Summary

Meaningful social dialogue and effective human rights due diligence

Anna Triponel

November 10, 2023
Our key takeaway: Social dialogue and stakeholder engagement with workers’ representatives and trade unions is fundamental to companies’ human rights due diligence (HRDD) efforts for two reasons. Workers are given a channel to express the reality of workplace labour conditions, and this enables companies to collect information on the human rights risks and impacts, as well as their root causes, in their value chains. Third-party certifications and audits seldom capture the full array of human rights impacts on the ground. HRDD also strengthens social dialogue itself because it provides an opportunity for companies to assess whether the enabling rights underpinning meaningful stakeholder engagement - freedom of association (FOA) and the right Our key takeaway: The current 1.1°C of global temperature rise is “wreaking havoc across the planet,” from extreme temperatures, to worrying sea level rise from melting ice, “record-breaking” warming in oceans, and “supercharg[ed] droughts, floods, wildfires, and cyclones.” In this context, urgent action on the part of governments is needed at COP28. With the right goals and a practical roadmap, “the world can jump-start an urgently needed course correction on climate change as Parties respond to findings from the first Global Stocktake.” A report by the Systems Change Lab highlights the constellation of efforts—and diversity of actors—that will be needed to help limit warming to 1.5°C. The report highlights the importance of government action to not only set ambitious targets to reduce their greenhouse gas emissions, but to embed these goals in economic policies and regulations to push and incentivise companies to reduce emissions, with “justice and equity [taking] center stage in global efforts to accelerate sectoral transformations.” Companies have a role to play in drastically reducing their own emissions across the value chain, but they can also have a multiplier effect across the economy by advocating for such policies, taking meaningful efforts that will support national goals, and both encouraging and facilitating action on the part of their suppliers  across the globe. “A shift from business-as-usual, incremental change into emergency mode is now needed to deliver this level of required acceleration.”Our key takeaway: The current 1.1°C of global temperature rise is “wreaking havoc across the planet,” from extreme temperatures, to worrying sea level rise from melting ice, “record-breaking” warming in oceans, and “supercharg[ed] droughts, floods, wildfires, and cyclones.” In this context, urgent action on the part of governments is needed at COP28. With the right goals and a practical roadmap, “the world can jump-start an urgently needed course correction on climate change as Parties respond to findings from the first Global Stocktake.” A report by the Systems Change Lab highlights the constellation of efforts—and diversity of actors—that will be needed to help limit warming to 1.5°C. The report highlights the importance of government action to not only set ambitious targets to reduce their greenhouse gas emissions, but to embed these goals in economic policies and regulations to push and incentivise companies to reduce emissions, with “justice and equity [taking] center stage in global efforts to accelerate sectoral transformations.” Companies have a role to play in drastically reducing their own emissions across the value chain, but they can also have a multiplier effect across the economy by advocating for such policies, taking meaningful efforts that will support national goals, and both encouraging and facilitating action on the part of their suppliers  across the globe. “A shift from business-as-usual, incremental change into emergency mode is now needed to deliver this level of required acceleration.”Our key takeaway: The current 1.1°C of global temperature rise is “wreaking havoc across the planet,” from extreme temperatures, to worrying sea level rise from melting ice, “record-breaking” warming in oceans, and “supercharg[ed] droughts, floods, wildfires, and cyclones.” In this context, urgent action on the part of governments is needed at COP28. With the right goals and a practical roadmap, “the world can jump-start an urgently needed course correction on climate change as Parties respond to findings from the first Global Stocktake.” A report by the Systems Change Lab highlights the constellation of efforts—and diversity of actors—that will be needed to help limit warming to 1.5°C. The report highlights the importance of government action to not only set ambitious targets to reduce their greenhouse gas emissions, but to embed these goals in economic policies and regulations to push and incentivise companies to reduce emissions, with “justice and equity [taking] center stage in global efforts to accelerate sectoral transformations.” Companies have a role to play in drastically reducing their own emissions across the value chain, but they can also have a multiplier effect across the economy by advocating for such policies, taking meaningful efforts that will support national goals, and both encouraging and facilitating action on the part of their suppliers  across the globe. “A shift from business-as-usual, incremental change into emergency mode is now needed to deliver this level of required acceleration.” to collective bargaining - are being respected across their value chains. What can companies do? Put simply, companies must integrate social dialogue with workers’ representatives and trade unions into HRDD processes and conduct HRDD on whether the FOA and right to collective bargaining are being respected. This is to be done in accordance with internationally agreed standards on responsible business conduct (RBC), such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises (OECD Guidelines).

