Companies with operations and business partnerships throughout the world encounter cultural practices and traditions that vary from region to region and that impact the workplace environment. In many parts of the world, certain groups of people can be excluded from certain job opportunities, and in some cases this is legally permitted. Multinational companies face the challenge of remaining open to different cultural contexts while avoiding discriminatory practices against employees.

Most company guidelines on discrimination require that employment decisions be based solely on an individual’s ability to perform her or his duties. This includes all terms and conditions of employment, including hiring, job assignment, training, promotion, discipline, and termination of employment. Companies examining their business operations or those of their business partners have found that discrimination is one of the workplace issues that is most difficult to identify. This can be because some discriminatory practices are culturally ingrained, and business practices may reflect larger social patterns unless there is a conscious effort to alter them.

 

Business Importance
This section describes business benefits that are particularly relevant to nondiscrimination. For a more comprehensive list of business benefits in this area of corporate social responsibility, see Overview of Human Rights. Despite the difficulties encountered in identifying and addressing discrimination in the global workplace, companies that adopt and implement nondiscrimination policies can realize the following business benefits.

Recruit and Retain the Best Talent

Nondiscriminatory practices help ensure that jobs are filled by the most qualified people, which enhances productivity. Moreover, talented staff members are more likely to stay with the company when they see a career path that is not blocked by discriminatory practices in advancement. Fair treatment based upon job performance increases employee loyalty and reduces the cost of hiring and training new people.

Better Community Relations

Institutions (both private and public) that refrain from discriminatory employment practices and have a workforce representative of the local population, including traditionally excluded populations, are more likely to enjoy the goodwill and support of communities near their facilities and the public at large.

Reduce Liability for Discriminatory Practices

Companies have been successfully sued for discrimination based upon gender, age, race, and religion among others. In some cases, large punitive damages are awarded as a lesson to other employers. In countries where legal redress is readily available, employees are increasingly willing and able to seek such remedies.

Enhanced Reputation and Trust

Companies that strive to rid the workplace of discriminatory practices earn greater trust from their business partners and customers and will be recognized by stakeholder groups as a positive example. This can enhance the reputation of the company.

Building Markets

Many companies have come to find that their markets are comprised of increasingly diverse populations, and maintaining staff who understand current and potential markets ensure that commercial opportunities are maximized.

 

Key Developments

This section describes key developments that are particularly relevant to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights.
The issue of discrimination in the workplace has gained global attention for various reasons, including:
  • Attention to social inclusion has been growing steadily, as has the role of the private sector;
  • Workers have been awarded large damages in lawsuits against companies, sometimes in cross-border situations;
  • Human rights reports increasingly cover the actions of multinational companies across their global operations;
  • Increased access to information has provided greater awareness of discrimination patterns that may have gone undetected before;
  • Media attention to business ethics has grown substantially in the wake of Enron, Worldcom, Tyco, Parmalat, and other crises;
  • Ongoing trend of extending global supply chains brings companies into contact with many new business partners with wide-ranging practices;
  • Attention to discrimination has resulted in some visible gains, such as reducing the practice of pregnancy screening for female job applicants.
Consequently, many companies are engaged in efforts to actively prevent discrimination in their own operations as well as to eliminate it from their global supply chains.
  • Damages awarded to workers in lawsuits: Financial services firm Morgan Stanley agreed to pay USD$54 million in July 2004 to settle U.S. allegations that it systematically underpaid and failed to promote its women employees. In 1998, Mitsubishi Motors of North America paid USD$34 million in damages to female U.S. employees in the largest sexual discrimination complaint to date in the United States. Other notable awards include a USD$10.6 million U.S. settlement by Ford Motor Company for age discrimination, a USD$1.11 million settlement by Stockton Steel for discrimination based upon national origin and religion, and a USD$20 million settlement in 2003 for lawsuits brought on behalf of several thousand garment workers on the island of Saipan (a U.S. territory in the Pacific ocean) accusing major U.S. brands and retailers and their contractors in the territory of a range of worker abuses. Companies are increasingly aware of the necessity to have training programs and remediation systems that can prevent discriminatory practices or identify and correct problems that exist.
  • Human rights organizations report on discriminatory practices: Human rights organizations throughout the world have investigated workplace practices in export production facilities and publicly reported their findings on discrimination. For example, a resource book entitled "We in the Zone," edited and published by Hong-Kong based labor rights organization Asia Monitor Resource Center (AMRC) highlights key issues affecting women workers in Asia's export processing zones. Amnesty International and the Prince of Wales International Business Leaders Forum together created a series of global "risk maps" that identify human rights risks in production areas for seven major industries. The maps identify countries that have incidents of forced labor, bonded labor, child labor, and denial of women's rights, among other issues.
  • Draft Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with Regard to Human Rights: In 2003, the UN Sub-Commission on Human Rights proclaimed a set of Norms addressing the role of the private sector in promoting internationally agreed upon standards of human rights, and urged governments to take steps to ensure that the Norms become "generally known and respected." Under the Right to Equal Opportunity and Non-Discriminatory Treatment section,
    • "Transnational corporations and other business enterprises shall ensure equality of opportunity and treatment, as provided in the relevant international instruments and national legislation as well as international human rights law, for the purpose of eliminating discrimination based on race, colour, sex, language, religion, political opinion, national or social origin, social status, indigenous status, disability, age (except for children who may be given greater protection), or other status of the individual unrelated to the inherent requirements to perform the job, or complying with special measures designed to overcome past discrimination against certain groups. The Norms incorporate the key elements of the many initiatives on human rights promulgated by multilateral institutions, and as such could become the future benchmark against which company activities are measured."
  • World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance: In August 2001, the United Nations hosted an international conference in Durban, South Africa focused on all forms of discrimination. The conference adopted a "programme of action" that included a call for the private sector to “to support the creation of workplaces free of discrimination through a multifaceted strategy that includes civil rights enforcement, public education and communication within the workplace..." An intergovernmental working group was established to encourage the implementation of the "Durban Declaration."
  • International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families: Adopted by the UN General Assembly in 1990, this Convention officially entered into force on July 1, 2003, following Guatemala's ratification -- the 21st country to do so. The Convention seeks to prevent the exploitation of migrant workers, and, in particular, to put an end to the illegal recruitment and trafficking of migrant workers and to discourage the employment of migrant workers in an irregular or undocumented situation. The Convention includes a set of binding international standards on the treatment and human rights of both documented and undocumented migrants, as well as the responsibilities on the part of sending and receiving States. Article 25 states that
    • Migrant workers shall enjoy treatment not less favourable than that which applies to nationals of the State of employment in respect of remuneration and: other conditions of work, that is to say, overtime, hours of work, weekly rest, holidays with pay, safety, health, termination of the employment relationship and any other conditions of work which, according to national law and practice, are covered by this term; other terms of employment, that is to say, minimum age of employment, restriction on home work and any other matters which, according to national law and practice, are considered a term of employment.
  • European Union (EU): Legislation at the European level against gender and racial discrimination in the workplace is extensive, and it was recently reinforced when the European Council and Parliament adopted a Directive extending the scope of the 1976 Directive on equality in the workplace. The amended Directive, which will come into force in 2005, provides stronger support for employees who feels they have been treated unfairly by an employer because of their sex. For the first time at the EU level, binding legislation will now define sexual harassment and will establish that it constitutes a form of sex discrimination. As a result of the Directive, employers must introduce preventive measures against sexual harassment and give a regular 'equality' report to every employee in the enterprise.
    The EU has also drafted a proposal for a European Council Directive that will outlaw discrimination in terms of the "access to and supply of goods and services." One area in particular that is mentioned in the draft is the calculation of premiums and benefits with regard to insurance and other financial instruments. The rationale for this Directive is that although equal treatment is well protected in the workplace, it is not in other areas of life, and thus the principle of equal treatment found in the European Community Treaty and the European Charter of Fundamental Rights needs further promotion.
External Standards
This section describes external standards that are particularly relevant to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights.
Legal standards governing workplace discrimination exist in many countries around the world. In most cases, multinational companies must comply with appropriate local law; however, many also refer to international standards such as those developed by the International Labor Organization. In addition, a number of voluntary principles and guidelines have been developed by both international and U.S. organizations and trade associations to help guide corporate practices with regard to discrimination.

