2009-04-28 - Letter From Global Compact To Foreign Policy

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28 April 2009

To the Editors of Foreign Policy:

We take issue with statements made by Matthew Russell Lee in his article titled “Some Disassembly Required”, published in April 2009 on the Foreign Policy website.

Likewise, we are surprised that Foreign Policy, as it appears, did not exercise due diligence when fact-checking the claims made in Mr. Lee’s contribution.

To begin, Dr. Cheick Modibo Diarra, Microsoft’s Chairman for Africa has never attended an event organized or hosted by the United Nations Global Compact. Neither has the Global Compact provided any platform for Mr. Diarra to meet with “African heads of state”, as Mr. Lee claims.

The "VIP luncheon" Mr. Lee refers to was the UN Private Sector Forum on Food Security and the Millennium Development Goals held on 24 September 2008 in conjunction with the annual General Assembly debate. Mr. Lee, who attended parts of the Forum, should have remembered that it produced several concrete corporate commitments, as outlined in a comprehensive final report issued by the Global Compact Office.

As far as Mr. Lee’s troubled relationship with facts is concerned, his rant against the United Nations is par for the course. Far more troubling is that he fails to understand the fundamental nature of the Global Compact as a platform for critical, yet constructive dialogue and learning. The Global Compact is not a regulatory body. And our doors stay open, even (or especially) for those that face serious challenges. To some, this may not be a popular approach, but the vast majority of our stakeholders, including civil society and governments, agree that it helps lead companies on a path of continuous performance improvement. Nevertheless, it should not go unnoticed that the Global

Compact has delisted close to 1,000 companies for repeated failure to meet its annual disclosure requirement.

Finally, we wish to clarify the appointment of Mr. Chey Tae-Won of Korea’s SK Group to the Global Compact Board. Mr. Chey and other new Board members were recommended by Global Compact country networks, which form a crucial component of the Global Compact’s multi-stakeholder governance. These networks were invited to propose nominees to better reflect the Global Compact’s geographic reach. A selection committee of the Global Compact Board (Sir Mark Moody-Stuart, Chairman of AngloAmerican plc; Mary Robinson, Chair of Realizing Rights: The Ethical Globalization Initiative; and Georg Kell) reviewed all prospective candidates.

In Mr. Chey’s case, the selection committee was well aware of his conviction and subsequent presidential pardon (which is not mentioned by Mr. Lee) in connection with violation of corporate governance laws. The fact that Mr. Chey and the SK Group had demonstrated much willingness to learn from past transgressions was a key factor in the decision-making process. By all accounts, the SK Group, under Mr. Chey's leadership, has emerged as a frontrunner in corporate governance in Korea.

To the Global Compact, this is highly relevant and a sign of positive change in the spirit of the Global Compact principles. It also reinforces the notion of continuous performance improvement. Consequently, the selection committee recommended his appointment.

Sincerely

Georg Kell Executive Director United Nations Global Compact

28 April 2009

To the Editors of Foreign Policy:

We take issue with statements made by Matthew Russell Lee in his article titled “Some Disassembly Required”, published in April 2009 on the Foreign Policy website.

Likewise, we are surprised that Foreign Policy, as it appears, did not exercise due diligence when fact-checking the claims made in Mr. Lee’s contribution.

To begin, Dr. Cheick Modibo Diarra, Microsoft’s Chairman for Africa has never attended an event organized or hosted by the United Nations Global Compact. Neither has the Global Compact provided any platform for Mr. Diarra to meet with “African heads of state”, as Mr. Lee claims.

The "VIP luncheon" Mr. Lee refers to was the UN Private Sector Forum on Food Security and the Millennium Development Goals held on 24 September 2008 in conjunction with the annual General Assembly debate. Mr. Lee, who attended parts of the Forum, should have remembered that it produced several concrete corporate commitments, as outlined in a comprehensive final report issued by the Global Compact Office.

As far as Mr. Lee’s troubled relationship with facts is concerned, his rant against the United Nations is par for the course. Far more troubling is that he fails to understand the fundamental nature of the Global Compact as a platform for critical, yet constructive dialogue and learning. The Global Compact is not a regulatory body. And our doors stay open, even (or especially) for those that face serious challenges. To some, this may not be a popular approach, but the vast majority of our stakeholders, including civil society and governments, agree that it helps lead companies on a path of continuous performance improvement. Nevertheless, it should not go unnoticed that the Global

Compact has delisted close to 1,000 companies for repeated failure to meet its annual disclosure requirement.

