United Nations Global Compact on Responsible Management - Term Paper Example

? In the light of the challenges facing global business today, all companies listed on stock exchanges should adopt the UN Global Compact on responsible management Student’s Name :( First, Middle, Last) Admission Number: Course/Subject Title: Institution: Instructor/Lecturer: Date of Submission: (Dd, mm, yyyy) Table of Contents 1.Introduction 3 2.Benefits of Global Compact: 8 3.Future for Global Compact: 9 4.Governments and the United Nations 11 5.Environment 11 6.Governance 12 References 14 1. Introduction UN Global Compact is a voluntary initiative which plays an important duty in the boosting of accountable corporate citizenship and may complement government activities. Contribution of businesses is identified or functioning of countries within the extending responsible corporate partnership practices involving the UN Global Compact which boosts the ongoing contribution in these charitable initiatives and persuade exchange of experiences within enterprises to boost the corporate social accountability (Groves, 2009). This paper argues that “in the light of the challenges facing global business today, all companies listed on stock exchanges should adopt the UN Global Compact on responsible management” Globalization conveys people, culture, societies together and necessity and chances for cooperation enabling more prosperity and complex understanding to boost. Accountable businesses that establish proactive corporate practices and policies involving those valued by human rights, upon ensuring decent and safe working environments protection and excellent corporate governance contribute largely towards achieving social, economic and environmental goals. They also assist in making of markets more maintainable, inclusive and stable. Forming practices and rules which boost business responsibilities may also contribute towards business competitiveness. Enforcement and adoption of regulations and laws lies with the governments thus, business guided efforts can only be maintained and scaled when rules of law, public institutions, predictable regulatory and transparent efforts maintain the accountable business exercises. Much more, the collaborative multi-stakeholder enhancements amidst business, institutions, labor organizations and civil society give chances to boost promote innovation and extensive sustainable progression in manners capable to extend what businesses and governments produce on their own (Creaton, 2007). There are some ways in which Governments may sustain accountable business exercises. These are: Forming enabling conditions where governments may allocate crucial conditions for corporate accountability matters for dialogue and progression. This could also involve guiding by example like by articulation maintaining for corporate accountability principles and guidelines. Raising consciousness as the governments may dynamically draw attention to usual matters, benefits and aspects of corporate responsibility and enable for public debates. On promotion governments may come with best practices like giving of awards likewise to endorsement or invite wider community and invite businesses support for voluntary corporate accountability activities, programs and initiatives such as UN Global Compact. Tools progression ensure recognizing that business sectors can at times require requirement facilitation or guidance help as governments could help the progression of corporate accountability guidelines, programs and realization of particular designed which encourages entrepreneurism and corporate accountability amongst the medium and small sized enterprises areas. Funding where the governments have resources and may directly add to resources to assist voluntary initiative to exploit their effects. UN Global Compact renewed the multi-stakeholder obligations, widening of business establishment, boosting of financial market incentives, added governmental maintenance and extending of wider UN-premises agenda. All the points lies with the decision that business workings in pragmatic and principled enhancement is one of the effectual ways of United Nations to acquire its targets for global security, realization and establishment of human rights. More establishments of linkages amidst the UN and UN Global Compact could offer the extensive effectiveness for wider UN-business issues. Moreover, the ongoing leadership for UN Global Compact by Secretary-General matters crucial to ensure the agenda does not allow everlasting alternatives in societies and economies everywhere and in United Nations Systems as well. The UN Global Compact outcomes also insights the requirements to enable Global Compact’s integrity allegations particularly via quality brand protection and measurement to ensure the continual progression and extended initiative effectiveness. It is also significant that the Global Compact should continue to facilitate and recognize wherever possible the market-based incentives for organizations to establish exercises in a manner that the Global Compact could assist get a new phase of globalization which offers chances and wealth in the entire corners of this earth (Groves, 2009). Sustaining of the balance between the outward business and the UN mandate orientation becomes significant particularly with more suggestion for Global Compact future come with the assurance of outputs varieties in association to UN Global Compact. Tangible updates and adjustments towards the UN Global Compact plans in day to day functioning will result within the due course. Nevertheless, the principle objective of the UN Global Compact is not wavering to make sure business allover contributes to maintenance and inclusive of the global economy via applying universal rules into functions and corporate culture. UN Global Compact suggests that in this interdependent world, the business leadership may not be maintained with any leadership on social, environmental and government matters. The interdependence comes with significant actualization that cannot be separated from accountability to ensure