UNITED NATIONS – Hundreds of executives, labor leaders and policy-makers gathered Thursday at the United Nations to discuss how to improve worldwide business conduct and ethics. But American companies were scarce – a reflection of concern over lawsuits and skepticism about the world body.
Just under 70 of the 1,500 companies that have signed the United Nations Global Compact are U.S.-based. The voluntary agreement, established in 2000, promotes standards for human rights, labor, environmental and, starting this year, anti-corruption standards.
By contrast, more than 330 companies based in France and 93 from India have committed to the pact. The remainder are from 67 other countries, roughly half from developing nations.
Compact proponents, including British energy giant BP PLC chief executive Lord Browne, say U.S. participation is crucial, though he noted many American companies already practice good governance.
“The vast bulk of companies in the world exist, I think, in the United States, so therefore it is important that they be part of this,” Browne said.
Organizers say American corporations are starting to sign on at a quicker clip, but it has been hard to convince them.
“We’re a highly litigious society,” said Jagdish Bhagwati, a senior fellow at the New York-based Council on Foreign Relations. “Once a firm has signed onto something, then a whole bunch of lawyers can argue that it is some type of common international law.”
Another factor is American perceptions of the United Nations, a global body of 191 nations often seen as a forum for the developing world and an opponent of U.S. foreign policy.
“Companies don’t want to necessarily be associated with the United Nations,” said Nancy Nielsen, a senior director at Pfizer Inc., which joined the pact two years ago after reviewing the document for legal liability.
She said companies Pfizer has talked to about joining have repeatedly expressed concerns about the United Nations – something she finds ironic, given that companies in other parts of the world view a U.N tie as good for business.
For Pfizer, she said the agreement is a way to show its 122,000 employees in 150 countries that it adheres to global values, not just American ones. It also provides a forum for the company to reach out to those who might not share its perspective.
Starbucks Coffee Co. says the agreement’s focus on corporate responsibility reflects company values, and is a good way to woo international consumers. Currently, 25 percent of Starbucks retail stores are located overseas – a figure the company hopes will soon grow to more than 50 percent.
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