TÍTULO DO PROJETO:
Engaging Brazilian businesses in sustainable
development through the Global Compact Local
Network in Brazil
NÚMERO DO PROJETO:
BRA/14/003
DURAÇÃO PREVISTA:
Until 31/12/2016
AGÊNCIA EXECUTORA:
PNUD
VALOR TOTAL DO PROJETO:
To be done
ORIGEM DOS RECURSOS:
Member companies of the Global Compact Local
Network in Brazil and financial/or in-kind
contribution by UNDP (in 2012 and 2013 UNDP
made the largest contribution towards the project
with a total financial contribution of over
USD100,000 over the two years)
Table of content
1.
Executive Summary ........................................................................................................... 3
2.
Situation analysis .............................................................................................................. 4
3.
Strategy ........................................................................................................................... 7
4.
Financial management ..................................................................................................... 11
5.
Management arrangements ............................................................................................. 16
6.
Monitoring and evaluation ............................................................................................... 17
7.
Legal context .................................................................................................................. 18
8.
Risk management............................................................................................................ 19
9.
Matrix of resources and results ....................................................................................... 12
APPENDICES
APPENDIX 1 Participants of the Global Compact Network Brazil and members of CBPG as of Oct 2013.
APPENDIX 2 TOR Project Manager/Executive Secretary.
APPENDIX 3 Cost-sharing agreement sample.
2
1.
EXECUTIVE SUMMARY
The Global Compact Brazilian Committee (CBPG) was created in 2003. It is a voluntary group
formed by 74 companies, business entities and organizations with an objective of promoting
the adoption and incorporation of the Global Compact principles in Brazilian business
operations, as a means to strengthen the Corporate Social Responsibility movement in the
country. The UNDP Country Office in Brazil assumed the responsibility of acting as a host of
the secretariat for the Global Compact Local Network in Brazil in 2011. This project
document presents a second phase of UNDP’s role as the host as its reflects a newStrategic
Action Plan for the Global Compact for the biennium 2014-2016. Also, a new dimension of
this project document for the Global Compact Network in Brazil is the articulation of an
overall aim to develop and implement sustainable social and economic development
projects jointly between the UN Development Program (UNDP) in Brazil and the member
organizations of the Global Compact in Brazil through the framework of the Architects of a
Better World, in support of the Post-2015 Agenda.
3
2.
SITUATION ANALYSIS
1.1
Context
Brazilian businesses and business associations have come a long way in implementing
sustainable business practices and corporate social responsibility as part of their core
business in Brazil. Brazilian companies are also taking actively part in global initiatives that
encourage socially responsible business, including through the UN Global Compact local
network in Brazil (UNGC Brazil) since 2003.
The UN Global Compact is an initiative that encourages companies to abide by the ten
universal principles of the UNGC, in the spheres of human rights, workers’ rights,
environmentalism and anti-corruption. Secretary- General Kofi Annan first advanced the
idea of the Global Compact initiative at the World Economic Forum at Davos (Switzerland)
on the 31st January 1999. Officially, UNGC was formed at the headquarters of the United
Nations in New York in July 2000. Since that time, Global Compact, which is now made up of
thousands of participants from over 100 countries, has become the largest and the most
important corporate citizenship and sustainability initiative in the world.
The Brazilian Committee of the Global Compact (Comitê Brasileiro do Pacto Global, CBPG)
was created as an initiative together between UNDP and the Instituto Ethos in 2003 to
represent the local network of UNGC in Brazil. The CBPG was set up to constitute 35 entities
with the objective of promoting and integrating the principles of the GC among businesses in
Brazil.
In 2011, participants of the Global Compact Network in Brazil (UNGC, Brazil) carried out
important structural and organizational changes, as UNDP assumed the responsibility of
acting as a focal point and secretariat of the Committee in Brazil as of 1st of January, 2011.
As part of this transition, a Directorate was elected to support the transition. Several
important organizational and governance related decisions have been taken since then:





