Living in Line with the UNGC Principles: A Hinopak Way of Doing Business

Abstract

The case revolves around the management-labour union relationship in Hinopak Motors, the manufacturer of world renowned Hino diesel trucks and buses in Pakistan. Following UN Global Compact (UNGC) framework; Hinopak is committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption. The process of implementation of UNGC framework started in 2010. It was expected to not only address labour rights issues, but also to take care of the human rights, transparency in businesses and strive for viable work environment at the company. After six years of continuous efforts Hinopak achieved the obvious outcome in terms of congenial work environment but faced pressure on the financials of the firm. The Hinopak management team wonders can a business in Pakistan grow and flourish even after spending on CSR as per the guidelines of UNGC principles.