Inequality acts as a threat multiplier, accelerated by crises ranging from pandemics to climate change. It is a systemic risk that threatens the political and economic fundamentals that businesses rely on to operate, innovate and grow. Businesses have powerful tools at their disposal and powerful reasons to use them. We need to manage impacts on people with the same care we manage carbon.
The richest 10% of the world's population earns more than half of the world's income* and only a handful of countries have the right conditions for true upward mobility. is losing its belief that it is a business. We deliver for them and their families.
The Panel on Climate Change (IPCC) clearly recognizes that inequalities related to gender, ethnicity, income and other factors increase vulnerability to climate risks and their impacts. It also calls for action to tackle inequality as a key means to achieving climate change resilience and adaptation.
Businesses have powerful tools at their disposal to participate in this important effort, and there are meaningful reasons to use them.
There is a profound business case for the holistic and interconnected challenge of mitigating both the systemic and business risks posed by inequality. Tackling inequalities in corporate value chains is something all companies must start doing, creating a ripple effect for positive impact.
- reduce: To prevent and minimize negative impacts, we must stay ahead of regulatory changes by implementing the United Nations Guiding Principles on Business and Human Rights. Start your own business and build robust corporate governance that strengthens and supports your commitments and practices. Next, expand the upstream and downstream range.
- to repair: Build the necessary capacity, trust and accountability across the value chain to drive positive outcomes. Mobilize resources, measure and disclose responsible business practices.
- forward: Promote social equity and gender equality. Extend the reach to suppliers and employees at the nth tier of the value chain, track effectiveness measurements for positive outcomes and informed decision-making among employees, consumers and society at large. Securing a license to operate by building trust.
you are not alone
Managing global obligations is not easy. Regulations are complex, increasingly stringent, and vary by market. Data is distributed across multiple systems, collection and processing is primarily manual, and often lacks insights to support collaboration between stakeholders towards equality. .
Your company is not alone in facing these challenges. Solving these complex challenges will require us to work together.
SAP enables your supplier due diligence process with human rights risk assessments and insights integrated into procurement and contracting workflows in SAP Ariba Supplier Risk. The Supplier Self-Assessment Survey for Human Rights Compliance is available to any supplier in SAP Business Network as a one-to-many data exchange, and suppliers are free to share the survey with buyers who request it. This builds confidence in human rights due diligence and saves time, effort and costs for both suppliers and buyers.
SAP Environment, Health, and Safety Management (SAP EHS) enables important interventions in areas such as occupational safety and health. SAP SuccessFactors solutions support building diverse, equitable, and inclusive workplaces and provide education and training that helps people prepare for the future of work. SAP S/4HANA for Product Compliance can have a positive impact on consumers and communities, for example by ensuring safe products and services through human rights compliance of products and materials. These are just a few examples of how SAP technology can help companies transform to achieve a just transition to a net-zero, inclusive, green economy.
A holistic and interconnected business agenda
We are all on a journey towards a holistic and interconnected business agenda and must act to strengthen the 'S' in ESG (Environmental, Social and Governance). This is an important pillar of action that has been overlooked for far too long. In the report, “Tackling inequality: A challenge for corporate action”, published by the Business Council for Combating Inequality (BCTI), established by the World Business Council for Sustainable Development (WBCSD). 10 clear actions companies can take to address rising inequality.
Tackling inequality is a key driver for long-term, sustainable economic growth, and many leading companies are already embracing this role, working to level the playing field. The need of the hour is for all businesses to maximize their potential and avoid the risks posed by rising inequality, ensuring equal opportunities and better outcomes for all. It is to do.
Gitte Winther Bruhn is Global Head of Social Responsibility Solutions at SAP.
*Source: Tackling Inequality: An Agenda for Business Action by the Business Council on Tackling Inequality (BCTI), established by the World Business Council for Sustainable Development (WBCSD). Published on May 3, 2023.
