Brands face growing scrutiny to uphold ethical practices across supply chains. As consumers and stakeholders demand greater transparency and accountability, robust grievance mechanisms protect workers and safeguard a brand’s reputation.
The United Nations Guiding Principles on Business and Human Rights (UNGPs) provide a comprehensive framework for ensuring that businesses respect human rights in their operations. The UNGPs specifically emphasise the importance of effective grievance mechanisms, which are essential for addressing human rights abuses linked to business activities.
A grievance mechanism is a formal or informal complaint process that allows individuals or groups to raise concerns, or grievances within an organisation related to potential or actual adverse impacts on human rights and the environment. These mechanisms are crucial for businesses as they provide a structured and transparent way to proactively identify, address and resolve issues that affect workers and suppliers.
Our Grievance Mechanisms play a critical role in helping businesses address workplace issues while reinforcing trust and credibility with their stakeholders.
The dual benefit: workers' welfare and brand integrity
For brands, the value of a grievance mechanism goes beyond meeting compliance standards—it’s about worker welfare, maintaining consumer trust and protecting brand reputation. As more businesses operate globally, supply chains become increasingly complex, with risks of unethical practices such as forced labour, harassment and discrimination. A grievance mechanism allows brands to ensure these issues are identified and resolved promptly, reducing the potential for reputational damage.
Through LRQA’s Grievance Mechanisms, brands can assure stakeholders that they are committed to responsible sourcing and fair labour practices. This is especially critical in industries where supply chains can span across multiple countries with varying labour standards. In the last 12 months alone LRQA has reached over 1,100 sites, impacting an estimated two million workers, LRQA’s mechanisms enable businesses to remain vigilant and responsive to potential risks.
Trust in the system: protecting business by addressing key concerns
We partner with trusted organisations (depending on geography and context), for example, NGOs or trade unions that are part of the local community, to not only operate our helplines but also deliver face-to-face training for workers to build trust and awareness.
LRQA’s helplines, which average 1,400 calls per month and are trusted resource for workers to report sensitive issues, including verbal abuse and forced labour. Each month, we handle more than 700 new cases highlighting the level of confidence workers have in reporting their concerns. For brands, this is a clear indication that their workforce trusts the system, which, in turn, reflects positively on their commitment to ethical practices.
Mitigating risks through early detection
When workplace issues go unreported or unresolved, they can potentially escalate into major public relations crises, leading to financial losses, regulatory penalties and irreparable damage to a brand’s reputation. Brands that rely on LRQA’s Grievance Mechanisms benefit from early detection of risks, enabling them to address and mitigate issues.
For instance, a report of forced labour from a worker in a remote factory can be swiftly escalated through LRQA’s system. Our teams work closely with the brand to investigate, resolve the issue, and ensure the factory implements corrective measures. This proactive approach not only protects workers but also protects the brand from potential reputational harm.
Enhancing brand reputation through ethical leadership
A strong grievance mechanism is a powerful tool for demonstrating ethical leadership in an increasingly conscious marketplace. Brands that can show a genuine commitment to protecting workers' rights are more likely to attract socially responsible investors, partners and consumers.
Integrating LRQA’s Grievance Mechanisms into a brand’s broader Environmental, Social, and Governance (ESG) strategy helps elevate its position as a responsible leader in the market. As part of their ESG commitments, brands can publicly report on their use of grievance mechanisms, showcasing transparency and accountability in addressing workplace issues. This is particularly important against the backdrop of risk management , where supply chain complexity and stakeholder expectations around ESG performance continue to grow.
Preparing for the Corporate Sustainability Due Diligence Directive
In addition to current regulations, businesses must be prepared for the Corporate Sustainability Due Diligence Directive (CSDDD), set to reshape corporate accountability across the European Union. The CSDDD will require companies to carry out human rights and environmental due diligence throughout their supply chains, which includes having effective grievance mechanisms in place.
Under the CSDDD, businesses must identify, prevent and mitigate adverse human rights and environmental impacts in their operations and supply chains. Grievance mechanisms will be a key requirement for compliance, providing a structured way for workers, communities and other stakeholders to raise concerns. LRQA’s end-to-end approach is designed to handle sensitive issues such as forced labour and harassment, supporting businesses to meet these new obligations.
Additionally, one of the key provisions of the CSDDD for establishing effective grievance mechanisms is ensuring "meaningful stakeholder engagement", we engage with worker representatives from the outset, to inform the design and implementation of our solutions.
By taking proactive steps now, businesses can ensure compliance with the CSDDD and demonstrate their commitment to sustainable and ethical business practices. Our approach is part of a comprehensive strategy to help brands not only meet legal requirements but also build long-term resilience and stakeholder trust.
Building trust with consumers and stakeholders
Consumers and stakeholders expect brands to be transparent and responsive to ethical concerns. Those that engage in proactive risk management by using grievance mechanisms demonstrate a clear commitment to these values. We help brands respond to grievances but also provide insights into recurring issues, allowing businesses to adjust their policies and practices accordingly.
This approach strengthens the bond between a business and its stakeholders, creating a cycle of trust. Workers feel empowered to raise concerns, knowing that action will be taken, while businesses benefit from increased consumer confidence and loyalty.
Moving beyond compliance: long-term value
While grievance mechanisms are a requirement for compliance with global labour standards, forward-thinking brands recognise their long-term value in building a sustainable and ethical business model. LRQA’s connected portfolio —ranging from Responsible Sourcing programmes to ESG Advisory and Training services—help brands integrate these mechanisms into a broader strategy for managing risk and ensuring supply chain transparency.
By embracing grievance mechanisms as a key component of their strategy, companies not only protect themselves from immediate risks but also foster a culture of continuous improvement and ethical leadership. This ultimately enhances the brand’s competitive edge in a marketplace where consumers increasingly prioritise social responsibility.
Conclusion
Grievance mechanisms are no longer just a compliance tool; they are a strategic asset that helps protect both workers and brands from risks that can jeopardise trust and reputation. At LRQA, we empower businesses with the tools they need to address these challenges head-on, ensuring that their workforce feels safe and valued, while simultaneously protecting their brand from reputational damage.
To learn how LRQA can support your brand in implementing or enhancing its grievance mechanisms, contact us today.