International Standards

Universal Declaration of Human Rights

In 1948, the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights. This declaration guarantees the rights of all people and encompasses a broad spectrum of economic, social, cultural, political and civil rights. Article 2 says that "Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status." Article 7 states that "All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimination." Lastly, Article 23 indicates that: "(2) Everyone, without any discrimination, has the right to equal pay for equal work." Nondiscrimination principles are also upheld by the African (Banjul) Charter on Human and Peoples' Rights and the American Convention on Human Rights.

International Labor Organization (ILO) Convention No. 111

Discrimination (Employment and Occupation): The Convention defines discrimination as any distinction, exclusion or preference based on race, color, sex, religion, political opinion, national extraction or social origin which "has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation." The Convention covers access to vocational training, access to employment and to particular occupations, and terms and conditions of employment.

Draft Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with Regard to Human Rights:

The draft norms address the role of the private sector in promoting internationally agreed upon standards of human rights and urge that all governments take steps to assure that they become "generally known and respected." These obligations of transnational corporations include not to discriminate based on race, gender, national origin, religion, language, etc. See "Key Developments."

European Union (EU)

The EU legal foundation for nondiscrimination in the workplace is extensive and is embodied in numerous legislative instruments, including those on equal pay for equal work, protection of woman during pregnancy, and promotion and training.

Voluntary Guidelines

United Nations Global Compact

The compact is a voluntary initiative that calls for business to "enact" nine principles in their individual corporate practices and to support complementary public policy initiatives; the sixth principle is, "Businesses should eliminate discrimination in respect of employment and occupation." The definition of discrimination in employment and occupation is "any distinction, exclusion or preference which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation", and is made on the basis of "race, colour, sex, religion, political opinion, national extraction or social origin". There were over 1,200 signatory companies as of September 2003. For more information, see http://www.unglobalcompact.org/

The Global Reporting Initiative (GRI)

The GRI is a reporting standard rather than a performance standard. It was established in 1997 with the mission of designing globally applicable guidelines for preparing enterprise-level sustainability reports that include both social and environmental indicators and allow investors, governments, and the public to better understand the progress of companies toward sustainable development. As part of the Social Performance Indicators in its Reporting Guidelines, companies using the GRI framework are required to describe in detail their policies on discrimination, including equal opportunity measures, the monitoring systems in place to ensure compliance, and the gender and other characteristics (as appropriate) of senior management personnel. The GRI is viewed as one of the leading reporting standards in the CSR field, and incorporates the active participation of corporations and non-governmental organizations, and works in collaboration with the UN Global Compact. For more information, see http://www.globalreporting.org/about/brief.asp.

The Global Sullivan Principles of Corporate Social Responsibility

Introduced in 1999, the Global Sullivan Principles expand upon the original Sullivan Principles which were developed as a voluntary code of conduct for companies doing business in apartheid South Africa. With regard to discrimination, companies adhering to the Principles pledge to "Promote equal opportunity for our employees at all levels of the company with respect to issues such as color, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse." Companies adopting the principles are expected to be transparent in implementing them and as such to provide public information demonstrating their adherence to them. For more information, see http://www.globalsullivanprinciples.org/.

Fair Labor Association (FLA) standard on discrimination

Formed in 1998, the FLA is comprised of 12 leading footwear and apparel manufacturers, over 100 universities, and numerous religious, human rights, consumer and labor rights organizations. The FLA seeks to protect the rights of workers in factories located around the world, and its member companies pledge to ensure the factories that manufacture their goods abide by labor rights standards. The FLA's Workplace Code of Conduct and Monitoring Principles covers issues such as harassment and discrimination, and includes a section on discrimination, which states that:
No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.
Companies participating in the FLA commit to conducting both internal and independent monitoring of their facilities and those of their contractors. The FLA accredits monitors to certify compliance with the Code, and issues a Public Report that describes participating companies' compliance programs, the most common problems found, and corresponding remediation efforts. The first such report, issued in 2003, examined the supply chain of seven participating companies and included 50 tracking charts showing the compliance situation in each facility; these charts will be updated regularly as new information becomes available. On a worldwide basis, the report found that violations of nondiscrimination policies accounted for 4 percent of all instances of non-compliance with the Code.

Social Accountability 8000

Social Accountability International (SAI) developed a global standard for ethical sourcing, the Social Accountability 8000 (SA 8000) factory certification system. Modeled on International Standards Organization (ISO) systems for certifying assurance, SA 8000 is an auditable code of conduct that can be applied across consumer products industries. SA 8000's standard on discrimination is as follows:
  • "The company shall not engage in or support discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation;
  • "The company shall not interfere with the exercise of the rights of personnel to observe tenets or practices, or to meet needs relating to race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation."

Ethical Trading Initiative (ETI)

The ETI, a U.K.-based alliance of companies, NGOs and trade unions whose mission is to promote improvements in working conditions throughout global supply chains, has established a "base code" of labor practices for its member companies. The standard on discrimination is: "There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, gender, marital status, sexual orientation, union membership or political affiliation."

Worldwide Responsible Apparel Production (WRAP) Program

The WRAP program is a voluntary, factory-based monitoring and certification program under which manufacturing facilities producing apparel for members of the American Apparel Manufacturers Association can seek endorsement of workplace practices. The WRAP principle on discrimination is as follows: "Companies will employ workers on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs."

