Un Global Compact Opportunities And Challenges Business Essay

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In the business world nowadays exist many of things, as a forced labour, child labour, pollution among others. The UN Global Compact is a bargaining between the multinational corporations and United Nations, its purpose is ensure for the needs of communities in underdeveloped countries, develops systems to improve its way of life as it known in Mozambique, Mali, Sierra Leone, and others, the pollution, and necessities that these counties have, is unbelievable; by then UN Global Compact have nine principles that care the cover of these aspects to this people, not only in poor countries exists these bad habits over human rights, develops countries have its abuses.

The UN pursuit the balance between business and communities, the respects of human rights, labour conditions and environmental cares, but this organization has critics about the procedures to follow and overlook the accomplish of its policies in multinational companies around the world. It is difficult to the UN Global Compact operate and follow all the multinational companies in its operations and conditions of labour, benefits to the communities and people related to the corporations.

This paper express the interesting issue that could be applies the Total Quality Management (TQM) and create a Total Quality Culture (TQC) in the UN global compact as an opportunity to obtain a biggest scope in the multinational corporations over communities and countries; Also, the companies has an important challenge to develop this tool and create a TQC, and achieve a new goal in the human rights, labour conditions and environment.

Theoretical Framework

This paper has as its base to the UN global compact principles and the business operations by corporate social responsibility (CSR), with the finality to found some opportunities and challenge for both sides, United Nations (UN) as a social community and Multinational Corporations (MNCs). The first one used to know the norms and interesting policies develops in Global Compact, according to Bellish (2012). "The Globalization has led to a shift in power away from states and towards the private sector, by that reasons the multinational had been the principal actors. Many of these company abused of developing countries in labor, and human rights, by them these corporations have led to increase the corporate social responsibility (CSR) through enforceable norms.

The political and macroeconomic developments are likely to overtake legal and normative developments, particularly those emanating from the corporate suite, in leading to corporate responsiveness to a broader community of stakeholders". With his thoughts, Bellish, J. (2012) states the importance of the norms in multinational corporations and how understanding these policies will allow the countries to comprehend or even responsibility that the companies have with its employees and communities, therefore taking the advantage to adapt the performance of these responsibilities in order to obtain the best result for the business.

In addition with Bellis, J. comments other interesting article is of Deva, S. when the theory presented by this article, express three sets of questions in references to corporate social responsibility. The lecture express as "First set of questions ask: do and should corporations have any other social responsibility than generating wealth and maximizing shareholders' value? The two steps of questions are: what of corporate social responsibility: assuming that corporations do have some social responsibilities, what is the extent of such responsibilities? And third and final set of questions deals with "how" to enforce social responsibilities of corporations, how to overcome challenges that the regulation of corporate conduct pose? Which kinds of sanctions could prove effective against those corporations which fail to comply with their responsibilities?" (Deva, S)

In this idea, the Global Compact expressed the relation with third set of questions to make certain that corporations take their social responsibilities acutely.

Moreover, in other interesting article businesses around the world measures should grab and take action on the nine principles in reference of human rights, environmental preservation and labour practices. In business sight, the Compact is an intriguing tale in its growth. The Compact looks in first place, to improve to more sustainable and inclusive global markets by engage them in ethical values. It in that way hopes to cultivate a more relationship between business and societies that could beneficiated both sides, giving a particular attention to the poorest people in the world. One of its principle goals is to create an important group of dedicated company's leaders to continue the movement. At the start, a company plan on unification the Compact had to send in a letter of commitment from the CEO´s multinational corporations. These firms also had to submit an example of its work in implementing the Global Compact principles.

Global Compact has nine important principles in reference of human rights, labour and the environment, enjoy universal consensus being derived from human rights the firsts two which are: (1) Businesses are asked to support and respect the protection of international human rights within their sphere of influence; and (2) make sure their own corporations are not complicit in human rights abuses.

In the other hand, we have among the third and sixth related with labour: (3) Businesses are asked to uphold the freedom of association and the effective recognition of the right to collective bargaining; (4) the elimination of all forms of forced and compulsory labour; (5) the effective abolition of child labour; and (6) the elimination of discrimination in respect of employment and occupation. Furthermore is important the last three principles of these nine, which refers to the environment, (7) Businesses are asked to support a precautionary approach to environmental challenges; (8) Undertake initiatives to promote greater environmental responsibility; and (9) encourage the development and diffusion of environmentally friendly technologies.

