Objective · HR02
Concept HR Ethical Suppliers Procurement
Protect, promote, and advance human rights in the labor supply chain to decrease labor exploitation, forced labor, and modern slavery.
7 activities
Design for Freedom by Grace Farms states, “Systemic change within the construction sector is difficult because of its very nature. In the U.S. alone, 75% of construction firms are owned and operated by one individual with no payroll, working either as freelance contractors or reliant on subcontractors for additional labor. The layers of subcontractors and middlemen along the supply chain add to the opacity. But the use of big data and other innovative technology can drive slave-free building132.”
Ethical Suppliers Procurement focuses on the network of relationships within the commercial real estate industry, emphasizing the critical role of labor rights. According to the International Labour Organization (ILO), over 25 million people are subjected to forced labor globally, with a significant portion involved in construction-related activities. This Objective approaches human rights holistically, recognizing that a project's impact extends beyond its immediate boundaries and the complexities inherent in the construction industry.
To effect meaningful change, we have to focus attention past the project Owner to their entire network, including Suppliers, as far down the supply chain as possible. Owners and Suppliers actively promoting fair wages that reflect the actual value of labor, ensuring working conditions that respect the dignity and safety of every worker, and being vigilant in identifying and rectifying deviations from these standards is the way to elevate the entire industry's ethical standards, so that every impacted party, regardless of their role, contributes to a more just and equitable construction ecosystem.
Activities
- HRa2.1
Owner shall provide a living wage
ImpactThe Owner shall ensure that all employees assigned to the project are paid a wage that, at minimum, meets the living wage standard of their respective region, enabling them to cover basic needs and provide some disposable income.
- HRa2.2
Owner shall ensure decent work conditions
ImpactThe Owner shall ensure that employment contracts for all assigned employees provide basic protections, freedoms, and rights, in alignment with the principles of decent work. This includes prohibiting child and forced labor, assurance of freedom of association, fair working hours, and provision for leave periods.
- HRa2.3
Suppliers shall provide a living wage
ImpactSuppliers shall ensure that all employees assigned to the project are paid a wage that, at minimum, meets the living wage standard of their respective region, enabling them to cover basic needs and provide some disposable income.
- HRa2.4
Suppliers shall ensure decent work conditions
ImpactSuppliers shall ensure that all employment contracts provide workers basic protections, freedoms, and rights. Suppliers must ensure no child or forced labor is utilized, workers have freedom of association, fair working hours, as well as provide for periods of leave from employment.
- HRa2.5
Tenants shall provide a living wage
ImpactTenants shall ensure that all employees located at the project are paid a wage that, at minimum, meets the living wage standard of their respective region, enabling them to cover basic needs and provide some disposable income. This activity covers the inclusion of a living wage provision in signed lease agreements but does not extend to verifying, validating, or monitoring tenant compliance with this provision.
- HRa2.6
Tenants shall ensure decent work conditions
ImpactTenants shall ensure that all employment contracts provide employees basic protections, freedoms, and rights. Tenants must ensure no child or forced labor is utilized, employees have freedom of association, fair working hours, as well as provide for periods of leave from employment. This activity covers the inclusion of decent work provisions in signed lease agreements but does not extend to verifying, validating, or monitoring tenant compliance with this provision.
- HRa2.7
Owner shall remediate Supplier procurement negative impacts to human rights
ImpactThe Owner shall provide for or cooperate in the remediation of negative human rights impacts during Supplier procurement where the Project caused, contributed, or is linked to that could not be prevented or mitigated through defined actionable steps. The aim is to neutralize past negative effects through remediation and restoration, not just halting future negative impacts. This activity is confined to the project and not the broader organizational operations.