The Principles for Global Corporate Responsibility: Bench Marks for Measuring Business Performance

(See http://www.bench-marks.org/.) The Interfaith Center for Corporate Responsibility -- a North American association of religious institutional investors -- in conjunction with the U.K.'s Ecumenical Council for Corporate Responsibility and Canada's Taskforce on the Churches and Corporate Responsibility, has developed a series of benchmarks. The Global Principles are a set of comprehensive standards by which to measure responsible corporate action in the global economy. The following represents some of the criteria on discrimination embodied in the Global Principles:
  • "The company does not discriminate on the basis of gender, racial/ethnic origin, social or ethnic origin, culture, religion, age, disability, sexual orientation, nationality, citizenship or political opinion."
  • "The company ensures that no person is subject to any discrimination in employment, including recruitment, hiring, remuneration, benefits, advancement, discipline, termination, or retirement, on the basis of gender, race, social or ethnic origin, culture, religion, age, disability, sexual orientation, nationality or political opinion."
  • "The company accommodates the cultural, religious and social needs of employees."
  • "All who work within and on the company's premises, whether permanent, temporary or contracted employees, including those engaged in day labor, receive equal protection especially in provision of equipment, and information concerning their health and safety at work. This information is provided in the language of the workers."
Implementation Steps
This section describes implementation steps related to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights. Companies wishing to address the issue of discrimination can consider undertaking the following measures:

Establish a company policy on discrimination

This can state the company’s definition of discriminatory practices and establish guidelines for managers, supervisors and/or business partners on practices to avoid. (See Sample Policies section.)

Communicate this policy both internally and externally

Internal company staff and all business partners should be aware of the company's policy on discrimination. The company could also communicate this policy publicly, or to key stakeholder groups. One obvious, but nonetheless important, way of doing this is ensuring that all job announcements include a statement that the company engages in equal employment opportunity, and that all such announcements are free of any reference to gender, race, ethnicity, national origin, or age.

Provide diversity training at all levels of the organization

This should include new employees and be focused on the various areas where discrimination is most likely to occur, particularly hiring and promotion practices. These sessions can be both formal and informal, and should as part of the process identify where the need for subsequent training is most important to the specific business or region.

Determine benchmarks for activities in which discrimination can arise

Discrimination can mean very different things in different countries. It is useful to identify key issues that tend to arise in particular locations. These can include: hiring practices, e.g. gender-specific job advertisements; employment practices, e.g. pregnancy testing or unfair disciplinary practices; job assignments/promotions, e.g. favoring younger workers; compensation/benefits; and termination. These benchmarks will give company managers or external monitors standards against which to measure compliance with the policy.

Identify indicators of possible non-compliance

Company employees or external monitors benefit from knowing what to look for when determining the existence of discrimination. Examples of indicators could include: unequal pay levels between male and female employees; a comparatively underrepresented workforce (lacking the gender or ethnic balance of the local community); an absence of pregnant women, especially in a large workforce; a business "restructuring" that targets mostly older employees; or housing with unequal standards based on personal characteristics.

Establish methods for identifying noncompliance

An investigation into discrimination should incorporate the following activities for uncovering noncompliance: identify local laws and regulations on discrimination; review written forms such as application materials and job postings; review records including personnel or payroll records; conduct interviews with employees; and pay visits to leading companies or participate in industry benchmarking studies for comparative purposes.

Develop an action plan

Companies can prioritize the seriousness of discriminatory practices and craft an action plan aimed at addressing the most serious issues first, such as those in violation of the law or those of greatest importance to stakeholders. A credible action plan on discrimination will require that a reporting and remediation mechanism be made available to employees.

Take action

After developing an action plan, companies can assign responsibility to staff members and business partners to implement changes required by the plan, and hold them accountable for the changes.

 

Leadership Examples

These leader practices have been chosen as illustrative examples. They are intended to represent innovation, higher than average commitment, unusual industry practice, or a comprehensive approach to the issue of nondiscrimination. For additional leadership examples in the area of human rights, see Overview of Human Rights. Periodically, the examples listed may be changed. If you wish to share information about your company's leadership practices or policies, please contact editor@bsr.org with the relevant information.
While companies are becoming more aware of the forms and impacts of discriminatory practices in the global workplace, the complexity and culturally-engrained nature of some of these practices mean that further education may be needed before companies can develop leadership practices designed to diminish the occurrence of discrimination in their work facilities and those of their business partners. Still, the following represent examples of measures some companies are taking to address the issues:

Eileen Fisher

Eileen Fisher, an American apparel manufacturing and retail company, is renowned for its employee friendly workplace policies and its efforts to ensure that its human resource practices are nondiscriminatory. Its commitment to nondiscriminatory practices specifically, and more generally to social responsible actions, is demonstrated by its use of the rigorous SA 8000 factory certification system.

Fersol Industria e Comercio Ltda.

A Brazilian chemical company, is making efforts to incorporate women, minorities, and the disabled into their workforce. Although the chemical industry is traditionally male-dominated, the company’s efforts led them to achieve 50 percent women in management positions.

Haldor Topsøe A/S

A research, development, and marketing company, is part of a consortium of businesses in Denmark that are actively trying to incorporate "new Danes," or ethnic minority Danish citizens, into their workforce. Haldor Topsøe's efforts have increased the number of minority employees to 10 percent of their workforce.

Levi Strauss & Co. (LS&CO)

LS&CO incorporates detailed instruction on assessing compliance with discrimination standards into its training programs for company code of conduct ("Terms of Engagement") monitors. Monitors are instructed in the meaning of LS&CO's standard on nondiscrimination, sensitized to "indicators" that may suggest the presence of discrimination in a workplace, and provided guidance on how to determine violations of the standard in supplier facilities.

Novo Nordisk

Novo Nordisk created an Internet-based training program for use by employees worldwide. The program trains employees on how to identify possible forms of discrimination and how to remedy such issues within their business unit. Discrimination is defined to include political opinion, trade union membership, and status as a military veteran, among other criteria. The virtual tool includes definitions, policies, grievance procedures, examples from other companies, and further reference information.

Procter & Gamble

Procter & Gamble, a consumer products company that operates in over 70 countries and has over 100,000 employees, has developed a dedicated diversity training program that combines in-house training, conducted by P&G employees, with complementary programs taught by external consultants to increase overall employee awareness of the value of diversity. Most training is conducted at the level of the local business unit and manufacturing plant.

Sara Lee Corp.

Sara Lee Corp. has over 140,000 employees and operations in nearly 60 countries. The company started its diversity program by establishing goals to increase the number of women and minorities in management and at the executive level, and it measures its progress on an annual basis using data collected at the division level. Sara Lee has set specific targets for its diversity initiatives in the same way it sets targets for financial performance; for example, it establishes annual goals for the percentage of business school hires that are female and minorities. Its diversity goals are linked to the annual bonuses of senior corporate executives.
Sample Policies
The following sample policies are quoted directly from company materials. They provide examples of the language companies use to demonstrate their commitment to nondiscrimination. For additional sample policies in the area of human rights, see Overview of Human Rights.

Target Corp.

"...recognizes and respects the cultural differences found in the world-wide marketplace. However, we believe that workers should be employed on the basis of their ability to carry out the duties of a particular job, rather than on the basis of personal characteristics or beliefs. We will seek vendors who share this belief."

The Timberland Co.

"We recognize the value of diverse peoples, cultures and perspectives. We believe that basic human rights and non-discrimination should cross all cultural barriers. We will seek and engage business partners whose written policies and actual practices of employment reflect a recognition of the value of diversity."

Wild Planet Toys Inc.

