What does it take to be a corporate leader on children’s rights?

Johan Öberg, Managing Director and Senior Partner at Boston Consulting Group, weighs in on what it takes to be a corporate leader on children’s rights as part of the launch of Global Child Forum’s benchmark – “The State of Children’s Rights and Business in Southeast Asia – 2020

Since 2014, Global Child Forum and Boston Consulting Group in Stockholm have screened and scored over 2,600 companies, creating the largest benchmark on companies implementation of children’s rights globally.

This week marks the launch of a new report that we are proud of having contributed to; The State of Children’s Rights and Business in Southeast Asia 2020, making up a regional deep dive complementing the large Global Benchmark report launched in 2019. After having examined thousands of companies in eight sectors across a wide range of children’s rights indicators, stories begin to emerge.

Southeast Asia has made headway, but there is much room and great need for improvement

The region has improved since our last benchmark in 2016. Along with many other parts of the world, Southeast Asia has made significant strides as more and more companies bring children’s rights to the board level. But although the region has made headway, there is much room and great need for improvement.

A large number of companies, especially in the Apparel & Retail sector, have a lower than global average score in the benchmark. Half of the companies in the region don’t have a child labor policy. This fundamental requirement needs to be urgently addressed by all companies.

With the “Year of the Elimination of Child Labour” upon us, as mandated by the UN General Assembly, there is no better time than now to close the child labour policy gap in the region. There is of course concern that the global pandemic risks undermining the regions positive strides or, worse, reversing progress that has been made over the past decade, especially with regard to child labour.

Investors view a company’s adherence to children’s rights issues as a proxy for overall resilience

Today large investors are incorporating issues such as human rights as a key component of their investment approach, driven by a conviction that an understanding of sustainability issues is essential to improving long-term financial outcomes. Increasingly, investors are using a company’s adherence to children’s rights issues as a proxy for overall resilience, excellence and leadership position – putting children’s rights on a par with issues around climate and the environment.

Companies need to elevate children’s rights issues for the sake of future generations, a better society, and company survival.

So, what does it take to be a corporate leader on childrens rights?

Global Child Forum has identified four main areas that characterise leading companies that strategically manage their impact on children:

Factor #1 – Go from Policy to Practice. Leading companies report transparently on risks or instances of child labour and have involvement from the top. For example, the board prioritises children’s rights issues.

Factor #2 – Understand Children’s Rights Beyond Child Labour. Leading companies grasp that children’s rights go beyond child labour, and charity.

Factor #3 – Know Your Impact and Manage Your Risk. Leading companies understand what their main risks are and address these credibly.

Factor #4 – Join Forces. Leading companies collaborate strategically with others.

Ready to be ahead of the curve?

This report is directed at investors to be used in your analysis of, and engagement with, companies. The report is also designed to serve companies in the region, outlining clear and practical steps to facilitate moving up the ladder to achieve positions of leadership vis-à-vis children’s rights issues.

If you’re looking to improve your score, or to understand how you can make use of the benchmark in your work, please feel free to reach out to me or benchmark@globalchildforum.org.

While we continue coming to terms with the impact of the pandemic on the economy, on our communities, and on our families, it is clear that companies and investors with a strong sense of purpose and a long-term approach to sustainability will be better positioned than others to navigate this crisis and flourish in its aftermath.

Read the report: The State of Children’s Rights and Business in Southeast Asia 2020