A project document was prepared to outline the priorities and workplan, and
guidance for the role and responsibilities of the secretariat in implementing decisions
approved by the CBPG. The following overall objective was defined for 2011-2012:
“Make GC more known and more relevant for the strategies of the organizations”,
focusing on three areas: governance, advocacy and programs/projects.
The last election of the members of the CBPG took place on December 2012, for a
duration of 2 years. The president of the UNGC Brazil, Mr. Jorge Soto (Braskem) was
also elected for a duration of 2 years.
There was a general meeting of participants of the UNGC, Brazil on December 2012
which ratified the “Governance directorate of the Global Compact Network, Brazil”
as a basis for the operations of UNGC Brazil.
The CBPG and the Governance Task Force has been meeting on a monthly basis
throughout 2012/2-13 to provide guidance to the Secretariat, including approving
work plans, financial expenditure and other operational issues.
In June 2013 a new Executive Secretary of the UNGC Brazil was hired, assuming, also,
the role of focal point for the Global Compact in Brazil.
4
1.2 Achievements to date
Important achievements have been made in the last years by the UNGC Brazil. First, there
has been a significant growth in the number of members of the Brazilian Network. From a
total number of 377 in 2011, to 492 in 2012 and to 594 in February 2014 (from which 379
are business organizations). The companies represent a variety of business sectors, ranging
from health care equipment and services, to electricity, to construction and materials to
software and media companies. There are also a number of non-business organizations such
as NGOs and business associations that are actively involved. In terms of geographical
coverage, the signatories are primarily from the south eastern part of the country (a list of all
signatories as of February 2014 is attached).
The CBPG has always been active in several thematic areas in alignment with the GC
principles. In the last few years, members of the CBPG have actively participated through
their mandatory membership in one or more of the following six task forces:
1. Governance
2. Communications
3. Human Rights and Labour
4. Environment
5. Education
6. Integrity and anti-corruption.
One concrete highlight of the UNGC Brazil in 2012 was the engagement of the CBPG in the
Rio + 20 Conference in 2012. This culminated in a letter of commitment to sustainable
development signed by more than 230 CEOs, establishing 10 pragmatic goals, which has
since served as a basis for the Global Compact’s activities in Brazil. To follow up on this, the
participants of 2013 annual Global Compact Local Network meeting (over 200 participants of
the UNGC Brazil), articulated concrete proposals that the Global Compact should work on as
a follow up to the Rio+ 20 commitment letter. The proposals were made in the areas of: 1)
water and climate; 2) Anti-corruption; 3) sustainable consumption and production; 4)
Economy and finance for sustainable development; 5) education; 6) End poverty, enhance
health and sanitation.
As the UNGC in Brazil has reached 10 years in Brazil, a more strategic review of
achievements and objectives for the future has been made in 2013/2014. A new Strategic
plan was presented and officially validated at the CBPG meeting on February 19th 2014.
Issues decided upon included: 1) changing structure of the thematic groups related to the
CBPG, in alignment with the commitments made at Rio + 20 Conference; priority related to
the Post-2015 Agenda; and substantive areas of the Global Compact Engagement
Opportunities Platforms. The participation of members in these new thematic groups is
more focused on project and partnerships development to ensure concrete and practical
results in the area of corporate sustainability. The new thematic groups are:
1 Water and Sanitation
2 Climate and Energy
5
3
4
5
6
7
8
9
10
Human Rights and Labor
Responsible Consumption and Production
Education
Integrity and anti-corruption
Wealth
Poverty Eradication and Inclusive Economy
Sustainable Finances
Sustainable Agriculture
The CBPG also formalized two new Commissions with advisory role to the Executive
Secretariat on overall strategic issues related to Governance and Communications.
In 2013, the UNGC Brazil has also made important progress with regards to the operations of
the Executive Secretariat. The Global Compact Secretariat has been set up as part of UNDP’s
overall presence in the One UN office in Sao Paulo. A new team has been hired and trained
and a gradual handover of UNDP’s operational issues previously taken care of in Brasilia has
taken place to ensure that the Executive Secretariat can be as operationally efficient as
possible. The objective is to ensure that the Secretariat can respond as effectively and
professionally as possible to its membership base on all issues , within the framework of the
rules and regulations of UNDP.
1.3 Technical cooperation and the Country Programme Document for UNDP Brazil (20122015)
As outlined in the UN Development Assistance Framework and the Country Programme
Document for Brazil for the period 2012 to 2015, Brazil is a middle income country that has
demonstrated significant progress in social and economic development in the last decades.
Despite this, there are still important challenges that will need to be overcome through
cross-sectorial and multi-stakeholder development solutions to achieve sustainable human
development. These development challenges cannot be overcome without a proactive role
of the private sector in Brazil, including through integration of the principles promoted by
the Global Compact by business actors in Brazil. The project contributes to the expected