In some peer-review used to develop this paper, the writer notices some important message of the Kofi Annan: "The process must be made transparent. Today, there is only a small body of people who truly understand global institutional financial and development governance" and other interesting message was "To achieve the goal of sustainable development, environmental constraints must be fully integrated into mainstream economic policy". These words reflect the important message of the UN Global Compact to the countries and multinational corporations.

Global Compact networks can be created by the side of geographic lines (country, region) or the length of sectored lines (pharmaceutical sector, commerce sector, manufacturing sector, etc.). Many of safeguards have been developed to protect the integrity of the UN. Policies that govern use of the UN sign are in consigning. Furthermore, the Compact has created and follows a self-imposed policy of accepting support only from governments or non-profit organizations.

Other important theory to analyze in this paper is the Total Quality Management (TQM) and its Total Quality Culture (TQC), TQM models is based on numbers of essential elements described by some researchers (Singh et al., 2008; Fryer et al., 2007) as the Critical Success Factor (CSF) are necessary for successful TQC implementation. The theory of total quality is considerer to an opportunity and even a challenge for the multinational corporations, in many factors. A core definition of total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In an application of this interesting toll of management could create a TQC, all members of an organization participate in improving processes, products, services, and the culture in which they work. (Philip, B)

In application of the theory of TQC, exists eleven CSFs were identified which persuade TQC implementation in social responsible, these factors are interrelated and support each other: (1) Necessary management behavior; (2) A strategy for TQM implementation; (3) Education and training; (4) Organization for TQM; (5) Process management and systems; (6) Employee involvement; (7) Teamwork; (8) Partnering; (9) Communication for TQM; (10) Recognition and reward; and (11) Quality technologies (tools and techniques). These factors offered to proceed as a guide for higher social responsible contemplating a TQC plan. This analysis provides current information on the state of TQC within the opportunities and challenges that the multinational corporations would be in context based on 11 CSF in response to this need. Providing the current status of TQM in an organization is fundamental to implementing quality programs (Davies et al., 2007)


In the class of organization and leadership, is analyzed the globalization of the multinational corporations and its duty with community, human rights, labour and environment, for these factors, the United Nations (UN) as global leadership, develops some principles, policies and rules as Global Compact, to engage these corporations to respect the factors mentioned in every place that these firms works, these policies has created the corporate social responsible (CSR), which is the responsible that the firms has over communities, employees, and environment of its functions.

The global compact has nine principles, which explain its compromise with human rights, labour, and environment.

1. Businesses are asked to support and respect the protection of international human rights within their sphere of influence; and

2. Make sure their own corporations are not complicit in human rights abuses.

3. Businesses are asked to uphold the freedom of association and the effective recognition of the right to collective bargaining;

4. The elimination of all forms of forced and compulsory labour;

5. The effective abolition of child labour; and

6. The elimination of discrimination in respect of employment and occupation.

7. Businesses are asked to support a precautionary approach to environmental challenges;

8. Undertake initiatives to promote greater environmental responsibility; and

9. Encourage the development and diffusion of environmentally friendly technologies.

These principles help to understand how the big corporations need to think not only in work if not at people and communities. All these rules that have the global compact in the UN, has created an significant controversy, because some people argue that the policies don´t have continued and procedures to follow its applying by the corporations; However, most of the country who conform the UN are agree with roles and procedures, the corporations has aligned with each policy which allow to improve the quality of life of people in these countries and develops knowledge, goods and service for them.

Many of examples exist in the research for make this paper, it could take as example the least-developed country (LDC) this program was officially launched at the World Summit on Sustainable Development in Johannesburg. The convenient period of the initiative was launched in Ethiopia and efforts have begun in Bangladesh. Possibilities are currently being explored in three additional countries: Madagascar, Angola and Cambodia. (Kell, J.). Others import examples by the multinational corporation were the Credit Suisse Bank which produced a cutting-edge sustainability report, and British Petroleum shown leadership designing an internal greenhouse gas emission trading system to reduce carbon dioxide emissions.

