A recent assessment by the nonprofit World Benchmarking Alliance revealed that over 90 percent of the world’s most influential companies are falling short in meeting societal expectations regarding human rights, working conditions, and corporate ethics. Despite generating revenues equivalent to 45 percent of the global economy, these top companies are missing out on an opportunity to positively impact the lives of hundreds of millions of people. The report, released on Tuesday, emphasized the immense resources and influence that these companies hold, impacting more people than the populations of many nations.
The WBA’s Social Benchmark assessed companies’ commitment to acting ethically, providing and promoting decent work, and respecting human rights. Shockingly, at least 30 percent of companies scored between 0 and 2 out of a possible 20 points, revealing a significant gap between what companies disclose and society’s expectations of them. While some companies disclose information about wages and working hours, a mere 29 percent monitor the health and safety of supplier workplaces. Additionally, only 20 percent conduct human rights due diligence on their supply chain partners, and a mere 4 percent are committed to a living wage.
The nonprofit also highlighted the low level of corporate responsibility among companies, with only 10 percent disclosing tax payments and 9 percent outlining their engagement with stakeholders such as employees and trade unions. Surprisingly, just 5 percent of companies disclosed their spending on corporate lobbying, despite their substantial economic influence. The lack of transparency regarding political engagement strategies and spending was noted as a significant area of concern, as it could either drive or hinder sustainable development efforts.
In terms of sector rankings, apparel and footwear, ICT, and retail emerged as the top-performing sectors, achieving scores between 28 percent and 33 percent. On the other hand, the funds and financial services sector scored the lowest at 11 percent, followed by transportation and real estate. By region, companies in the Asia Pacific region scored the highest with an average of 35 percent, driven in part by Australia’s commitment to disclosing tax payments. Europe followed closely at 33 percent, while North America lagged behind at 24 percent. The Middle East, South Asia, and East Asia scored the lowest, highlighting the need for improvement in these regions.
The WBA stressed that the private sector must take greater responsibility for the economic and social conditions they help create to achieve the UN Sustainable Development Goals, including poverty reduction by 2030. By engaging in socially responsible business conduct, companies can contribute to respecting human rights, providing decent work with living wages, acting ethically, paying fair taxes, and lobbying responsibly. The nonprofit pointed to the emergence of protest movements worldwide as a clear indication of people’s desire for an economic system that benefits the majority, not just the wealthiest few. Closing the gap between societal expectations and company actions is crucial for creating a more equal, inclusive, and just world.