Why improved workforce reporting is important and what we’re doing about it

There are too many poor quality and precarious jobs around the world. The United Nations recognised this in the 2015 Sustainable Development Goals. Goal 8 calls for ‘decent work for all’. Multinational companies have a key role to play in meeting this goal. Through their operations and supply chains, they are responsible for the pay and wellbeing of millions of workers.

Importantly, it’s been shown that both companies and workers can benefit from creating better quality jobs.

As shareholders of these companies, institutional investors are well placed to make a difference. The Workforce Disclosure Initiative (WDI) mobilises these investors to push for better jobs. The first step is to make sure companies disclose comparable workforce information. Investors can then use this data to engage with companies and drive a race to the top.

The WDI brings investors together to request comparable data from companies via an annual survey. Its ultimate goal is to improve the quality of jobs in multinational companies’ operations and supply chains.

The WDI is part funded by the Department for International Development (DFID) and our dedicated investor signatories. In addition, a range of civil society and private sector organisations are helping to shape the WDI. The initiative is also endorsed by the Pensions and Lifetime Savings Association (PLSA).

Why this is important and what we’re doing about it

There are too many poor quality and precarious jobs around the world. The United Nations recognised this in the 2015 Sustainable Development Goals. Goal 8 calls for ‘decent work for all’. Multinational companies have a key role to play in meeting this goal. Through their operations and supply chains, they are responsible for the pay and wellbeing of millions of workers.

Importantly, it’s been shown that both companies and workers can benefit from creating better quality jobs.

As shareholders of these companies, institutional investors are well placed to make a difference. The Workforce Disclosure Initiative (WDI) mobilises these investors to push for better jobs. The first step is to make sure companies disclose comparable workforce information. Investors can then use this data to engage with companies and drive a race to the top.

The WDI brings investors together to request comparable data from companies via an annual survey. Its ultimate goal is to improve the quality of jobs in multinational companies’ operations and supply chains.

The WDI is funded by the Department for International Development (DFID) and run in partnership with Canada’s Shareholder Association for Research and Education (SHARE) and the Responsible Investment Association Australasia (RIAA). In addition, a range of civil society and private sector organisations are helping to shape the WDI. The initiative is also endorsed by the Pensions and Lifetime Savings Association (PLSA).

Why did you join the WDI advisory group?

Trade unions have always stood by the principle that labour is not a commodity. And yet the contribution of workers is all too often treated as a cost of business rather than a company’s greatest asset. Respect for worker’s rights should be the foundation of a sustainable business. It is extraordinary that in the 21st century, we still need to have a conversation about how responsible business and responsible investors should take labour rights into account in business and investment decisions. Workers are the key stakeholders in achieving a productive and sustainable business. Meaningful corporate disclosure should drive how companies are valued and how we all understand the growth of social and economic value. WDI is taking us in that direction.

Why did you join the WDI advisory group?

How can companies that are actively seeking to respect human rights in their business be rewarded? What pushes a company to change its practices and behaviours when it comes to human rights? How can one empower those working in companies pushing for greater respect for people? Access to finance is important for any company, and investors have a critical role to play in helping drive respect for human rights in the private sector. At the same time, it’s vital for investors to be mindful about their leverage: how can they combine their efforts to achieve more effective change? I am eager to push forward the thinking on how investors can combine their leverage strategically to support companies as they strive for greater transparency and robust human rights due diligence in their supply chains. Of course, I am also looking forward to working with the fantastic staff at ShareAction!

Why did you join the WDI advisory group?

I like the multi-stakeholder nature of the WDI, and being part of the Advisory Group offers an opportunity to shape and ensure greater collaboration and knowledge-sharing between both investors and companies to drive the improvement of corporate disclosure and data collection. Reporting of social data is quite fragmented in terms of the information collected and published by companies, information collected by service providers and national and local reporting legal requirements. Investors are increasingly pushing for the need to harmonise expectations and frameworks in place in order to avoid reporting fatigue, but also to achieve consistency across the industry, and the I see the WDI as a positive effort in moving in this direction.

Why did you join the WDI advisory group?

Good workplace relations are critical for long-term corporate value creation. More transparency on workforce data is therefore important for investors. I support WDI as an important voice in this effort.

Why did you join the WDI advisory group?

The WDI has not only identified an area of focus that is extremely necessary in the context of advancing some of the issues that sit at the heart of the SDG agenda, but has also set out to undertake this work in a highly inclusive and impactful manner which equips both the investment and business communities with practical tools that can help to drive real change.

Why did you join the WDI advisory group?

Trade unions have always stood by the principle that labour is not a commodity. And yet the contribution of workers is all too often treated as a cost of business rather than a company’s greatest asset. Respect for worker’s rights should be the foundation of a sustainable business. It is extraordinary that in the 21st century, we still need to have a conversation about how responsible business and responsible investors should take labour rights into account in business and investment decisions. Workers are the key stakeholders in achieving a productive and sustainable business. Meaningful corporate disclosure should drive how companies are valued and how we all understand the growth of social and economic value. WDI is taking us in that direction.

Why did you join the WDI advisory group?

My excitement at joining the WDI advisory group is in helping to strengthen investor engagement on securing decent and dignified employment in supply chains. I spent 10 years at Oxfam engaging clothing companies and supermarkets in various efforts to improve working conditions, both unilaterally and through initiatives like ETI.

Through my current role at Forum for the Future, based in my home region of SE Asia, I have the opportunity to engage with apparel manufacturers to understand the barriers and opportunities to ensuring workers rights are respected. This work has made me look closely at the systemic effects of disclosure as a tool for creating change in this domain, including the potential positive and negative feedback loops depending on the type of disclosure asked for.

Why did you join the WDI advisory group?

Social issues remain the most under-considered pillar of ESG. While in large part this is because of the way that human capital is accounted for, it is also caused by a significant lack of meaningful corporate disclosure on the topic. With all companies employing people it remains a paradox that there is such opacity in this area. The WDI can play an important role in building momentum towards improved disclosure of direct and indirect workforce matters.