Report: Over 90% of Global Companies Fail to Uphold Human Rights, Labor Standards

Facts

• In a report released Tuesday, the World Benchmarking Alliance (WBA) found that over 90% of the world's 2K big global firms — including Amazon, BMW, Nestle, Pfizer, and Shein — are not doing enough to effectively address human rights, workplace conditions, and corporate ethics.¹
• Multinational firms control 45% of the global economy and affect more people than many governments because of their wealth and influence. The study suggests that big firms are missing opportunities to enhance hundreds of millions of lives.²
• The survey found that companies in countries with human rights laws did on average 60% better than those in countries with no human rights regulations. The WBA concluded that multinational firms must do more to support the UN's human rights standards.³
• A majority of companies provided data on wages, and 45% disclosed information about working hours. Only 20% indicated they conducted human rights due diligence on their supply chain partners, and 4% of firms supported a living wage.¹
• Only 10% of corporations report tax payments and 5% report lobbying expenditures. The WBA has warned that the lobbying activities of the world's 2K largest firms could either support or hinder sustainable development — but it's very difficult to tell due to transparency issues.²
• The World Benchmarking Alliance urges businesses to 'act ethically, provide and promote decent work, and respect human rights.' The organization is funded by the EU, Canada, Denmark, and the Netherlands.¹

Sources: ¹Al Jazeera, ²The Truthinternational and ³JURIST.

Narratives

• Narrative A, as provided by World Benchmarking Alliance. In order to achieve the UN Sustainable Development Goals and meet the target of halving poverty by 2030, it's essential for the private sector to adopt socially responsible business practices, uphold human rights, ensure safe workplaces, pay fair wages, and pay their fair share of taxes. Responsible lobbying is also crucial in the effort to reduce poverty. Social movements worldwide are calling for an economic system that prioritizes the welfare of billions over the wealthiest few individuals.
• Narrative B, as provided by Cato. Free trade and a robust private sector are often targeted as being the source of labor and social woes, but in reality, child labor has diminished, wages have increased, and the workplace has become safer in the era of globalization. Wealthy countries also tend to lead innovation regarding renewable energy and impoverished nations often benefit from engagement from multinational corporations. The private sector is a massive boon to social well-being.

Predictions