The problem
Economic growth alone is not enough to ensure equity and eradicate poverty. All workers around the world should have decent working conditions and receive fair compensation. Unfortunately, many harmful labor practices continue around the world. Forced labor today generates more than US$150 billion in profits each year and keeps at least 25 million people in slavery-like conditions. More than 150 million children worldwide are engaged in child labor, more than half of them in hazardous work. In many other contexts, vulnerable groups such as workers with disabilities, women workers, and older workers face particular obstacles in accessing decent work. Corporations can support fair labor practices in many ways, including through internal policies and practices (such as paying a fair wage and ensuring decent work-life balance), business relationship choices (such as suppliers) and standards required of business partners, and reporting on labor rights
How companies are rated
182K
Ethos is using 182,723 unique data points since 2017 to rate companies, stocks and funds on fair labor practices, including from these metrics:
Financial performance
r =
+0.158
Company ratings 1-yr return
Top 10 for fair labor practices
Top 50 for fair labor practices
S&P 500 Index
Bottom 50 for fair labor practices
Bottom 10 for fair labor practices
Fair labor practices has a slight positive correlation (
+0.158
) with financial returns, meaning companies that perform better in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
Fair wages
living wage
child labor
work hours
overwork
labor rights
workplace rights
safe work environment
UN Sustainable Development Goal 8