"...believes that employees should be hired based on their ability to do the job, not on the basis of personal characteristics or beliefs. The company expects its manufacturers to share this belief."
Awards
BSR is not currently aware of any additional information related to this issue. We welcome submissions of relevant information; please send an email to editor@bsr.org.

 

Resources

The following list is not comprehensive. It is an illustrative group of the many nonprofit, public sector and/or academic resources working with the private sector in the area of corporate social responsibility addressed by this Issue Brief. The resources identified below have been included because they provide information or support that is relevant to companies, and they are national or international in scope. Periodically, the examples listed may be changed. At this time, the list does not include for-profit resources. If you would like to provide information about additional helping resources that meet our criteria, please contact editor@bsr.org.

Business for Social Responsibility

Founded in 1992, Business for Social Responsibility (BSR) helps companies of all sizes and from all sectors achieve commercial success in ways that respect ethical values, people, communities and the environment. A leading global business partner, BSR provides information, tools and advisory services to make corporate social responsibility (CSR) an integral part of business operations and strategies. BSR promotes cross sector collaborations and contributes to global efforts to advance the field of corporate social responsibility. BSR member companies have nearly USD$2 trillion in combined annual revenues and employ more than six million workers around the world.

International Labor Organization (ILO)

http://www.ilo.org/
The International Labor Organization (ILO) is a United Nations affiliated agency that promotes social justice through the establishment of labor rights standards. A tripartite agency (workers, employers and governments participate as equal partners), the ILO formulates conventions on basic labor rights including equality of opportunity and treatment, child labor, freedom of association, forced labor, and other standards regulating working conditions. These conventions are incorporated into national law when ratified by ILO member states.

United Nations Global Compact

http://www.unglobalcompact.org/Portal
The Global Compact is a voluntary corporate citizenship initiative. As such, the Global Compact is not a regulatory instrument -- it does not "police" or enforce the behavior or actions of companies. Rather, the Global Compact relies on the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles upon which the Global Compact is based. The Global Compact is based on nine principles in the areas of human rights, labour, and the environment.

United Nations Office of the High Commissioner for Human Rights

http://www.unhchr.ch/
The United Nations Office of the High Commissioner for Human Rights: (a) Promotes universal enjoyment of all human rights by giving practical effect to the will and resolve of the world community as expressed by the United Nations; (b) Plays the leading role on human rights issues and emphasizes the importance of human rights at the international and national levels; (c) Promotes international cooperation for human rights; (d) Stimulates and coordinates action for human rights throughout the United Nations system; (e) Promotes universal ratification and implementation of international standards; (f) Assists in the development of new norms; (g) Supports human rights organs and treaty monitoring bodies; (h) Responds to serious violations of human rights; (i) Undertakes preventive human rights action; (j) Promotes the establishment of national human rights infrastructures; (k) Undertakes human rights field activities and operations; (l) Provides education, information advisory services and technical assistance in the field of human rights.

European Commission – Employment and Social Affairs

www.europa.eu.int/comm/employment_social
The Directorate-General for Employment and Social Affairs has the task of contributing to the development of a modern, innovative and sustainable European Social Model with more and better jobs in an inclusive society based on equal opportunities. It plays a key role in promoting positive interaction between economic, social and employment policies to make Europe the world most competitive and dynamic knowledge-based economy, capable of sustainable economic growth, with more and better jobs and greater social cohesion.

U.S. Department of State - Bureau of Democracy, Human Rights and Labor

www.state.gov/www/global/human_rights
The responsibilities of the U.S. State Department's Bureau of Democracy, Human Rights and Labor (DRL) include formulating U.S. human rights policies and coordinating policy in human rights related labor issues. In addition, it coordinates the publication of U.S. State Department annual country reports that provide information on the exercise of various human rights.

Human Rights First (formerly the Lawyers Committee for Human Rights)

http://www.humanrightsfirst.org/
Human Rights First (HRF) works to promote fundamental human rights through its focus on building legal institutions and structures that will guarantee human rights in the long term. The organization holds governments accountable to the standards affirmed in the International Bill of Human Rights and represents asylum seekers and refugees.

International Confederation of Free Trade Unions (ICFTU)

http://www.icftu.org/
The ICFTU organizes and directs campaigns on issues such as the respect and defense of trade union and workers' rights, the eradication of forced and child labour, the promotion of equal rights for working women, the environment, education programs for trade unionists all over the world, encouraging the organization of young workers, and sends missions to investigate the trade union situation in many countries.

Interfaith Center on Corporate Responsibility

http://www.iccr.org/
ICCR's membership is an association of 275 faith-based institutional investors, including national denominations, religious communities, pension funds, endowments, hospital corporations, economic development funds and publishing companies. ICCR and its members press companies to be socially and environmentally responsible. Each year ICCR-member religious institutional investors sponsor over 100 shareholder resolutions on major social and environmental issues.

Global Exchange

http://www.globalexchange.org/
Global Exchange is a human rights activist organization dedicated to promoting environmental, political, and social justice around the world. It focuses on corporate responsibility, globalization and trade issues.

Workers Rights Consortium

http://www.workersrights.org/
The WRC is a non-profit organization created by college and university administrations, students and labor rights experts. The WRC's purpose is to assist in the enforcement of manufacturing Codes of Conduct adopted by colleges and universities; these Codes are designed to ensure that factories producing clothing and other goods bearing college and university names respect the basic rights of workers.

Ethical Trading Initiative

http://www.ethicaltrade.org/
The U.K. based Ethical Trading Initiative (ETI) is an alliance of companies, NGOs and trade union organizations committed to working together to identify and promote good practice in the implementation of codes of labor practice, including the monitoring and verification of the observance of code provisions. ETI members believe that this collaborative approach provides the opportunity for making significant progress in promoting the observance of internationally recognized labor standards, in particular fundamental human rights throughout global supply chains.

Fair Labor Association

http://www.fairlabor.org/
The Fair Labor Association (FLA) is a non-profit organization combining the efforts of industry, non-governmental organizations (NGOs), colleges and universities to promote adherence to international labor standards and improve working conditions worldwide. The FLA was established as an independent monitoring system that holds its participating companies accountable for the conditions under which their products are produced. To advance fair, decent and humane working conditions, the FLA enforces an industry-wide Workplace Code of Conduct, which is based on the core labor standards of the International Labour Organization (ILO).

Social Accountability International (SAI)

http://www.cepaa.org/
Social Accountability International (SAI) works to improve workplaces and combat sweatshops through the expansion and further development of the international workplace standard, SA8000, and the associated SA8000 verification system. SAI convenes key stakeholders to develop consensus-based voluntary standards, accredits qualified organizations to verify compliance, and promotes understanding and encourages implementation of such standards worldwide.