businesses enjoy sustained progression. We thus ought to establish and legitimacy and trust to expand markets in a huge sustainable manner. We should thus offer the available businesses with more and better chances to enhance their growth. The Global Compact has gained important progression as the business communities are also too often connected with many challenges involving exploitation practices, income inequality and corruption. Thus the business leaders should embrace the compact as the organizing tool for global functions. This will ensure that subsidiaries, boards and the supply chain partners utilize the compact as the moral compass and management guide. Thus, there should be constructive partnership and governments should be encouraged to sustain their political, commitments, financial and practical issues when nurturing the space needed for voluntary initiatives hence enabling duties for governments (Creaton, 2007). The partnership working with the private sector ensure the UN has capacity and relevance needed to strengthen partnerships with the civil society and business to improve the utilization of expertise, knowledge, reach and access. The human rights on accomplishments of UN Global Compact is significant though the human rights capable for Global Compact is not fully met making it not able to enable compliance with the set rules hence delisting companies who not submit their reports in positive but inadequate steps. Corporate citizenship need observance of certain rules as the UN Global Compact is found on principles distinguished by the law. It is then up to businesses to take up their responsibility as there is no alternative in establishing of laws as their principles don’t cause any harm. The trade unions apply huge significance in the compact principles which have to be applied in an incorporated way. Corporations ought not to engage in corporate philanthropy since most of the philanthropists in the world are awful employers. There should be constructive partnership and governments should be encouraged to sustain their political, commitments, financial and practical issues when nurturing the space needed for voluntary initiatives hence enabling duties for governments. The Global Compact has gained important progression as the business communities are also too often connected with many challenges involving exploitation practices, income inequality and corruption. Businesses, governments and civil societies are accountable for management of global commons though various countries support UN Global Compact as an initiative which is crucial for dialogue. Preservation of resources and sustainable developments are not only the moral and ethical challenges but economy challenge as the cost of inaction is exaggerated. Leaders in UN Global Compact Summit add that it is for companies’ interest to boost peaceful and stable societies focused on the future. The requirements of UN Global Compact involve limits for voluntary engagement as well. We thus ought to establish and legitimacy and trust to expand markets in a huge sustainable manner. We should thus offer the available businesses with more and better chances to enhance their growth. Tangible updates and adjustments towards the UN Global Compact plans in day to day functioning will result within the due course. Nevertheless, the principle objective of the UN Global Compact is not wavering to make sure business allover contributes to maintenance and inclusive of the global economy via applying universal rules into functions and corporate culture (Creaton, 2007). Most of the governments adapt the compulsory norms like areas of environments apart from good conduct. The governments have the obligation of supporting regulations of corporate citizenship and finally these rules are made compulsory concerning those companies which do not apply. The principle of competition is a method and it would not be fair to entail similar method on developed and undeveloped countries. It is also significant that the Global Compact should continue to facilitate and recognize wherever possible the market-based incentives for organizations to establish exercises in a manner that the Global Compact could assist get a new phase of globalization which offers chances and wealth in the entire corners of this earth. The first Annual Review indicated that companies have employed the ten Global Compact rules which confirmed the broad adoption of companies responding to principles towards the survey. Many of the respondents in the survey have rules associated to labor conditions, human rights, environments and fight against corruption. It is clear that several companies are following the new reporting policies where signatories are needed to expose yearly in the way to implement them or risks being delisted. Though companies are on their way to implement those rules, there are seen notable performance gaps. Thus for large companies and multinationals, more work needs to be done to cater for rules into supply chains and subsidiaries. This will enable companies to realize their full engagement benefits. 2. Benefits of Global Compact: Offers a chance for business to exchange good lessons and practices. It acknowledges the good business exercises which enable companies to showcase the tasks they perform. Offers a chance of associating with labor organizations and civil society on challenge matters in problematic countries. The Global Compact enhances the progression of enlarging globalization and offers the platform to cater for global matters. It gives room for development capacity and engagement. The principles are the underlying issues that drive changes and offers chances for compliance. The Global Compact has enabled businesses to work for a common good. Companies now deal with global compact principles and corporate social responsibility as an appreciation value. Due to Global Compact, employees now feel more dedicated and motivated by companies that contribute in it. Principles implementation enables credibility which makes it crucial for investors looking for accountability and quality for companies. It plays a great role in assisting investors make their investment decisions. Contribution in Global Compact enables the higher sense of responsibility and adds great standards into the company. Its principles are based on global declarations usual to mankind which offer the mutual basis and shared language during the formation of joint ventures by businesses. 