Review and present a selection of business practices and/or approaches from your company that relate to the two principles of the Global Compact.

Assignment Brief

Review and present a selection of business practices and/or approaches from your company that relate to the two principles of the Global Compact.

Discuss both the positive and negative lessons learned from these business practices and approaches. 3. Develop business practice recommendations, which will improve compliance to the two Global principles. These should be based on the review you have undertaken and your understanding of the lessons learned. 4. Discuss the benefits, challenges and risks for key stakeholders if these recommendations are implemented.

Sample Answer

Review of GreenTech Ltd’s Business Practices in Relation to Human Rights and Environmental Protection

1. Review of Business Practices Related to Two UN Global Compact Principles

GreenTech Ltd is a UK-based company that designs and manufactures eco-friendly tech products such as solar-powered gadgets, energy-saving devices, and recycling technologies. This report reviews how the company aligns its work with two principles of the UN Global Compact.

Principle 1 – Human Rights

GreenTech Ltd follows ethical hiring processes and respects workers` rights. It does not tolerate child labour or forced labour and offers equal opportunities regardless of gender, race, or religion. The company has an anti-discrimination policy, and workers receive fair wages and safe working conditions.

However, in 2022, a supplier in Southeast Asia was discovered to be violating local labour laws. Workers were reportedly underpaid and overworked. Although GreenTech Ltd ended its contract with the supplier, this incident highlighted gaps in its supplier monitoring systems.

Principle 7 – Environmental Protection

GreenTech Ltd produces products that reduce carbon footprints. The company uses recyclable packaging, low-energy production lines, and has committed to net-zero emissions by 2035. Employees are trained on sustainability, and waste is carefully managed.

Still, one weakness was uncovered when a 2023 internal audit showed higher-than-expected carbon emissions from the logistics network, especially from international shipping.

2. Positive and Negative Lessons Learned

Positive Lessons

• Human Rights: Employees are more loyal and motivated when treated fairly. Providing training and equal opportunities has improved productivity.

• Environmental Efforts: Eco-friendly branding has attracted more customers, particularly younger, eco-conscious buyers. The company has also received environmental awards that increased its reputation.

Negative Lessons

• Lack of strict supply chain checks allowed human rights abuses to happen unnoticed.

• Focusing only on in-house emissions ignored the large carbon impact of global transportation.

• Compliance was assumed rather than verified in some areas.

3. Recommendations to Improve Compliance

Recommendation 1: Strengthen Supply Chain Audits

Introduce more frequent and unannounced audits of all suppliers. Use third-party organisations to check whether suppliers follow human rights policies. Develop a ‘supplier scorecard’ to track compliance.

Recommendation 2: Greener Logistics

Switch to logistics providers who use electric or hybrid vehicles. Where possible, use local suppliers to reduce long-distance shipping. Develop a carbon tracking system for all delivery methods.

Recommendation 3: Transparency and Reporting

Create an annual “Ethics and Environment” report that is made public. This would include data on employee treatment, carbon emissions, and how any incidents were addressed. It builds trust and accountability.

4. Stakeholder Analysis: Benefits, Challenges, and Risks