective abolition of child labor.
- Businesses should support the elimination of discrimination in respect of employment and occupation.
Environment
- Businesses should support a precautionary approach to environmental challenges.
- Businesses should undertake initiatives to promote greater environmental responsibility.
- Businesses should encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
- Businesses should work against corruption in all its forms, including extortion and bribery.
Russia's Accession to the UN Global Compact
More than 50 major Russian participants, such as Vnesheconombank, Severstal, Rosneft, Rusal, Nornickel, RusHydro, AFK Sistema, Russian Railways, Lukoil, Sakhalin Energy, Polymetal, Vodokanal of St. Petersburg, the Russian Union of Industrialists and Entrepreneurs, and others have joined the UN Global Compact. In addition, several dozen representatives of international corporations operating in Russia are also participants of the UN Global Compact.
Declaration of the UN Global Compact
The UN Global Compact (UNGC) is an international initiative for business in the field of corporate social responsibility and sustainable development. Created in 2000 at the call of former UN Secretary-General Kofi Annan, the UNGC has become an important tool for engaging businesses in shaping and promoting the concept of sustainable development.
The UNGC forms and demonstrates a new approach to the very nature of business, which moves away from the dogma of profit at any cost and aligns with society, sharing and creating common values with it in the interests of people and nature, humanity and the planet. The UNGC has significantly influenced the reliability and prospects of any business being evaluated in economic, environmental, social, and ethical terms in their conscious interconnection.
Including the principles of the UNGC in business and commercial strategies, publicly confirming commitment to the UNGC and the 2030 Agenda, are today widely recognized indicators of responsible corporate practice and good business reputation, as well as important elements of long-term business sustainability.
The Mission of the UNGC
The mission of the UNGC is to mobilize a global movement of responsible companies that, in various political, economic, environmental, cultural, geographic, and other conditions, share and implement common ethical principles (the 10 Principles of the UNGC) in the field of human rights, labor relations, environmental protection, and anti-corruption, as well as support the Sustainable Development Goals (SDGs) and contribute to their achievement.
The Principles of the UNGC
Policy and frequently asked questions on the due diligence measures of the UN Global Compact The integrity measures are adopted to protect the integrity of the UN Global Compact initiative from key risks associated with the possibility of fact distortion. These integrity measures aim to enhance public accountability and transparency of participants regarding their corporate sustainability performance and include our reporting policy, logo use policy, and dialogue facilitation process. The implementation of integrity measures is monitored by the UNGC Council.
Participants of the UNGC
Participants of the UNGC are primarily companies of any size and form of ownership, as well as organizations and non-profit associations working with business in the context of the sustainable development agenda, which publicly declare their support for the initiative's mission at the top executive level and commit to the obligations of UNGC participants, confirmed by regular Communication on Progress. The UN Global Compact unites more than 12,000 participants from 160 countries worldwide, representing over 68 million employees and staff.
20 Years and Beyond
For 20 years, the UNGC has inspired and supported businesses to be a force for good and create the world we want. The UNGC has played a historic role in shaping modern business standards, a new understanding of business leadership, and expanding the concept of corporate responsibility to the boundaries of sustainable development. The UNGC brings the topic of sustainable development to the level of top executives, making key decisions and taking personal responsibility for further actions of their companies in a letter to the UN Secretary-General, who chairs the UNGC Board. The Global Compact has always been and remains an incubator of ideas, a tool for stimulating and developing best practices, a club of like-minded people, and a unique global partnership.
The Foundation of the UN Global Compact is the Promotion of the Sustainable Development Goals (SDGs)
The full title of the document is "Transforming our world: the 2030 Agenda for Sustainable Development." The SDGs were endorsed by heads of state and government at the UN Sustainable Development Summit during the 70th anniversary session of the UN General Assembly in New York on September 25, 2015. The SDGs officially came into force on January 1, 2016.
- The result of a multi-year transparent process: The SDGs reflect the opinions of various stakeholders and demonstrate agreement among 193 member states on sustainable development priorities.
- An unprecedented international program: The SDGs include 17 Goals and 169 targets covering the three main aspects of sustainable development – economic growth, social inclusion, and environmental protection.
- The agenda of transforming our world: The SDGs aim to create a modern inclusive economy based on the inseparability of economic, environmental, and social factors, taking into account the finiteness of natural resources and global problems arising from the previously accepted paradigm of development based on unsecured growth and the priority of financial profit.
Characteristics of the SDGs
- Universal: The SDGs are intended for all countries and are globally and universally applicable while ensuring consideration of different national circumstances and respect for national priorities.
- Interconnected: The SDGs are interconnected, so efforts to achieve them must be comprehensive.
- Addressing the root causes of global problems: The SDGs aim to meet the universal needs of development in the interests of all people and the planet.
- Means of implementation: The SDGs focus on mobilizing resources, restructuring and reorienting the global financial and investment system, building capacity, and technology.
The SDGs Call on All Countries
The SDGs call on all countries – poor, rich, and middle-income – to promote their prosperity while ensuring the protection of the planet. The SDGs recognize that ending poverty must be linked to strategies that promote economic growth and address social needs, including education, health, social protection, and employment, while addressing climate change and environmental protection.
The SDGs and Business
Forming a new paradigm of sustainable development and an innovative model of the global economy is only possible with the transformation of the commercial sector in favor of the global agenda. The Sustainable Development Goals appeal to the business community, offering to leverage their ingenuity, innovation, and dynamism to address sustainable development challenges.
