Compliance of Businesses with the Principles of United Nations Global Compact - Essay Example

?Communications in Business Report Letter to the Executive of Local Network Yiran Yang 14243255 Semester Bentley Campus Brendan Mulvey Mr Yiran Yang Director, Corporate Communications Alcoa Inc. lcoa Corporate Center 201 Isabella Street Pittsburgh, PA 15212-5858 USA April 10, 2011 Ms Novita Ikasari Executive of the Australasian Local Network U1987 PO Box Bentley 6004 Dear Ms Ikasari At Alcoa Inc. we believe that compliance of businesses with the principles of United Nations Global Compact (2011) will improve organizations’ performance in terms of community development and environmental protection. Therefore, we would like to draw the attention of the Local Network to and give recommendations on achieving compliance with the following Global Compact principles: Principle 2: make sure that they are not complicit in human rights abuses. Principle 9: encourage the development and diffusion of environmentally friendly technologies.   Alcoa Inc., being an international organization with 31 headquarters all over the world and working in all the major aspects of its industry (developing technology, performing mining, refining, smelting, fabricating, and recycling of aluminum), believes it has enough expertise and experience for making recommendations to the Australasian Local Network. Furthermore, these particular principles are a basis of our Vision & Values statement, which makes us responsible for protecting and promoting “the health and well-being of the individual and the environment” (Vision & Values 2011). Alcoa Foundation, one of the largest corporate foundations in the U.S., is an outstanding project of our company, the activities of which are aimed at supporting our host communities worldwide (Alcoa Foundation 2011). The organization works as an independent foundation for addressing both global and local challenges of the communities. These activities are consistent with the vision and mission of the Organisation for Economic Co-operation and Development (OECD) in terms of supporting “economic and social well-being of people around the world” (OECD 2011), and of the International Labour Organisation (ILO) in regards to “promoting social justice and internationally recognized human and labour rights” (ILO 2011). Therefore, on the basis of our experience working towards the outlined above principles we would like to propose the following recommendations: 1. Design, implement and control the fulfilment of a statement of protecting human rights in all the communities the company operates in (Global Compact Principle One 2011). Benefits & Implications: The company’s vision regarding human rights protection is clearly outlined and, thus, it is easier to develop corresponding structures and policies Communities differ and, therefore, some general and universal principles should be outlined in the statement instead of those to which a particular local community is accustomed. A unified statement, being fulfilled, will not only promote human rights protection within the community, but will also help to educated communities on what they should claim from organizations in terms of respecting and supporting people’s rights. Lessons Learnt The statement of protecting human rights of Alcoa Inc. now includes only the points regarding paying employees guaranteed minimum wages and prohibiting slavery (Health 2011), and we are working on improving this aspect. This shortcoming of ours has caused many problems in the past – we have even been blamed for putting corporate interests above the interests of people, governments or the planet. There, however, already exist good examples: the Human Rights Policy Statement of Continental Airlines, for instance, deals with such issues as ethical business conduct, as well as protection of the rights of co-workers and children (Continental Airlines, Inc. 2011). A good point on this matter has been made by William C. Weldon, a CEO of Johnson & Johnson: “We believe our most significant opportunities to impact human rights—and therefore our greatest areas of responsibility—are in the areas of Human Rights in the Workplace, Access to Health Care, and Clinical Research Ethics.” So these areas are, of course, to be outlined in the statement of human rights the companies, including Alcoa, is to follow. 2. Invest in research and development with the purpose of creating and using more environmentally friendly technologies. Benefits & Implications: The development and implementation of improved manufacturing and recycling processes will take some time and money, but will benefit both the company and the environment in the long run. Such initiatives will increase both consumer and community loyalty towards the company. Lessons Learnt It is now our great pleasure to report that Alcoa has designed outstanding technologies and developed a special aluminum recycling program. We are continuously working on educating people on the importance of recycling and our aluminum products are engineered specifically for 100% recycling (We're here to help you recycle aluminum 2011). It is also financially rewarding for the company because reduces expenditure for raw materials. However, even more important is that advanced technologies allow to lower the potentially negative impact of any company’s operations on the environment. 