More than 90 percent of the world’s 2,000 most influential companies, including Amazon, BMW, and Nestle, are failing to meet societal expectations regarding human rights, working conditions, and corporate ethics, according to a groundbreaking assessment by the World Benchmarking Alliance (WBA).
Despite commanding revenues equal to 45 percent of the global economy, these top companies are missing opportunities to positively impact hundreds of millions of lives. The WBA tracks corporate commitments to the UN Sustainable Development Goals and highlights the lack of action on fundamental social expectations by these corporations.
- Facts and Figures: The WBA’s Social Benchmark revealed that at least 30 percent of companies scored between 0 and 2 out of 20 points. More than 60 percent disclose some information about wages, and 45 percent report on working hours, but only 29 percent monitor supplier workplace health and safety. Just 20 percent conduct human rights due diligence, and a mere 4 percent commit to a living wage.
- Causes and Contributors: The assessment identifies a “mismatch between what companies disclose on decent work and society’s expectations.” Regulation, guidance, and external pressure are deemed necessary to guide businesses towards ethical practices.
- Response and Actions: Of the sectors surveyed, apparel and footwear, ICT, and retail scored highest, meeting societal expectations at 28-33 percent. The funds and financial services sector scored lowest at 11 percent, followed by transportation at 14 percent, and real estate at 16 percent. By region, Asia Pacific companies scored highest due to Australia’s tax disclosure impact, followed by Europe and North America.
“The fact that 90 percent of these companies are failing to act on fundamental social expectations shows the state of play of the private sector,” said Namit Agarwal, social transformation lead at the WBA.
Insights into legal frameworks and international laws related to human rights, corporate ethics, and labor conditions can provide a deeper understanding of the issue.
The WBA’s report underscores the urgent need for the private sector to take greater responsibility for economic and social conditions. Achieving the UN Sustainable Development Goals, including halving poverty by 2030, requires companies to engage in socially responsible business practices.
Additional Resources:
For more information, readers can explore the WBA’s full report, relevant UN Sustainable Development Goals documentation, and resources on corporate responsibility and human rights.