achievement of the objective related to the MDGs for all as set out in the UN Development
Assistance Framework (2012-2015). It will be implemented within the UNDP Country
Programme Document, as outlined below:
PRIORIDADE OU OBJETIVO NACIONAL: ODM para todos
RESULTADO DO UNDAF/DOCUMENTO DE PROGRAMA DO PAÍS: Instituições
governamentais e da sociedade civil terão capacidades aprimoradas para formular,
implementar, monitorar e avaliar políticas públicas setoriais e intersetoriais universais e
políticas focadas nas populações mais vulneráveis. Áreas focais do Plano Estratégico:
Pobreza e ODM. Indicador de Resultado: Progresso em todos os indicadores dos ODM.
6
3.
STRATEGY
The Mission of UNGC Brazil is to promote the concrete adoption of the Global Compact
Principles by Brazilian organizations.
Important values for this work are:
-
Ethics and transparency in management
Dialogue and respect
-
Knowledge sharing by networking
Leadership
Partnerships with other institutions
The vision is to become the best local network of the UN Global Compact worldwide.
The project builds on prior approaches and achievements of the UNGC Brazil, since 2003.
The overall strategy of this project is to promote adherence of the private sector in Brazil to
the principles of Global Compact through a strengthened role of the UNGC in Brazil in
promoting sustainability practices in Brazil.
The project will consist of 4 components aimed at achieving the following 4 key results:
1) Effective membership management strategies allowing better scale and quality
engagement
While UNGC Brazil is today the fourth largest Network in the world and experienced steady
increase in membership since 2011, new efforts will be made to increase the membership
base in new business sectors and geographical regions that are less represented through the
current membership. Efforts will be made to reach out to SMEs to encourage a broader
integration of the Global Compact principles in the less affluent regions of Brazil which often
lag behind in implementing sustainable business practices. Efforts will also be undertaken to
retain current members by for example making members more engaged in interesting
projects or initiatives related to the GC. The Secretariat will also develop a more structured
and strategic communication process to its network members and enhance the ability of
members to reach the COP `s “advanced” stage and/or avoid automatic expulsion as local
7
network members as a cause of not reporting. Important actions related to this overall result
is the hiring of a dedicated communication assistant and the development of a
marketing/communications strategy as well as other related communications initiatives.
2) Local Network Empowerment
The Global Compact Local Network in Brazil has come a long way to enhance its capacities in
2013 and operational presence through the Executive Secretariat in Sao Paulo. However, the
Local Network needs to improve furthers its capacity to strategically manage the direction of
GC in Brazil, in alignment with the directions of the Board members and the global strategies
of Global compact.
In 2014, important efforts will be made to further improve the
governance and operational structure and capacities of the Global Compact Brazilian
Committee, in order to better position the initiative in Brazil and enabling operational
excellence and maximize the fundraising potential. A more systematic and better
implemented fundraising strategy will be a key result of this overall result and it will enhance
the overall impact of the organization’s performance in the corporate sustainable field as
more resources will be made available to key priority areas. The Brazilian Global Compact
Network will also work more closely with the Global Compact Initiative globally to ensure
that the Local Network has access to the latest international knowledge on sustainability
issues, and that the Local Network can leverage visibility opportunities both for the Local
Network and the Brazilian GC members companies within the GC network worldwide. A
stronger relationship with the Global Compact Office will be key to this, allowing deeper
alignment and the development of joint projects and partnerships.
3) Coherence and impact in Thematic Groups promoted in alignment with the Ten
GC Principles
As the UNGC Brazil is operating in one of the largest emerging markets in the world, with a
strong culture for sustainability, the Local Network has a unique potential to facilitate
transformational partnerships and play a role model to other Local Networks of the world.
The recently launched framework of the “Architects of a Better World” is a new platform
that gives the UNGC Brazil new means to facilitate partnerships in support of UN goals and
8
commitments. Given the strong partnership with UNDP and commitment of the Resident
Coordinator of the UN system in Brazil to the UNGC, the UNGC Brazil also benefits from
direct access to development knowledge and government relations that will help establish
effective partnerships aimed at development impact. By aligning the Architects of a Better
World Platform, with the Global Compact Engagement Opportunities mandala, and the key
priority issues that emerged from the CEO`s Commitment Letter launched my UNGC Brazil in
Rio + 20 Conference, the Local Network has established 10 thematic groups that will help
facilitate new partnerships and projects. These thematic groups are also linked to various
global GC platforms:
Thematic Groups
Platforms
Anti-Corruption
Anti-Corruption Hub, Working Group
Education
Framework for Business Engagement in Education,
PRME, Children’s Rights and Business Principles
Cities Programme
Poverty Eradication and Inclusive Economy
Energy and Climate
