In today’s evolving risk landscape, ensuring transparency, ethical conduct and human rights within supply chains has never been more critical.
The United Nations Guiding Principles on Business and Human Rights (UNGPs) provide a comprehensive framework for ensuring that businesses respect human rights in their operations. The UNGPs specifically emphasise the importance of effective grievance mechanisms, which are essential for addressing human rights abuses linked to business activities.
A grievance mechanism is a formal or informal complaint process that allows individuals or groups to raise concerns, or grievances within an organisation related to potential or actual adverse impacts on human rights and the environment. These mechanisms are crucial for businesses as they provide a structured and transparent way to proactively identify, address and resolve issues that affect workers.
Grievance mechanisms facilitate early risk identification, prevention and remediation of potential issues within companies’ supply chains. These mechanisms enable businesses to proactively address grievances before they escalate into larger problems, thereby safeguarding their reputation and operational integrity.
Grievance mechanisms ensure compliance with both domestic and international obligations, helping businesses navigate complex regulatory landscapes while also aligning with global sustainability standards. By fostering transparency and accountability, businesses not only augment their resilience against supply chain disruptions, but also demonstrate their commitment to ethical practices, ultimately driving long-term success and stakeholder trust.
We support businesses to implement grievance mechanisms for global supply chains. As a trusted expert with decades of experience, we offer a confidential and independent mechanism for workers to report and remediate issues, while gathering critical data to support proactive risk management and due diligence
LRQA’s Grievance Mechanisms are essential to identify and addressing workplace issues as well as promote safe and fair working conditions globally.
Why grievance mechanisms matter
Grievance mechanisms ensure compliance with national legislation, international frameworks and guidelines. Coupled with early identification and prevention of issues before they escalate and improved risk management associated with human rights violations, avoiding legal, financial and reputational consequences.
A grievance mechanism allows employees and stakeholders to raise concerns or report misconduct in a secure, confidential and trusted manner. This is particularly important in industries, regions and for groups where workers might face difficulties accessing formal routes for raising complaints, such as reporting workplace harassment, verbal abuse, or forced labour.
For businesses, such mechanisms not only help to address specific issues but also build a culture of accountability and trust. They ensure compliance with international standards, such as the International Labour Organization (ILO) conventions and help organisations maintain their reputation and stakeholder confidence.
In addition to current regulations, businesses must be prepared for the Corporate Sustainability Due Diligence Directive (CSDDD), set to reshape corporate accountability across the European Union. The CSDDD will require companies to carry out human rights and environmental due diligence throughout their supply chains, which includes having effective grievance mechanisms in place.
Under the CSDDD, businesses must identify, prevent and mitigate adverse human rights and environmental impacts in their operations and supply chains. Grievance mechanisms will be a key requirement for compliance, providing a structured way for workers to raise concerns. Our end-to-end approach is designed to handle sensitive issues such as forced labour and harassment, supporting businesses to meet these new obligations.
By taking proactive steps now, businesses can ensure compliance with the CSDDD and demonstrate their commitment to sustainable and ethical business practices. Our approach is part of a comprehensive strategy to help brands not only meet legal requirements but also build long-term resilience and stakeholder trust.
Our impact: reaching millions of workers
In the last twelve months alone, LRQA’s Grievance Mechanisms have extended across more than 1,100 sites, covering an estimated two million workers globally. These numbers highlight the wide reach and importance of these systems, particularly in regions and industries with a higher risk of workplace violations.
We provide workers with multiple ways to raise their concerns. Ensuring they can communicate their grievances in their preferred local language, utilising familiar and accessible communication channels such as toll-free lines, Facebook and instant messaging applications. What sets us apart is the presence of locally based trained operators who are well-equipped to handle grievances, understand the local context and are trusted by workers.
On average, we receive over 1,400 calls per month. The types of cases we process – approximately 700 new substantive cases each month – reflect the significant concerns and complex issues being addressed. Crucially, these numbers show that workers feel confident using our system to report highly sensitive matters, including instances of verbal abuse, discrimination, harassment and forced labour.
In 2023 we helped 30 clients identify, assess and remediate forced labour risks.
Tackling sensitive issues
The top five categories of grievances reported include serious issues like verbal abuse and forced labour, underscoring the importance of grievance mechanisms in addressing complex workplace concerns. Workers often feel vulnerable, especially when reporting sensitive issues that could impact their safety or employment. The fact that our helplines receive such reports demonstrates a high level of trust in our mechanisms. This trust is essential, as it ensures that grievances are reported, addressed and resolved before they escalate.
For example, when a worker in a factory reports forced labour conditions, an effective mechanism helps to swiftly identify the issue, carry out a thorough investigation and work with both the worker and employer to resolve the matter. Such interventions are vital for not only protecting workers but also for maintaining the integrity and reputation of the supply chain.
Building trust through transparency
One of the foundations of LRQA’s Grievance Mechanisms is trust. We partner with trusted organisations (depending on geography and context), for example, NGOs or trade unions that are part of the local community, to not only operate our helplines but also deliver face-to-face training for workers to build trust and awareness.
We work with businesses to take an active role in resolving grievances. By working closely with our clients, we provide actionable insights and guidance, helping businesses create safer, fairer workplaces. The result is a more transparent and ethical working environment, where workers feel secure and businesses can meet their Corporate Social Responsibility (CSR) commitments.
ESG strategy and the importance of grievance mechanisms
Supply chain complexity and stakeholder expectations around Environmental, Social and Governance (ESG) performance continue to grow. Grievance mechanisms are a key component of ESG strategies, particularly under the ‘social’ pillar, which focuses on human rights, fair labour practices and worker welfare. By implementing effective grievance systems, businesses demonstrate their commitment to ethical practices and stakeholder engagement.
Let’s talk
As businesses continue to manage complex risks, LRQA’s Grievance Mechanisms offer an essential tool for maintaining trust, ensuring compliance and fostering a culture of transparency and accountability. By empowering workers to speak up and providing businesses with the tools to respond effectively, we help to shape safer, more ethical workplaces around the world.
To learn more about how LRQA can help your business implement or improve your grievance mechanisms, contact us today.