Decent work is not only a moral obligation, but also good for business
Author: Anke Winchenbach (University of Surrey)
Poor working conditions and low pay in hospitality and tourism have long been a major concern, with many people are now shunning away from entering the industry in the first place. New ESG (environment, social and governance) regulations drive positive change for improving the lives and livelihoods of hospitality and tourism workers. Under these new regulations, finally, social sustainability considerations (the S in ESG) are put on an equal footing with environmental sustainability. Alongside their financial and environmental reporting, as part of new EU regulations businesses are now required to assess their actual and potential risks for their own employees, as well as those in their supply chain. This way businesses must take responsibility and can be held accountable for fair pay, job security, gender equality, diversity, healthy and safe working environments, skills and training, the right for collective bargaining, as well as tackling human trafficking and modern slavery.
In our latest report entitled Why The ‘S’ In ESG Matters: Social Sustainability and Labour and Human Rights in Travel And Tourism’ we outline critical social risks and present a clear and compelling business case for pro-actively addressing labour and human rights. The report was commissioned by the International Transport Workers’ Federation (ITF) and the IUF union representing food, agriculture, hotel, restaurant, catering and allied workers internationally and draws on interviews with industry leaders including representatives of TUI and the World Travel & Tourism Council (WTTC), industry investors and global trade unions, and analyses data and research on labour and human rights. We also compare four ESG approaches and provide insight and guidance and what and how to measure social sustainability for people working in travel and transport.
Our research found that there is still a gap between what companies say they do and what they actually do. However, forward thinking and acting companies will benefit from providing fair and dignified working conditions:
- Attracting and retaining talent
- Equal opportunities, and diverse and inclusive working environments
- Leveraging social dialogue and building progressive relationships
- Mitigating supply chain risks
- Access to financial incentives and investment
- Renewed social licence to operate
- Managing reputational risks
- Responding to customer expectations
- Improving strategic decision making and continuous improvement
- Managing compliance and regulatory risks
As a call to action, the report proposes seven catalytic actions for businesses, governments, investors and trade unions. These include establishing multi-stakeholder initiatives with strong policy and legislative frameworks and compliance systems, increased access to unions and experts on labour and human rights, ‘double materiality assessments’ to identify key priorities for labour and human rights, developing and implementing policies for improving labour and human rights, and communicating the results “transparently”.
The report, Why the S in ESG Matters: Social sustainability and labour and human rights in travel and tourism, is available to download for free from the ITF website.
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