Transition companies
Although rising inequality has largely been ignored for years, there are signs governments and the private sector recognise the urgent need to reverse this. This is partly to reduce the risks of slow growth, social unrest and decreasing trust in institutions, but also to build a society based on dignity, respect, where basic needs are met and equal opportunities are available for all.
Doing so has the potential to unlock benefits for society, business and the economy. For instance, closing the living wage gap worldwide could generate an additional US$4.56 trillion every year through increased productivity and spending,10 while advancing gender equality could add as much as $13 trillion to global GDP and create 230 million new jobs for women.11
At a company level, evidence demonstrates the link between higher standards of employee and worker treatment and financial performance.12 Conversely, there are numerous examples of mistreatment and human rights abuses leading to negative operational, reputational and even financial and legal consequences. Longer term, a company’s durability and longevity is almost entirely dependent on its relevance and standing with stakeholders.