Global Deal published Enabling Effective Due Diligence on Human Rights Risks through Social Dialogue tool (November 2023):

  • Meaningful social dialogue and stakeholder engagement is critical to the HRDD process: Social dialogue is defined as “all types of negotiation, consultation or simply exchange of information between, or among, representatives of governments, employers and workers, on issues of common interest relating to economic and social policy.” Social dialogue is underpinned by two enabling rights, which are the freedom of association and the right to collective bargaining. This engagement must be meaningful which is characterised by “an interactive process characterised by ongoing two-way communication, it relies on the good faith of the participants on both sides, and is responsive to stakeholders’ views.” Moreover, meaningful stakeholder engagement with workers’ representatives and trade unions plays “a central role in enabling the implementation of effective due diligence on human rights.” In the same vein, HRDD strengthens social dialogue itself as it involves companies assessing whether FOA and collective bargaining are respected throughout their value chains.
  • Companies should integrate social dialogue throughout the HRDD process: The tool recommends that companies: (1) “Embed RBC into policies & management systems.” For instance, they can “[d]evelop the RBC policy in consultation with workers’ representatives and trade unions” and “[s]ystematically embed engagement with workers’ representatives and trade unions into management systems”; (2) “Identify & assess adverse impacts on RBC issues.” They can “[e]ngage and consult with workers’ representatives and trade unions in the scoping, identification and prioritisation of RBC risks” and “[a]ctively involve workers’ representatives and trade inions in the assessment of prioritised operations, suppliers and business relationships”; (3) “Cease, prevent or mitigate impacts.” Companies can “[e]ngage with workers’ representatives and trade unions to stop, prevent, or mitigate RBC impacts on labour rights.” For instance, companies can “[i]nvolve workers’ representatives and trade unions in the creation and implementation of roadmaps for stopping the activities which cause or contribute to adverse impacts”; (4) “Track implementation and results”, which involves engaging “workers’ representatives and trade unions in the design, monitoring and validation of effective of due diligence activities”; (5) “Communicate how impacts are addressed.” For instance, companies can “[c]ommunicate publicly how the enterprise has addressed potential and actual harms and how it engages with workers’ representatives and trade unions” and “[c]ommunicate with affected or potentially affected stakeholders”; and (6) “Provide for or co-operate in remediation”, which includes engaging “workers’ representatives and trade unions in the design and implementation of processes to enable remediation” and engaging with “affected parties in the determination of appropriate remedies.” Grievance mechanisms should also be designed with the involvement of workers’ representatives and trade unions and align with the UNGPs effectiveness criteria.
  • Companies should conduct HRDD on the rights to freedom of association and collective bargaining: The tool highlights how these enabling rights are fundamental to the realisation of other right. Their importance requires companies to assess whether these rights are respected throughout their value chain and they can do this by following the HRDD process. More specifically, companies can (1) “commit to upholding international labour standards in their RBC policies”; (2) “take into consideration sector, product, geographic and enterprise risk factors that will help determine the likelihood of risks and severity of harm in their own operations and in supply chain”; (3) “address their own activities which may contribute to or increase the risk of anti-union discrimination, and use leverage with suppliers to prevent such practices”; (4) “monitor any changes to the levels of risks to these rights, including by using metrics that show the outcome of these activities, such as the percentage of workers covered by collective bargaining agreements at significant locations of operation”; (5) “communicate externally relevant information on due diligence policies, processes, activities conducted to identify and address actual or potential adverse impacts related to FOA and collective bargaining risks” and “establish systems to provide regular information to workers’ representatives and trade unions”; and (6) “provide for, or co-operate with, legitimate remediation mechanisms through which impacted stakeholders can raise complaints.” 

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