A Performance Model for Sustainable Development

The fourth group examined a company performance model that has been developed by Claude Fussler of WBCSD. The model is of great significance to the Global Compact, setting out how companies can translate their commitment to the Compact principles into their corporate strategies and daily practices. Click here to view the Global Compact performance model.

The aim was to create a "performance model" that would assist more companies in achieving the Global Compact principles. Borrowing from well-established management and quality theory and practice, the proposed "vanilla" model developed suggests a mid-way between the two extremes. The one extreme is that of an approach of very high ambitions and corporate resources, and the other one of a tight definition of rules with detailed reporting, verification and sanctioning requirements.

The model is based on the "plan, do, check, act" model. It embraces the following elements: (1) vision, (2) leadership, (3) empowerment, (4) resources, (5) policies and strategies, (6) processes and innovation, (7) impact on society, environment and value chain, and (8) reporting. It is intended that stakeholder dialogue be an integrated part of each element of this model, and that inputs from stakeholders be infused into all actions.

Many companies engaged in the Compact have already begun applying the principles using other performance models therefore the proposed model is not intended to be an exclusive method.

Next Steps

The group agreed that additional "tools" for implementing the principles through the performance model must be developed. This will be done in close collaboration with working group participants such as the WBCSD, BSR and the World Trade University. Continued discussions on refining the tools will also be accompanied by considering ways of replicating the performance model. The model is currently introduced to companies at various Global Compact meetings.