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The Real Values Of The Un Global Compact Business Essay

The perceptual experience of value is single ; every individual recognizes its values in a different manner. Value as a nomenclature could be related to a merchandise, service or an ethical action. Peoples are populating in a society that seems to be in a procedure of integration and decomposition, war and force are a clear illustration of that. Several conditions like the globalisation and the fight could do some endeavors go against legion rules that affect the human rights, environment and some signifiers of corruptness could be detected.

The United Nations is an entity that pursues the alliance, communicating and consensus of its 191 state members, to explicate declarations, norms, schemes and actions that generate benefits for the planetary population. Several states and organisations had signed declarations or understandings. But a signature is non the lone necessity to carry through the via media. The universe needs engagement and to hold a existent committedness. Organizations need a strong structural dynamic system of values.

We have to acknowledge that the society counts with a graduated table of values that permit analysis between different degrees. This could be a starting point to understand that the root of the planetary issues begin locally and separately. It seems that being socially responsible has become a tendency in those yearss, but values, rights, and our planet are non a affair of branding.


Theoretical Model

This research is based on many theories. It aims to do a connexion between the nature of the values that constitutes the foundation of the UN Global Compact, organisational values and single values, seeking to happen an interaction in these three phases in order to formalize a sense of a universe altering head procedure. In an ambitious attempt for the obliteration of utmost poorness and to guarantee an environmental sustainability, in add-on to battle HIV/AIDS, malaria, and other diseases, the United Nations introduces in 2000 a committedness signed by 191 member states in order to hold a better universe. It was a starting point of a series of enterprises that pursue a existent making for a sustainable and sustained planetary development.

The United Nation in an enterprise to agitate the engagement of several companies to increase and consolidate socially responsible leading ; established a group of 10 rules to supply the guidelines of a planetary supporting concatenation. Harmonizing to Lawrence and Beamish ( 2013 )

“ the UN Global Compact inquire its take parting companies to encompass, support, and enact, within their domain of influence, a set of nucleus values in the countries of human rights, labor criterions, the environment, and anti-corruption, and to back up the broader UN ends such as the Millennium

Development Goals ” ( p. fourteen )

The 10 rules of the UN Global Compact are a model to make a platform to establish a planetary web of a committed and inclusive economic system. They are besides based on old understandings that have generated a planetary consensus, such as: the Universal Declaration of Human Rights and the Rio Declaration on Environment and Development.



The Ten Principles of the Un Global Compact

Human Rights

Principle 1: Businesss should back up and esteem the protection of

internationally proclaimed human rights ; and

Principle 2: do certain that they are non complicit in human rights maltreatments.


Principle 3: Businesss should continue the freedom of association and the

effectual acknowledgment of the right to collective bargaining ;

Principle 4: the riddance of all signifiers of forced and mandatory labor ;

Principle 5: the effectual abolishment of child labor ; and

Principle 6: the riddance of favoritism in regard of employment

and business.


Principle 7: Businesss should back up a precautional attack to

environmental challenges ;

Principle 8: undertake enterprises to advance greater environmental

duty ; and

Principle 9: promote the development and diffusion of environmentally

friendly engineerings.


Principle 10: Businesss should work against corruptness in all its signifiers,


including extortion and graft.

Table 1. The Ten Principles of the UN Global Compact

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In a competitory landscape, someway these 10s rules could represent a regulation to interrupt in order to make the most desirable maximization of net income. Hitt, Ireland, Hoskisson ( 2011 )


found that “ the cardinal nature of the competition in many of the universe ‘s industries is altering. The world is that fiscal capital is scare and markets are progressively volatile. Because of this, the gait of alteration is grim and ever-increasing. Even finding the boundaries of an industry has become ambitious ” ( p.8 ) . There are tonss of beginnings of competitory advantage, but they all depend on the mission and visions of the organisational encephalon. “ Effective usage of the strategic direction procedure reduces the likeliness of failure for houses and as they encounter the status of today ‘s competitory landscape ” ( p.9 ) .

Furthermore, an extrapolation of the fight could besides settle the phenomenon of hypercompetition, Hitt et Al. ( 2011 ) defined this nomenclature as the gaining control of the world of the fight. The schemes set up under a hypercompetition procedure are taken by the premise of built-in instability and alteration. “ Several factors create hypercompetitive environments and act upon the nature of the current competitory landscape. The outgrowth of a planetary economic system and engineering, specifically rapid technological alteration, are the two primary drivers of the hypercompetitive environments and the nature of today ‘s landscape ” ( p.9 ) .