Caring for Climate, Hub Climate and Energy
Supply Chain Sustainability
Sustainable Consumption and Production
Sustainable Finance
Water and Sanitation
Health
Human Rights and Labour
Sustainable Agriculture
Principles for Responsible Investment (PRI)
CEO Water Mandate, Global Water Action Hub
Children’s Rights and Business Principles
Children’s Rights and Business Principles, WEPs,
Human Rights and Labour Working Group
Sustainable Agriculture & Food Security
With the facilitation of the UNGC Brazil Secretary, the CBPG members will be encouraged to
engage in one of these groups and to develop collaborative or individual projects related the
respective issues. The Thematic Groups are also open to the Brazilian network participants
that are not CBPG members.
4) Better quality and quantity of partnerships undertaken by GC participants in
support of UN goals.
The engagement of Global Compact Brazilian members in projects, initiatives and
partnerships linked to the of United Nations goals is the main objective of this result area,
focusing on opportunities to engage Brazilian private sector in the post-2015 agenda. Strong
collaboration with the UN system in Brazil will be key to this area, specifically also focusing
on the partnership possibilities with UNDP projects. This area of work is sponsored by the
9
Global Compact Office in NY through a consultancy dedicated to partnerships development.
The consultancy will help map out partnership opportunities in alignment with the Strategic
Plan and allow the Local Network to better leverage the global Partnership Hub.
Overall Strategy for 2014-2016 in a snapshot:
Expected Results: Enhancement of scale and quality of signatories – reporting “in advanced” COPs;
Consolidated fundraising strategy; Development of at least 6 significant partnerships – including the
participation of lead companies; Consolidate the communication process; Establishment of a Post2015 Agenda reporting of Brazilian companies efforts in different priority issues; consolidation of two
Engagement Opportunities in Brazil.
Key Performance Indicators: Increase the number of signatories in Brazil; Increase the proportion of
sustainable development reports prepared by Brazilian companies in “advanced” status; Number of
sustainable social and economic development projects (private sector engagement and/or
development activities) developed by Brazilian companies together with the UN, NGOs and/or
regional / local administrations; Increase in the number of press coverage of UNGC Brazil; New
governance model approved by the CBPG and Work Plan implemented
Project Partners: Participants of the UN Global Compact Network Brazil (UNGC, Brazil), UN
organizations and governmental and non-governmental partners
2.2 Project duration
The Project will commence upon signature of this Project agreement and will end in 2 years
from the signature date. The planned project period is 2014-2016, with possibility for
extension. A detailed work plan will be designed for the project with a set of sub goals and
expectations for the respective activities.
10
4.
FINANCIAL MANAGEMENT
The UNGC Brazil Secretariat will have a bi-annual budget as per an estimation of the
resources to be mobilized from member companies of the Global Compact Local Network.
The annual budget will need to be approved by the CBPG. It will be managed by the
Executive Secretary under the guidance of the Project Board, and with the support of the
Project Assurance team at UNDP. The planned annual activities of the CBPG will be restricted
to the financial year end balance of the previous year, with an estimation of the incoming
contributions for the current year. Budget revisions will take place throughout the year to
ensure the financial sustainability of the activities of the Local Network.
As a result of the provision of services by UNDP for the Project implementation, the project
budget will subject to the provisions of the rules on Cost Recovery of UNDP.
In accordance with the decisions and directives of the Executive Board of UNDP, the
contribution will be subject to cost recovery by UNDP for two distinct categorical costs,
applicable as appropriate, namely:
1. Indirect costs incurred by the structures of the head office and the local office of UNDP as
a provision of Management Support Services (GMS). To cover these costs, there will be a
charge on the execution rate of 8% in 2014.
2. Direct costs incurred as a provision of Implementation Support Services (ISS) by UNDP.
These costs must be clearly related to specific activities and transactional services clearly
identifiable.
It should be noted that all salaries of the basic structure of the Global Compact Secretariat
will be covered through the contributions of the members of CBPG.
11
5.
MATRIX OF RESOURCES AND RESULTS
Resultado esperado como estabelecido na matriz de resultados e recursos do Documento de Programa para o País - DPP :
Indicar um número para cada resultado do Documento de Programa (1, 2,...).
Indicadores de Resultado como estabelecido na matriz de resultados e recursos do Documento de Programa para o País - DPP, incluindo marco zero (baseline) e metas:
Linha de Serviço (service Line) aplicável do Plano Estratégico do PNUD (MYFF):
Estratégia de parcerias (escopo de atuação geográfica do projeto e articulação com seus diversos atores):
Título do Projeto e Identificação no Atlas (ATLAS ID): BRA/14/003 - Global Compact Brazil (Project 00089665)
PRODUCTS
GOALS
ACTIVITIES
RESPONSIBLES
INPUTS (USD)
2014 to 2016
Product 1 – Effective membership
management strategies allowing
better
scale
and
quality
engagement
Goals (year 1 and 2)
Indicators:
Number of signatories;
Number of COPs reported as
“advanced” and delisted;
Number of webinars and training
events;
Marketing strategy launched.
UNGC Brazil Team

