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.
• 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.
• Discuss the benefits, challenges and risks for key stakeholders if these recommendations are implemented.

Sample Answer

Review and Recommendations Based on Global Compact Principles

Introduction

The United Nations Global Compact (UNGC) is a voluntary initiative encouraging businesses to align their operations with universal principles related to human rights, labour, environment, and anti-corruption. This report focuses on two principles: Principle 1 (Businesses should support and respect the protection of internationally proclaimed human rights) and Principle 10 (Businesses should work against corruption in all its forms, including extortion and bribery). Using the company XYZ Ltd. (a fictional international manufacturer), this report reviews selected business practices related to these principles, identifies positive and negative lessons learned, provides recommendations for improvement, and discusses the implications for stakeholders.

1. Review of Existing Business Practices

1.1 Human Rights (Principle 1)

• XYZ Ltd. has implemented a code of conduct requiring suppliers to avoid child labour and discrimination.

• The company introduced diversity and inclusion training across all offices.

• However, audits of overseas suppliers revealed unregulated working hours and poor safety measures in some factories.

1.2 Anti-Corruption (Principle 10)

• XYZ Ltd. enforces an anti-bribery policy with annual training for management.

• A whistleblowing hotline is available for reporting unethical behaviour.

• Nonetheless, in one international subsidiary, local customs facilitation payments were not clearly reported, showing weak local compliance.

2. Positive and Negative Lessons Learned

2.1 Human Rights Practices

• Positive: Corporate training has improved workplace inclusivity and awareness of discrimination.

• Negative: Global supply chain audits highlighted inconsistencies in enforcing human rights standards abroad, undermining corporate commitments.

2.2 Anti-Corruption Measures

• Positive: Internal reporting mechanisms have successfully addressed some local misconduct cases.

• Negative: Inadequate training and enforcement in certain regions led to non-compliance with anti-bribery protocols.

3. Recommendations to Improve Compliance

3.1 Strengthening Human Rights Compliance

• Mandate third-party human rights audits for all suppliers bi-annually.

• Create supplier incentive schemes that reward ethical practices.

• Introduce real-time reporting tools for supply chain workers to raise issues.

3.2 Enhancing Anti-Corruption Measures

• Expand anti-corruption training to all employees, not just management.

• Develop a global compliance dashboard with regional reporting capabilities.

• Partner with local NGOs and government bodies to standardise anti-bribery procedures.

Continued...