The UN Global Compact provides participants with a unique strategic platform to promote their commitment to sustainability and corporate citizenship. The Global Compact, which is structured as a public-private initiative, provides a policy framework for the development, implementation and disclosure of sustainability principles and practices in its four key areas of human rights, labour, the environment and the fight against corruption. Indeed, managing the risks and opportunities of companies linked to these sectors is now a well-understood aspect of long-term “value added” – value added that can simultaneously benefit the private sector and companies as a whole. The United Nations (UN) was created in 1945 at the end of The Second World War to replace the League of Nations created in 1919. Their initial objectives today remain the same: the maintenance of international peace and security; develop friendly relations between nations; to promote international cooperation to solve economic, social, humanitarian and cultural problems. There is a fundamental premise of human rights and equality. Almost all the countries of the world are members – currently 192 nations – with only a few small territories and Taiwan, out of respect for China, because observer status and not membership is not coming. The UN is funded by evaluations and contributions from member states. On 29 June 2010, China and Taiwan signed the Framework Agreement on Economic Cooperation (CEF), a preferential trade agreement between the two governments, which aims to reduce tariffs and barriers to trade between the two sides. It is the most important agreement since the split of the two countries at the end of the Chinese Civil War in 1949.Keith B. Richburg, “China, Taiwan Sign Trade Pact,” Washington Post, June 30, 2010, called April 30, 2011, www.washingtonpost.com/wp-dyn/content/article/2010/06/29/AR2010062900163.html. It will boost current bilateral trade between the two parties to the amount of $110 billion.
China has already hosted Hong Kong in 1999, following the century-old lease agreement with Britain. While Hong Kong is now managed by China as a Special Administrative Region (SAR), it continues to enjoy a special economic status. China ensures that Hong Kong and Taiwan serve as gateways to its huge market. Taiwan`s motivation to sign the agreement was largely an attempt to encourage China to stop pressuring other countries to sign trade agreements with China. Lucy Hornby, “Taiwan and China Sign Trade Pact,” Reuters, June 29, 2010, called April 30, 2011, www.reuters.com/article/2010/06/29/us-china-taiwan-signing-idUSTRE65S17Z20100629. Coca-Cola is an example of this and its respect for its good global citizenship also gives it the opportunity to influence trade and economic policies with governments and organizations that can have a positive impact on its business interests in certain markets around the world. Coca-Cola underlines its commitment on its website and in global reports. The company states on its website: “In March 2006, the Coca-Cola Company was a signatory to the United Nations Global Compact (UN) and reaffirmed our commitment to develop its 10… human rights, labour, the environment and the fight against corruption. Several of our bottling partners are also signatories. UN Global Compact,” Coca-Cola Company, called January 1, 2011, www.thecoca-colacompany.com/citizenship/un_global_compact.html. Early on, critics of the EU had to bear in mind that countries did not want to give up their sovereign right to economic and political policy. Efforts to establish a European Constitution and move closer to a political union failed in 2005, when Belgium and France rejected efforts.