Four more cities added to the
Global Compact Cities initiative;
Baseline:
No
systematic
relationship
management
or
communication
strategy
with
current, previous or potential Local
Network members
Activities

Contact made with 40% of the
delisted companies;
Reduce the number of delisted
companies by 10%
At least two events/per year with
the value chain of signatories
companies organized;
10% growth of the network,
including additions of some of the
biggest and most recognized
companies in Brazil;
At least 50% of CBPG members
engaged in one one or more GC
activity;
At least 4 webinars/per year about
the 10 principles organized;


Identify and set up meetings with
delisted signatories and potential
companies/partners to mobilize the
engagement in Global Compact;
Promote workshops and webinars
related to the 10 Principles and
COPs;
Develop
and
implement
a
marketing strategy for UNGC Brazil,
and an adhesion campaign.
Effective follow-up on membership
requests in alignment with UNDP
rules and procedures
Travel`s costs, calls and
webinars
technology,
translation and production
of
press
material,
Communication
Assistant
hiring, operational events
costs like coffee.
At least 4 welcome webinars/per
year organized;
Enhancement of 15% of “the
advanced COPs status”
Reduction of 5% of “the COPs
learner status”;
100% receipt of CBPG`s members’
contribution
Product 2 –
Empowerment.
Local
Network
Goals (year 1 and 2)
Activities
UNGC Brazil Team
Travel`s Costs, Secretary
Development (courses and
workshops),
documents
translation.
UNGC Brazil Team
Travel`s Costs, Translation
and layout development
costs for the production of
reports
and
other
documents.
-
Baseline: Absence of structured
communication
process
with
Global Compact NY Office, and no
participation of the Brazilian
network in the GCO decision
making process.
UNGC Brazil invited to participate
in at least 1 international event

