A Global Business Network for Social Protection Floors
The Global Business Network for Social Protection Floors (SPFs) intends to be a platform for enterprises to share experiences on social protection and to foster the debate regarding the role of enterprises to support the installation of public social protection systems in countries where they operate.
The fourth annual meeting of the Global Business Network for Social Protection Floors took place at ILO Headquarters in Geneva on the 23rd of October 2018. Over three dozen participants from multinational enterprises, employers' organisations' and social protection institutions came together to share ideas and provide valuable inputs on how business can contribute to the 2030 Agenda on social protection through their human resources and corporate social responsibility policies.
On March 30th, 2018, Geely-Sanya University and International Labour Organization (ILO) signed a cooperation agreement on project training, curriculum development, and scientific research related to social protection and business performance.
On March 30th, 2018, the delegation of Social Protection Department of International Labour Organization visited Shanghai Kaibao Pharmaceutical Co. Ltd. The company shared good practices in safeguarding employee social protection benefits and emphasized the importance of investing in talents, improving employees' satisfaction, and thus promoting the competitiveness of the company.
On March 29th, 2018, the delegation of Social Protection Department of International Labour Organization visited Shanghai Mitsubishi Elevator Co. Ltd. The parties exchanged experience and shared lessons on corporate social protection practices, and discussed further opportunities of collaboration in promoting social protection in China.
On October 30th, 2017, the delegation of Shanghai Enterprise Confederation visited International Labour Organization's headquarters in Geneva. The delegates expressed their willingness to acquire knowledge and insights on labor relations and corporate social protection.
Deputy Director Social Protection Department, email@example.com
Launched on 28 October 2015, at the initiative of the ILO Director General, Mr. Guy Ryder, the Chairman and CEO of L’Oreal, Mr. Jean-Paul Agon, and the Secretary General of the International Organization of Employers (IOE), Ms. Linda Kromjong, the Global Business Network for Social Protection Floors is a leading knowledge-sharing platform for enterprises that are developing social protection programmes, as well as an engagement platform for enterprises willing to support the development of national social protection floors. The network includes multinational enterprises, employers’ organizations and private sector foundations that wish to share good practices and investigate how company programmes can promote the development of national social protection floors.
The ambition of the Network is to:
- Guide enterprises in providing adequate social protection to their employees through their compliance with national social security legislations and by designing and implementing gender-sensitive social protection packages for their employees.
- Guide enterprises and employers’ organizations in supporting the development of national social protection floors and contribute to the business continuity and performance of their factories, subsidiaries and suppliers.
- Document the impact of social protection on business performance and build a “buiseness case” for social protection.
- Promote the role of social protection in mitigating future crises within business continuity plans.
- Strengthen and expand the Global Business Network: by positing it as a leading platform for business to contribute to SDG 1.3
The Tentative workplan of the global business network for Social Protection Floors for 2016-2020 proposes a global framework for the Network members to contribute to the development of knowledge and ultimately to make social protection floor a reality for all.
The Global Business Network for Social Protection Floors has taken concrete measures in 2018 to improve corporate guarantees worldwide, to advance research on social protection and to establish social protection floors in specific countries.
L'Oreal is an active member of both the GBN and the French Network. The Group also works with the ILO on a study to determine a methodology to evaluate the quantitative impacts of social protection on the firms and the employees (based on the examples and data from the Share & Care programme). To advance the study, a mapping exercise was conducted to track the improvement of social protection in comparison with existing local schemes.
The study has uncovered the challenges in collecting sufficient quality data and indicators. Thus, the current analysis focuses on the choice of the indicators (e.g. absenteeism, turnover) and the type of data to collect to better evaluate such programmes. This will also be mirrored in an upcoming paper.
To overcome the methodological challenges in measuring the business benefits of social protection, members of the GBN, the ILO’s Social Protection and Research Departments, and Sanya University are currently developing a toolkit suit (“HR analytics”) which would analyze the implications of the changes in retention and attrition rates of talented workers on the companies’ economic indicators, such as return on investments (ROI). The toolkit will further allow to measure and analyse the impacts of national and complementary social protection programmes on the HR performance of enterprises.
Abstract: "Based on enterprise census data covering all registered firms across the 63 Provinces of Vietnam from 2006 to 2011, we find that, controlling for unobserved time-invariant firm-level characteristics, firms which increase the social security coverage by 10 per cent, experience a per worker revenue gain of between 1.1-2.6 per cent and a profit gain of around 1.3-3.0 per cent, with exact estimates depending on the survival time of the firm."
Abstract: "Social protection is one of many policy interventions that can contribute to poverty reduction goals. Evidence is growing of the positive impacts it can have on economic growth, especially in protecting and enhancing productivity and labour force participation among poor households."
Abstract: "Using a discrete-time survival analysis model of 595 Cambodian garment factories, this study finds that increased compliance to social protection labour standards (social protection compliance) is associated with a reduced odds of factory closure. This result implies that increased social protection compliance can enhance the well-being of workers while maintaining a firm’s competitiveness."
Information sessions in Pakistan and in France led to the creation of the Pakistan Business Network for Social Protection Floors and of the French Speaking Business Network for Social Protection Floors.
The Pakistan National Business Network for Social Protection Floors was launched in 2016 to mobilize the private sector in Pakistan in supporting social protection policies. The network is spearheaded by the Employers’ Federation of Pakistan (EFP) and is comprised of 40 leading representatives drawn from business associations, multinational and national companies and academia. In 2017, Network has developed a detailed action plan and secured the funding for the first activity.
In 2017, Auchan's Weave Our Future Foundation partnered with the ILO and the National Social Security Fund (NSSF) in Cambodia to promote the country’s new contributory health protection scheme. To support the public information campaign on the extension of this social protection scheme to SMEs, the informal sector and families, the Weave our Future Foundation has contributed USD 55,000, with NSSF providing additional USD 125,000. The project has helped to raise awareness and educate workers and employers about the right to social security while developing NSSF’s capacity to communicate effectively about the new schemes and benefits. As of June 2018, owing to the project success, the number of registered beneficiaries of NSSF has increased, and now accounts for 1.4 million of workers.
Today, 55% of the global population does not have access to social protection. The ILO works together with governments, workers’ and employers’ organizations, the private sector, civil society organizations, academia, the UN system and other development partners to support countries to realize the human right to social protection and improve millions of lives.
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More information on the ILO Flagship programme on building Social Protection Floors for all is available in the 2019 annual report.