Traveling planetary is a portion of being competitory for today ‘s medium and large endeavors. Globalization in each state is really different in footings of how the 10 rules could be applied, that is why organisations do non hold a series of regulations or normative. Organizations count with rules ; the 10 rules of the UN Global Compact. Hitt et Al. ( 2011 ) described that

“ an international scheme is a scheme through which the house sells its goods or services outside the domestic market ” ( p. 219 ) . The usage of international schemes is increasing, traditional motivations includes widening the merchandise life rhythm, procuring cardinal resources, and holding entree to low-priced labour. This last motivation may increase the possibilities of an inaccurate behaviour in footings of what some companies are willing to make for net income. In contrast, a positive international


variegation point of position could ease invention, plans, schemes, actions for an addition in a better quality of life of every universe citizen.

An of import constituent of today ‘s company is the corporate image ; it had been described by the Capstone Encyclopedia of Business ( 2003 ) as the manner a company is perceived by those outside the company. Organizations are really clear that edifice, making and modeling a good corporate image would hold an impact on market public presentation. Therefore, being subscribed to the UN Global Compact could be an interesting manner to carry through or consolidate a corporate image, but if this is the ground why a company is portion of it, accordingly, stating to the universe that your organisation is socially responsibly would non be a affair of value merely net income.

Graeber ( 2001 ) has defined towards an anthropological point of position the three ways of speaking about values: “ values in the sociological sense, this is the construct of what is finally good, proper, or desirable in human life ; likewise we have value in the economic sense which is the grade to which objects are desired, peculiarly, as measured by how much others are willing to give up to acquire them. Finally, the value in the lingual sense, which goes back to the structural linguistics, and might be most merely glossed as meaningful difference ” ( p.2 ) .

Actually, organisations have reached to a point where there is dichotomy. Is it of import the regard for persons and personal values? Or is it of import monetary value and net income? The values in footings of the economic system could be besides portion of a social decomposition, since the term of value must ever be followed by words like unity, morality, trueness and regard alternatively of market or stocks.


We have different degrees to analyze and understand the values, harmonizing to Gale ( 2001 ) values must be study in assorted degrees, from those shared between two persons, and the values that shape a state. The Encyclopedia of Applied Phycology ( 2004 ) give a better apprehension to analyze the context that influence the person values, as we can see in the undermentioned tabular array:


Surveies in which values informations for each state are aggregated so that each


state ‘s informations become a individual information point.


Surveies in which fluctuations in values between persons within a


population are examined.


A continuum sum uping the comparative indorsement of values or value


types that contrasts some value types with other value types.


Abstract generalized beliefs about desirable ends and about ways of

accomplishing those ends.

Value type

A group of single values shown through empirical observation to constellate together.

Table 2. Degree Valuess Glossary

Beginning: Encyclopedia of Applied Psychology ( 2004 )

In the present research it is clearly of import to recognized single values, harmonizing to the Encyclopedia of Applied Psychology ( 2004 ) Rokeach Schwartz, “ reasoned that the basic homo values likely to be found in all civilizations are those that represent cosmopolitan demands of


human being ( biological demands, necessities of coordinated societal interaction, and demands of group working ) as witting ends ” . Pulling on the values identified by old research workers and authors, Schwartz grouped them into the following motivationally distinguishable value types:

Power: related with a societal position, laterality over people and resources

Accomplishment: value associated with personal success harmonizing to societal and ain criterions.

Hedonism: connexion to the pleasance or sensuous satisfaction

Stimulation: capacity of exhilaration and freshness

Autonomy: independency of idea and action

Universalism: apprehension, tolerance, and protection for the public assistance of all people and nature

Benevolence: preserving and heightening the public assistance of people to whom one is close

Tradition: regard and committedness to cultural or spiritual imposts and thoughts

Conformity: restraint of actions and urges that may harm others and go against societal outlooks

Security: safety and stableness of society, relationships, and ego

Schwartz has summarized this 10 values intro a circle where he represents Openness to Change ( including autonomy and stimulation ) versus Conservation ( security, conformance, and tradition ) and Self-Enhancement ( power and accomplishment ) versus Self-Transcendence ( universalism and benevolence ) . Hedonism includes elements of both Openness to Change and Self-Enhancement as we can appreciate in the following figure.


Figure 1. Schwartz ‘s value types.

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This theoretical model attempts to acknowledge that the nucleus of single values, are connected with the organisational values and they are a portion of a socially responsible context that impulses the 10 rules of the UN Global Compact.