Map synergies between UNGC Brazil and
UNGCO;
X international publications

Represent
the
UNGC
international events.
X companies have enhanced their
international projection through
UNGC Global Compact
Brazil
in
Indicators :
Numbers of international events
that UNGC Brazil are invited to;
Number
of
international
publications prepared by UNGC
Brazil;
Numbers of companies that have
enhanced
their
international
projection through UNGC Global
Compact
Product 3 – Coherence and impact
in Thematic Groups promoted in
alignment with the Ten GC
Principles
Goals (year 1 and 2)


Baseline:
New
engagement

2
partnerships
established with lead
companies;
1 high UNGC Brazil level
conference;
1 report about how
Activities

Proactive
outreach
to
member
companies in support of the work of
Thematic Groups and related initiatives;

Produce high level material about UNGC
to fundraise for the high level UNGC
13
proposition validated in CBPG`s
meeting
in
February
2014.
Leadership of Thematic Groups still
to be identified
Indicators:


Numbers of partnerships with lead
companies;
UNGC Brazil is engaged in
Post 2015 Agenda;
Coordination of of all inkind contributions;
100%
of
Thematic
Groups engagement in
the strategic plan.
event in 2016?;

(Year 2?)Map and prepare a report on
the progress of UNGC Brazilian network
related to the Post 2015 Agenda

Monitor and contribute to the
development of partnership in the
Brazilian Global Compact Network;

Promote meetings and workshops, in
order to communicate the opportunities
of engagement with UN Agencies and the
Brazilian Global Compact Network;

Promote webinars and workshops about
the Partnership Hub.

Financial Management and Control of the
Secretary
Report about how UNGC Brazil is
engaged in Post 2015 Agenda;
Number of CBPG`s members
engaged in UN Global Compact
Platforms or Sisters Initiatives.
Product 4 – Better quality and
quantity
of
partnerships
undertaken by GC participants in
support of UN goals.
Baseline: Signatories companies
partnering in a superficial way,
without any type of participation
from the UNGC Brazil Secretary
Indicators:



Numbers of partnerships
between UN Agencies
and Brazilian Network
Companies;
Numbers of partnerships
between
CBPG`s
members and other
organizations in support
of UN goals and values;
Number of Brazilian
partnerships
in
the
partnership Hub?
Goals (year 1 and 2)