3. Future for Global Compact: Reporting It becomes significant inquire more needs on companies which report practices to eradicate free-riders for better progression. Multinational corporations ought to report on the basis of country by country. Subsidiaries Businesses ought to enlarge their principles towards their subsidiaries and establish associates towards the rules of coming economies. Dialogue Companies ought to extend their dialogue with their entire stakeholders and form more peer-peer learning chances for benefits of other achievements. Networking and communication amongst its participants is crucial. It becomes significant to have a location where networking would take place in the entire year, for instance in interactive websites. Supply Chains It becomes crucial to enable implementation of rules downwards to the supply chain and form the usual standards of doing that. It becomes important to teach both consumers and suppliers to apply principles and move forward. Education Businesses’ managers should be educated on companies’ citizenships all within their companies and in business schools. Business ought to teach their employees concerning the Global Compact rulers and corporate responsibilities. Leadership It becomes crucial for a company’s chair to endorse their company’s establishment activities and offer their leadership and commitments. Implementation There is the necessity of apparent implementation mechanisms to apply rules into exercise. There is the necessity for higher implementation rules and form mechanism assessments. It is significant to have a sovereign independent external substantiation system to enable implementation of rules. More focus should be given on the way principles can be established within the poor countries, where people fight daily for survival. 4. Governments and the United Nations Governments are supposed to be more involved in the Global Compact and assist to enforce their rules. Nevertheless, it becomes important to safeguard the voluntary conditions of initiatives in order to progress. This brings the need for functioning guidelines and local establishments to conduct their frameworks. Thus, the United Nations should fully establish its principles by example especially concerning the UN pension funds and UN’s associations with its employees and suppliers. 5. Environment The Global Compact suggest that the energy usage, climate change, decreasing biodiversity, scarcity of natural resources, growth of mega-cities, water problems, pollution and deforestation creates some major environmental problems towards the business operations today. Thus, the businesses have a major obligation to guide for a neutral carbon footprint. Companies could achieve that by measuring their carbon footprints and clearly committing towards the focus and reporting of carbon dioxide emission targets and conclusions to all the stakeholders (Gronroos, 1990). For instance, the transport companies suffer from the heavy carbon footprints. The Global Compact proposes that transportation synergies be established like the sharing of transportation processes to ensure collaboration on minimizing of companies emissions. More so, the businesses ought to mobilize their consumers as it is crucial for consumers to comprehend their responsibilities. Education for the workforce is thus important to address the social, environmental and governance matters. Thus for large companies and multinationals, more work needs to be done to cater for rules into supply chains and subsidiaries. This will enable companies to realize their full engagement benefits. Global Compact issues proposed that new technologies ought to be established to enhance the energy effectiveness. This suggested investors to focus on other new sources of energy like green investments which stimulate establishments of alternative energy production. Thus energy transportation and production markets ought to be liberalized. Since companies are at the center of value-chain, it becomes not adequate enough to concentrate on managing employees. Businesses have to look at whole cycle of products as societies and companies should adopt other recycling methods to minimize energy requirements and alter on consumption patterns. 6. Governance Global Compact issued that corruption amongst governments and businesses is a big issue that requires more systematic addressing by businesses. Thus fostering more transparency, combating of corruption and incorporate social, environmental and governance matters into business exercises. Thus, as per Global Compact, business should enhance local networks and form the best exercises to be showcased. To address the governance issues well, it is vital to support the outcome for leaders of government and business progress. Education is one of the factors which address corruption matters and extend its competitiveness. This enables extended transparency and accountability (Gronroos, 1990). As per Global Compact, there is the need for enforce interaction within governments and businesses which are dependent on public to private associations. It is significant to have the best quality global governance and regulations to establish the accountability within the society in globalization progression. Business should allow people conduct organizations and respond towards internal requirements. Reliable governance needs discussion with all the stakeholders and other governing bodies to enable boosting of success and ownership. References Article Bailey, John T 2009, Rejuvenation of Local Authorities in East London, American Economic Development Council. Blaxter, L, Hughes, C & and Tight, M 1996, London Local Authorities, Milton Keynes: Open University Press. 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