This includes fair wages, working conditions, labor rights, and diversity and inclusion. Companies are expected to respect workers' rights and provide safe and healthy work environments. They should also strive for a diverse workforce and an inclusive culture.
Companies should respect and protect human rights in all their operations and supply chains. This could involve preventing child or forced labor, ensuring safe working conditions, and respecting the rights of indigenous people.
How a company interacts with the communities where it operates is another significant aspect of the 'Social' in ESG. This could involve investing in community development projects, minimizing disruptions to local communities, and responding to community concerns.
Ethical marketing practices, protecting customer data privacy, and providing quality and safe products and services are essential social responsibilities for businesses.
Supply Chain Management
Companies are also held accountable for their suppliers’ actions. Responsible supply chain management involves ensuring that suppliers are also adhering to good labor practices, respecting human rights, and minimizing environmental impacts.
SOCIAL KPIs MATTER: Improving workplace diversity and inclusion
Supporting a productive and healthy workforce
Building and maintaining good community relations
Ensuring a just transition
IFC, Sep 2023