As we head into the 2024 UN High-level Political Forum on Sustainable Development (HLPF), it is imperative that Member States intensify their focus on corporate accountability. An article I wrote last year emphasized the need for mechanisms to monitor companies’ contributions to the SDGs’ ‘leave no one behind’ (LNOB) principle. Now, with less than six years remaining until the 2030 deadline, the urgency for action is more pronounced than ever.
The World Benchmarking Alliance’s (WBA) Social Benchmark 2024 reveals that a staggering 90% of the world’s 2,000 most influential companies fail to meet essential social expectations related to human rights, decent work, and ethical conduct. These companies represent a significant portion of the global economy, yet their shortcomings in these critical areas are leaving millions of people behind. This highlights a glaring gap in corporate accountability that must be addressed urgently to fulfil the LNOB promise.
One of the most telling insights from the Social Benchmark is the correlation between meaningful stakeholder engagement and improved corporate performance in human rights and decent work. Despite this, only 9% of companies effectively disclose their stakeholder engagement processes. This lack of transparency undermines trust and hampers efforts to address negative impacts on vulnerable populations.
A critical and often overlooked aspect of corporate accountability is transparency in lobbying efforts. The Social Benchmark highlights that very little is known about the lobbying activities of the world’s 2,000 most influential companies, which collectively generate nearly half of the global gross domestic product (GDP). Only 11% of these companies have established a public policy outlining their approach to lobbying and political engagement, and a mere 5% disclose their lobbying expenditures. This opacity in political engagement raises concerns about the alignment of corporate lobbying with commitments to human rights and decent work. Without transparency, there is a risk that corporate lobbying could undermine efforts to create a more equitable and inclusive society.
Creating a future where no one is left behind requires global collaboration among stakeholders due to the interconnected nature of trade, supply chains, and regulations. The Social Benchmark 2024 reveals significant regional disparities in corporate accountability, with European companies, particularly in Nordic countries, generally performing better on social indicators than those in other regions. However, even within Europe, there are discrepancies, such as, for example, the higher prevalence of global tax strategies in the UK compared to France. To effectively address global social issues like human rights, decent work, and ethical conduct, it is crucial that progress is made uniformly across all regions. Only through a collective and consistent effort can we build a truly inclusive future.
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Governments have a pivotal role in enforcing and enhancing corporate accountability. By integrating corporate accountability into voluntary national reviews (VNRs) presented at the HLPF, Member States can spotlight the private sector’s contributions to national sustainable development agendas. This will not only hold companies accountable but also encourage them to align their operations with the SDGs more rigorously.
As the HLPF picks up the pace, it is crucial for UN Member States to prioritize corporate accountability. The evidence is clear: without holding corporations accountable for their impact on people and the planet, the SDGs will remain out of reach. By fostering a collaborative approach involving governments, businesses, civil society, and multilateral organizations, we can ensure that the private sector contributes meaningfully to a more equal, inclusive, and sustainable world.
The 2024 HLPF represents a critical opportunity to reinforce our commitment to the SDGs and ensure that no one is left behind. Let us seize this moment to drive the necessary changes and hold corporations accountable for their vital role in achieving a sustainable future for all.
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This article was originally published by the International Institute for Sustainable Development (IISD) and is republished here as part of an editorial collaboration with the IISD. It was authored by Namit Agarwal from the World Benchmarking Alliance.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Cover Photo Credit: iVes Winzy.
