A new report from New York University’s Stern Center for Business, and labor advocacy organization, Human Rights Watch, has concluded that the majority of existing ESG (environmental, social, and governance) frameworks are rewarding companies simply for disclosing information, rather than actually improving the conditions in their supply chains.
Analyzing 12 leading frameworks including those from Dow Jones, Bloomberg, and others used to guide investors and influence public perception, the report found that 60% neglect to examine the areas where environmental and human rights violations are most likely to occur.
And while Human Rights Watch, and other groups like it, applaud companies for publishing their supplier lists, as it allows them to “keep an eye on supplier factories and quickly alert multinational customers to labor-rights issues,” willingly transparent retailers like Gap and H&M continue to be embroiled in labor abuse scandals, showing that transparency and social responsibility are not the same thing.
You can read more about it at QZ.
