This paper traces the origins and growth of the Global Compact, the UN's corporate citizenship initiative, from the time of its launch in June 2000. The Compact aims at making the process of globalisation more inclusive and, consequently, less fragile. The main engagement mechanisms of the Compact - leadership, policy dialogue, learning, partnership projects and outreach activities - are described and analysed. Roles and responsibilities of the central and supporting actors in the Compact - governments, business, civil society and labour - are outlined. The section on Compact governance places particular emphasis on the fact that the Compact is a voluntary initiative and does not intend to either regulate or monitor participant activities. The strategic direction of the Compact in 2003 includes a greater focus on policy dialogues and on increasing accountability and transparency in participants' Compact-related activities. The Compact's geographical spread and progress are evaluated. The central challenges the Compact will face as a consequence of multiple forces at play in the global arena are examined.