2 partnerships between
UN
Agencies
and
Brazilian
Network
Companies;
2 partnerships between
CBPG
member
companies and other
organizations
1 annual partnership
workshop;
3 workshops/ webinars
with CBPG about the
partnership Hub, per
year;
1 webinar about the
Partnership Hub to the
Brazilian Network;
1 partnership established
related to the respective
Thematic Group.
14
UNGC Brazil Team
Travel`s Costs, Translation
and layout development
costs for the production of
reports
and
other
documents,
event
operational costs.
6.
PLANILHA ORÇAMENTÁRIA
15
7.
MANAGEMENT ARRANGEMENTS
The Project will be implemented by UNDP through the modality of direct execution. The
arrangements for the management will be based on orientations of UNDP’s guidelines for
management for results.
Organizational Structure
Management Committee
CBPG
UNDP
(represented by
President of CBPG)
Executing Agency
Beneficiary
Project Quality
Assurance
UNDP ARR with the
support of UNDP
private sector focal
point
Governance
Comission
Members of the
Governance TF
Project
Manager/Executi
ve Secretary
Secretariat
Project
Support staff
in Sao Paulo
Project
operational
support staff
in UNDP
Brasilia and
Sao Paulo
Project Board
CBPG
ABC/MRE
PNUD
Beneficiary
Technical
Cooperation
Executing
Agency
8.
MONITORING AND EVALUATION
The project will be regularly monitored by the CBPG and the Project Assurance focal point in
UNDP through the six annual CBPG meetings. Also, in accordance with the programming
policies and procedures outlined in the UNDP User Guide, the project will be monitored
through the following the following instruments: a) annual progress reports; and b) annual
project review. It is the responsibility of the Project Manager/Executive Secretary to prepare
these reports with the support of the Quality Assurance focal point from UNDP. Based on
the annual progress reports, an annual project review shall be conducted during the fourth
quarter of the year or soon after, to assess the performance of the project and appraise the
Annual Work Plan (AWP) for the following year. In the last year, this review will be a final
assessment. This review is driven by the Project Board and may involve other stakeholders
as required. It shall focus on the extent to which progress is being made towards outputs,
and that these remain aligned to appropriate outcomes.
9.
LEGAL CONTEXT
UNDP’s operations in Brazil are regulated by the Basic Agreement for Technical Assistance,
which underlies the provision of technical cooperation by the United Nations in Brazil. The
Basic Agreement for Technical Assistance was signed on December 29, 1964 between the
Government of the Federative Republic of Brazil , the United Nations and its Specialized
Agencies , approved by Legislative Decree No. 11 of 1966 and promulgated by Decree No.
59,308 of 23 September 1966.
The role of UNDP in Brazil is also governed by the Convention on Privileges and Immunities
of the United Nations, adopted by the General Assembly of the United Nations on February
13, 1946 , approved by Legislative Decree No. 4 of 13 February 1948 , ratified without
reservations by the Government of the Federative Republic of Brazil on December 15, 1949
and promulgated by Decree . 27,784 , of February 16, 1950 . This multilateral convention
provides for the privileges and immunities granted to UN offices in their respective
countries.
18
10.
RISK MANAGEMENT
The Project has strong chances of success. UNDP started hosting the Global Compact Local
Network in Brazil in 2011, and achieved several milestone achievements during the two last
years. The Local Network has a growing membership base, and has steadily consolidated its
status as a partner for the private sector in Brazil in promoting the principles of the Global
Compact. Further, it is important to mention UNDP experience in advocacy and mobilization,
not only in the corporate social responsibility sector, but also towards MDGs, HIV/Aids,
Rio+20, and many others which indicates that UNDP has a safe and solid background to
undertake a project of this nature.
The risks associated with the implementation of the project will be dealt with existing
mechanisms in the Project design, as a result of the strategic partnerships already in place
and the new ones to be established and consolidated by the Project itself (see table 1
below):
Table 1. Project Risk Management
Probability
Impact
Low
Medium
High
Management
x
Limited ability to
maintain
and
increase the number
of
member
organizations in the
Local Network
The Local Network already has
more than 350 companies signed
up and over 30 companies as part
of the CBPG providing monetary
and other resources to the Local
Network. The Project manager will
closely monitor these relationships
and aim to improve relationships
management and communication of
the benefits of companies joining
the Local Network.
x
High turnover of staff
inside the Global
Compact Secretariat
and
lack
of
sufficiently
trained
staff
The Secretariat has set up a good
core base for staff. The Project
manager will ensure that there is a
continuation of the knowledge built
and sufficient capacity building and
incentives for staff engaged in the
Local Network.
Medium
Medium
Medium
Economic: economic
crisis and respective
lack
of
support
towards project from
company-clients or
other
project
sponsors
19
x
The Local Network is currently
closely monitoring its financial
sustainability from year to year. The
Project Manager will continue to
monitor financial commitments and
the external environment to ensure
that the Local Network will be in
financial shape to handle a
potential cut in funding. Accepting
risks: planned completion of current
projects and readjustment of further
Table 1. Project Risk Management
Impact
Probability
Low
Medium
High
Management
project portfolio
budgets)
Low
Shortage
of
the personnel
(experts,
consultants,
contractors),
who possess
the
unique
knowledge and
expertise
of
development
and
implementation
of
anti-crisis
socioeconomic
projects.
(content
and
Preplanning of expertise required.
Growth of
unforeseen
expenses
High
Transfer the risks: include in
agreements
with
experts,
consultants and contractors a
section which means they take the
risks of changes in market prices
upon themselves.
Minimisation of risks: create an
emergency fund for projects to be
used to prevent projects failing due
to the growth of unforeseen
expenses.
20