Business & Human Rights Resource Centre

http://www.business-humanrights.org/
The Business & Human Rights Resource Centre is an independent, non-profit organization promoting greater awareness of business & human rights issues. Its Web site is an on-line library, updated almost daily, containing links to a wide range of materials on human rights as they relate to business.
ural practices and traditions that vary from region to region and that impact the workplace environment. In many parts of the world, certain groups of people can be excluded from certain job opportunities, and in some cases this is legally permitted. Multinational companies face the challenge of remaining open to different cultural contexts while avoiding discriminatory practices against employees.
Most company guidelines on discrimination require that employment decisions be based solely on an individual’s ability to perform her or his duties. This includes all terms and conditions of employment, including hiring, job assignment, training, promotion, discipline, and termination of employment. Companies examining their business operations or those of their business partners have found that discrimination is one of the workplace issues that is most difficult to identify. This can be because some discriminatory practices are culturally ingrained, and business practices may reflect larger social patterns unless there is a conscious effort to alter them.

 

Business Importance

This section describes business benefits that are particularly relevant to nondiscrimination. For a more comprehensive list of business benefits in this area of corporate social responsibility, see Overview of Human Rights. Despite the difficulties encountered in identifying and addressing discrimination in the global workplace, companies that adopt and implement nondiscrimination policies can realize the following business benefits.

Recruit and Retain the Best Talent

Nondiscriminatory practices help ensure that jobs are filled by the most qualified people, which enhances productivity. Moreover, talented staff members are more likely to stay with the company when they see a career path that is not blocked by discriminatory practices in advancement. Fair treatment based upon job performance increases employee loyalty and reduces the cost of hiring and training new people.

Better Community Relations

Institutions (both private and public) that refrain from discriminatory employment practices and have a workforce representative of the local population, including traditionally excluded populations, are more likely to enjoy the goodwill and support of communities near their facilities and the public at large.

Reduce Liability for Discriminatory Practices

Companies have been successfully sued for discrimination based upon gender, age, race, and religion among others. In some cases, large punitive damages are awarded as a lesson to other employers. In countries where legal redress is readily available, employees are increasingly willing and able to seek such remedies.

Enhanced Reputation and Trust

Companies that strive to rid the workplace of discriminatory practices earn greater trust from their business partners and customers and will be recognized by stakeholder groups as a positive example. This can enhance the reputation of the company.

Building Markets

Many companies have come to find that their markets are comprised of increasingly diverse populations, and maintaining staff who understand current and potential markets ensure that commercial opportunities are maximized.

 

Key Developments

This section describes key developments that are particularly relevant to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights.
The issue of discrimination in the workplace has gained global attention for various reasons, including:
  • Attention to social inclusion has been growing steadily, as has the role of the private sector;
  • Workers have been awarded large damages in lawsuits against companies, sometimes in cross-border situations;
  • Human rights reports increasingly cover the actions of multinational companies across their global operations;
  • Increased access to information has provided greater awareness of discrimination patterns that may have gone undetected before;
  • Media attention to business ethics has grown substantially in the wake of Enron, Worldcom, Tyco, Parmalat, and other crises;
  • Ongoing trend of extending global supply chains brings companies into contact with many new business partners with wide-ranging practices;
  • Attention to discrimination has resulted in some visible gains, such as reducing the practice of pregnancy screening for female job applicants.
Consequently, many companies are engaged in efforts to actively prevent discrimination in their own operations as well as to eliminate it from their global supply chains.
  • Damages awarded to workers in lawsuits: Financial services firm Morgan Stanley agreed to pay USD$54 million in July 2004 to settle U.S. allegations that it systematically underpaid and failed to promote its women employees. In 1998, Mitsubishi Motors of North America paid USD$34 million in damages to female U.S. employees in the largest sexual discrimination complaint to date in the United States. Other notable awards include a USD$10.6 million U.S. settlement by Ford Motor Company for age discrimination, a USD$1.11 million settlement by Stockton Steel for discrimination based upon national origin and religion, and a USD$20 million settlement in 2003 for lawsuits brought on behalf of several thousand garment workers on the island of Saipan (a U.S. territory in the Pacific ocean) accusing major U.S. brands and retailers and their contractors in the territory of a range of worker abuses. Companies are increasingly aware of the necessity to have training programs and remediation systems that can prevent discriminatory practices or identify and correct problems that exist.
  • Human rights organizations report on discriminatory practices: Human rights organizations throughout the world have investigated workplace practices in export production facilities and publicly reported their findings on discrimination. For example, a resource book entitled "We in the Zone," edited and published by Hong-Kong based labor rights organization Asia Monitor Resource Center (AMRC) highlights key issues affecting women workers in Asia's export processing zones. Amnesty International and the Prince of Wales International Business Leaders Forum together created a series of global "risk maps" that identify human rights risks in production areas for seven major industries. The maps identify countries that have incidents of forced labor, bonded labor, child labor, and denial of women's rights, among other issues.
  • Draft Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with Regard to Human Rights: In 2003, the UN Sub-Commission on Human Rights proclaimed a set of Norms addressing the role of the private sector in promoting internationally agreed upon standards of human rights, and urged governments to take steps to ensure that the Norms become "generally known and respected." Under the Right to Equal Opportunity and Non-Discriminatory Treatment section,
    • "Transnational corporations and other business enterprises shall ensure equality of opportunity and treatment, as provided in the relevant international instruments and national legislation as well as international human rights law, for the purpose of eliminating discrimination based on race, colour, sex, language, religion, political opinion, national or social origin, social status, indigenous status, disability, age (except for children who may be given greater protection), or other status of the individual unrelated to the inherent requirements to perform the job, or complying with special measures designed to overcome past discrimination against certain groups. The Norms incorporate the key elements of the many initiatives on human rights promulgated by multilateral institutions, and as such could become the future benchmark against which company activities are measured."
  • World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance: In August 2001, the United Nations hosted an international conference in Durban, South Africa focused on all forms of discrimination. The conference adopted a "programme of action" that included a call for the private sector to “to support the creation of workplaces free of discrimination through a multifaceted strategy that includes civil rights enforcement, public education and communication within the workplace..." An intergovernmental working group was established to encourage the implementation of the "Durban Declaration."
  • International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families: Adopted by the UN General Assembly in 1990, this Convention officially entered into force on July 1, 2003, following Guatemala's ratification -- the 21st country to do so. The Convention seeks to prevent the exploitation of migrant workers, and, in particular, to put an end to the illegal recruitment and trafficking of migrant workers and to discourage the employment of migrant workers in an irregular or undocumented situation. The Convention includes a set of binding international standards on the treatment and human rights of both documented and undocumented migrants, as well as the responsibilities on the part of sending and receiving States. Article 25 states that
    • Migrant workers shall enjoy treatment not less favourable than that which applies to nationals of the State of employment in respect of remuneration and: other conditions of work, that is to say, overtime, hours of work, weekly rest, holidays with pay, safety, health, termination of the employment relationship and any other conditions of work which, according to national law and practice, are covered by this term; other terms of employment, that is to say, minimum age of employment, restriction on home work and any other matters which, according to national law and practice, are considered a term of employment.
  • European Union (EU): Legislation at the European level against gender and racial discrimination in the workplace is extensive, and it was recently reinforced when the European Council and Parliament adopted a Directive extending the scope of the 1976 Directive on equality in the workplace. The amended Directive, which will come into force in 2005, provides stronger support for employees who feels they have been treated unfairly by an employer because of their sex. For the first time at the EU level, binding legislation will now define sexual harassment and will establish that it constitutes a form of sex discrimination. As a result of the Directive, employers must introduce preventive measures against sexual harassment and give a regular 'equality' report to every employee in the enterprise.
    The EU has also drafted a proposal for a European Council Directive that will outlaw discrimination in terms of the "access to and supply of goods and services." One area in particular that is mentioned in the draft is the calculation of premiums and benefits with regard to insurance and other financial instruments. The rationale for this Directive is that although equal treatment is well protected in the workplace, it is not in other areas of life, and thus the principle of equal treatment found in the European Community Treaty and the European Charter of Fundamental Rights needs further promotion.
External Standards
This section describes external standards that are particularly relevant to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights.
Legal standards governing workplace discrimination exist in many countries around the world. In most cases, multinational companies must comply with appropriate local law; however, many also refer to international standards such as those developed by the International Labor Organization. In addition, a number of voluntary principles and guidelines have been developed by both international and U.S. organizations and trade associations to help guide corporate practices with regard to discrimination.

