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UNI Global Union said today that a new study from management consulting firm McKinsey on corporate social responsibility programs makes an excellent case for the benefits of global agreements and respecting union rights.



“The report underlines something that we believe is one of the most important parts of social responsibility: being a responsible employer,” said UNI General Secretary Philip Jennings. “While it does not particularly address union rights, it does say that there are tangible benefits to having programs that boost employee morale. This would clearly include the right to join a union and collectively bargain for wages and benefits.”



In its report, McKinsey says that there is a return on capital from environmental, social and governance programs (ESG), which is how the firm refers to corporate social responsibility. One source of that return is “[h]igher employee morale through; lower costs related to turnover or recruitment.”



Jennings says this report should convince multinationals that are sceptical of the benefits of global agreements that such accords will benefit the bottom line.



Recently, UK-based retailer Tesco accused UNI of attacking the company after it called on management to start discussions on a global agreement and to address concerns about union rights at stores outside of the United Kingdom.



“We just want to engage in dialogue with the company to create a global agreement that is good for Tesco workers worldwide and good for the company,” Jennings said. “We see a potential for a win-win situation and we hope Tesco will embrace it as part of their corporate social responsibility program.”



The right to form and join unions and to collectively bargain is an easy way that companies can participate in ESG to build morale and lower costs. An actively engaged workforce that feels that it is in partnership with management will also lead to an environment where employees can suggest new products, ways to increase efficiency and cost-saving ideas.



The risks that companies face if they ignore worker demands for global agreements and union rights are great, including higher turnover and recruitment costs, lower productivity, boycotts, legal challenges and negative publicity.



“Workers use their unions as a way to have a voice in their company,” Jennings said, “and companies that are willing to listen to that voice will reap many benefits.”