Government
From the Global Compact's origin, governments have played a crucial role in the evolution of the initiative. The universal values advocated in the Global Compact's ten principles are derived from four key international declarations and conventions. These agreements are the outcome of the deliberations and decisions of UN Member States. Thus, the Global Compact can be seen as one channel for meeting Government goals and objectives.
Governmental support has provided the space to innovate without which the Global Compact could not have evolved. Their financial support to the Global Compact Trust Fund enabled the establishment of the Global Compact Office, the hub that sustains the global network of over 4,000 companies and other stakeholders. Government support at national levels through outreach efforts and awareness-raising has provided a critical dynamic that has helped sustain the momentum behind the initiative.
In the 2005 World Summit Outcome document, the Global Compact was endorsed by 191 Heads of States and Governments. The initiative was further bolstered in 2005 by the UN General Assembly's formal recognition of the Global Compact in Resolution 60/215 on the importance of voluntary initiatives and partnerships, in particular those involving the private sector.
It is only within a favorable investment and sociopolitical environment - as shaped by government and policy makers - that voluntary initiatives such as the Global Compact can produce widespread positive change. It is the duty of government to cultivate an environment which has sufficient economic institutions and supportive policy to provide long-term stability, promote transparency and minimize bureaucratic obstacles.
The Global Compact urges Governments to actively encourage principled corporate practices and promote accountability and transparency through public disclosure. Rewarding good business behavior through various mechanisms - including export credits, investment and trade promotion, tax incentives, risk insurance, subsidies, and procurement - is a concrete and powerful way to show the private sector that government values responsible business.