Finally, we wish to clarify the appointment of Mr. Chey Tae-Won of Korea’s SK Group to the Global Compact Board. Mr. Chey and other new Board members were recommended by Global Compact country networks, which form a crucial component of the Global Compact’s multi-stakeholder governance. These networks were invited to propose nominees to better reflect the Global Compact’s geographic reach. A selection committee of the Global Compact Board (Sir Mark Moody-Stuart, Chairman of AngloAmerican plc; Mary Robinson, Chair of Realizing Rights: The Ethical Globalization Initiative; and Georg Kell) reviewed all prospective candidates.

In Mr. Chey’s case, the selection committee was well aware of his conviction and subsequent presidential pardon (which is not mentioned by Mr. Lee) in connection with violation of corporate governance laws. The fact that Mr. Chey and the SK Group had demonstrated much willingness to learn from past transgressions was a key factor in the decision-making process. By all accounts, the SK Group, under Mr. Chey's leadership, has emerged as a frontrunner in corporate governance in Korea.

To the Global Compact, this is highly relevant and a sign of positive change in the spirit of the Global Compact principles. It also reinforces the notion of continuous performance improvement. Consequently, the selection committee recommended his appointment.

Sincerely

Georg Kell Executive Director United Nations Global Compact

28 April 2009

To the Editors of Foreign Policy:

We take issue with statements made by Matthew Russell Lee in his article titled “Some Disassembly Required”, published in April 2009 on the Foreign Policy website.

Likewise, we are surprised that Foreign Policy, as it appears, did not exercise due diligence when fact-checking the claims made in Mr. Lee’s contribution.

To begin, Dr. Cheick Modibo Diarra, Microsoft’s Chairman for Africa has never attended an event organized or hosted by the United Nations Global Compact. Neither has the Global Compact provided any platform for Mr. Diarra to meet with “African heads of state”, as Mr. Lee claims.

The "VIP luncheon" Mr. Lee refers to was the UN Private Sector Forum on Food Security and the Millennium Development Goals held on 24 September 2008 in conjunction with the annual General Assembly debate. Mr. Lee, who attended parts of the Forum, should have remembered that it produced several concrete corporate commitments, as outlined in a comprehensive final report issued by the Global Compact Office.

As far as Mr. Lee’s troubled relationship with facts is concerned, his rant against the United Nations is par for the course. Far more troubling is that he fails to understand the fundamental nature of the Global Compact as a platform for critical, yet constructive dialogue and learning. The Global Compact is not a regulatory body. And our doors stay open, even (or especially) for those that face serious challenges. To some, this may not be a popular approach, but the vast majority of our stakeholders, including civil society and governments, agree that it helps lead companies on a path of continuous performance improvement. Nevertheless, it should not go unnoticed that the Global

Compact has delisted close to 1,000 companies for repeated failure to meet its annual disclosure requirement.

Finally, we wish to clarify the appointment of Mr. Chey Tae-Won of Korea’s SK Group to the Global Compact Board. Mr. Chey and other new Board members were recommended by Global Compact country networks, which form a crucial component of the Global Compact’s multi-stakeholder governance. These networks were invited to propose nominees to better reflect the Global Compact’s geographic reach. A selection committee of the Global Compact Board (Sir Mark Moody-Stuart, Chairman of AngloAmerican plc; Mary Robinson, Chair of Realizing Rights: The Ethical Globalization Initiative; and Georg Kell) reviewed all prospective candidates.

In Mr. Chey’s case, the selection committee was well aware of his conviction and subsequent presidential pardon (which is not mentioned by Mr. Lee) in connection with violation of corporate governance laws. The fact that Mr. Chey and the SK Group had demonstrated much willingness to learn from past transgressions was a key factor in the decision-making process. By all accounts, the SK Group, under Mr. Chey's leadership, has emerged as a frontrunner in corporate governance in Korea.

To the Global Compact, this is highly relevant and a sign of positive change in the spirit of the Global Compact principles. It also reinforces the notion of continuous performance improvement. Consequently, the selection committee recommended his appointment.

Sincerely

Georg Kell Executive Director United Nations Global Compact

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