Lesson 2.2 – Voluntary Compliance with Ethical Standards Flashcards
What is the purpose of the UN Global Compact (UNGC)?
To encourage businesses to adopt ethical and socially responsible practices beyond legal requirements.
What does Principle 1 of the UNGC state?
Businesses should support and respect internationally proclaimed human rights.
What does Principle 2 of the UNGC state?
Businesses should ensure they are not complicit in human rights abuses.
What does it mean for a business to be complicit in human rights abuses?
Even if a company does not directly violate human rights, it may still facilitate or allow human rights violations (e.g., through subcontractors).
What does Principle 3 of the UNGC state?
Businesses should uphold freedom of association and recognize the right to collective bargaining (workers’ right to form unions).
What does Principle 4 of the UNGC state?
Businesses should eliminate all forms of forced and compulsory labor.
What does Principle 5 of the UNGC state?
Businesses should support the abolition of child labor and, where necessary, create work-study programs for children in poverty.
What does Principle 6 of the UNGC state?
Businesses should eliminate discrimination in employment and occupation, including discrimination based on ethnicity, religion, gender, or tribal affiliation.
What does Principle 7 of the UNGC state?
Businesses should adopt a precautionary approach to environmental challenges (prevent harm before it happens).
What does Principle 8 of the UNGC state?
Businesses should promote greater environmental responsibility by reducing pollution and protecting ecosystems.
What does Principle 9 of the UNGC state?
Businesses should encourage the development of environmentally friendly technologies.
Why should companies avoid pollution even if the host country’s environmental laws are weak?
To set a positive example for local industries and protect long-term environmental sustainability.
What does Principle 10 of the UNGC state?
Businesses should work against corruption, including extortion and bribery.
Why is bribery common in some developing countries?
In many countries, it is a historical norm, and public officials expect compensation to grant contracts or approve business operations.
Should Canadian companies pay bribes in countries where it is expected?
No, bribery is illegal under both Canadian law and the UNGC principles.
What is extra-territoriality in law?
It refers to Canadian laws applying to Canadian businesses outside of Canada.
What is an example of a Canadian law with extra-territorial effect?
The Corruption of Foreign Public Officials Act – It allows Canadian companies to be charged in Canada for bribery committed abroad.
