Fair Treatment of Workers
Putting people over profit
Precarious work is on the rise, millions work for less than they can live on, and there is a long way to go to close the gender and ethnicity pay gaps. Demand for profit has driven this inequality and investors have a role in providing the solution.
Income inequality and in-work poverty pose significant risks to our society and economy. Not only are economic opportunities being unfairly distributed, millions of workers are being left without the dignity or respect they deserve.
We want to see salaries which cover the basic needs of individuals and their families :families: a real Living Wage. What’s more, all workers should be offered basic rights and benefits: secure contracts, a guaranteed number of hours, union representation, pensions, holiday and sick pay.
These issues also disproportionally impact individuals from ethnic minority backgrounds, with forty-seven per cent of Black and ethnic minority young adults on zero-hour contracts in the UK.
It's more vital than ever that companies provide the best environments for their workforce to thrive – there is growing evidence that those that look after their employees outperform those that don’t.
Investors and companies relying on low-paid and insecure work are at increased risk of reputational damage, industrial action, high staff turnover, poor productivity, and new regulation demanding further disclosure.
Role of the financial system
Eighty per cent of Living Wage Employers believe that the real Living Wage has enhanced the quality of work of staff, while twenty-five per cent saw a reduction in staff turnover.
16 per cent of temporary or part-time workers in the EU and UK were at risk of poverty in 2017 – three times more than standard employees.
Investors and companies relying on insecure work are at increased risk of reputational damage, industrial action and new regulations demanding more disclosure.
25-year-olds on zero-hour contracts are 41 per cent less likely to report good physical health, and one-and-a-half times more likely to report mental health issues. Good quality, secure work coincides with increased productivity, reduced absenteeism and sick leave.
Good Work themes
Insecure work
The shape of work is changing. There has been an increase in insecure contracts – including casual, temporary agency or labour hire, like gig workers and zero-hour contracts. These workers lack rights and protection. We engage with investors to help them push companies to improve workforce practices.
Workforce disclosure
You can’t manage what you don’t measure. Key to driving up workplace standards is clear, comparable data on workforces and company policies and practices. The Workforce Disclosure Initiative (WDI) aims to provide investors with the data needed to drive up standards at the companies they invest in.
Living Wage
Everyone deserves a fair wage for a fair day’s work. This means a wage that meets their basic needs – and those of their families. Yet, today, many workers in the UK and globally work for less than a real Living Wage. We bring together a coalition of investors to urge the FTSE350 to commit to paying a real Living Wage.
Diversity & Inclusion
Businesses do not operate in a vacuum - so structural inequalities and systematic biases in society are reproduced within the workplace. If companies do not take active steps to improve diversity and inclusion, these inequalities will only increase.
Our Solutions
Unlocking the power of investors
We benchmark and engage with investors to harness the power of investment for social and environmental progress.
Find out moreReforming the rules
We work with policy makers and regulators to drive the uptake of responsible investment across the UK and globally.
Find out moreBuilding a movement
We educate and empower individuals on how they can use their money to build the future they want.
Find out moreGood Work Coalition
It is more vital than ever that we invest in workforces - and there's growing evidence that companies that look after their employees will outperform those that don't. Investors will be key to this, and our investor coalition aims to engage companies to push for better working practices.
Workforce Disclosure Initiative
The Workforce Disclosure Initiative (WDI) aims to improve corporate transparency and accountability on workforce issues, provide companies and investors with comprehensive and comparable data and help increase the provision of good jobs worldwide.
