The first “Social Benchmark” by the World Benchmarking Alliance (WBA) evaluates how the world’s most influential companies, known as the SDG 2000, perform in relation to their social indicators such as respect for human rights, decent work, and ethical conduct.
The role of global business in achieving the Sustainable Development Goals (SDGs) is indisputable. The SDG 2000 list considers the 2000 most influential companies in the world that are considered key players in achieving these goals and assesses how they perform against various sustainability indicators.
Measuring different standards and benchmarks serves as an opportunity for companies to showcase their position in the so-called “race to the top,” while for others, it is an opportunity for motivation to change or be accountable.
Results
Companies are evaluated based on the “Social Transformation Framework” which demonstrates the contribution of the most influential companies to social transformation and the application of the principle “leave no one behind.” The framework includes 12 indicators, grouped into three main categories: human rights, decent work, and ethical behavior. The maximum score in the Social Benchmark is 20, with results showing that companies’ performance averages around 20% across the three categories.
Only about 10% of the companies or approximately 200 companies are on track to meet the requirements for respecting human rights, providing decent work, and ethical conduct. It can be concluded that the best-performing companies have made a proactive commitment to respecting human rights by implementing at least one element of the due diligence process. These companies demonstrate that respect for human rights and understanding of their impact on people are fundamental to engaging in socially responsible business conduct.
98% of the companies, including the top 10%, show weak results regarding decent work, specifically the lack of data on gender pay gaps. There is also no data measuring the number of workplace safety issues and incidents. When looking at the responsible business conduct indicator, 65% of the companies do not have a public commitment to protecting the personal data of employees and consumers. In terms of taxes, 90% of the companies do not disclose information about corporate tax in the different jurisdictions where they operate.
Reducing inequalities and poverty
Do these companies have a role in reducing inequalities and poverty or is this the role of governments? Given the significant impact these companies have the conclusion is that companies play a crucial role in tackling these issues which could be achieved through transparency and commitment to caring for people and preserving natural resources.
The next Social Benchmark will be measured in 2026, and it will be interesting to see what changes will take place and whether increasing regulations will improve the performance and people’s lives or if we will witness a pursuit of compliance and reporting without significant change.If you are as forward-looking as I am, we can together observe the positive change and improvement in people’s quality of life and progress towards achieving the UN Sustainable Development Goals.