To achieve the SDGs, business plays a key role:
- Revising business strategies considering corporate social responsibility values, international requirements for human rights protection and labor relations, anti-corruption, responsible supply chains, gender equality, etc.
- Responding to investor demands and "green" financing.
- Striving for long-term access to global markets and fitting into the climate low-carbon agenda.
- Seeking local solutions to global problems.
- Developing formats to increase the sustainability of their business models, ensuring the sustainability of company presence territories, social welfare, and economic development.
The SDGs and the UN Global Compact
- Cross-sectoral platform: The United Nations views the Global Compact as a key cross-sectoral platform for effectively engaging the global business community in achieving the Sustainable Development Goals.
- Structural elements: All structural elements of the UN Global Compact – its ten principles, the activities of working groups and committees on various directions, the priorities of inter-agency cooperation, and the development of national networks – are included in the framework of the global agenda.
- New tools: The UNGC offers new tools for the successful participation of business in achieving a sustainable future, based on the implementation of innovative leadership thinking.
- International cooperation: For the private sector, the UNGC offers new formats of targeted international cooperation, helping to turn global goals into business actions and impacts on markets worldwide.
- Breakthrough innovations: The Global Compact calls on companies to be as active as possible in advocating for breakthrough innovations and implementing them, helping the world achieve the Sustainable Development Goals most effectively and providing winning commercial opportunities for tomorrow.
The Global Compact and the Internationalization of Principles
In essence, the Global Compact is a tool for internationalizing principles created by special international committees according to criteria developed by a system fully controlled by the US. Thus, a systematic process of introducing and capturing the territory of non-financial reporting, development ideology, and its goals is carried out.
Developing an Objective Evaluation System
Developing a common evaluation system for this initiative, corresponding to the actual state of affairs, should start with the existing Russian organizations that have joined the UN Global Compact. This will help end the myth of the objectivity and universality of existing criteria of justice and concern for humanity's future based on a systematic scientific approach. It is necessary to exclude the bias of political opinions and the influence of transnational corporations in this matter.
For example, the story of freon's impact on the ozone layer was orchestrated and actively implemented with the participation of DuPont. Since the adoption of the Montreal Protocol in 1987, we have witnessed a new type of war — a war based on modeled public opinion, where under the guise of concern for humanity's future, evaluations and subsequent actions beneficial to a certain circle of people are imposed. Thus, the use of non-financial reporting has become a weapon of the "collective West" against the backdrop of other states' inaction.
Reboot and Reform of the UN
The UN institute, initially founded to represent the interests of all states, discuss, and make decisions on this basis, currently does not solve the set tasks. American politicians openly state that any decision of any international institution (including the UN) lies below US national interests and will not be considered when making a decision. Thus, the United Nations itself is subject to at least reform and reboot, and at most – disbandment as an unnecessary superstructure for broadcasting the opinions of Western world leaders.
However, an alternative that protects state sovereignty may be the proposed Chinese initiative, refined and agreed upon within the framework of the SCO countries.
The Belt and Road Initiative (BRI)
In March 2013, Chinese President Xi Jinping proposed the concept of a global community with a shared future, and in September and October of the same year, he put forward initiatives for jointly building the Economic Belt of the Silk Road and the 21st Century Maritime Silk Road (the Belt and Road Initiative, or BRI). China is a firm supporter and defender of economic globalization. By its concept, measures, and goals, the BRI corresponds to the UN Agenda for Sustainable Development until 2030. The BRI is an important step by China aimed at ensuring higher quality development through opening up to higher standards and sharing China's development opportunities with the rest of the world. The BRI is also a Chinese solution to global development problems, aimed at promoting modernization in participating countries in tandem, making economic globalization more dynamic, inclusive, and sustainable, and ensuring a more equitable distribution of benefits among people worldwide.
The initiative started by China is subject to expansion and transformation as an alternative system of views, preserving the sovereignty of traditional values and methods of state governance. At present, all prerequisites for implementing this task have been created.
The Importance of Alternative Initiatives for Sovereignty and Sustainability
Strengthening Economic and Cultural Resilience
Alternative initiatives, such as the BRI, play a key role in creating multilateral international relations based on mutually beneficial cooperation and respect for national characteristics. These initiatives contribute to diversifying economic ties and reducing dependence on monopolistic economic blocs, which strengthens national sovereignty and stability.
Strengthening Economic and Cultural Resilience
Alternative initiatives support the development of infrastructure, technology, and social sectors, creating balanced and sustainable economies. They contribute to improving the quality of life of the population and reducing the risks of global economic fluctuations, considering the cultural and historical characteristics of participating countries, preserving their identity and cultural heritage.
Multilateral Approaches to Global Development
Multilateral initiatives, such as the BRI, are important for shaping a fair and inclusive world order. They allow countries to develop based on equal partnership, reducing economic inequality and contributing to the peaceful resolution of conflicts, which strengthens international security and creates sustainable global economic systems.
The Path Proposed by Russia
The path proposed by Russia involves preserving the sovereign traditional values of peoples and states within the framework of a decentralized multipolar world with a universally accepted value system. This system will be developed based on a substantiated scientific approach and confirmed by intergovernmental institutional associations. Forming this initiative requires the fair participation of all states in adopting the fundamental principles of the SDGs, which will change the very basis of their definition, action, and application, creating a more sustainable and inclusive world order.
```