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UN Global Compact Introduces Toolkit to Drive Transformational Corporate Governance


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New tool supports business learning and action on internal and public governance.

The UN Global Compact, the world’s largest corporate sustainability initiative, announced the launch of its Transformational Governance Corporate Toolkit. This new resource is designed to empower companies to educate their employees to foster transformational governance throughout their organizations.

Transformational governance calls on businesses to champion greater accountability, integrity, and transparency as driving forces for responsible business conduct, enhanced Environmental, Social, and Governance (ESG) performance, and the strengthening of institutions, laws, and systems. This commitment contributes to the creation of more peaceful, just, and inclusive societies. 

The toolkit provides a comprehensive view of internal governance and the strengthening of public governance institutions for businesses, enabling them to integrate policies that benefit not only themselves but also their stakeholders and the societies in which they operate.

Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, emphasizes the importance of this toolkit for business: “The Transformational Governance Corporate Toolkit is a milestone in our ongoing efforts to equip companies with the tools they need to advance sustainable and responsible business practices. By promoting transformational governance, businesses can play a crucial role in building a more just and inclusive world.

Aligned with Sustainable Development Goal (SDG) 16—Peace, Justice, and Strong Institutions, the toolkit addresses transformational governance’s twofold relevance to business; it not only contributes to progress across the entire SDG agenda but also creates sustainable and profitable environments for business and investment.

Key Features and Benefits of the toolkit include:

  • Risk Mitigation and Long-Term Viability: Businesses can secure a head start on risk mitigation, ensuring less volatility and creating long-term economic value through compliance with principles.
  • Global Alignment: By working towards compliance with transformational governance principles, businesses establish a strategic roadmap for integrating these principles into corporate endeavors, aligning with global entities and legal frameworks.
  • Stakeholder Trust and Social Stability: Companies demonstrating commitment to transformational governance attract investments from socially responsible funds, improving brand value and customer loyalty.

The toolkit includes a user-friendly online Transformational Governance Self-Assessment Tool, providing a framework for companies to engage with and apply the principles of transformational governance. This tool allows businesses to assess their baseline on the spectrum of transformational governance and identify key gaps in their current approach, mapped against relevant SDG 16 targets.

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