The World Benchmarking Alliance (WBA) has reported a concerning trend in human rights adherence among the world’s most influential companies. According to the report published on Tuesday, an estimated 90 percent of the top 2,000 companies globally are failing to meet social expectations relating to human rights and labor rights protection. The WBA has urged policymakers and investors to demand greater accountability from these corporations.
The report highlights a substantial gap between companies based in countries with stringent human rights regulations versus those without. Companies in regulated environments scored 60 percent higher on average. Despite this, only about 20 percent of companies undertake any form of human rights due diligence, underscoring the need for regulatory guidance and pressure to foster improvements.
A particularly stark finding is related to wages and working hours. The report found that only 4 percent of companies are committed to paying a living wage that meets International Labour Organization (ILO) standards. Additionally, a mere 3 percent have policies ensuring reasonable working hours, consistent with the ILO’s Forty-Hour Week Convention.
The report also draws attention to the inconsistency between corporate sustainability strategies and their lobbying activities, recommending that firms more actively engage with stakeholders affected by their practices. This includes understanding and mitigating any negative impacts their business activities may have on human rights.
The World Benchmarking Alliance’s mission involves identifying areas where the private sector’s most influential companies can enhance their human rights compliance. The organization rates individual company progress to promote adherence to human rights standards, encapsulated in their Social Benchmark. This benchmark evaluates companies on three main criteria: respecting human rights, providing decent work, and acting ethically.
The WBA grounds its human rights standards in the United Nations Guiding Principles on Business and Human Rights (UNGPBHR), which advocate for thorough human rights due diligence. This principle requires companies to proactively mitigate human rights violations and to establish organizational frameworks that address any violations that occur.
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