User Manual 2.0

USER MANUAL 2.0

Organization Name: ABC Corporation Organization Type: Service Provider Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Diversity & Inclusion Employee Beneﬁ ts Gender Diversity Health Care Ethnic Diversity Retirement Provision Inclusion Family/Medical Leave Engagement Training/Education

Equity Stewardship Full-Time Employment Local Communities Pay-Scale Equity Volunteering Freedom of Association Animal Welfare Living Wage Charitable Giving Gender Pay Equity Positive Products

Employee Health Purchasing & Supply Chain Physical Health Equitable Purchasing Well-Being Supply Chain

THE SOCIAL JUSTICE‘ LABELELEL2 2..00 ABC-001 EXP. 12/30/2020

INTERNATIONAL LIVING FUTURE INSTITUTESM TABLE OF CONTENTS

EXECUTIVE SUMMARY 3 EMPLOYEE HEALTH 53 Physical Health PROGRAM DETAILS 7 Well-Being How does JUST™ work? Who can use JUST? EMPLOYEE BENEFITS 62 Steps to Become a JUST Organization Employee Healthcare Costs to Participate with JUST Retirement Provision Family/Medical Leave DIVERSITY 13 Training + Education Ethnic Diversity Gender Diversity STEWARDSHIP 82 Inclusion Local Communities Employee Engagement Community Volunteering Animal Welfare EQUITY 33 Charitable Giving Full-Time Employment Positive Products + Services Pay-Scale Equity Freedom of Association PURCHASING/ Living Wage SUPPLY CHAIN 102 Gender Pay Equity Equitable Purchasing Supply Chain

2 EXECUTIVE SUMMARY

True sustainability has always been about a balanced attempt to consider the Triple Bottom Line (TBL) in policy development and implementation. Often referred to as the three P’s (People, Profit, Planet) or the three E’s (Equity, Economics, Environment), most sustainability initiatives have focused only on environmental and economic concerns. A clear and concerted effort to address social equity issues has been generally absent in most businesses, organizations and institutions.

In 2009, the International Living Future Institute (ILFI) updated the Living Building Challenge (LBC) Program and introduced an Equity category, the first time a green building program explicitly addressed social justice concerns. While the initial Equity focus began to address concerns related to equal access and accessibility to nature, the focus of the program did not go far enough to address the numerous social inequities commonly found in the workplace.

We believe that a true living future—a world of regenerative buildings and equitable communities—can only be achieved through equally powerful and transformative programs that make the world more equitable and socially just. We believe that it is not possible to create a true living building without paying attention to the employees who design, construct, operate, maintain, and work in these spaces.

In 2012, ILFI launched its Declare Program, a transparency platform for manufacturers to disclose their product’s ingredients. Declare encourages the elimination of Red List chemicals and materials in building products. The Institute strongly believes in the power of transparency and the power of the market to transform society into a future that is socially just, culturally rich and ecologically restorative. The Declare Program quickly convinced manufacturers to reformulate their products and to seek competitive advantage by showcasing that their products are free of Red List chemicals. Emboldened by this success, ILFI launched JUST in 2014 to further harness the power of transparency and gain traction in market forces to create social change.

JUST CATEGORY: EXECUTIVE SUMMARY 3 EXECUTIVE SUMMARY CONT.

The goals of the JUST Program are simple yet profound: 1. to elevate the discussion around social justice concerns in all organizations, 2. to create a common language and measurement framework for social justice issues, 3. to elevate the cause of those individuals and activists who lead on these issues, 4. to improve the H.R. policies and practices of thousands of organizations worldwide, 5. to make life better for workers from all walks of life.

In order to accomplish these goals, ILFI calls for all organizations to accept social responsibility by publicly declaring and showcasing their social justice and equity policies and practices. JUST is, quite simply, a call to social justice action.

The JUST Program is a voluntary disclosure tool for all organizations, including, but not limited to: for-profit businesses; non-profits; government agencies; publicly traded companies; trade unions; educational institutions; cooperatives,;and small businesses anywhere in the world. JUST is not a verification or certification program. JUST provides an innovative social justice transparency platform for organizations to disclose their policy statements on a number of human resource and community stewardship practices. The JUST Label is outlined by twenty-two specific social and equity indicators that are housed within the six general categories: diversity + inclusion, equity, employee health, employee benefit, stewardship, and purchasing. These categories and indicators provide a common framework and language for organizational comparison and benchmarking.

Similar to the Declare Program, the JUST Program serves as a “nutrition label” for organizations seeking to become socially just and equitable. This nutrition label approach allows for “at a glance” information about the organization’s progress across key categories and specific indicators. Each indicator outlines measurable accountabilities in order for the organization to be recognized at four levels of performance, which are summarized elegantly on the label. Organizations can use the JUST Label on their website or in annual reports, CSR reports, employee engagement efforts, recruiting efforts or marketing materials

JUST CATEGORY: EXECUTIVE SUMMARY 4 EXECUTIVE SUMMARY CONT.

to demonstrate their commitments to social justice issues. The Institute posts detailed information on our publicly viewable database so that individuals can dig deeper into an organization’s practices.