International Standards

Universal Declaration of Human Rights

In 1948, the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights. This declaration guarantees the rights of all people and encompasses a broad spectrum of economic, social, cultural, political and civil rights. Article 2 says that "Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status." Article 7 states that "All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimination." Lastly, Article 23 indicates that: "(2) Everyone, without any discrimination, has the right to equal pay for equal work." Nondiscrimination principles are also upheld by the African (Banjul) Charter on Human and Peoples' Rights and the American Convention on Human Rights.

International Labor Organization (ILO) Convention No. 111

Discrimination (Employment and Occupation): The Convention defines discrimination as any distinction, exclusion or preference based on race, color, sex, religion, political opinion, national extraction or social origin which "has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation." The Convention covers access to vocational training, access to employment and to particular occupations, and terms and conditions of employment.

Draft Norms on the Responsibilities of Transnational Corporations and other Business Enterprises with Regard to Human Rights:

The draft norms address the role of the private sector in promoting internationally agreed upon standards of human rights and urge that all governments take steps to assure that they become "generally known and respected." These obligations of transnational corporations include not to discriminate based on race, gender, national origin, religion, language, etc. See "Key Developments."

European Union (EU)

The EU legal foundation for nondiscrimination in the workplace is extensive and is embodied in numerous legislative instruments, including those on equal pay for equal work, protection of woman during pregnancy, and promotion and training.

Voluntary Guidelines

United Nations Global Compact

The compact is a voluntary initiative that calls for business to "enact" nine principles in their individual corporate practices and to support complementary public policy initiatives; the sixth principle is, "Businesses should eliminate discrimination in respect of employment and occupation." The definition of discrimination in employment and occupation is "any distinction, exclusion or preference which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation", and is made on the basis of "race, colour, sex, religion, political opinion, national extraction or social origin". There were over 1,200 signatory companies as of September 2003. For more information, see http://www.unglobalcompact.org/

The Global Reporting Initiative (GRI)

The GRI is a reporting standard rather than a performance standard. It was established in 1997 with the mission of designing globally applicable guidelines for preparing enterprise-level sustainability reports that include both social and environmental indicators and allow investors, governments, and the public to better understand the progress of companies toward sustainable development. As part of the Social Performance Indicators in its Reporting Guidelines, companies using the GRI framework are required to describe in detail their policies on discrimination, including equal opportunity measures, the monitoring systems in place to ensure compliance, and the gender and other characteristics (as appropriate) of senior management personnel. The GRI is viewed as one of the leading reporting standards in the CSR field, and incorporates the active participation of corporations and non-governmental organizations, and works in collaboration with the UN Global Compact. For more information, see http://www.globalreporting.org/about/brief.asp.

The Global Sullivan Principles of Corporate Social Responsibility

Introduced in 1999, the Global Sullivan Principles expand upon the original Sullivan Principles which were developed as a voluntary code of conduct for companies doing business in apartheid South Africa. With regard to discrimination, companies adhering to the Principles pledge to "Promote equal opportunity for our employees at all levels of the company with respect to issues such as color, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse." Companies adopting the principles are expected to be transparent in implementing them and as such to provide public information demonstrating their adherence to them. For more information, see http://www.globalsullivanprinciples.org/.

Fair Labor Association (FLA) standard on discrimination

Formed in 1998, the FLA is comprised of 12 leading footwear and apparel manufacturers, over 100 universities, and numerous religious, human rights, consumer and labor rights organizations. The FLA seeks to protect the rights of workers in factories located around the world, and its member companies pledge to ensure the factories that manufacture their goods abide by labor rights standards. The FLA's Workplace Code of Conduct and Monitoring Principles covers issues such as harassment and discrimination, and includes a section on discrimination, which states that:
No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.
Companies participating in the FLA commit to conducting both internal and independent monitoring of their facilities and those of their contractors. The FLA accredits monitors to certify compliance with the Code, and issues a Public Report that describes participating companies' compliance programs, the most common problems found, and corresponding remediation efforts. The first such report, issued in 2003, examined the supply chain of seven participating companies and included 50 tracking charts showing the compliance situation in each facility; these charts will be updated regularly as new information becomes available. On a worldwide basis, the report found that violations of nondiscrimination policies accounted for 4 percent of all instances of non-compliance with the Code.

Social Accountability 8000

Social Accountability International (SAI) developed a global standard for ethical sourcing, the Social Accountability 8000 (SA 8000) factory certification system. Modeled on International Standards Organization (ISO) systems for certifying assurance, SA 8000 is an auditable code of conduct that can be applied across consumer products industries. SA 8000's standard on discrimination is as follows:
  • "The company shall not engage in or support discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation;
  • "The company shall not interfere with the exercise of the rights of personnel to observe tenets or practices, or to meet needs relating to race, caste, national origin, religion, disability, gender, sexual orientation, union membership, or political affiliation."

Ethical Trading Initiative (ETI)

The ETI, a U.K.-based alliance of companies, NGOs and trade unions whose mission is to promote improvements in working conditions throughout global supply chains, has established a "base code" of labor practices for its member companies. The standard on discrimination is: "There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race, caste, national origin, religion, age, gender, marital status, sexual orientation, union membership or political affiliation."

Worldwide Responsible Apparel Production (WRAP) Program

The WRAP program is a voluntary, factory-based monitoring and certification program under which manufacturing facilities producing apparel for members of the American Apparel Manufacturers Association can seek endorsement of workplace practices. The WRAP principle on discrimination is as follows: "Companies will employ workers on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs."