The 10 rules of the UN Global Compact are non a enchiridion, its fulfilment is non compulsory, but to non follow them in many instances could represent a jurisprudence misdemeanor depending on the legal context of the part or state. Therefore, these rules are portion of a doctrine and a guideline for the socially responsible leaders. The 10 rules seem to be oriented towards companies, but it is a wicked vision. A existent value is founded as a solid construction in the psychological science and actions of an person, and accordingly in households, groups, societies and states. When its degree of strength is reached the rule emerges.

When the single values exist so the organisational values could be excessively, since the organisational values are established by persons. Organizations have besides intrinsic values, because money does non supply sufficient justification for concern to be, that is the point where companies must understand that they are portion of a major system, that are interacting with the community, society, economic system, and so on. Thinking approximately companies as a separate and isolate component is wholly incorrect, working towards the rule that organisations are portion of a major system and interacts in its kineticss ; this is a cardinal point in a societal responsible corporation. When an organisation reaches the planetary value degree, the following measure could ever be to encompass the 10 rules of the UN Global Compact. The following graph provides impressions about how a moral force of values should be in other to obtain a existent via media from the companies around the universe.

The undermentioned diagram represents a construction of values based on the rules of the UN Global Compact. It describes as an interaction of values: person, household, cultural, corporate and planetary.


Figure 2.Value interaction diagram Simoza ( 2013 )

The first degree is the single value, which would be the characteristic that make us incorruptible and unbreakable, so we can happen a 2nd degree, which is household as an establishment and all the values that we learn from its kineticss and how we are educated. The cultural, societal and state values constitute the 3rd phase, this are the common values that embedded parts and states. Furthermore, we have the value corporation the represents the degree where the organisation is assembled like a psychological entity and hence establishes its nucleus values. Why the corporate values are in a superior place than the cultural values? Why non at the same degree? The graphic is constructed merely in map of positioning the doctrine of the 10


rules, in other fortunes, the graduated table could work otherwise. The values of the state go foremost because it is compound of citizens with all its features that go into groups organizing the organisation with pre-established value. The higher degree in this moral force will be the planetary value. The organisation reaches these values when they understand that they form a portion of a major system that needs to turn in map of common development.

What is a existent socially responsible corporation? This is non an organisation that is be aftering or taking some actions to take attention of the society and the environment because this is really a tendency, and it would assist them to place the company in order to hold a good image in forepart of its clients and the environment. Alternatively of that, the right reply should be that industries are traveling socially responsible because they understand that its companies are portion of the universe and cipher can see the human precariousness with indifference. To bring forth a planetary alteration major alterations are needed. The committedness to society and the environment is an battle with the good values and to set the values in forepart of anything, it does non count its degree ( single, corporate, planetary, etc. ) is affair of root and regard. To encompass the 10 rules of the UN Global Compact, the universe needs to hold a existent socially responsible appraisal erected by human values. A failure in the system presented in Figure 2 is tantamount of a kid being abused, a pole that melts or in a corruptness action that remains unpunished.


There are legion challenges and chances presented to corporate leaders by the UN Global Compact. The 10 rules established by the United Nations are an consciousness and impulse to make a web of alterations and authorising endeavors to be responsible on its activities. A good corporate leader makes its employees follow the cause by open a landscape of


actions. One of the major challenges that the United Nations confront is the measuring of the public presentation of its rules and understandings, but the world to a corporate leader is that the illustrations and the actions are the cardinal to make a socially responsible environment. The major challenge of an organisational leader is to go in an component of contact action for take parting in the planetary motion for a better place to the planet citizens. An enterprise leader does non merely have the urgency to impact on its organisation, but in the society and other companies. The major chance that corporate leaders have is the power to opportunity. Good leaders must make a web that allows a redesign that permits the involution of planetary alterations.

Actually, the United Nations and the universe are seen different types of organisations and leaders: The little group that has already started the alteration, the groups that simulate a alteration to stabilise a trade name and generate net incomes, the groups that are make up one’s minding whether to take action for alteration or non, the organisations that remain inert in forepart the planetary dismaies and eventually companies that promote anti-principles. A twenty-four hours without actions to better our environment can be the equivalent of many actions to rectify the harm.

The strengthening of human, household, cultural, corporate and planetary values is the key to the transmutation. There is a way for the alteration and advancement that every occupant of this planet deserves and each person has the same sum of duty. Global alterations should get down with the re-composition of values. If the humanity joins forces so the universe will be incorruptible.


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