With this approach, organizations can assess how they are really doing in reference to these social justice metrics and, as a result, may choose to work toward developing more progressive policies and practices. The Institute recognizes that not all organizations will display their JUST Label performance ratings publicly. Some may still use the program privately as a roadmap to improve their social equity policies and programs until they are ready to share their JUST Label with the public. Whether an organization adopts the JUST Program for private benchmarking purposes or takes bold action to disseminate findings to all stakeholders, we believe that the effort and investment in time will yield many important benefits.

The Institute also recognizes that it is possible for organizations to make deceptive, inaccurate, or false disclosures about the status of their social justice and equity indicators. Nevertheless, the Institute believes that the vast majority of organizations have ethical leadership who will ensure that the information submitted to JUST is a true representation of their business and operational practices. We are also reassured by the new culture of information oversight that now exists—close scrutiny from employees, consumers, non-profits and corporate watch groups that flows from publicly posted information helps ensure that organizations will take great care to disclose accurate and factual information and documentation.

The Institute will not serve as a watchdog or auditor by monitoring organization behavior in this regard. The intent is to offer a common self-assessment and disclosure tool for organizations to document their performance and to let the market forces drive continuous improvement over time. The JUST Label does not constitute an endorsement, verification, or certification from the Institute. Instead, the information provided reflects the integrity of the specific organization. The Institute reserves the right to revoke the use of the JUST Label by any organization, and typically allows use of the JUST Label if an organization’s submitted information meets the program’s established criteria. The Institute honors an organization’s integrity because our collective success in

JUST CATEGORY: EXECUTIVE SUMMARY 5 EXECUTIVE SUMMARY CONT.

creating a world that is socially just, culturally rich and ecologically restorative depends on mutual trust. Transparent and open communication and honest information sharing are fundamental to a Living Future.

JUST marks the beginning of a new era of organizational transparency. The Institute invites organizations everywhere to evaluate their practices through this social justice and equity lens and to apply to become a JUST Organization. With support and advocacy from participating organizations, JUST will help create a better, more socially just and equitable world.

IMAGINE FOR A MOMENT. Imagine how your organization could contribute in a powerful way to the creation of a more socially just and equitable world.

Imagine making life better for employees from all walks of life.

Imagine how employees will respond to a concerted effort towards greater organizational transparency.

Imagine giving a voice to those people whose voices are rarely heard.

Imagine the caliber of top talent that your organization could attract.

Imagine how JUST could change who does business with whom.

Imagine how JUST will improve your standing and reputation in the community and with all stakeholders.

Imagine how JUST could realign government procurement practices.

Imagine how JUST could change entire supply chains and accelerate local and regional economies.

Imagine how JUST could result in new policies for greater worker rights using market forces rather than regulations.

Imagine how JUST could serve your organization.

It is time to make social justice your business.

It is time to be a JUST organization.

JUST CATEGORY: EXECUTIVE SUMMARY 6 PROGRAM DETAILS

7 SM

PROGRAM Organization Name: ABC Corporation Organization Type: Service Provider DETAILS Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Diversity & Inclusion Employee Beneﬁ ts 1. WHO OWNS AND OPERATES THE JUST™ PROGRAM? Gender Diversity Health Care The International Living Future Institute (ILFI), a leading global think Et tankhnic Di versity Retirement Provision Inclusion Family/Medical Leave dedicated to the transformation of society to a world that is socially Engage just, culturallyment Training/Education rich and ecologically restorative, owns and operates the JUST Program. Equity Stewardship Full-Time Employment Local Communities 2. WHO CAN PARTICIPATE IN THE JUST PROGRAM? Pay-Scale Equity Volunteering The program is open to all types and sizes of organizations anywhere Freedo inm the of As sociation Animal Welfare Living Wage Charitable Giving world, including for-profit businesses; non-profits; government agencies; Gender Pa y Equity Positive Products publicly traded companies; multinational corporations; educational institutions, Purchasing & Supply Chain faith-based organizations, associations, cooperatives, and smallEmpl oybusinesses.ee Health If an Physical Health Equitable Purchasing organization has employees—it should consider adopting the JUST We Program.ll-Being Supply Chain

3. WHO CAN I CONTACT TO DISCUSS THE JUST PROGRAM? THE SOCIAL JUSTICE‘ LABELELEL2 2..00 Use the contact form on the ILFI website and a staff member willAB getC- 00back1 to EXP. 12/30/2020

you as soon as possible. living-future.org/contact-us INTERNATIONAL LIVING FUTURE INSTITUTESM

4. WHAT IS THE JUST PROGRAM? JUST provides an innovative social justice transparency platform for organizations to disclose their policy statements on a number of human resource management and community stewardship practices. The JUST Label is outlined by twenty-two specific social equity indicators that are grouped within six general categories: diversity + inclusion, equity, employee health, employee benefit, stewardship, and purchasing. These categories and indicators provide a common framework and language for organizational comparison and benchmarking.

