Over the first four years of its existence, the Global Compact has made significant progress in terms of outputs, but is threatened by its participants’ poor performance in rule-compliance. It has managed to secure small but reasonable funding, and improved in the fields of guidance to participants, inclusiveness, and transparency. It has proved to be adaptable to challenges, as the introduction of the integrity measures and the addition of a tenth principle (on anti-corruption) indicate. However, the lack of any enforcement of its rules that persisted until June 2004 appears to have been a model deficiency. Up until the introduction of the integrity measures in that month, the voluntary nature of Kofi Annan’s initiative seems to have been over-stretched, as poor outcomes suggest. While it has gained hundreds of new participants and now consists of nearly 1,700, most of these participants failed to fulfil their obligations of (1) integrating the principles into business operations, (2) publicly advocating the Compact, and (3) annually reporting on progress. At least 1015 participants did not submit the required “communication on progress” (COP). Although this paper recognises the achievements of some participants as well as indirect outcomes amongst participants (such as strengthening champions of reform within companies), these successes do not make up for the huge reporting gap. Conceivably, all participants that did not submit COPs might have acted upon the principles nonetheless; but even were this so in all cases, the reporting gap posed at the very least a threat to the initiative’s transparency and integrity. However, it is more likely that the reporting gap represents an actual implementation gap – a gap that poses a much greater danger to the Global Compact’s credibility and long-term viability. The Philippine Global Compact network was established in September 2001; its 137 members make it the third-largest of the 44 networks (after France and Spain). Its dynamics reveal some of the root causes behind the participants’ poor performance in reporting. The network’s inception was spearheaded by the Employers’ Confederation of the Philippines (ECOP) and the International Labour Organisation (ILO); the initiative soon gained the support of the Philippine Chamber of Commerce and Industry (PCCI), Philippine Business for Social Progress (PBSP) and the United Nations Development Programme (UNDP). [...]
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- The Global Compact's Performance and the Philippine Network
- Corporate Social Responsibility in the Philippines
- Other Instruments of Corporate Social Responsibility
- Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper analyzes the performance of the UN Global Compact, focusing on its implementation within the Philippine textile and garment industry. It examines the reasons behind the low reporting rates among participants and explores the role of corporate social responsibility (CSR) in the context of the Global Compact's initiatives. The study also offers recommendations for improving the effectiveness of the Global Compact.
- The effectiveness of the UN Global Compact's principles.
- The role of corporate social responsibility in the Philippines.
- The challenges of implementing the Global Compact in developing countries.
- The importance of local network structures in promoting the Global Compact.
- Recommendations for improving the Global Compact's impact.
Zusammenfassung der Kapitel (Chapter Summaries)
Executive Summary: This section provides a concise overview of the paper's findings, highlighting the Global Compact's progress and challenges. It notes the significant achievements in terms of participation and guidance but emphasizes the major deficiency in enforcement and the resulting large reporting gap. The paper focuses on the Philippine network's experience to illustrate the obstacles to effective implementation and concludes with recommendations for improvement. The lack of enforcement, coupled with the significant number of participants failing to meet their reporting obligations, is presented as a critical threat to the initiative's long-term viability and credibility. The Philippine case study serves as a key example of these broader issues.
The Global Compact's Performance and the Philippine Network: This chapter details the Global Compact's performance, focusing on the significant reporting gap among participants worldwide. It then shifts to the Philippine context, examining the establishment and dynamics of the Philippine Global Compact network. Despite a strong initial momentum spearheaded by key organizations like ECOP and ILO, the network's effectiveness waned due to insufficient resources, communication breakdowns, and a participant base heavily comprised of SMEs with limited resources and perceived value in the initiative's activities. The chapter contrasts the high participation with the extremely low reporting rate, highlighting the disconnect between signing on and actual implementation.
