Foreword to the second edition

The substantial interest generated by the publication of Building on Quicksand in October 2003 has led to this re-print. The publication was always intended not only to provide information on the Global Compact and democratic governance but also to serve as an action tool and catalyst in various NGO campaigns, such as that of the Alliance for Corporate-Free United Nations.

In January 2004, the Alliance for a Corporate–Free UN wrote to all UN agencies (see note) participating in the Global Compact, summarizing the latest developments and the concerns raised in Building on Quicksand (see Annex 1, p.57). Its letter called on them:

“to end your agency’s participation in the Global Compact, in favor of initiatives that emphasize cooperation with groups that share the aims of the United Nations, and in favor of measures to hold powerful corporations accountable in an international legal framework.”

None of the agencies had responded at the time of this publication going to press, although the Executive Head of the Global Compact Office, Georg Kell, to whom the letter was not sent, replied (http://www.earthrights.org/news/globalcompact.shtml).

Are the UN agencies hiding behind the Global Compact? Or can they not answer the questions raised?

The Alliance sent a similar letter the same month to four large NGOs that have long participated in the Global Compact. These NGOs have publicly expressed reservations about the workings of the arrangement and stated that substantial and discernible changes are needed. We hope that public interest NGOs participating in the Global Compact will make a realistic assessment of the initiative and withdraw from it. We hope that they will not allow their good reputation to be conferred any longer on the transnational corporations involved nor to legitimise an arrangement that undermines human rights and social justice. As yet, the Alliance has not received a formal response from the NGOs.

We hope that you find this publication useful in your work. Do let us know about your experiences with it, your thoughts on the subject, and any suggestions for future actions.

CETIM, IBFAN/GIFA and the Berne Declaration, April 2004

Note: United Nations Environment Programme (UNEP), United Nations Development Programme (UNDP), United Nations High Commissioner for Human Rights, United Nations Industrial Development Organisation (UNIDO) and International Labour Office (ILO).

October 2003 launch press release

More than 4 years have passed since the UN Secretary General first announced the Global Compact, a high level interaction between the United Nations and the business community. From the start, various NGOs have been raising questions about its alleged benefits and its risks, about its underlying rationale and concrete approach. This publication, commissioned by Centre Europe Tiers Monde (CETIM), Geneva Infant Feeding Association (GIFA-IBFAN) and Déclaration de Berne does not aim to summarize all of these concerns. It rather suggests focusing on two main lines of questioning. These two line emerge from the debates between the Global Compact proponents and its critics:

(1) What is the value of the Global Compact in terms of changing corporate practices? More specifically, is it an arrangement that helps shift corporate practices towards the better - or is it rather an arrangement that helps corporations continue to do their business as usual and moreover confers on them additional protection from legally-binding regulation and public pressure?

(2) What is the relationship between the Global Compact and global democratic governance? In other words: Does the Global Compact enhance - or undermine - efforts to promote democratic decision-making in a globalising world?

Both these questions are addressed at a theoretical level as well as by a case study focusing on the gaps between words and deeds, illustrated with the case of one of the latest prominent participants of the Global Compact – the food and beverage transnational Nestlé.

About the author: Dr. Judith Richter is author of "Holding Corporations Accountable: Corporate Conduct, International Codes and Citizen Action", Zed Books, London and New York, 2001 and ‘We the Peoples’ or ‘We the corporations’, Critical reflections on UN-business partnerships", IBFAN-GIFA, January 2003

Printed paper copies available from CETIM (Europe-Third World Center). Please order at: CETIM, Rue Amat 6, 1202 Genève, Suisse or by e-mail at cetim@bluewin.ch or on the CETIM website at www.cetim.ch

Price:

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