August 15, 2002
Eleven Latvian companies, ranging from some of the country's largest to small enterprises, recently joined the Global Compact, an initiative by UN Secretary-General Kofi Annan to promote global corporate citizenship and social responsibility.
The compact encompasses nine principles, including support for human rights, basic labour rights and environmental responsibility. It asks companies to act on the principles in their own domain and encourages action on broader corporate citizenship issues, such as poverty eradication. Participants are also invited to join thematic dialogues involving the UN, national officials, business, labour and civil society groups.
At a conference earlier this year organized by UNDP, the Latvian Employers Confederation and the NGO Centre in Latvia, companies indicated that two main social concerns are corruption and taxes. Several companies joining the compact pledged support for good employee relations and sound environmental practices.
"With the business practices of many large, heretofore reputable, international companies under a dark cloud of suspicion, it seems that the ethical moorings of the global economy are coming loose," said Eriks Plato, head of Corporate Banking at Nordea, a regional bank operating in the Nordic and Baltic countries and the first company in Latvia to sign the compact.
"We believe we can show that it pays to be honest and ethical," he said. "We believe that if the law is faulty, it should be changed, not circumvented. This is how an efficient, organized, democratic society works."
Mr. Plato said that 50 years of Soviet occupation in Latvia eroded ethical behaviour: "By not paying taxes when buying a car, a person runs the risk of losing the car to thieves because the police do not have the resources to perform their functions." Latvia needs public debate about ethics and corruption, and the Global Compact has provided an impetus for such discussions, he said.
"These representatives of the Latvian business community are showing their commitment to act as responsible corporate citizens and to further promote the development of Latvia," said Jan Sand Sorensen, UNDP Resident Representative.
"The variety of companies represented here shows the willingness at all levels of the Latvian private sector to move ahead to a new level of business, along with some of the most progressive companies in the world," he said.
Other companies joining the compact include Grindeks, a pharmaceuticals firm; LDz, the national railway company; AS Diena, Latvia's largest daily newspaper; Aldaris, the country's largest beer and soft drink company; and LID (Business Information Services), a publisher.
Also joining were SilJa, an agricultural equipment dealer; Public Service Language Centre (VMC), a private language school; Komin, an information technology and human resources company; The Body Guard Agency (Miesassargu a ent ra); and Patnis, a private elementary school.
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