5. WHAT ARE THE GOALS OF THE JUST PROGRAM? The JUST goals are: • to elevate the discussion around social justice concerns in all organizations, • to create a common language and measurement framework for social justice issues, • to elevate the cause of those individuals and activists who lead on these issues, • to improve the H.R. policies and practices of thousands of organizations worldwide, • to make life better for workers from all walks of life.

JUST CATEGORY: PROGRAM DETAILS 8 SM

PROGRAM Organization Name: ABC Corporation Organization Type: Service Provider DETAILS CONT. Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Diversity & Inclusion Employee Beneﬁ ts 6. HOW DOES JUST RELATE TO THE LIVING BUILDING CHALLENGE? Gender Diversity Health Care The JUST Program is integrated as an Imperative requirement within Ethnic the Di veEquityrsity Retirement Provision Petal of the Living Building Challenge. Imperative 18 within the Equity Inclusio Petaln Family/Medical Leave Engagement Training/Education states that at least two of the project team members must have a JUST Label for their organization. Organizations seeking LEED certificationEquity on building projects Stewardship can also use the JUST Label to earn a social equity credit. Building Fu ownersll-Time Em orpl oyment Local Communities Pay-Scale Equity Volunteering tenants seeking WELL Building certification can use the JUST Label Freedo to m meetof As sociatiothe n Animal Welfare requirement of Organization Transparency in the Mind category. Living Wage Charitable Giving Gender Pay Equity Positive Products

7. WHAT IS THE COST TO PARTICIPATE IN THE JUST PROGRAM?Employee Health Purchasing & Supply Chain A participating organization can apply for the JUST Program if an employeePhysical Health Equitable Purchasing Well-Being Supply Chain joins the Institute as a Premium Member. Once an employee has joined the Institute as a member, you will be able to begin uploading policies and data THE SOCIAL JUSTICE‘ LABELELEL2 2..00 for each of the indicators. Once your organization has completed ABtheC- data001 EXP. 12/30/2020 submission process and wishes to receive the JUST Label, the JUST Program

Fee is due. The Program Fee is based on number of full-time employees.INTE RNTheATIONA L LIVING FUTURE INSTITUTESM JUST Label will expire two years after date of publication. Organizations should update and renew their JUST Label policies and data prior to the expiration date to maintain continuity on the JUST Program database. The JUST Program Fee will be due once the updated label has been issued. The updated JUST Label will also expire two years from date of reissue.

NUMBER OF EMPLOYEES JUST LABEL FEE (U.S. DOLLARS)* 5-24 $500 25-49 $1,000 50-99 $2,000 100-499 $3,000 500-999 $5,000 1,000-2,499 $10,000 2,500-4,999 $12,000 5,000-7,499 $15,000 7,500-9,999 $17,000 10,000-14,999 $20,000 15,000+ $25,000

JUST CATEGORY: PROGRAM DETAILS 9 SM

PROGRAM Organization Name: ABC Corporation Organization Type: Service Provider DETAILS CONT. Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Diversity & Inclusion Employee Beneﬁ ts Gender Diversity Health Care 8. WHAT IS THE MINIMUM NUMBER OF INDICATORS THAT AN ORGANIZATION Ethnic Diversity Retirement Provision MUST PROVIDE INFORMATION ABOUT IN ORDER TO RECEIVE A Inclusio JUSTn LABEL? Family/Medical Leave Engagement Training/Education An organization must provide information on at least 16 of the 22 specific indicators across the six categories. Within each of the six categories,Equity an Stewardship organization can opt to withhold information for only one of the indicators Full-Time Em inpl oyment Local Communities Pay-Scale Equity Volunteering that category. When an organization elects to not provide documentation Freedom of for Associatio n Animal Welfare one or more indicators, that indicator will be greyed out on the JUST Living Label Wage Charitable Giving Gender Pay Equity Positive Products so that it is transparent that the organization is not currently addressing that specific criteria. A JUST Label will not be issued without completeEmployee information Health Purchasing & Supply Chain for a minimum of 16 indicators. Physical Health Equitable Purchasing Well-Being Supply Chain

9. WHY SHOULD AN ORGANIZATION PARTICIPATE IN THE JUST PROGRAM? THE SOCIAL JUSTICE‘ LABELELEL2 2..00 The JUST Program demonstrates an organization’s commitment toAB socialC-001 EXP. 12/30/2020 justice and equity issues referenced by the information provided for

every category and indicator in the JUST framework. The JUST Label IcanNTERN ATIONAL LIVING FUTURE INSTITUTESM be used by an organization on their website, internal communications, annual reports, corporate social responsibility reports, posters and in marketing materials to show commitment and public transparency on these issues. The JUST Program can be leveraged as a compliance pathway for meeting requirements in various green building certification systems, including the Living Building Challenge, LEED v4, and WELL Building.

