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Compact has 'limited effect' in India

January 2011

The influence of the United Nations Global Compact is 'weak' in India, mainly because its local network is ineffective, according to newly published research.

A study by Tatjana Chahoud, of the German Development Institute, found that although the Compact enjoys a good reputation in India through its UN links, its influence on signatories is generally 'insignificant', partly because the Indian network is 'weak', and because companies believe they lack support from the Compact Office in New York.

The report also showed 25 per cent of signatories had not even heard of the local network. Chahoud said: 'For most companies, joining the Compact has had no impact.'
 
The study, presented at the recent Academy of Business in Society annual conference in Russia, suggests the Compact should provide better support and information to signatories, strengthen the Indian network, and improve communications between the network and the Compact Office.

Researchers found nearly half the respondents had failed to produce a regular communication on progress (COP) as required by the Compact board.

Chahoud said signatories blamed time constraints, but they also felt they derived no benefit from producing COPs.

Additionally, they were willing to 'discuss only soft issues' in their COPs, and 'do not want to share hard and more controversial issues with other stakeholders'.

The study was based on 72 interviews with companies, stakeholders and business associations.




Global Compact | Asia | Codes of conduct

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