We are delighted to feature a guest post from Jennifer Lovell originally published by Procurement with Purpose.
How can businesses most effectively respect and promote the rights and welfare of workers employed in the supply chain? That is a big and challenging question for procurement with purpose.
Worker Welfare comprises three elements: labour rights, working conditions and living conditions. Unfortunately, some questionable behaviours and practices have been adopted across industry sectors over many years and have become deeply embedded. Even though these practices may fall within the law and are considered by some to be culturally acceptable, they may still lead to poor worker welfare outcomes. These include fatigue, social isolation, poor nutrition, mental health problems, compromised workplace safety, the erosion of labour rights through poor employment practices, as well as crowded, unsanitary living conditions.
In the oil and gas supply chain, there are particular challenges when managing worker welfare. For a start, there’s the scale, with tens of thousands of workers at any one time, employed by a broad range of companies, at workplaces often located in remote areas. The industry is mature and supply chains need to stay cost competitive. Past initiatives to address issues have resulted in inconsistent improvements, and individual company improvements can lead to inequalities between workers at nearby sites. And crucially, what can companies do that will make a lasting impact? To help answer this question, two components that support sustained improvement are shared approaches through collaboration between organisations, and embedding change into company systems.
Back in 2017, a group of leading engineering and construction companies began working together to raise the bar in promoting the rights and welfare of workers across the industry, forming the organisation Building Responsibly. Now with 16 member companies, which encompass 1 million workers across 100 countries, the group champions the creation and adoption of common principles and practices, designed by the industry for the industry. This includes developing tools, engaging workers, clients, governments, civil society and international organisations with the mission to drive innovation and continuous improvement in worker welfare.
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About the author
A PhD-level chemist by training, Jennifer Lovell worked for Shell in senior strategy and procurement roles, and was deeply involved in that organisation’s supply chain “worker welfare” programme. She is now a consultant in procurement and strategy.