10. WHEN DOES AN ORGANIZATION BECOME CERTIFIED AS A JUST ORGANIZATION? The JUST Label does not constitute an endorsement, verification or certification from the International Living Future Institute. Instead, the JUST Label is granted solely through our permission and reflects the integrity and transparency of the organization that submitted the information.

11. WHEN CAN AN ORGANIZATION USE THE JUST LABEL? An organization can use the JUST Label after it provides the minimum required information for the JUST Program, pays the associated program fee, and receives confirmation of use from the Institute.

JUST CATEGORY: PROGRAM DETAILS 10 SM

PROGRAM Organization Name: ABC Corporation Organization Type: Service Provider DETAILS CONT. Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Diversity & Inclusion Employee Beneﬁ ts Gender Diversity Health Care 12. WHEN CAN AN ORGANIZATION UPDATE ITS JUST Ethnic Diversity Retirement Provision PROGRAM INFORMATION? Inclusion Family/Medical Leave Engagement Training/Education An organization can update their information with the JUST Program at any point in time up until the label expiration date. Most organizations willEquity begin to prepare Stewardship for their JUST Program renewal several months prior to the expiration Full date.-Time Em Anpl oyment Local Communities Pay-Scale Equity Volunteering organization must pay the program fee when the JUST Label has been Freedo updatedm of Associatio n Animal Welfare and re-issued to reflect current policies and organizational data. Living Wage Charitable Giving Gender Pay Equity Positive Products

13. WHERE IS AN ORGANIZATION’S JUST PROGRAM INFORMATIONEmployee Health KEPT? Purchasing & Supply Chain All of an organization’s submitted information is maintained in the PhJUSTysical Health Equitable Purchasing Well-Being Supply Chain Program’s publicly viewable database. It is important to understand that the label is merely the summary of performance. Because the JUST website is THE SOCIAL JUSTICE‘ LABELELEL2 2..00 viewable by all, organizations are asked not to submit any companyAB C-confidential001 EXP. 12/30/2020 or sensitive information.

INTERNATIONAL LIVING FUTURE INSTITUTESM 14. ARE ORGANIZATIONS REQUIRED TO DISCLOSE PERSONAL INFORMATION OR SPECIFIC FINANCIAL DETAILS? The JUST Program does not require disclosure of specific financial details of individuals such as salaries or wages. Rather, organizations will be asked to reveal ratios and percentages, such as the ratio of highest to lowest compensated employee or the percentage variance between genders within a pay class.

15. WHEN CAN JUST BE REVOKED? ILFI would not revoke an organization’s use of the JUST Labels unless there is a substantive reason to do so. This might include: a) Discovery that information submitted is patently false or inaccurate. b) Making claims that the information on the label has been certified by the Institute or a third party. c) Changing the label to reflect performance not indicative of supplied data.

16. IF ONE OFFICE OF A NATIONAL OR GLOBAL ORGANIZATION WISHES TO PARTICIPATE IN THE JUST PROGRAM, IS THIS PERMISSABLE? For national or global organizations, we will allow a single office to participate

JUST CATEGORY: PROGRAM DETAILS 11 SM

PROGRAM Organization Name: ABC Corporation Organization Type: Service Provider DETAILS CONT. Headquarters: Seattle, Washington Ofﬁ ce Locations: 30 Number of Employees: 10,750

Social Justice Indicators:

Employee Beneﬁ ts in JUST if the participating office or region represents at leastDive rsit10y percent& Inclusio ofn the Gender Diversity Health Care organizations’ total employment. The JUST Label will be published Et inhnic a Di versity Retirement Provision format to note that the label applies only to a specific office or Inclusioregionn of the Family/Medical Leave Engagement Training/Education participating organization. Equity Stewardship DOCUMENTATION AND LABEL ISSUANCE PROCESS: Full-Time Employment Local Communities Pay-Scale Equity Volunteering 1. Once an employee of the organization has joined as a Premium Fr eedoMember,m of As sociatio n Animal Welfare the organization can upload to the JUST Program all of the required Living Wa ge Charitable Giving Gender Pay Equity Positive Products information for each category and each indicator. The required information is referenced in the JUST User Manual. Information mustEmpl be oycompleteee Health in Purchasing & Supply Chain order to receive a label. Physical Health Equitable Purchasing Well-Being Supply Chain 2. The Institute will permit organizations to opt out of a maximum of six indicators but only one indicator per category. THE SOCIAL JUSTICE‘ LABELELEL2 2..00 3. All information must be given in a non-personal format withoutAB C-directly001 EXP. 12/30/2020 identifying individuals and sensitive information and thereby respecting

privacy and confidentiality. INTERNATIONAL LIVING FUTURE INSTITUTESM 4. The Institute will confirm if the submitted information merits a JUST Label and at what scores and will inform the organization accordingly. The organization will then have an opportunity to provide additional or clarifying information if they feel that the scores presented are not indicative of true performance. Once the organization is satisfied with the information on the final draft label, they will notify the Institute that they would like to publish their JUST Label on the publicly accessible JUST organization database.