The Principles for Global Corporate Responsibility: Bench Marks for Measuring Business Performance

(See http://www.bench-marks.org/.) The Interfaith Center for Corporate Responsibility -- a North American association of religious institutional investors -- in conjunction with the U.K.'s Ecumenical Council for Corporate Responsibility and Canada's Taskforce on the Churches and Corporate Responsibility, has developed a series of benchmarks. The Global Principles are a set of comprehensive standards by which to measure responsible corporate action in the global economy. The following represents some of the criteria on discrimination embodied in the Global Principles:
  • "The company does not discriminate on the basis of gender, racial/ethnic origin, social or ethnic origin, culture, religion, age, disability, sexual orientation, nationality, citizenship or political opinion."
  • "The company ensures that no person is subject to any discrimination in employment, including recruitment, hiring, remuneration, benefits, advancement, discipline, termination, or retirement, on the basis of gender, race, social or ethnic origin, culture, religion, age, disability, sexual orientation, nationality or political opinion."
  • "The company accommodates the cultural, religious and social needs of employees."
  • "All who work within and on the company's premises, whether permanent, temporary or contracted employees, including those engaged in day labor, receive equal protection especially in provision of equipment, and information concerning their health and safety at work. This information is provided in the language of the workers."
Implementation Steps
This section describes implementation steps related to nondiscrimination. For a more comprehensive list in this area of corporate social responsibility, see Overview of Human Rights. Companies wishing to address the issue of discrimination can consider undertaking the following measures:

Establish a company policy on discrimination

This can state the company’s definition of discriminatory practices and establish guidelines for managers, supervisors and/or business partners on practices to avoid. (See Sample Policies section.)

Communicate this policy both internally and externally

Internal company staff and all business partners should be aware of the company's policy on discrimination. The company could also communicate this policy publicly, or to key stakeholder groups. One obvious, but nonetheless important, way of doing this is ensuring that all job announcements include a statement that the company engages in equal employment opportunity, and that all such announcements are free of any reference to gender, race, ethnicity, national origin, or age.

Provide diversity training at all levels of the organization

This should include new employees and be focused on the various areas where discrimination is most likely to occur, particularly hiring and promotion practices. These sessions can be both formal and informal, and should as part of the process identify where the need for subsequent training is most important to the specific business or region.

Determine benchmarks for activities in which discrimination can arise

Discrimination can mean very different things in different countries. It is useful to identify key issues that tend to arise in particular locations. These can include: hiring practices, e.g. gender-specific job advertisements; employment practices, e.g. pregnancy testing or unfair disciplinary practices; job assignments/promotions, e.g. favoring younger workers; compensation/benefits; and termination. These benchmarks will give company managers or external monitors standards against which to measure compliance with the policy.

Identify indicators of possible non-compliance

Company employees or external monitors benefit from knowing what to look for when determining the existence of discrimination. Examples of indicators could include: unequal pay levels between male and female employees; a comparatively underrepresented workforce (lacking the gender or ethnic balance of the local community); an absence of pregnant women, especially in a large workforce; a business "restructuring" that targets mostly older employees; or housing with unequal standards based on personal characteristics.

Establish methods for identifying noncompliance

An investigation into discrimination should incorporate the following activities for uncovering noncompliance: identify local laws and regulations on discrimination; review written forms such as application materials and job postings; review records including personnel or payroll records; conduct interviews with employees; and pay visits to leading companies or participate in industry benchmarking studies for comparative purposes.

Develop an action plan

Companies can prioritize the seriousness of discriminatory practices and craft an action plan aimed at addressing the most serious issues first, such as those in violation of the law or those of greatest importance to stakeholders. A credible action plan on discrimination will require that a reporting and remediation mechanism be made available to employees.

Take action

After developing an action plan, companies can assign responsibility to staff members and business partners to implement changes required by the plan, and hold them accountable for the changes.
Leadership Examples
These leader practices have been chosen as illustrative examples. They are intended to represent innovation, higher than average commitment, unusual industry practice, or a comprehensive approach to the issue of nondiscrimination. For additional leadership examples in the area of human rights, see Overview of Human Rights. Periodically, the examples listed may be changed. If you wish to share information about your company's leadership practices or policies, please contact editor@bsr.org with the relevant information.
While companies are becoming more aware of the forms and impacts of discriminatory practices in the global workplace, the complexity and culturally-engrained nature of some of these practices mean that further education may be needed before companies can develop leadership practices designed to diminish the occurrence of discrimination in their work facilities and those of their business partners. Still, the following represent examples of measures some companies are taking to address the issues:

Eileen Fisher

Eileen Fisher, an American apparel manufacturing and retail company, is renowned for its employee friendly workplace policies and its efforts to ensure that its human resource practices are nondiscriminatory. Its commitment to nondiscriminatory practices specifically, and more generally to social responsible actions, is demonstrated by its use of the rigorous SA 8000 factory certification system.

Fersol Industria e Comercio Ltda.

A Brazilian chemical company, is making efforts to incorporate women, minorities, and the disabled into their workforce. Although the chemical industry is traditionally male-dominated, the company’s efforts led them to achieve 50 percent women in management positions.

Haldor Topsøe A/S

A research, development, and marketing company, is part of a consortium of businesses in Denmark that are actively trying to incorporate "new Danes," or ethnic minority Danish citizens, into their workforce. Haldor Topsøe's efforts have increased the number of minority employees to 10 percent of their workforce.

Levi Strauss & Co. (LS&CO)

LS&CO incorporates detailed instruction on assessing compliance with discrimination standards into its training programs for company code of conduct ("Terms of Engagement") monitors. Monitors are instructed in the meaning of LS&CO's standard on nondiscrimination, sensitized to "indicators" that may suggest the presence of discrimination in a workplace, and provided guidance on how to determine violations of the standard in supplier facilities.

Novo Nordisk

Novo Nordisk created an Internet-based training program for use by employees worldwide. The program trains employees on how to identify possible forms of discrimination and how to remedy such issues within their business unit. Discrimination is defined to include political opinion, trade union membership, and status as a military veteran, among other criteria. The virtual tool includes definitions, policies, grievance procedures, examples from other companies, and further reference information.

Procter & Gamble

Procter & Gamble, a consumer products company that operates in over 70 countries and has over 100,000 employees, has developed a dedicated diversity training program that combines in-house training, conducted by P&G employees, with complementary programs taught by external consultants to increase overall employee awareness of the value of diversity. Most training is conducted at the level of the local business unit and manufacturing plant.

Sara Lee Corp.

Sara Lee Corp. has over 140,000 employees and operations in nearly 60 countries. The company started its diversity program by establishing goals to increase the number of women and minorities in management and at the executive level, and it measures its progress on an annual basis using data collected at the division level. Sara Lee has set specific targets for its diversity initiatives in the same way it sets targets for financial performance; for example, it establishes annual goals for the percentage of business school hires that are female and minorities. Its diversity goals are linked to the annual bonuses of senior corporate executives.
Sample Policies
The following sample policies are quoted directly from company materials. They provide examples of the language companies use to demonstrate their commitment to nondiscrimination. For additional sample policies in the area of human rights, see Overview of Human Rights.

Target Corp.

"...recognizes and respects the cultural differences found in the world-wide marketplace. However, we believe that workers should be employed on the basis of their ability to carry out the duties of a particular job, rather than on the basis of personal characteristics or beliefs. We will seek vendors who share this belief."

The Timberland Co.

"We recognize the value of diverse peoples, cultures and perspectives. We believe that basic human rights and non-discrimination should cross all cultural barriers. We will seek and engage business partners whose written policies and actual practices of employment reflect a recognition of the value of diversity."

