Inequality and Business PDF

Session 4. Inequality and business Course: Business and Social Change Prof. Maria Teresa Uribe Jaramillo 1 Course plan Session Topic Reading Student work 1 Socio-technical Geels, F.W. (...

Session 4. Inequality and business Course: Business and Social Change Prof. Maria Teresa Uribe Jaramillo 1 Course plan Session Topic Reading Student work 1 Socio-technical Geels, F.W. (2002). Technological transitions as Meeting groups transition evolutionary reconfiguration processes: a multi-level perspective and a case-study. 2 Social Anguelovski, I. and Martínez Alier, J. (2014). The Quiz movements and ‘Environmentalism of the Poor’ revisited Case 1 - Blood diamonds business Case 2 - Single-use plastics 3 Informal Lazar, S., Sanchez, A. (2019). Understanding labour Quiz economy and politics in an age of precarity Case 3 - Gig economy precarity Case 4 – Sharing economy 4 Inequality and McKinsey (2022) What is diversity, equity, and inclusion? Quiz business https://www.mckinsey.com/featured-insights/mckinsey- Case 5 – Trans rights explainers/what-is-diversity-equity-and-inclusion Case 6 - Neurodiversity 5 Group videos Revision of topics, update on final assignment Quiz and revision Group work 2 presentations videos Session outline Quiz session 3 on informal economy Business and Inequality Student presentations Case 5 Trans rights and Case 6 – Neurodiversity Break In-class discussion on gender equality Time for individual report Inequality Inequality Goal 10: Reduce inequality within and among countries Unequal distribution of opportunities, resources and outcomes among people or groups. By 2030, empower and promote the Multiple dimensions: economic inequalities such as social, economic inequalities in income, wealth, wages and social protection, and political as well as social and legal inequalities where different inclusion of all, groups are discriminated, excluded or otherwise denied full irrespective of age, equality. sex, disability, race, Inequalities of opportunity affect a person’s life expectancy ethnicity, origin, and access to basic services such as healthcare, education, religion or water and sanitation. economic or other status They can curtail a person’s human rights, through discrimination, abuse and lack of access to justice. https://www.un.org/sustainabledevelopment/inequality/ Inequality and business Inequalities in income and wealth are severe and have been widening globally. The richest 1% of the world’s population now control up to 40% of global assets, while the poorest half owns just one per cent. Businesses are engines for economic growth, having the potential to create jobs, foster economic activity through their value chain, and contribute tax revenues for public services and infrastructure. Business can also exacerbate inequality, and its structural drivers, including by being complicit in perpetuating biases and discrimination. All businesses have the responsibility to respect human rights. Business reducing inequality with employees This includes adopting and implementing policies on respect for human rights including worker’s rights (collective bargaining, decent work conditions, etc.). Encourage changes in recruitment policies and practices that may exclude workers based on factors such as age, gender, religious beliefs, national origin, or ethnicity. Business reducing inequality in the supply chain In supply chains, one area to pay particular attention to is when third parties, such as recruitment agencies, are used to source labour. Such activity may place migrant workers at risk of exploitation such as forced labour and human trafficking, including where recruitment fees are charged to workers and where identity documents are retained. Implementing Due Diligence activities in the supply chain. Business reducing inequality with government Companies should engage governments in a transparent and accountable way and disclose payments to governments. Whether through public policy dialogue or tax revenue, relationships between companies and governments are increasingly recognized as having a significant impact on human rights, which may exacerbate or improve inequality outcomes. Examples: Extractive Industries Transparency Initiative (global standard for the good governance of oil, gas and mineral resources). Business and reducing inequality with marginalized groups To avoiding contributing to inequality, companies can also have a positive impact on addressing inequality through inclusive business models that provide empowerment for marginalized groups in: Workplace (LGBT+, Women, Disabled, Ethnic Minorities), Marketplace (SMEs, informal suppliers, small farmers, informal miners) Community (Local community, Low income, Indigenous peoples) Examples of business and inequality Develop products and services tailored Availability of products and services for for poor customers those on low incomes Improve access to basic goods and services for people living in poverty Access to financial services Recruit, train and employ local Equal remuneration for women and men community members, including those living in poverty, and integrate them in Capacity building your value chain Diversity and equal opportunity Invest in business-driven poverty eradication activities Economic inclusion Partner with civil society networks to provide education and entrepreneurial skills training  Diversity, Equity and Inclusion (DEI) in the workplace. Diversity: relates to who is represented in the workforce. Representing various identities (gender, age, ethnicity, physical abilities, etc.). Equity: ensuring fair treatment for all people, so that the norms, practices, and policies in place ensure identity is not predictive of opportunities or workplace outcomes. Equity takes into consideration a person’s unique circumstances. Inclusion: how the workforce experiences the workplace and the degree to which organizations embrace all employees. Creating an environment where diverse groups feel welcome and can thrive. Benefits of DEI for business Wider Talent Pool: Accesses the full range of talent. Diverse Perspectives: Varied viewpoints and experiences, boosting creativity and innovation. Enhanced Collaboration: Improve team dynamics. Improved Staff Retention: Inclusive cultures reduce employee turnover. Reflecting Customer Base: Diverse teams better understand varied customer needs. Better Recruitment and Reputation: Inclusivity attracts top talent. Greater Profitability: Diversity is linked to higher profitability. Student presentations Case 5 Trans rights Case 6 Neurodiversity Business and gender equality Gender equality The facts – Worldwide Wage gap: Women earn on average 20% less than men. Harassment: Between 30% and 50% of women are victims of sexual harassment at work. Women leaders: Only 4% of CEOs and presidents of boards of directors are women. https://www.strategie.gouv.fr/infographies/companies- commitment-gender-equality Discussion by groups: what do companies do on gender equality? Examine one large MNE gender equality practices (e.g., Zara, Pepsi Co, Airbus, Tesla, PWC, Tiffany) and send 1 ppt slide to [email protected]. Examples of what companies do to promote gender equality: Pay gap: Address gender pay gap Hiring practices: : Encouraging gender equality in hiring Promotion practices: Encouraging gender equality in promotion Women in power: Women’s access to leadership roles and board of directors Leadership training: Mentorship and women leadership training programs Other initiatives: Maternity and paternity leave policy Flexible work Awareness campaigns and initiatives against harassment, domestic violence References McKinsey (2022) What is diversity, equity, and inclusion? https://www.mckinsey.com/featured-insights/mckinsey- explainers/what-is-diversity-equity-and-inclusion Mayor of London (2020). Inclusive employers toolkit. Greater London Authority: London. https://www.london.gov.uk/sites/default/files/inclusive_employers_tool kit_fa.pdf EY (2021) DEI transparency report: pathways to progress. SDG Compass (2015). SDG 10: Reduce inequality within and among countries. https://sdgcompass.org/sdgs/sdg-10/ Next week Quiz session 4 on Inequality and business Prior to session send email to [email protected] with collective work (briefnote, video and sketchnote) Student videos presentation and discussion Time for individual report Time for individual report (50%) Any Questions? 21