Integrating employee perspectives as an input into corporate decision-making is a core part of effective human capital management, according to new research by the International Corporate Governance Network (ICGN). It determined that investors believe listening to workers can help company boards and management identify risks and opportunities, which enhances workforce performance and productivity, and builds trust with stakeholders. As such, consulting workers is an important aspect of responsible business conduct, anchored in international standards and conventions, the ICGN said. The report also explored corporate governance mechanisms that can help management and boards hear workers’ perspectives. ICGN proposed questions investors can ask to gain a better understanding of how companies approach this issue. Workers’ voice can either be individual or collective and may be shared through both formal and informal mechanisms, the report added. “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,” said Karin Halliday, Co-chair of ICGN’s Human Capital Committee. “Investors have a critical role in championing this dialogue.”
