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Comments from George Kell

June 23, 2006

Comments from Georg Kell 
Executive Head, the United Nations Global Compact Office 
Member, AACSB International Peace Through Commerce Task Force

It is important to recognize that a growing number of corporations are prepared to exercise greater responsibility in peace-related initiatives. Such recognition would build a more positive environment for engagement and pay tribute to the fact that important trends are already playing out.

The fact that the UN Global Compact has grown from an initial 50 participants to over 3,000 in a span of five years provides evidence of the trend. Important in this context is that, UN Global Compact participants represent more than 90 countries, reflecting that the corporate citizenship movement has become truly global.

Also, quality aspects of the movement have gained new relevance (see http://www.unglobalcompact.org/docs/news_events/8.1/enabling_econ.pdf). What started off as a voluntary engagement platform based on learning and dialogue has become a robust movement with public accountability and transparency mechanisms. More recently, financial markets have started to readjust their risk paradigm to better account for environmental, social, and governance aspects in analysis and investment. The UN Global Compact's Principles for Responsible Investment are underwritten by asset managers and pension funds representing US$ 5 trillion from all regions of the world.

Along similar lines, the business community has already embarked on a number of initiatives to encourage more conflict sensitive actions. For example, dozens of corporations have engaged in working groups organized by the UN Global Compact in various regions of the world to find practical strategies that corporations can utilize in enhancing positive impacts on conflict situations and minimizing negative effects. Important tools and public policy recommendations have been developed; and there is much willingness to scale up successful approaches and to engage on the ground, including in high risk and conflict prone areas.

The publication "Enabling Economies of Peace" provides an update on ongoing activities while spelling out specific policy recommendations (http://www.unglobalcompact.org/docs/news_events/8.1/enabling_econ.pdf).

 


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