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Commitment vs. Practice: A Comparison of CSR Performance of the UN Global Compact Signatories and Non-Signatories

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14 Commitment vs. Practice Ethics Large companies, both UN Global Compact participants and non-participants, achieve significantly lower scores than small- and medium-sized companies on the Ethics theme. This reflects the greater ethical risks and sanctions that large organizations face. The UN Global Compact Principle 10 states that "businesses should work against corruption in all its forms, including extortion and bribery." While anti-corruption is only a part of the EcoVadis Ethics theme, along with anticompetitive practices and responsible information management, the focus on anti-corruption given by the UN Global Compact is reflected in higher scores by participants, both for large and small- and medium-sized companies. Nevertheless, the scores achieved by both participants and non-participants in the Ethics theme are considerably low, suggesting that companies still have a long way to improve their anti-corruption and ethics practices. Furthermore, there is a significant number of UN Global Compact participants lagging behind, with 8 percent scoring 30 or lower and 26 percent scoring below. This gap can be linked to the fact that Anti-Corruption, the 10th principle of the UN Global Compact, was adopted four years after the launch of the UN Global Compact framework. A significant number of companies assessed by EcoVadis have implemented policies and actions related to ethics, such as whistleblowing procedures, into their management system. However, there is still a lack of reporting on these issues. These findings are consistent with UN Global Compact analysis of participants' progress to date, which illustrates strong growth as 91 percent of companies have policies or actions on anti-corruption. 6 Furthermore, approximately two-thirds of companies report that UN Global Compact had an impact on their ability to address anti-corruption. 7 Ethics EcoVadis Score Range Average Score UNGC Signatory 52 Non- Signatory 40 Total 41 0 20 40 60 80 100 40% 30% 20% 10% 0% 6 p. 17 7 p. 8

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