JUST LABEL USE: 1. The JUST Label does not constitute an endorsement, verification, or certification from the Institute and cannot be marketed or communicated as such. 2. Organizations can use the JUST Label on their website or marketing materials to demonstrate their commitment to these issues. The organization may not in any way modify the label provided — changing information or proportions. 3. ILFI reserves the right to revoke the posting or use of the JUST Label by any organization at any time for any reason.

JUST CATEGORY: PROGRAM DETAILS 12 DIVERSITY + INCLUSION

13 ETHNIC DIVERSITY

The JUST Label calls for organizations to demonstrate a commitment to the creation and maintenance of a racially and ethnically diverse workplace. The goal is for organizations to have a workforce that is at least as diverse as the community in which it is located. Organizations that have a highly inclusive culture and policies are more likely to attract and retain a diverse workforce.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents commitment to racially/ ethnically diverse workforce.

LEVEL TWO 1. Organization has a written policy that documents commitment to racially/ ethnically diverse workforce. 2. The workforce should be representative of the racial and ethnic diversity of the population in the region where the organization attracts talent. If the racial and ethnic minority population in the region is determined to be X percent, then the organization can be recognized at this Level if minorities are represented in the workforce at least 50 percent of the value X. 3. If the racial and ethnic minority population in the region is determined to be at X percent, then the organization can be recognized at this Level if minority representation on the senior leadership team is at least 40 percent of the value X.

LEVEL THREE 1. Organization has a written policy that documents commitment to racially/ ethnically diverse workforce. 2. The workforce should be representative of the racial and ethnic diversity of the population in the region where the organization attracts talent. If the racial and ethnic minority population in the region is determined to be X percent, then the organization can be recognized at this Level if minorities are represented in the workforce at least 75 percent of the value X. 3. If the racial and ethnic minority population in the region is determined to be at X percent, then the organization can be recognized at this Level if minority representation on the senior leadership team is at least 60 percent of the value X. 14

JUST CATEGORY: DIVERSITY + INCLUSION ETHNIC DIVERSITY CONT.

LEVEL FOUR 1. Organization has written and posted public policy on ethnic diversity. 2. The workforce should be representative of the racial and ethnic diversity of the population in the region where the organization attracts talent. If the racial and ethnic minority population in the region is determined to be X percent, then the organization can be recognized at this Level if minorities are represented in the workforce at least 100 percent of the value X. 3. If the racial and ethnic minority population in the region is determined to be at X percent, then the organization can be recognized at this Level if minority representation on the senior leadership team is at least 80 percent of the value X. 4. Organization has developed a robust engagement and partnership strategy with one or more NGOs, community-based organizations, racial equity advocacy organizations, educational institutions, and government agencies that serve and work closely with traditionally underrepresented or underserved populations.

IMPLEMENTATION NOTES: For a single office operation, the baseline demographic data should be drawn from the city, county, or region. For a multi-office operation situated within a single state, province or territory, the demographic data should be drawn from the appropriate state, province or territory. For operations that span less than four states, provinces, or territories, the final percentage calculation will be based on a weighted assessment contribution from each of the regions. For operations that span four or more states, provinces or territories, the demographic data should be based on the country’s demographic survey information or most current census report. For multinational operations, the final percentage calculation will be based on a weighted assessment contribution from each of the participating countries.

IMPLEMENTATION EXAMPLE: A management consulting firm has offices located in ten states in the United States. In the United States, racial and ethnic minorities comprise 40 percent of the population. For Level Four recognition, the consulting firm will document that racial and ethnic minorities comprise at least 40 percent of the overall workforce (1 x 40%). Concurrently, the consulting firm will document that racial and ethnic minorities comprise at least 32 percent of the senior leadership team (.8 x 40%).

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II. Rationale for Metric

A truly diverse workforce should include representation of employees with identities including but not limited to: religion, race, sex, national or ethnic origin, citizenship status, age, marital status, veteran status, family status, physical or mental disability status, sexual orientation, gender identity, and the formerly incarcerated.

