Fair Wages

Introduction

Outcome

People can afford a decent standard of living for themselves and their families, and there is wage equity among workers.

Purpose

Affording a decent standard of living for oneself and a family is a human right. It is also an enabling right, meaning it helps fulfill other human rights, such as the rights to housing and education. Ensuring people can cover the cost of having a family is also a transformational tool to break the cycle of intergenerational poverty.

There are multiple paths to ensuring wages are sufficient: wages are negotiated by workers (collective bargaining) or wages are based on research on what a family needs (a living wage/income). The B Corp standards create space for both approaches, recognizing not only their individual value, but also their combined strength.

These approaches are necessary because government-set minimum wages are often not enough to afford a decent standard of living. This is the reality in the majority of the world.

In addition to setting a minimum threshold, Fair Wages is also about achieving equity between different groups of people. This requires accelerated action on wage transparency, and calculating and closing workplace wage gaps.

Scope

The company’s own operations and supply chain.

Notes

• Worker dialogue and representation are covered under the Workplace Culture topic.

• Respecting human rights in the supply chain more broadly (beyond wages) is covered under the Human Rights topic.

• Other aspects of equity, beyond wage equity, are covered by the JEDI topic.

• Companies without workers are exempt from the requirements in this topic.

Requirements

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