A significant numbers of corporations have worked towards earning formal International Organization for Standardization (ISO) accreditation. Others companies such as Kikkoman and Fuji Xerox have initiated and achieved global gratitude for their environmental programs which resulted in decreased carbon dioxide emissions and better waste management. The Global Compact has also served as a structure block for global support agreements between global companies and international trade unions. By example, Statoil operates in over 20 countries and faces a large range of challenges on labour standards and employee dealings. This agreement was the first of these characteristics; the agreement is associated with the Global Compact principles and covers 16,000 employees in over 20 countries. (Kell, G.)

The Global Compact has constantly paying attention on moving away from the possibility of appropriate a top-down idea with little ownership at argument level and has positive the growth of networks from the territory line. Networks of Global compact have shown remarkable outcome in countries as diverse as China, Cameroon, India, Panama, Poland, Germany and Scandinavia. For example in Scandinavia, a crowd of big companies holds at least one occasion a year to share experiences and knowledge. The fundamental topic of the meetings was managing human rights and responsibility in the supply chain. Work was also done on developing appropriate indicators and organizational knowledge.

In relevant researches for make this paper the writer consider many important all develops found in countries as China and in Arab countries have shown how business simplicity can be a innovative and positive force for productive social change, even when a few governments are not willing to consign to new initiatives. By example is considering interesting by this writer that in China, the United Nation Development Programme (UNDP) has developed seal relationships with businesses over the last years and has cooperated on a quantity of initiatives ranging from sponsorship of events and publications to corporation projects.(Kell, G)

China has an innovative reform called "China Reformed Development Forum Committee, under the auspices of the Chinese Academy of Social Science (CASS), is establishing a Global Compact Learning Forum China Centre" (Kell, G.). For this innovative idea the committee and its sponsorship, they acting as a culture center for the Global Compact in China, this center will effort with co-operation through a broad range of stakeholders, including business, government, academia, labour and civil society. By part of Arab countries, a significant number of companies are known that have broken with custom and have signed up to the Global Compact, complete consciousness campaigns are less than approach in both regions. One of the biggest challenges as personal criteria is that the Global Compact faces at the international level will be to determinedly either affect or frustrate the way the story of globalization, one of the biggest international systems develops nowadays plays out on the world stage.

By this writer the Global Compact needs to enlarge in horizontally and vertically way. While several supportive models of solution judgment have resulted in essential initiatives such as Growing Sustainable Businesses in LDCs and the Business Guide to Conflict Impact Assessment, the Global Compact requests to added scale up its activities and actions in order to apply a considerable influence on policy making and business models. For a second time, while it is certainly encouraging that a superior number of organizations, including over 1,000 corporations, have connected to the Global Compact, when the real number approximately 60,000 multinationals in existence, this numbers not include the millions of small and medium-sized enterprises (SMEs). A lot of these SMEs could be part of the service in supply and distribution chains of multinationals companies. The Global Compact would in addition want to become part of the actions of many more high-visibility multinational corporations.

The criteria of these aspects is that may have as is augmented challenges by the fact that the Global Compact has an really determined goal: it seeks to create a model of corporate citizenship that, while elastic in methods and options, aims to persuade the activities of business both inside the organization's limitations as well as superficially, in the way it chooses to respond to community requirements. This purpose throws into deep release the reality that the UN is still an extremely hierarchical and compartmentalized organization. Thus, this paper proposes to evaluate the application of the theory of Total Quality of Management (TQM) that is "a management approach to long-term success through customer satisfaction. In an application of this interesting toll of management could create a TQC, all members of an organization participate in improving processes, products, services, and the culture in which they work". (Philip, B)

The implementation of TQC in corporate social responsibility could be based on critical success factors (CSFs) or developed in the Model of Leverage Points for a Total Quality Culture Transformation researched and applied by Sulaiman (2002). In that research it express these factors as interrelated and reinforced each others as summarized. Expressed in the next figure took by one of my references


The first point is both a thought uprising and a behavioral insurgency, which approach as of a correct appreciative on the meaning of quality itself. If it is creating, can be measured to be the essential management behavior, which is the requirement for the progress of a total quality culture. The change must be fixed in the business desires of the companies. The first level of change are to be establish in the "soft" rudiments of culture areas that are principally related to community and the behavioral aspects of working life such as roles people participate all the way through the organization which control the "hard" rudiments of culture such as the methods, tools, and systems to use supply the functioning satisfied of these roles. In addition to the process the second level would be the collective influence of all these points being used at the same time. This concept is linked to the contingency views of TQC (Psychogios and Priporas 2007).