For the purpose of this indicator, the JUST Program prompts organizations to compare their ethnic demographics to the applicable national demographics. The JUST Program asks organizations to use local or regional demographic data, if such data is available, instead of national data in order to maintain the intent of this indicator. The demographics of the workforce should be representative of the demographics of the local community.

The JUST Program recognizes that the diversity metrics often categorize various ethnic and racial groups into one category of “racial and ethnic minorities.” In practice, these unique identities and peoples should not be treated as one and the same. Organizations, therefore, should move forward thoughtfully and strategically in ensuring that the workforce is as ethnically and as racially diverse as the communities they serve.

Fair Chance Hiring offers employers an opportunity to broaden their talent pool to include people who are often discriminated against due to their prior conviction or arrest history. According to the National Employment Law Project, nearly one in three adults in the United States has a prior arrest or conviction record. Fair Chance Hiring (also known as “Ban the Box”) refers to policies that prohibit inquiries into a job applicant’s criminal record until they have an opportunity to introduce themselves and their qualifications for the job. In the United States, when organizations adopt fair chance hiring practices, they take a stand against a criminal justice system that disproportionately impacts people of color.

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III. Background Facts of Note

McKinsey & Company has been examining diversity in the workplace for several years. McKinsey’s latest study of diversity in the workplace, Delivering Through Diversity, reaffirms the global relevance of the link between diversity— defined as a greater proportion of women and a more mixed ethnic and cultural composition in the leadership of large companies—and company financial outperformance.

The analysis draws on a data set of more than 1,000 companies covering 12 countries, measuring not only profitability (in terms of earnings before interest and taxes, or EBIT) but also longer-term value creation (or economic profit), exploring diversity at different levels of the organization, considering a broader understanding of diversity (beyond gender and ethnicity), and providing insight into best practices. The findings were clear:

• Companies in the top quartile for racial and ethnic diversity at the senior leadership level are 33 percent more likely to have financial returns above their respective national industry medians when compared to companies in the bottom quartile.

• Companies in the bottom quartile for ethnicity and race at the senior leadership level are statistically less likely to achieve above-average financial returns than the average companies in the data set (that is, bottom-quartile companies are lagging rather than merely not leading).

• In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance. For every 10 percent increase in racial and ethnic diversity on the senior leadership team, earnings before interest and taxes (EBIT) rise 0.8 percent.

• Racial and ethnic diversity has a stronger impact on financial performance in the United States than gender diversity, perhaps because earlier efforts to increase women’s representation in the top levels of business have already yielded some positive financial impact.

JUST CATEGORY: DIVERSITY + INCLUSION ETHNIC DIVERSITY CONT.

The business case for diversity continues to be compelling and to have global relevance. There’s an opportunity for promoting diversity in senior decision- making roles, and specifically in line roles on executive teams versus staff roles. Although levels of diverse representation in top teams are still highly variable globally—with progress being slow overall—there are practical lessons from successful organizations that have made inclusion and diversity work. Creating an effective inclusion and diversity strategy can yield stronger financial outcomes and requires visionary, sustained, and inclusive leadership.

IV. Resources

Race Matters: Organizational Self-Assessment – Annie E Casey Foundation

V. Reference Articles

Delivering Through Diversity – McKinsey & Company

Magnet for talent: Managing Diversity as a Reputational Risk and Business Opportunity - PricewaterhouseCoopers

How and Where Diversity Drives Financial Performance – Harvard Business Review

VI. Organizations of Repute

Race Forward PolicyLink NAACP Center for Global Inclusion National Employment Law Project U.S. Census Bureau Statistics Canada

JUST CATEGORY: DIVERSITY + INCLUSION GENDER DIVERSITY

The JUST Label calls for organizations to demonstrate a commitment to the creation and maintenance of a gender diverse workplace.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents commitment to a gender diverse workforce.

LEVEL TWO 1. Organization has a written policy that documents commitment to a gender diverse workforce. 2. Women constitute at least 30 percent of the overall workforce. 3. Women constitute at least 25 percent of the senior leadership team.

LEVEL THREE 1. Organization has a written policy that documents commitment to a gender diverse workforce. 2. Women constitute at least 40 percent of the overall workforce. 3. Women constitute at least 30 percent of the senior leadership team.

LEVEL FOUR 1. Organization has a written policy that documents commitment to a gender diverse workforce. 2. Women constitute at least 50 percent of the overall workforce. 3. Women constitute at least 35 percent of the senior leadership team.

When organizations implement demographic survey requests of the workforce, the JUST Program recommends that the survey be inclusive of those individuals who identify as non-binary. A person is non-binary if their gender identity is something other than male or female. Non-binary individuals may identify as gender fluid, genderqueer, agender (without gender), off the binary, or something else entirely. For the purposes of the JUST Program, non-binary indivudals can be counted in the category of indivudals who self identify as female.