3. In cooperation with local communities, establish an independent foundation to take care of company’s CSR initiatives. Benefits & Implications: Being a separate organization, such a foundation, will work independently, though in compliance with company’s policies, and in cooperation with the locals, thus meeting the needs of the communities the company works within. Creation of a separate organization will require some investment from the parent company, but will contribute to the improvement of the overall company’s morale and ethics. Working independently the foundation will have more time and resources for defining and achieving its goals. Lessons Learnt Alcoa has had a great positive experience in this area. Our Alcoa Foundation aims at helping local communities in addressing their primary challenges. In 2010 only the Foundation’s giving made $37 million. Some of this money went as grants to the 23 countries in which Alcoa works (Alcoa Foundation 2011). More information on our successful initiatives can be found at the company’s web-site. At the same time, not every foundation can be as successful. Ball Packaging Europe, for instance, started with establishing an environmental trust fund to promote environment education and recycling of aluminium beverage cans (Ball Packaging Europe 2011). The company cooperated only with co-founding organizations, while no cooperative attention was given to local organizations and communities, while, according to the European Comission Directorate-Ceneral for Enterprize, “letting people know what you stand for will not only open the door to potential business benefits for your company; it might even encourage others to get involved” (An Initiative of the European Comission Directorate-Ceneral for Enterprize 2011). So, cooperation with the locals will ensure the foundation is aware of the problems the particular community needs to solve. Local volunteers will help to make sure the right things are being done by interested in and devoted to the common goal people. In addition, since different communities have different problems, attention should be devoted to the peculiarities of each. We do understand that any organizaiton’s compliance with the United Nations Global Compact is a voluntary effort. At the same time we believe that our positive experience and lessons learnt from past mistakes will encourage companies to follow the positive examples. This will not only make such companies respected by the communities, but will have a great positive impact on economic performance, as well morale and ethics both within and outside the company. Respectfully, Mr Yiran Yang Director of Corporate Communications References Alcoa Foundation. 2011. Tackling global challenges, addressing local needs. Accessed April 10, http://www.alcoa.com/global/en/community/foundation/info_page/about_overview.asp An Initiative of the European Comission Directorate-Ceneral for Enterprize. A guide to communicating about CSR. 2011. European Comission Directorate-Ceneral for Enterprize. Accessed April 10, http://docs.google.com/viewer?a=v&q=cache:FfNfcaxFfEcJ:ec.europa.eu/enterprise/policies/sustainable-business/files/csr-sme/communication_guide_en.pdf Ball Packaging Europe. 2011. Ball Packaging Europe's environmental initiatives. Accessed April 10, http://www.ball-europe.com/382_291_ENG_PHP.html Continental Airlines, Inc. 2011. Human Rights Policy Statement. Accessed April 10, http://www.continental.com/web/en-US/content/company/globalcitizenship/humanrights.aspx Global Compact Principle One. 2011. The Global Compact. Accessed April 10, http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle1.html Health. 2011. Alcoa Inc. Accessed April 10, http://www.alcoa.com/sustainability/en/info_page/operations_soc_health.asp ILO. 2011. Mission and objectives. ILO.org. Accessed April 10, http://www.ilo.org/global/about-the-ilo/mission-and-objectives/lang--en/index.htm OECD. 2011. About the Organisation for Economic Co-operation and Development (OECD). OECD.org. Accessed April 10, http://www.oecd.org/pages/0,3417,en_36734052_36734103_1_1_1_1_1,00.html United Nations Global Compact. 2011. Global Compact. Accessed April 10, http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html Vision & Values. 2011. Alcoa Inc. Accessed April 10, http://www.alcoa.com/global/en/about_alcoa/vision_and_values.asp We're here to help you recycle aluminum. One can at a time. 2011. Alcoa Inc. Accessed April 10, http://www.alcoa.com/global/en/eco_alcoa/info_page/alcoa_recycling.asp. Read More