B Lab, Fairtrade
Introduction to the “People and Planet in Business” guide
The "People and Planet in Business" guide encourages small businesses to adopt a proactive approach to sustainability, emphasizing continuous improvement and stakeholder engagement. By following this guide, businesses not only comply with emerging global standards but also contribute positively to social and environmental change.
Key sections in this report
a. Understanding HREDD - This section introduces the concept of HREDD, explaining its importance and the global standards that frame it, such as the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.
b. Five Steps of Due Diligence - Detailed guidance on the five critical steps of the due diligence process: Commit, Identify, Address and Remediate, Track, and Communicate. Each step is elaborated with practical actions and examples, helping you to effectively implement these practices in your business operations.
c. Practical Tools and Resources - Access a curated list of tools and resources that support the implementation of each step of the due diligence process. These include risk assessment templates, guidelines on setting up grievance mechanisms, and links to essential databases and reporting frameworks.
Why small and micro companies should consider sustainability
a. Regulatory Compliance and Anticipation
Small and micro companies are increasingly subject to local and international sustainability regulations. Engaging in HREDD not only ensures compliance but also prepares businesses for future regulations that could be more stringent.
b. Building Trust with Stakeholders:
Companies that proactively engage in sustainability practices enhance their reputation. This trust can be pivotal in attracting and retaining customers, investors, and business partners who are increasingly valuing ethical practices.
c. Efficiency and Cost Savings
Implementing sustainable practices can lead to more efficient operations and significant cost savings. For example, reducing waste, improving energy efficiency, and using sustainable materials can decrease operational costs in the long run.
d. Access to New Markets and Customers
There is a growing consumer preference for products and services from socially and environmentally responsible companies. Small businesses that adopt sustainability practices can tap into these markets and expand their customer base.
e. Risk Management
By identifying and addressing potential social and environmental risks, small and micro companies can avoid the costs and disruptions associated with issues like supply chain disruptions, legal penalties, or damages from environmental accidents.
f. Employee Attraction and Retention
Companies that are committed to sustainability tend to attract employees who are motivated by values and ethics. This can lead to higher levels of employee satisfaction, lower turnover rates, and a more dedicated workforce.
g. Community and Social Impact
Small businesses are often closely tied to their communities. By engaging in sustainable practices, they can contribute positively to the local environment and social fabric, enhancing their community relationships and support.
h. Long-term Business Viability
Sustainability practices ensure that businesses operate on a model that is viable in the long term, protecting natural resources and ensuring social stability that businesses depend on to operate.
Practical Steps for Implementation
a. Start with a clear commitment
Articulate a commitment to respect human rights and the environment. This serves as a foundational step that guides all subsequent actions and signals your dedication to stakeholders.
b. Risk Identification
Use tools like the Fairtrade Risk Map or the MVO Risk Checker to identify potential and actual negative impacts associated with your business activities. This helps prioritize actions based on the severity and likelihood of risks.
c. Address and Remediate
Develop Action Plans: Once risks are identified, create actionable plans to mitigate or eliminate these risks. This might involve revising supplier contracts, enhancing employee training, or adopting new procurement policies.
Engage in Social Dialogue: Encourage open communication within the workplace and with external stakeholders to gather diverse perspectives on how to handle risks and improve practices.
d. Tracking Progress
Track the effectiveness of actions taken to address risks. This could involve regular reviews of supplier compliance, monitoring workplace conditions, or evaluating the environmental impact of your operations.
e. Communication
Regularly communicate your due diligence activities, progress, and challenges to all stakeholders. This can be done through sustainability reports, updates on your company website, or through social media.
f. Tools and Resources for Practical Implementation:
Practical Guides and Frameworks: Utilize resources such as the UN Guiding Principles on Business and Human Rights or the OECD Guidelines for Multinational Enterprises to align your practices with international standards.
Checklists and Templates: Employ checklists and templates provided in the guide to ensure that all due diligence activities are thorough and cover all necessary aspects.
Training and Capacity Building: Invest in training for your team to understand and implement due diligence effectively. This could include workshops, webinars, or collaboration with industry experts.
g. Additional Tips:
Leverage Community and Industry Networks: Participate in networks and collaborations that can offer support, share best practices, and provide access to resources that might be too costly or complex to develop independently.
Use Technology Wisely: Adopt simple technology solutions that can help in monitoring supply chains, managing grievances, or tracking environmental impacts.
Download the report:
https://bcorp.imagerelay.com/share/dd256ef386354c0b9671f346bdb84e14