The Secretary General noted that much has changed in the decade since Rio. He said that mobilizing the corporate sector and engaging its finances, management and technology was critical to finding a solution to the challenges of sustainable development.

"We now understand that business and society stand to benefit from working together, said Annan. "On its side, business has come to realize that if it wishes to thrive in a complex and sometimes hostile global economy, it must respond to the major social and environmental trends and challenges that are reshaping our world."

Citing the example of the environment as a prime example, the Secretary General said that greenhouse gas emissions have historically been viewed by many companies as a social issue entailing burdensome costs. Yet, today, there is broad recognition of the fact that corporate pollution involves high costs and wastage for business itself.

"It [pollution] can be very often addressed with better technologies and improved methods of production--and firms that do this become more competitive, not less," stressed Annan.

The Secretary General promoted the concept of "values-based management" which he said was essential in today's world. He noted that some of the world's leading companies had expressed strong support for this concept by joining the Global Compact.

Georg Kell, Executive Head of the Global Compact, added that the compact brings companies that promote good practices in the areas of human rights, labor and environment together with UN agencies, labor and civil society. The compact seeks to ultimately influence positive corporate change, and already has a network of more than a hundred countries from all over the world.

"However, to preserve the integrity of the compact, we do not accept any financial contribution from these companies and we do not allow them to use the UN logo either," said Kell.

At this summit, the Global Compact is seeking to promote investment in Least Developed Countries (LDCs). Currently, only 0.5 percent of global foreign direct investment goes to the LDCs.

"Markets punish the poor," noted Kell. "We would like to lower the economic barriers by bringing together a coalition of like-minded economic investors to share the risk and reduce the transaction costs in this region. Simultaneously, we are trying to influence the local governments--through agencies like UNDP--to push for good governance in this region. This is a like a mini Marshall Plan that feeds into the overall plan of NEPAD (New Partnership for Africa's Development)."

In closing, the Secretary General said that the economic development of the poorest countries is of fundamental long-term interest to the global community, including the private sector. "The present situation is fundamentally unstable," he said. "Growing sustainable business in the world's least developed countries is arguably the most promising pathway in overcoming the poverty trap."