ABSTRACT

The Global Compact (GC) has explicitly adopted a learning approach to inducing corporate change, as opposed to a regulatory approach; and it comprises a network form of organisation, as opposed to the traditional hierarchic/bureaucratic form. The Secretary-General’s GC is an initiative intended to advance global corporate social responsibility. It engages the private sector directly to work with the United Nations, in partnership with international labour and non-governmental organisations, to identify and promote good corporate practices based on universal principles. In sum, the GC’s strengths and weaknesses both stem from its adoption of a model that promotes learning by recognising and reinforcing leadership. Accordingly, the Global Compact exhibits many of the defining attributes of inter-organisational networks, which should be better understood by critics and advocates alike. Criticism of the GC for partnering with business fails to appreciate the advantages of inter-organisational networks.