Corporate Social Responsibility in the Philippines: This chapter explores the prominent role of corporate social responsibility (CSR) within Philippine business culture. It investigates the motivations behind CSR practices, identifying a blend of managerial convictions, buyer pressure, and market advantage as primary drivers. The chapter emphasizes that while CSR is deeply ingrained, the Global Compact is perceived as providing supplementary moral support rather than being a primary impetus for CSR activities. This contrasting perspective illustrates the gap between existing CSR practices and engagement with the Global Compact's principles.
Other Instruments of Corporate Social Responsibility: This chapter analyzes other CSR instruments operating within the Philippine textile and garment industry, focusing on private regulation such as corporate codes of conduct and standards like WRAP. It contrasts the broader reach of these private regulatory mechanisms with the comparatively lower engagement with co-regulative instruments such as SA 8000, the FLA Workplace Code of Conduct, and the ETI Base Code. The chapter highlights the varying effectiveness of different regulatory approaches in driving CSR practices and their relationship to the Global Compact's goals.
Schlüsselwörter (Keywords)
Global Compact, Corporate Social Responsibility (CSR), Textile and Garment Industry, Philippines, SMEs, Reporting Gap, Implementation Challenges, UN, Network Effectiveness, Private Regulation, Co-regulation, Sustainability.
Frequently Asked Questions: Analysis of the UN Global Compact's Performance in the Philippine Textile and Garment Industry
What is the main focus of this paper?
This paper analyzes the performance of the UN Global Compact, specifically its implementation within the Philippine textile and garment industry. It investigates the reasons behind low reporting rates among participants and explores the role of corporate social responsibility (CSR) in the context of the Global Compact's initiatives. The study also provides recommendations for improving the effectiveness of the Global Compact.
What are the key themes explored in the paper?
Key themes include the effectiveness of the UN Global Compact's principles, the role of corporate social responsibility in the Philippines, the challenges of implementing the Global Compact in developing countries, the importance of local network structures, and recommendations for improving the Global Compact's impact.
What are the key findings regarding the Global Compact's performance in the Philippines?
The paper highlights a significant reporting gap among participants in the Philippines, despite a high initial participation rate. This gap is attributed to insufficient resources, communication breakdowns within the network, and the limited resources and perceived value of the initiative among many Small and Medium Enterprises (SMEs).
What is the role of Corporate Social Responsibility (CSR) in the Philippine context?
The paper finds that CSR is deeply ingrained in Philippine business culture, driven by managerial convictions, buyer pressure, and market advantage. However, the Global Compact is perceived as supplementary moral support rather than a primary driver of CSR activities, indicating a gap between existing CSR practices and engagement with the Global Compact's principles.
What other instruments of CSR are discussed in the paper?
The paper examines private regulatory mechanisms such as corporate codes of conduct and standards like WRAP, contrasting their broader reach with the lower engagement with co-regulative instruments like SA 8000, the FLA Workplace Code of Conduct, and the ETI Base Code. The varying effectiveness of these approaches in driving CSR practices and their relationship to the Global Compact's goals are analyzed.
What are the key recommendations of the paper?
While specific recommendations aren't detailed in the provided summary, the paper concludes with recommendations for improving the effectiveness of the Global Compact, addressing the significant reporting gap and enhancing the initiative's long-term viability and credibility.
What is the significance of the Philippine case study?
The Philippine case study serves as a key example illustrating the broader challenges faced by the Global Compact in achieving effective implementation, particularly concerning the disconnect between participation and actual implementation of its principles, especially among SMEs.
What are the key words associated with this paper?
Key words include Global Compact, Corporate Social Responsibility (CSR), Textile and Garment Industry, Philippines, SMEs, Reporting Gap, Implementation Challenges, UN, Network Effectiveness, Private Regulation, Co-regulation, and Sustainability.
- Quote paper
- Patrick Bolte (Author), 2004, The Global Compact, Corporate Social Responsibility and Textile and Garment Companies in the Philippines, Munich, GRIN Verlag, https://www.grin.com/document/40302
