On International Human Rights Day, the International Corporate Governance Network (ICGN) has published an ‘Investor Viewpoint: Workers’ voice in corporate decision-making’, exploring integrating workers’ voice into corporate decision-making as part of effective human capital management.
Led by investors responsible for assets under management of around $77 trillion, ICGN advances high standards of corporate governance and investor stewardship worldwide in pursuit of long-term value creation.
Facilitating appropriate channels for workers’ voice in companies’ decision-making is one aspect of effective human capital management. Human capital, defined by the IFRS Foundation as workers’ competencies, capabilities and experience, and motivations to innovate, is an increasing focus for investors “as a major source of value for every company”[1]. Investors’ view is that integrating workers’ voice as an input into corporate decision-making can help company boards and management identify risks and opportunities, enhance workforce performance and productivity, and build trust with stakeholders.
ICGN’s Investor Viewpoint opens by looking at how worker engagement contributes to the long-term success of a company and is therefore a financially material consideration for investors, before exploring corporate governance mechanisms that can help management and boards hear workers’ perspectives. Finally, we propose some questions investors can ask to gain a better understanding of how companies approach this issue.
Co-chair of ICGN’s Human Capital Committee, Karin Halliday, Director of Investment Stewardship & ESG at Future Fund, said:
“Empowering worker voice not only aligns with fundamental principles of respect, dignity, and fairness in the workplace, but is a strategic advantage that drives sustainable growth, protects rights, and strengthens workforce engagement. Investors have a critical role in championing this dialogue.“
Read the full ‘Investor Viewpoint: Workers’ voice in corporate decision-making’.
[1] This is the observation of the International Sustainability Standards Board (ISSB), after an extensive public consultation.ISSB, “Feedback Statement on the Consultation on Agenda Priorities” (June 2024)
