Question

According to the UN Global Compact principle, which area H&M will need to focus in their current and future business? Why?

Answer 1

H&M and the UN global compact principles:

The corporate policies of sustainability include the following:

• The value system of the organization
• The business should have a principled approach
• The basic responsibilities in the area of human rights, labor, environment, and anti-corruption should be ensured
• The organization should ensure policies and principles to ensure compliance and good practices in all mentioned areas.
• The organizations should uphold their basic responsibilities to the people and the planet.

The UN global compact principles or sustainable goals are as follows:

Principles	Definition
Human Rights
Principle 1	Business should support and respect internationally declared human rights	They want to be 100% fair and equal. 100% fair jobs for all. The target is diversity and inclusiveness. Their standards and policies include human right policy, sustainability goals and a code of ethics to attain it.
Principle 2	They do not complicit human rights abuse
Labor
Principle 3	Uphold freedom of association and right to collective bargaining	100% of suppliers in Bangladesh have a democratic way of functioning. 6,20,000 workers are represented by elected representatives.
Principle 4	Elimination of forced or compulsory labor	H&M global foundation an NGO funded by the main owners of H&M. The mission of the foundation to improve the living conditions and add value to people, communities and invest in innovative ideas.
Principle 5	Abolition of child labor	They are committed and undertake to stop violation of child labor as per rules laid down by the UN and also focus on woman and migrant workers rights.
Principle 6	Avoid discrimination in employment and occupation	Employed 10,000 multicultural, diverse workforce to increase the workforce to 1,70,000 in 2017. They have 62% workforce as the woman and their products are produced in 1662 factories worldwide. They follow fair wages and fair jobs for all.
Environment
Principle 7	A careful approach to environmental challenges	They have reduced emission by 21% and are working towards 100% recycled or other sustainable material by 2030. BY 2040 they will achieve a climate positive value chain.
Principle 8	Greater environmental responsibility	They have a roadmap for a chemical and toxic-free future fashion. 59% of the products are made by sustainably sourced cotton and the target is to use 100% sustainably sourced cotton by 2020. In 2017 they collected 17771 tonnes of garments for reuse and recycling. Target is 100% circular in and renewable. Specific sustainable goals for energy, water, waste etc.
Principle 9	Use environmental friendly technology.
Anti Corruption
Principle 10	Avoid corruption, extortion, and bribery	They have a code of ethics for suppliers and employees to act with integrity and have a no gift policy, zero tolerance for bribery and corruption. The COE is same worldwide and translated into all languages to ensure understanding and compliance. Any bribery or violation of no gift policy can lead to termination of the business relationship. 100% of the partners have signed their code of ethics. They have strict systems in place to track and handle violations.

To sum it up H&M is serious about following the UN global compact principles or sustainable goals by focusing on a future for 100% circular and renewable, 100% leading the change 100% fair jobs and ensuring a change in the value chain to create a climate change. They try their best to incorporate and ensure change in their stakeholders worldwide be it suppliers, employees or business associates.