Wild Planet Toys Inc.

"...believes that employees should be hired based on their ability to do the job, not on the basis of personal characteristics or beliefs. The company expects its manufacturers to share this belief."
Awards
BSR is not currently aware of any additional information related to this issue. We welcome submissions of relevant information; please send an email to editor@bsr.org.
Resources
The following list is not comprehensive. It is an illustrative group of the many nonprofit, public sector and/or academic resources working with the private sector in the area of corporate social responsibility addressed by this Issue Brief. The resources identified below have been included because they provide information or support that is relevant to companies, and they are national or international in scope. Periodically, the examples listed may be changed. At this time, the list does not include for-profit resources. If you would like to provide information about additional helping resources that meet our criteria, please contact editor@bsr.org.

Business for Social Responsibility

Founded in 1992, Business for Social Responsibility (BSR) helps companies of all sizes and from all sectors achieve commercial success in ways that respect ethical values, people, communities and the environment. A leading global business partner, BSR provides information, tools and advisory services to make corporate social responsibility (CSR) an integral part of business operations and strategies. BSR promotes cross sector collaborations and contributes to global efforts to advance the field of corporate social responsibility. BSR member companies have nearly USD$2 trillion in combined annual revenues and employ more than six million workers around the world.

International Labor Organization (ILO)

http://www.ilo.org/
The International Labor Organization (ILO) is a United Nations affiliated agency that promotes social justice through the establishment of labor rights standards. A tripartite agency (workers, employers and governments participate as equal partners), the ILO formulates conventions on basic labor rights including equality of opportunity and treatment, child labor, freedom of association, forced labor, and other standards regulating working conditions. These conventions are incorporated into national law when ratified by ILO member states.

United Nations Global Compact

http://www.unglobalcompact.org/Portal
The Global Compact is a voluntary corporate citizenship initiative. As such, the Global Compact is not a regulatory instrument -- it does not "police" or enforce the behavior or actions of companies. Rather, the Global Compact relies on the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles upon which the Global Compact is based. The Global Compact is based on nine principles in the areas of human rights, labour, and the environment.

United Nations Office of the High Commissioner for Human Rights

http://www.unhchr.ch/
The United Nations Office of the High Commissioner for Human Rights: (a) Promotes universal enjoyment of all human rights by giving practical effect to the will and resolve of the world community as expressed by the United Nations; (b) Plays the leading role on human rights issues and emphasizes the importance of human rights at the international and national levels; (c) Promotes international cooperation for human rights; (d) Stimulates and coordinates action for human rights throughout the United Nations system; (e) Promotes universal ratification and implementation of international standards; (f) Assists in the development of new norms; (g) Supports human rights organs and treaty monitoring bodies; (h) Responds to serious violations of human rights; (i) Undertakes preventive human rights action; (j) Promotes the establishment of national human rights infrastructures; (k) Undertakes human rights field activities and operations; (l) Provides education, information advisory services and technical assistance in the field of human rights.

European Commission – Employment and Social Affairs

www.europa.eu.int/comm/employment_social
The Directorate-General for Employment and Social Affairs has the task of contributing to the development of a modern, innovative and sustainable European Social Model with more and better jobs in an inclusive society based on equal opportunities. It plays a key role in promoting positive interaction between economic, social and employment policies to make Europe the world most competitive and dynamic knowledge-based economy, capable of sustainable economic growth, with more and better jobs and greater social cohesion.

U.S. Department of State - Bureau of Democracy, Human Rights and Labor

www.state.gov/www/global/human_rights
The responsibilities of the U.S. State Department's Bureau of Democracy, Human Rights and Labor (DRL) include formulating U.S. human rights policies and coordinating policy in human rights related labor issues. In addition, it coordinates the publication of U.S. State Department annual country reports that provide information on the exercise of various human rights.

Human Rights First (formerly the Lawyers Committee for Human Rights)

http://www.humanrightsfirst.org/
Human Rights First (HRF) works to promote fundamental human rights through its focus on building legal institutions and structures that will guarantee human rights in the long term. The organization holds governments accountable to the standards affirmed in the International Bill of Human Rights and represents asylum seekers and refugees.

International Confederation of Free Trade Unions (ICFTU)

http://www.icftu.org/
The ICFTU organizes and directs campaigns on issues such as the respect and defense of trade union and workers' rights, the eradication of forced and child labour, the promotion of equal rights for working women, the environment, education programs for trade unionists all over the world, encouraging the organization of young workers, and sends missions to investigate the trade union situation in many countries.

Interfaith Center on Corporate Responsibility

http://www.iccr.org/
ICCR's membership is an association of 275 faith-based institutional investors, including national denominations, religious communities, pension funds, endowments, hospital corporations, economic development funds and publishing companies. ICCR and its members press companies to be socially and environmentally responsible. Each year ICCR-member religious institutional investors sponsor over 100 shareholder resolutions on major social and environmental issues.

Global Exchange

http://www.globalexchange.org/
Global Exchange is a human rights activist organization dedicated to promoting environmental, political, and social justice around the world. It focuses on corporate responsibility, globalization and trade issues.

Workers Rights Consortium

http://www.workersrights.org/
The WRC is a non-profit organization created by college and university administrations, students and labor rights experts. The WRC's purpose is to assist in the enforcement of manufacturing Codes of Conduct adopted by colleges and universities; these Codes are designed to ensure that factories producing clothing and other goods bearing college and university names respect the basic rights of workers.

Ethical Trading Initiative

http://www.ethicaltrade.org/
The U.K. based Ethical Trading Initiative (ETI) is an alliance of companies, NGOs and trade union organizations committed to working together to identify and promote good practice in the implementation of codes of labor practice, including the monitoring and verification of the observance of code provisions. ETI members believe that this collaborative approach provides the opportunity for making significant progress in promoting the observance of internationally recognized labor standards, in particular fundamental human rights throughout global supply chains.

Fair Labor Association

http://www.fairlabor.org/
The Fair Labor Association (FLA) is a non-profit organization combining the efforts of industry, non-governmental organizations (NGOs), colleges and universities to promote adherence to international labor standards and improve working conditions worldwide. The FLA was established as an independent monitoring system that holds its participating companies accountable for the conditions under which their products are produced. To advance fair, decent and humane working conditions, the FLA enforces an industry-wide Workplace Code of Conduct, which is based on the core labor standards of the International Labour Organization (ILO).

Social Accountability International (SAI)

http://www.cepaa.org/
Social Accountability International (SAI) works to improve workplaces and combat sweatshops through the expansion and further development of the international workplace standard, SA8000, and the associated SA8000 verification system. SAI convenes key stakeholders to develop consensus-based voluntary standards, accredits qualified organizations to verify compliance, and promotes understanding and encourages implementation of such standards worldwide.
"_blank">Business & Human Rights Resource Centre
http://www.business-humanrights.org/
The Business & Human Rights Resource Centre is an independent, non-profit organization promoting greater awareness of business & human rights issues. Its Web site is an on-line library, updated almost daily, containing links to a wide range of materials on human rights as they relate to business.
 

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