Financial Sector Labour Conditions and Human Rights Question 4

From RankaBrand

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Question

Does the brand's financing services policy provide for compliance to the labour standards as described in the ILO declaration on fundamental principles and rights at work and does the brand define higher risk countries or sectors which require additional diligence?

Dutch version:

German version: Wird in der Unternehmenspolitik der Marke auf die Einhaltung der Arbeitsbedingungen bestanden, wie sie in der ILO-Erklärung über grundlegende Rechte bei der Arbeit aufgeführt sind? Definiert das Unternehmen Länder oder Branchen, die besonders sorgfältig überprüft werden sollten?

References:

Protecting people in the workplace is a fundamental responsibility of companies and governments. The standard setting body in the field of labour issues is the International Labour Organization (ILO), the tripartite UN agency which brings together governments, employers and workers. With the adoption of the ILO Declaration on Fundamental Principles and Rights at Work in 1998, the ILO identified eight of its conventions as 'fundamental'. These eight conventions cover four subjects that are considered as fundamental principles and rights at work:

• Freedom of association and the effective recognition of the right to collective bargaining (ILO conventions No. 87 and 98)

• The elimination of all forms of forced or compulsory labour (ILO conventions No. 29 and 105)

• The effective abolition of child labour (ILO conventions No.138 and No. 182)

• The elimination of discrimination in respect of employment and occupation (ILO conventions No.100 and 111.)

(Mind the Gap, p.91)

Ranking guidelines:

Financing and Underwriting – Reward 'Yes' when the bank’s policy requires an assessment of the client’s adherence to the four ILO fundamental principles and rights at work for relevant transactions, sectors and countries OR (if stricter than the ILO) defines a bottom-line on labour-related activities and practices which will not be financed/underwritten

Investing – Reward 'Yes' when the brand will only invest in companies which adhere to the four ILO fundamental principles and rights at work for relevant transactions, sectors and countries AND identifies higher risk countries or sectors which will require additional diligence