Trade and labour rights
Driven by ever-increasing competition, businesses are under more and more pressure to lower prices, whilst at the same time upping profits. In this climate, it is often the people who produce the goods we buy who lose out, and stories about the poor working conditions and protection of these workers are well documented.
We push the companies in which we invest to take a responsible approach to labour rights in their operations and supply chains, and to ensure that workers' health, safety and welfare are respected.
Our policy statement on trade & labour rights
We will seek to:
- protect workers from exploitation, e.g. oppose child labour;
- support poverty reduction, e.g. encourage the adoption of Fair Trade or ethical trading principles;
- advocate an end to trade which fuels conflict or undermines human rights, e.g. displaces people from their lands;
- encourage the promotion of co-operative enterprises.
Our approach in practice
Supply chain labour standards
TCAM has engaged with several high-street retailers, including Tesco and Primark owner, Associated British Foods over supply chain labour standards. This issue is a concern for investors as business models relying on low-cost supply bases are often associated with poor factory working conditions. These in turn may lower productivity and employees may protest through work stoppages. Companies sourcing from such factories may encounter unexpected problems and be forced to find new suppliers at short notice. In Western markets, allegations of sweatshops erode consumer confidence in brands.
We have called on companies to develop forward-looking solutions, particularly to the issues of independent auditing and the living wage. We also asked that look at more innovative solutions for addressing supply chain labour standards such as long-term partnerships; addressing existing business or purchasing practices; effective remediation and increased transparency.
Making change over time
We believe that buying low cost goods at the expense of workers' health, safety and welfare is not only morally wrong, it is also unsustainable in business terms. We worked with the ethical trading consultancy Impactt to produce a report that promotes a new approach to improving labour practices, focused on change over time, rather than simple audit compliance. It showed that such changes can have a positive impact for suppliers and purchasers, as well as workers. We have contacted 120 international companies in which we invest, to highlight the report and will provide practical support for companies to incorporate changes throughout their supply chains.