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II. Rationale

Gender diversity is vital to any workplace. Numerous studies have concluded that a diverse workforce can improve a company’s operational and financial performance. Women and men have different viewpoints, perspectives, ideas, insights, and approaches, all of which enable better problem solving.

There are a number of reasons why organizations should prioritize gender diversity:

1. A wider talent pool Organizations that lack women representation are missing out on the talents and abilities of half the population. Tapping into this demographic can make a huge difference to an organization’s productivity and bottom line.

2. Innovation and creativity Having both women and men on teams means organizations benefit from the different points of view and approaches that come from different life experiences. A multiplicity of perspectives can spark creativity and innovation, and help organizations spot and seize new opportunities.

3. Enhanced collaboration Having women on teams can help improve team processes and boost group collaboration. Researchers have observed that women have stronger skills reading nonverbal cues. They also concluded that groups with more women were better at taking turns in conversation, which helps them make the most of the group’s combined knowledge and skills.

4. Improved staff retention The presence of women in the workplace can support a more inclusive and welcoming work environment. Having an inclusive culture in the workplace boosts morale and opportunity. Inclusive workplaces tend to have lower employee turnover rates—which represents significant savings in terms of time and money spent on recruitment, hiring, onboarding, orientation, and training.

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5. A better reflection of customer, member, and stakeholder demographics Customers come from all walks of life. It is more likely an organization can communicate effectively with their stakeholders if their employees reflect the diverse nature of their customers or members. That means working to ensure that your teams have a diversity of genders, backgrounds, and ethnicities. Women are hugely influential when it comes to making purchasing decisions. Globally, women have purchasing power of about $40 trillion (USD).

6. Improved recruitment and reputation Having a diverse workplace is a powerful recruiting tool. Female millennials look for employers with a strong record on diversity, according to research by PwC, with 85 percent saying it’s important to them. A reputation as an inclusive employer will also demonstrate an organization’s values and an organization’s commitment to social equity.

7. Greater profitability According to Credit Suisse, there is compelling evidence that supports the theory that gender diversity at the senior leadership and governance levels has a positive impact on the bottom line. The research demonstrates that while increasing the number of women directors and CEOs is important, expanding the participation of female leaders at the senior leadership level would likely benefit the bottom line even more.

III. Background Facts of Note

Women comprise 50.8 percent of the U.S. population. • They earn almost 60 percent of undergraduate degrees and 60 percent of all master’s degrees. • They earn 47 percent of all law degrees and 48 percent of all medical degrees. • They earn 38 percent of MBAs and 48 percent of specialized master’s degrees. • They account for 47 percent of the U.S. labor force and 49 percent of the college-educated workforce.

JUST CATEGORY: DIVERSITY + INCLUSION GENDER DIVERSITY CONT.

Although they hold almost 52 percent of all professional-level jobs, American women lag substantially behind men when it comes to their representation in leadership positions: • While women comprise 44 percent of the overall S&P 500 labor force and 36 percent of mid-level managers in those companies, they are only 25 percent of senior-leadership, hold only 20 percent of all board seats, and only 6 percent of S&P 500 companies employ a women CEO. • At S&P 500 companies in the financial services industry, women make up 54 percent of the labor force but are only 29 percent of senior leadership and 2 percent of CEOs. • In the legal field, women are 45 percent of associates but only 22 percent of partners and 18 percent of equity partners. • In medicine, women comprise 37 percent of all physicians and surgeons but only 16 percent of permanent medical school deans. • In academia, women are only 31 percent of full professors and 27 percent of college presidents. • In architecture, women are only 25 percent of all designers and 17 percent of all principals.

Women’s on-screen image is still created, overwhelmingly, by men: • Women accounted for just 17 percent of all the directors, executive producers, producers, writers, cinematographers, and editors who worked on the top-grossing 250 domestic films of 2016. • Women were just 26 percent of all off-screen talent on broadcast networks, cable, and streaming programs during the 2015-16 season. • However, when there are more women behind the camera or at the editor’s desk, the representation of women on-screen is better. Films written or directed by women consistently feature a higher percentage of female characters with speaking roles.

Women still lag behind their male counterparts at the senior leadership level with global businesses:

In 2018, management consulting firm Grant Thornton published a report that found that global businesses have taken one step forward and one step back when it comes to gender diversity. While the number of businesses with at least

JUST CATEGORY: DIVERSITY + INCLUSION GENDER DIVERSITY CONT.

one woman on their senior leadership team has significantly increased, the proportion of senior roles held by women has marginally declined.

As a result, businesses are missing out on the benefits of true diversity—critical at a time when every sector is facing disruption. JUST Organizations must go beyond policy and take concrete, sustained actions to create an inclusive culture that leads to a genuinely diverse senior leadership team.

