Companies' Performance in Relation to UN Global Compact Management Model

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SCM SUSTAINABILITY
Introduction
The United Nations Global Compact Management Model was set up to help companies embrace a more sustainable approach to growth and profitability through following certain principles. These principles are; assess, define, implement, measure, communicate and commit. There is need for an assessment of risks, opportunities, and impacts across the globe. Then defining goals, strategies, and policies. Thereafter comes implementation of strategies across the value chain and throughout the company. This should be followed by measuring and monitoring progress and impacts to the goal, then communicating progress and strategies. Finally, there is need for leadership commitment in mainstreaming the compact principles into strategies and operations as well as taking actions supporting the broader goals of UN more transparently. This paper evaluates how Unilever, IKEA and Patagonia are performing in relation to the six global compact management principles. 
Unilever
Reasons Why Unilever is Performing Well
Unilever, despite making losses in 2014, is the best-performing company among the three according to the 6-step united nations global compact management model. This is due to a number of reasons, which the company has managed to adequately fulfill and stick to in its operations.
* The commitment of Unilever
Despite any impending challenges, such as making a loss in a financial year, Unilever's management shows total commitment to whichever plan they have rolled out until it is fully implemented. For example, the company had performed dismally at the announcement of the performance of the financial year 2014. However, the company had earlier started implementing a transformational strategy driven by Unilever's sustainable living plan (Jansen). CEO Paul Polman faced several challenges in implementing this transformational strategy until some wondered how far he could push this agenda. However, Polman did not give up on this transformational strategy until it materialized. CEO Polman was also committed to doubling Unilever's business. He faced this new challenge through the 'compass vision,' which aimed to double the company's business size while reducing the company's environmental degradation and increasing the company's positive social impact at the same time (Bartlett). Key to the transformational strategy was a reduction of deforestation across the world. To show its commitment, the management committed to sourcing its palm oil from certified and traceable sources by 2020.
* Unilever Does Assessments.
Unilever has always been at the forefront of assessing its plans' risks, opportunities, and impacts. During the Implementation of the Transformational strategy agenda, the SVP dealing with sustainable development with the CSO and the group's financial controller launched tools for assessing the impact of USLP on the business. By 2014, they subjected Unilever products to analysis to see if they had contributed to USLP targets and also looked at their profitability and growth rate (Bartlett). This assessment required a lot of effort, but the company carried it out since it could help integrate the sustainable agenda into ...