S U S TA I N A B I L I T Y L A N D S C A P E A S S E S S M E N T: S O C I A L S U S TA I N A B I L I T Y
LABOR RIGHTS
Common labor rights issues include:
But company managers must be aware that there are often deep-seated reasons for current conditions. For example, policy-makers may under-enforce child labor laws knowing that enforcement could take earners out of the market, disrupting families and contributing to social disharmony.
Identifying and Managing Areas of Concern
While the employment opportunities that businesses create are one of the primary positive social impacts, many aspects of employment can create problems.
Today, most companies “police” labor issues through the assess-audit-remediate paradigm. But it’s not perfect. First, it can be slow to create lasting change. Second, it’s resourceintensive. Finally, violators that are intent on evading prosecution have come up with numerous ways to avoid detection. In some parts of Asia, it’s possible for a factory to “rent” fire extinguishers for a short period, which is often done in anticipation of a visit by auditors.
• freedom of association (such as the right to form a union) • safe, healthy working conditions • fair wages • child labor In most developed countries, these issues are subject to stringent regulation with robust enforcement mechanisms (but don’t be fooled—transgressions can happen anywhere). There’s a significant concern, however, that much of the developing world lacks the resources, policies and cultural impetus to adequately protect and empower workers. This is where large global companies have a significant opportunity to contribute to improvements: working with suppliers and other business partners located in risk-prone areas to identify the issues, tease out the root causes, assist with reform and hold violators accountable.
Leading companies now augment their “stick” approach with a “carrot”—direct and indirect investments in labor rights in risky areas. Usually, working with local nonprofits that have on-the-ground experience and credibility, companies are teaching management good labor stewardship and rewarding those who show improvement. Companies are also going directly to the worker, using technology, social media and other means to gain real-time information on working conditions. This is a powerful tool for identifying issues, and it can create a sense of accountability on the part of company owners when used correctly.
CASE STUDY: Labor Voices Labor Voices, a relatively new player in social accountability, combines experience in labor relations, technology and international business to offer a system for workers to directly report labor conditions to major brands that are the penultimate customer for their products. Using their mobile devices, workers can photograph and describe in writing conditions that concern them. Labor Voices collects, bundles and makes anonymous this data and then sells it to global brands in a subscription model. This provides unprecedented visibility upstream—visibility that can’t be achieved under the assess-and-audit protocol. Labor Voices claims its mobile technology is deployed in 400 or more suppliers to global brands and covers more than 40,000 workers. Learn more by visiting www.laborvoices.com.
THE UNIVERSITY OF MICHIGAN’S ERB INSTITUTE | BUSINESS FOR SUSTAINABILITY
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