The superannuation community has cracked down on the ethical and social responsibilities of Australia's top 200 companies, with the Australian Council of Superannuation Investors (ACSI) threatening to publicly shame companies who do not lift their game.
ACSI has published research on sustainability reporting practices of the S&P/ASX200 and the labour and human rights standards in corporate Australia.
The group has threatened to name and shame those companies with insufficient levels of reporting on sustainability risks – which was over 50 per cent of the ASX200, according to ACSI.
The report said the number of companies adhering to the Global Reporting Initiative has stalled over the past three years, with companies making statements about their sustainability methods without providing disclosure against their strategy.
"Despite ACSI's annual communication with ASX200 company chairmen regarding their reporting level and the importance of sound disclosure around sustainability risk and performance, these results confirm that the concerns of investors have not been addressed," ACSI chief executive Ann Byrne said.
ACSI has also joined forces with the Labour Union Cooperative Retirement Fund (LUCRF), with LUCRF funding ACSI research into the lack of labour standards and human rights policies within the ASX200.
The research found only 14 per cent of companies have formal policies that address a wide range of labour and human rights issues, and only 23 per cent of companies have protections for freedom of association and the right to collective bargaining.
While companies proclaimed to have certain policies in place, the research found policies often did not extend beyond full-time employees, and very few companies supported global initiatives such as the United Nations Global Compact or the Universal Declaration of Human Rights.
"As part of this disclosure, companies should have a policy position in relation to employees' rights, freedom of association and the right to collectively bargain. Human rights are the foundation for a just and productive community and the key to long-term sustainability," LUCRF Super chief executive Greg Sword said.
