The Fair Labor & Thriving Communities Impact Goal considers the relationship between companies and the societies in which they operate. It accounts for how management interacts with and gives back to local communities. This includes a company’s contact with the indigenous populations and how these companies value their rights and respect their land. The goal also accounts for the health and safety of employees including universally accepted labor standards and laws.
When scoring a company on the Fair Labor and Thriving Communities impact goal, the following underlying Sustainability Accounting Standards Board (SASB) factors are considered:
- Employee Health & Safety: The ability to create and maintain a safe and healthy workplace free of injuries, fatalities, and illness. Done through implementing safety management plans and developing training requirements for employees and contractors. Also ensures the physical and mental health of employees through training, culture, regulatory compliance, and PPE.
- Labor Practices: The ability to uphold commonly accepted labor standards, labor laws, and internationally accepted norms and standards. This includes basic human rights related to child labor, forced labor, fair and minimum wages, overtime pay, and benefits. Finally, the relationship between organized labor and freedom of association.
- Human Rights & Community Relations: The management relationships between businesses and the communities in which they operate. The impact on human rights and treatment of indigenous people. May cover socioeconomic community impacts, environmental justice, cultivation of local workforces, impacts on local businesses, license to operate, and environmental/social assessments.
The SASB is a non-profit organization founded in 2011 to help businesses and investors develop a common language about the financial impacts of sustainability. To learn more, see https://www.sasb.org/about/
To learn more about the Impact Scoring methodology, see How are Impact scores calculated?