Corporate Human Rights Program Panned

Tue., Jul. 10, 2007

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WASHINGTON, Jul 9 (OneWorld) - On July 5-6 world leaders and global business chiefs attended the second UN Global Compact Summit in Geneva to assess progress on the seven-year-old voluntary initiative aimed at promoting human rights standards for corporate operations.

The Global Compact: Worth the paper it's written on?

More than 3,000 corporations worldwide, including Anglo American, Coca-Cola, Ericsson, Fuji Xerox, and Tata Steel have joined the Global Compact since its launch in 2000 as a way to encourage businesses to adopt sustainable and socially responsible policies. Yet despite the companies' rhetoric, they have been accused by the international humanitarian group ActionAid of "trampling over the lives of thousands of poor people." The organization says the Compact is failing to prevent many human rights violations.

"The UN's Global Compact is flawed because it's entirely voluntary," said ActionAid's head of trade. "What's needed are legally binding regulations to control corporate activities with respect to human rights."

Indian villagers protesting Coca Cola. © Amit Srivastava / India Resource Center

The Coca-Cola company -- which has been accused by communities in India and Mexico of draining precious water resources, as well as polluting the land and water -- delivered a keynote address at the Leaders' Summit.

This, the India Resource Center said, has "seriously undermined the credibility and effectiveness of the Global Compact" and "made a mockery of corporate social responsibility."

Another key figure at the summit and member of the UN's Advisory Council for the Global Compact is the chairman of the mining company Anglo American, Sir Mark Moody-Stuart. According to research carried out by ActionAid, however, Anglo American subsidiary AngloGold Ashanti is allegedly causing rivers and streams to be polluted and farmers to lose their livelihoods. The company is also accused of human rights violations against locals in its operating city of Obuasi, Ghana.

The gold mining industry must clean up its act, says Oxfam. © Oxfam America

Oxfam America calls gold mining "one of the dirtiest businesses in the world," noting that the production of one gold ring generates 20 tons of mine waste. Their "No Dirty Gold" campaign is aimed at educating consumers and pressuring companies like Anglo American.

ActionAid joined the India Resource Center in calling the Global Compact a "mockery" and urged the UN to agree on serious global human rights standards to which all companies would be held accountable.

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