The third stage is continuing analysis and dialogue of civilizing issues, not as the principal intercession for transform, but taking position inside the perspective of implementing adjust in the course of the influence points. More time, the collective consequence of this hard work will generate a new society, which supports the TQC (Bolton, Biehl, Koch, Wiklund, and Singh et al. 2008)

Thus, the writer considers that exist a big opportunity for multinational corporations and the challenge to the UN Global Compact of applying TQC philosophy to corporate social responsibility. Also, involves several critical steps such as clearer analysis of quality, by communities and their requirements; clearer understanding of multinationals mission and its stakeholder's roles; and bigger leadership sustain and cooperation. Additionally, the qualities of processes are in the structure of instruction, knowledge, training and service; and the qualities of productivity are in the form of the progressive employee that move away of the system. It sorry to say, in a lot of countries the focal point of consideration of quality management initiatives appears to be principally on the quality of contribution rather than the quality of process or quality of amount produced (Koch, 2003; Brookes and Becket, 2007).

In the applying of this philosophy it is necessary to make a reliability and validity analysis previous to being used for the last data compilation, the reliability and validity of the measures were experienced to establish how trustworthy the chosen variables measure the create. The sample was based on the managers or administrators (person responsible for the performance of the organization, TQM, accreditation, or some part of it) of multinational corporations and UN crew able to review all the aspects to consider in the sample.

Also is important the analysis of these results obtained by the application of sample, Analysis of Variance (ANOVA) is most used to explore respondents' observation and their opinion on the CSFs which influence TQC implementation as it mentioned before in this paper. The following description refers about the survey finding and conclusions. ANOVA is an analysis on the twenty statements indicated that there was no statistically significant difference of views between the three different levels of social responsible except for the use of group processes to enhance quality in its activities for human rights, labour and environment. This shows that there is almost a consensus among the three levels of institutions on the eleven CSFs influencing the environment for TQC.

In general thought, the interesting effect that have the UN Global Compact over Multinational Corporations and its corporate social responsible with the communities and environment, approach the highest leadership in the world, with these principles and policies created, persuade big companies to respect human rights, labour and environment, in all aspects, the consideration to apply tools of management as TQM and its philosophy of TQC as a whole, considering as an interesting opportunities for the UN to improve its leadership and develops more acceptance in the whole world by underdeveloped countries; However, push to develops countries to enhance the excellence in the aspects as human rights, labour and environmental issue.

Thus, this result confirmed previous arguments that TQC in the UN Global Compact could be generate a transformation and its full benefits would be difficult without the cumulative influence of all the leverage points being used simultaneously. The challenges that the multinational corporations will have, would be consider as an important balance for the less benefits communities and its people, the respect for the human rights and labour conditions, increase its way of life and motivate the employee to work in a better way, not only by earn money, if not for your knowledge, communities and progress.


The Global Compact principles can be heartbreakingly complex to implement. Global Compact is nothing further than an ethical range. Its difficulty arises from exactly the same simplicity, that at its center it is nothing less than a moral compass. The Global Compact principles propose that several actors with frequently apparently irreconcilable beliefs pull in performance towards a universal vision. The participants should then agree on how to find the way the uncertain boundaries among belief and intolerance, responsibility and liability, interventions and invasion. Many of actors in the business world would need to be of the same mind on where competition ends and where collective sense of right and wrong begins.

Greatest men´s business will remember the popular jingle used during the growth of the environmental movement: "We have met the enemy, and he is us". The Global Compact has importance will recline in the choice participants create to either build a sustainable society that offers occasion to the world's citizens or to denounce millions of people to lives raven with inconsistency, ravaged by sickness and lack of hope. Right now, global players have a choice.

Findings from this paper have shown another potential development in terms of how social responsible in underdeveloped and developed countries prepare to themselves for TQC philosophy. In references to these issue, many writers in others lectures make references about culture in each organization as the beliefs which permeate the organization concerning how company should be managed, and how employees should be treated and respected. Thus, this finding confirmed previous arguments that TQC could be an important opportunity to UN Global Compact to keep deep in the social responsible with parameters aligned to quality and persuade the multinational companies to accept the challenge of apply this philosophy in its action, and activities to develops human rights, labour condition and environment cares, being well the best example of the globalization leadership, able to persuade and convince the business world to achieve new goals.