Good worker welfare programmes can set a business apart

While the majority of corporates make a firm commitment to protecting human rights in their code of conduct, the nature of modern businesses, with complex corporate structures across diverse locations, means this can often be a challenging pledge to fulfil.

To be sure that human rights are properly respected across all sites, not only do companies need clear policies and procedures in place, they also need systems for monitoring implementation. This is particularly important for those businesses with operations in high-risk areas where human rights records are poor, or in sectors where practices are known to be weak.

This is complex, not just from a resources perspective, but also because of the judgements that need to be applied. In some locations, working conditions may appear poor by international standards, but could well comply with local legal requirements and may even be superior to average standards in the area. Anyone monitoring implementation, therefore, needs to be aware of local norms but not constrained by them. Ideally they should set out a pathway for raising standards to the desired level.

It is also important to note that standards can vary from site to site. So, if carrying out an assessment in a particular country, it is important to visit a number of different locations.

Such visits should also include any on-site worker accommodation as standards are often very poor. Insufficient access to medical facilities and inadequate sanitation are commonplace. Accommodation can often be overcrowded or unclean, with poor kitchen facilities for the safe storage and preparation of food. All of these are human rights issues which can have reputation-damaging consequences, as a number of tea companies discovered when they found themselves the subject of a Panorama investigation in 2015.

In some sectors, mining and construction for example, health and safety procedures can be weak. Protective clothing and safety equipment are the default position on most western sites but may not be common practice, or even a legal requirement, in some parts of the world. Again, it is important to be aware of local laws, so that these are met as a minimum. However, in order to operate according to best practice, businesses should work closely with the local company to raise standards towards internationally recognised levels.

Bullying, harassment and discrimination can be common occurrences in some countries or in certain areas or sectors, particularly where there is a history of tribal discrimination. This can manifest itself in a number of ways such as an unconscious bias on the part of recruitment agencies, who may only send candidates to fit a certain mould.

Checking employment contracts is also essential, particularly if your organisation is subcontracting parts of the operation. It is not uncommon to find workers employed by sub-subcontractors without any formal employment agreement or working on regularly renewed fixed-term contracts.

These problems can be deeply engrained. Where there is a significant gap between international standards and local laws, this can cause reputational problems if brought to the attention of an NGO, journalist or activist. So what can businesses do?

Understand the law and exceed it: When carrying out a site audit, make sure there is a deep understanding of local laws, so any illegal practice can be immediately identified and addressed.

A road map towards higher international standards can then be agreed with a clear time-frame and accountability framework so that progress can be monitored and measured. Be sure that local staff are made aware of their legal rights.

Use the tender process: Procurement can play a vital role in raising standards and mitigating human rights abuses. Requirements around health and safety and labour conditions can be built into the tender process to provide leverage and raise standards. Provisions should be added to contracts to build in hefty sanctions in respect of any breaches.

Where there is a high risk from local contractors, they should only be used if the company has the leverage or ability to raise standards and is willing to put in the time and effort to ensure decent standards.

Training and communication: Best practice should be widely and visibly communicated. Health and safety policies are generally well-communicated, so the same approach should be taken to communicating human rights policies. Use a language that is widely understood and communicate messages clearly and effectively. Subcontractors or other third parties should be asked to apply the same or equivalent policies.

Training should be offered to country managers to ensure that those with oversight understand and are committed to promoting the company’s standards. Local staff should also receive training to be sure expectations are known and that local practice is aligned with parent company values.

In many difficult locations, some foreign companies enjoy excellent reputations as employers, as local workers value the improved conditions. This can help raise the bar more widely, creating a cascade of good practice that has an impact on suppliers, contractors and other operations locally.

Conduct site assessments: Companies can have a huge influence, so visiting sites to monitor progress against policy and expectations can also have a positive impact on local practice and standards. Where a site is managed by a sub-contractor, wide-ranging audit rights should be part of the contract.

Ensure that human rights risks have been properly assessed or, as a minimum, that there are procedures in place to correct the most common human rights failings e.g. excessive working hours, bonded labour and discrimination. On-going monitoring should assess the effectiveness of policy implementation.

Reporting systems: There should be an effective reporting line available to internal and external stakeholders. Accidents and incidents should also be routinely recorded and reported. Workers should feel that human rights issues matter, that there is a shared responsibility for raising concerns. Establishing a network of health and safety or worker welfare champions to promote good practice can be an effective way of both encouraging the reporting of concerns and demonstrating a commitment to ensuring high standards. A gender balance of champions is needed to ensure effective engagement with the whole workforce. It is also important that champions are permanent members of staff rather than employees on a temporary contract, who may feel compromised by raising concerns.

Invest: In some instances, standards will only be improved by the creation of better facilities, be this adding kitchens to accommodation or capital expenditure on more modern equipment.

While there may sometimes be some initial unwillingness at head office level to commit to such an investment, creating an environment that promotes high standards and minimises the likelihood of human rights abuses occurring can have a significant and positive impact.

A good human rights record is an opportunity to demonstrate good governance and responsible corporate culture. These are increasingly important indicators for business partners, employees, and investors. The pressure is on for businesses to accept their responsibility for human rights; those that do will set themselves apart from the rest.