GRI Labor Topic Standards: A Closer Look at the Proposed Updates
Global Reporting Initiative (GRI) has released a draft update to Labor Topic Standards. At Liveable, we see this as a much needed requirement in standardizing how the S in ESG is reported. It provides us an opportunity to rethink how we approach social sustainability reporting.
The draft is open for feedback until October 4, 2024 and here’s a summary of the key points and proposed changes in this draft.
Background
The GRI Labor Topic Standards are designed to guide organizations in reporting their employment and management practices based on internationally established human rights. They cover a wide range of topics including hiring, apprenticeships, performance reviews, and data privacy. The overall goal is to promote fair treatment of workers, improve employee well-being, and meet global labor laws.
Key Disclosures and Requirements
The four GRI exposure drafts establish comprehensive guidelines across different facets of labor and employment practices. Each draft delves into specific areas of workforce management and reporting, aiming to ensure fairness, transparency, and accountability in labor relations. Here's a detailed look at each:
Control of Work
This draft clarifies how to report on workers who aren’t formal employees but whose work is controlled by the reporting organization. It defines “control of work” and explains how it differs from general business influence.
Requirements:
Direct Control: Report if the organization decides what work is done, who does it, and how it’s done.
Means or Methods: Report if the organization sets specific ways to do the work, like using certain equipment or following exact steps.
Shared Control: Explain how control is shared with other groups, like in joint ventures.
Significant Changes for Workers
This draft focuses on how organizational changes (like restructuring or mergers) impact workers. It requires organizations to report on how they handle these changes and minimize negative effects.
Requirements:
Management Disclosures: Explain how the organization handles big changes that affect workers, including plans to reduce problems.
Consultation and Notification: Report on how workers and their representatives are involved in and informed about big changes.
Redeployment and Training: Explain efforts to help workers adjust to new roles or changes through job reassignments or training.
Employment
This draft focuses on the entire employment process, from hiring to leaving the job. It aims to standardize reporting on employment practices to ensure fairness.
Requirements:
Equal Opportunity: Report on policies and practices that prevent discrimination.
Career Development: Explain how the organization supports employee growth, like training and promotions.
Termination Practices: Detail the organization’s process for ending employment, ensuring it’s fair and transparent.
Remuneration and Working Time
This draft aims to standardize reporting on pay and work hours. It aims to ensure fair pay and good working conditions.
Requirements:
Wage and Salary Practices: Explain how pay is determined, including differences based on job, gender, etc.
Overtime Practices: Report on how overtime is managed, ensuring fair pay and no harm to workers' health.
Work-Life Balance: Explain policies that help balance work and personal life, like flexible hours or leave.
In Conclusion
These may seem like fairly basic requirements, but they represent a significant step forward. The new GRI drafts standards provide a much needed framework for developing effective social sustainability strategies. Though they don't require specific performance metrics, these drafts pave the way for enhanced transparency and accountability in people- related practices.
By reporting on these topics, organizations can demonstrate their commitment to ethical labor practices, improve employee satisfaction and well-being, and comply with international labor norms.
For more detailed information and to submit comments, this is the official page on the GRI website.
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