How does benchmarking companies on children’s rights make a difference?

Benchmarking companies on children’s rights can make a significant difference by fostering transparency, accountability, and competition among businesses, ultimately driving improvements in corporate practices related to children’s rights.

Here are some key ways in which benchmarking can have an impact:

Identifying Leaders and Laggards: Benchmarking allows for identifying companies that excel in addressing children’s rights issues and those that lag behind. This recognition can incentivise underperforming companies to improve their practices to remain competitive and encourage others to follow the lead of top performers.

Transparency and Disclosure: Benchmarking often requires companies to disclose information about their policies, practices, and performance related to children’s rights. This increased transparency can empower stakeholders, including investors, consumers, and civil society, to make informed decisions and hold companies accountable for their actions.

Pressure for Improvement: Public benchmarking results can pressure companies to address weaknesses in their children’s rights practices. Negative rankings can lead to reputational damage, which can have financial implications, while positive rankings can enhance a company’s reputation and brand.

Guidance for Improvement: Benchmarking often provides detailed feedback and guidance to companies on improving their children’s rights performance. This guidance can be instrumental in helping companies develop effective strategies and initiatives.

Encouraging Collaboration: Companies may collaborate with peers, NGOs, and other stakeholders to address common children’s rights challenges. Benchmarking results can highlight areas where collective action is needed, leading to industry-wide improvements.

Regulatory Influence: Governments and regulators may use benchmarking data to inform the development of new laws and regulations related to children’s rights. Positive benchmarking can also reduce the need for additional regulatory interventions.

Consumer and Investor Influence: Benchmarking can influence consumer and investor preferences. Companies that perform well in children’s rights benchmarking may attract more customers and investors who prioritise responsible business practices.

Awareness and Education: Benchmarking initiatives can raise awareness about children’s rights issues among businesses, employees, and the public. This increased awareness can lead to a broader understanding of protecting children’s rights.

Continuous Improvement: Over time, benchmarking can drive continuous improvement as companies strive to maintain or improve their rankings. This can lead to a race to the top regarding children’s rights performance.

It’s important to note that the effectiveness of benchmarking efforts depends on several factors, including the credibility of the benchmarking organisation, the quality of the data collected, and the willingness of companies to participate and take action based on the results. However, when done well, benchmarking can be a powerful tool for promoting responsible business practices and advancing children’s rights globally.