The third edition of IRBI 2017 highlights that there is no apparent
improvement in the way companies treat their employees despite
incorporating progressive policies for worker welfare, safety and rightsNew Delhi: Although
businesses in India have over the years significantly progressed in
recognizing and committing to better worker’s rights, safety and
well-being, most companies are still laggards when it comes to
translating intention into action.
The third edition of India Responsible Business Index (IRBI) 2017
highlights that there is no apparent improvement in the way companies
treat their employees despite incorporating progressive policies for
worker welfare, safety and rights, and draws attention to the fact that a
lot remains to be done when it comes to actual implementation of policy
commitments.
IRBI ranks the top 100 BSE-listed companies on their performance on five
parameters—inclusive supply chain, community as stakeholders, community
development, employee dignity and human rights and non-discrimination
at the workplace.
In ensuring non-discrimination of employees at workplace, IRBI finds
that the public sector companies are placed better than the private
companies. Out of top 100 BSE-listed firms, 75 companies have recognized
the principle of non-discrimination and equal opportunities in
recruitment. However, only 27 entities recognize the principle of
non-discrimination in the composition of company boards, of which 24 are
private.
Pritha Venkatachalam, partner at Bridgespan Group, a philanthropy
advisory, says that while the companies may be improving on some
indicators, overall they need to do lot more towards being “more
responsible”, particularly on element of fair pay, benefits, provision
for the disabled and disadvantaged. “It is a deep concern that only few
companies provide medical insurance or provident fund (PF) benefits or
how much companies are treating importance of fair pay or well-being of
their employees,” she notes.
Only 14 companies have explicitly committed to respecting and paying
minimum wages with just five gone a step further to recognize “fair
living wages”. Likewise, only six companies have recognized providing
benefits such as PF and medical insurance to its contractual employees.
Just eight companies disclosed on assessing the situation of worker
rights and labour issues in core businesses.
Although there are no specific laws that would oblige a business to
provide for a discrimination-free working environment, vulnerable groups
get their protection under the (Prevention of Atrocities) Amendment
Act, 2015.
The Rights of Persons with Disabilities (PWD) Act 2016, the IRBI notes,
does not seem to have had a “significant influence” on companies to
disclose their policies on PWD. While 81 companies disclosed the number
of PWD in their workplaces, only 19 companies have recognized creation
of disabled-friendly workspaces as part of their policy commitment. “It
is one thing to say that you recognize the principle of equal
opportunities and not-discriminating, but in terms of actual day-to-day
recognition as well as provision of facilities, I think the companies
are not doing enough,” says Venkatachalam of Bridgespan.
A similar assessment is drawn by S.V. Nathan, chief talent officer and
partner at Deloitte India, who says Indian companies need to do much
more when it comes to creating disability-friendly spaces. “While there
is intention, I don’t think there is much action. With regard to
creating work space that could be called safe places, or that support
people with disability that has not happened,” he notes.
IRBI says that 48 firms identify caste as an identity that needs to be
proactively included for diversity in an organization, but only 15
companies disclose numbers of scheduled caste (SC) and ST (scheduled
tribe) employees of which 14 are PSUs. Tata Steel is the only private
company that has disclosed that SC/ST communities form more than 16% of
its workforce. Nathan of Deloitte explains that the PSUs are doing well
on this aspect because of the “affirmative action” on diversification of
workforce as a result of inclusion by mandate due to clear government
guidelines and policy regarding it.
The report states that Sebi has reported a 12% increase in prevention of
sexual harassment-related cases in their 2017 report, while a far more
disturbing trend is the analysis of the indicator of “proximity of
offenders to victims” where the figure of nearly 35% attempts of women
abuse have been reported from workplaces or related business spaces.
On their part, some companies assert recognizing the need to identify
and address actual or potentially adverse human rights risks that may be
encountered directly or indirectly through its activities and business
relationships. “We do so by creating awareness within employees, and
ensuring that they ask questions, seek clarification and report
potential human rights violations without fear of reprisal or
retaliatory action,” says Sumit Mitra, head of human resources and
corporate services at Godrej Industries Ltd and associate companies.
Godrej Consumer Products Ltd ranks ninth on the IRBI index on the
employee well-being parameter.
Source; livemint
