The Ethical Supply Chain Program (ESCP) has released its 2024 Worker Well-Being Impact Report, which highlights the tangible benefits of ethical business practices on workforce well-being, productivity, and economic resilience.
The ESCP’s annual report documents the progress being made in key sourcing countries to improve the lives of workers and their families. Carmel Giblin, president and CEO of ESCP, commented, “At ESCP, we believe that businesses thrive when workers thrive,” she continued, “This year’s report demonstrates how prioritising worker well-being leads to increased productivity, reduced turnover, and stronger communities.”
Key achievements highlighted in the report:
Family-Friendly Factory programme expansion
Through this programme, over 8,000 workers and 10,000 children benefited from the employer-supported childcare initiatives. A total of 78 new childcare spaces were established to support working parents, with factories that had implemented these changes reporting higher employee retention and improved workplace morale.
Gender Equality programme growth
Gender-focused training initiatives have resulted in a 43% improvement in gender equality scores in participating factories, and new policies supporting women’s career advancement, parental leave, and workplace protections have been widely adopted. As a result, workplaces reported a reduction in discrimination complaints and increased opportunities for women in leadership roles.
Worker helpline impact
Over 10 million workers have had access to the worker helpline service since its launch in 2010, providing confidential assistance and workplace guidance to thousands of factory and construction workers worldwide. Factories with access to the Helpline have seen a decline in unresolved labor disputes and improved worker confidence in reporting issues.
Capability training development
ESCP offers a comprehensive suite of capability-building initiatives designed to enhance factory compliance, promote ethical manufacturing practices and continuous improvement. In 2024, over 600 progress visits were conducted, which are key to helping factories remain in compliance with ESCP standards in between audits, and, since launching training videos, they have reached over 2,000 workers.
All of ESCP’s worker well-being programmes are needs-based and their impacts are monitored to enable transparent data reporting, all the way through from needs assessment phase to annual impact reports.
At the recent launch of UNICEF’s Family-Friendly Workplaces Toolkit, Carmel Giblin, president and CEO of ESCP, underscored the importance of data; “Data inspires everyone. It enables the long-term development of worker well-being initiatives, building, not only a societal, but a business case for these policies. Data from our Family-Friendly Factory programme demonstrates long-term cost savings, and improved retention and turnover rates.”
This report demonstrates that prioritising worker well-being leads to measurable benefits, including lower absenteeism, greater job satisfaction, and higher productivity. Employees in participating factories have reported a greater sense of security and support, leading to improved work performance and long-term job stability.
“The results are clear: ethical supply chains create more resilient businesses and stronger economies,” added Carmel. “By investing in worker well-being, we create environments where employees, their families, and their communities can truly thrive.”
Access to the full 2024 Worker Well-Being Impact Report here.
The Ethical Supply Chain Program (ESCP) and Products of Change have partnered together to help companies to strengthen social and sustainability standards across global supply chains.
Through the partnership, members of both organisations will be able to access a broader range of tools that will help them to create products in more ethical and environmentally friendly ways. The two not-for-profits offer complementary resources that cover the different aspects of social and sustainability compliance.
Join the webinar at 16:00 GMT on Tuesday 25th March 2024 to hear more about the partnership and the benefits to POC Members. Register for the webinar here.
