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Symposium 2014

Virtual Library File - UN Global Compact (2013). Global Corporate Sustainability Report.

The Challenge

The Rada Plaza fire in a clothing manufacturing plant in Bangladesh gave the world a sordid picture of the global supply chain at its worst. The owner of the plant became a poster child for GVC (Globa ...

The Rada Plaza fire in a clothing manufacturing plant in Bangladesh gave the world a sordid picture of the global supply chain at its worst. The owner of the plant became a poster child for GVC (Global Value Chain) players in emerging economies—large country-based companies with resources to gather labor pools of low-skilled, poorly-paid workers who are just grateful for any job, even in the most hellish work environment.

The report documents the state of corporate sustainability against the background of the ten principles of the UN Global Compact initiative that covers the fields of human rights, labor, the environment and anti-corruption. An important finding of the report is that sustainability of supply chains is still a major roadblock to overcome. While most firms consider adherence to the Global Compact principles by suppliers, only 18% assist them with setting and reviewing goals and just 9% take steps to verify remediation.