In the previous article, we defined the ‘S’ in ESG as how an organisation treats people, the employees, the suppliers and the customers. Bear in mind that it is a social responsibility of a company to provide good relationships with the employees, the suppliers and the customers.

Since employees are the biggest stakeholders of a company and an active player to ensure the company meets the criteria of ESG metric, our article today will focus on the implementation of ‘S’ on the employees.

WHAT IS ESG METRIC FOR THE ‘S’ ASPECT IN ESG?

RelationshipThe company’s relationship with the employees, the suppliers, the customer.
Community & Human RightsThe company’s stance towards human rights in its operations, as well as its morality to the surrounding community.
Health & SafetyThe company’s priority on the health & safety of workers and their surroundings.
Diversity & InclusionThe company’s policy on diversity and inclusion towards the  employees involving gender, race, ethnicity, disability and more.
Political TiesThe impact of the company’s involvement with political parties, leaders, and its relationship with the investors.

AREAS THAT COMPANIES MAY FOCUS TO IMPLEMENT THE ‘S’ IN ESG FROM THE LEGAL PERSPECTIVE

1) Basic Rights & Benefits for Employees

a) Rights Under the Amended Employment Act 1955

b) Health and Working Condition

c) Training Employability and Career Development

2) Peripheral Rights

a) Respect for Employees Dignity

b) Rights to Employees Privacy

c) Discrimination Policy

In a nutshell, to achieve the ESG goal, the companies’ implementation of the ‘S’ aspect must always be in compliance with the laws. The areas mentioned above are only several areas that the companies may focus on implementing ESG within the legal parameters. 

Article Disclaimer: The contents written above and/or in this website do not constitute legal advice and should not be relied upon by any parties as such.

Do you want to know more on how to implement ESG within the legal parameters? Contact us now at admin@nhcolaw.com for further enquiries!

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