NYU-A#8-MH Maura Hegarty November 9, 2000 International Organizations and Their Management – Prof. Kamal The Public and Private Sector: An Electronic Memo to Senior Management              To:               Senior Management Regarding:   New Relationship with the United Nations From:          Maura Hegarty, CEO As senior executives in this corporation you are most likely aware that the world in which we do business is quickly changing.  Globalization has produced an atmosphere where doing business involves not only financial decisions but cultural, social and political decisions as well. Since the challenges we face are not only financial, we must look to other outlets for information and assistance.  The major actors in today’s globalized society are multinational corporations, governments and international organizations. It is the last of these institutions where we can find the greatest source of strength as we bring our company into the new millenium.  Therefore, I propose that we seize the new opportunities that globalization has given us through a partnership with the United Nations. Why do we need the UN? With increased globalization the role of the state has weakened and an implication of this “restructuring is that governments have lost the capacity to regulate an array of economic and social relations.”   Businesses need law and order, at both the domestic and international level, in order to prosper financially and succeed in the long term.  Since the state is unable to ensure that business has a reliable and stable environment, we must turn to international organizations such as the UN.  This company is involved in the flow of products, information, technology, services and people across boarders.  We can open subsidiaries in various countries; however, we know nothing about that country’s laws, customs, culture or history.  The UN does.  Our company can not simply shut down operations in a country where there is political turmoil or other internal conflict.  The costs are too high.  We must be able to foresee where there will be trouble and determine how to deal with it.  The UN can also help us in this area.  Finally, with the weakening of the nation-state there is no longer an intermediary between the people and the company. The effects of globalization have not been evenly distributed and the unhappiness associated with this inequality is obvious from the protests against the World Trade Organization in Seattle, Washington DC and Prague. We, as a company, can not afford to raise the ire of the masses. Destruction of our subsidiaries overseas or damage to our global brand is costly and unacceptable.  There are various problems and questions plaguing the modern multinational company.  The United Nations has the answers. How the UN Can Help – The Specifics: Our primary responsibility as the senior management of this corporation is to increase shareholder value.  This partnership will enable us to do that.  The UN can provide a stable and favorable framework for business by “promoting peace and security, providing norms and standards in diverse areas as trade laws, shipping, aviation, telecommunication, postal services and statistics; addressing issues of vulnerability, poverty, environmental degradation and social conflict.”   Stability and knowledge are key aspects of a successful business, which can be found through a partnership with the UN. A partnership between the public and private sector 30 years ago would have been unimaginable.  However, the change within international society and the UN makes this partnership mutually beneficial. In 1995, the United Nations Office for Project Services (UNOPS) was created to introduce good business practices into the UN such as competitiveness and transparency.  A subset of UNOPS, the Private Sector Partnership was created in June of 2000 to facilitate partnerships between the UN and the private sector and to provide information, research, and updates on partnership formulation. In addition, the Global Compact website was designed to “link a diverse group of corporate, UN and civil society participants, facilitate the exchange of tools and ideas and attempt to consolidate the large number of standards, voluntary codes, and other initiatives now characterizing the global marketplace.” It is evident that the UN is strongly committed to the partnership between the public and the private sector.  It has provided, in easily accessible formats, information that is essential for the success and survival of this company.  I invite you to follow the below links to UNOPS and the Global Compact where you can see these exciting initiatives firsthand. Benefits to the Company: By partnering with the UN, we will not only benefit from their information and resources, we will benefit from the public and private sector working together.  First, the UN acts as a resource for all of the questions we may have on doing business in another country.  The Global Compact allows you to view records on a country’s labor practices, international cooperation, trade practices, human rights statistics and economic development.  This information will be extremely valuable as the company explores emerging markets and new areas for investment and also, will help in the development of a truly diverse and global corporate culture. An additional benefit for our corporation stems from the increased cooperation associated with a partnership between the public and private sectors.  By working with the UN we can provide development assistance, through the donation of our resources, time and knowledge, to countries which have not benefited from globalization.  By helping less developed countries we are promoting positive association with our global brand.  Also, development improves the chances that these countries will eventually become our trading partners and their citizens our consumers, both of which are beneficial to the long-term growth of this corporation. In this period of integration and economic success we must work together to make sure that these benefits are long lasting and enjoyed by all.  A partnership with the UN will allow this company to benefit financially, but it will also provide the legitimacy and normative dimension that will be necessary for continued success in the future.