IV. Resources

Global Diversity & Inclusion Benchmarks – sponsored by the Center for Global Inclusion

Harvard Business Review

Tip sheet to increase gender diversity in hiring practices: www.ncwit.org/sites/ default/files/resources/ncwittips_jobdescriptionanalysis.pdf

Is Gender Diversity Profitable? Evidence from a Global Survey Peterson Institute for International Economics

V. Reference Articles

Reinventing the Workplace to Unlock the Potential of Gender Diversity – McKinsey & Company

Navigating Disruption Without Gender Diversity? - EY

Better Leadership, Better World: Women Leading for the Global Goals: s3.amazonaws.com/aws-bsdc/Better-Leadership-Better-World-270318.pdf

VI. Organizations of Repute

Catalyst National Organization For Women Credit Suisse Research Institute UN Women’s Global Innovation Coalition for Change (GICC) Peterson Institute for International Economics National Center for Transgender Equality 23 GLAAD JUST CATEGORY: DIVERSITY + INCLUSION

INCLUSION

The JUST Label calls for organizations to demonstrate a commitment to the creation and maintenance of an inclusive workplace. I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents commitment to the creation and maintenance of an inclusive work environment and culture.

LEVEL TWO 1. Organization has a written policy that documents commitment to the creation and maintenance of an inclusive work environment and culture. 2. Organization reports an average score of 6.5 on the inclusion survey. 3. Organizations may apply for this level of recognition if they achieve a minimum of Level 2 on the Ethnic Diversity indicator.

LEVEL THREE 1. Organization has a written policy that documents commitment to the creation and maintenance of an inclusive work environment and culture. 2. Organization reports an average score of 7.0 on the inclusion survey. 3. Organizations may apply for this level of recognition if they achieve a minimum of Level 3 on the Ethnic Diversity indicator.

LEVEL FOUR 1. Organization has a written policy that documents commitment to the creation and maintenance of an inclusive work environment and culture. 2. Organization reports an average score of 8.0 on the inclusion survey. 3. Organizations may apply for this level of recognition if they achieve a minimum of Level 4 on the Ethnic Diversity indicator.

INCLUSION SURVEY 1. “How committed is your organization to a comprehensive strategy of ensuring that all employees feel included?” Rating Scale: 10 9 8 7 6 5 4 3 2 1

2. “How included do you feel?” Rating Scale: 10 9 8 7 6 5 4 3 2 1

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INCLUSION CONT.

In these scales, the number 10 represents “extremely committed” while the number 1 represents “not at all commited.” The average score from Questions 1 and 2 determines the applicable JUST label recognition level. The International Living Future Institute can provide an example of a combined Inclusion and Employee survey. This survey will provide instructions to generate data required for each of these indicators.

II. Rationale

In comparison to diversity, there is a lack of academic literature and research about the concept of inclusion. It is therefore not surprising that there is a lack of clarity and focus in organizational practice, programs, and policies. The ultimate goal of inclusion efforts is improved organizational performance, which only comes about when people feel valued, supported, and respected for their individuality.

We define inclusion as the proactive and sustained organizational practice of creating a safe, warm, welcoming, and supportive environment for all employees. Inclusion is the support for a collaborative environment that values open participation from individuals with different backgrounds, ideas, viewpoints, and perspectives.

When employees think their organization is committed to and supportive of diversity and they feel included, employees report better business performance in terms of ability to innovate, responsiveness to changing customer needs, and team collaboration. Moreover, when employees think that their organization is highly committed to and supportive of diversity and they feel highly included, they are 80 percent more likely to agree that they work in a high-performing organization when compared to the baseline scenario where the employee perceives low commitment to diversity and does not feel included.

In the context of the workplace, diversity equals opportunity. Without inclusion, however, the crucial connections and welcoming organizational culture that attract diverse talent, encourage their participation, foster innovation, and lead to business growth won’t take root. Numerous studies show that diversity

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INCLUSION CONT.

initiatives and programs alone do not drive inclusion. In fact, these studies note that without inclusion, there is often a diversity backlash. The research clearly highlights the importance of a balanced focus on both diversity and inclusion efforts rather than a lopsided focus on diversity.

The concept of inclusion incorporates both an active process of change (to include) and an emotional outcome (I feel included). Specifically, feelings of inclusion are driven by perceptions of: (1) fairness and respect; and (2) value and belonging. These two elements build upon one another sequentially. This means that to feel highly included, an employee would say that they are treated fairly and respectfully, that their unique value is known and appreciated, and they belong to the group.

The concept of value and belonging focuses more on the uniqueness of each person being known and appreciated by the team. The person is not seen narrowly as an isolated subject-matter expert but one who is integral to the team and organization. Employees look to whether they are seen as a three-dimensional person, whether they are part of formal and informal networks, whether they have a voice in decision making, and whether they can bring their lived experiences to the workplace.

An employee’s ability to balance their work-life commitments is a key driver of an employee’s feeling of inclusion. The organization’s commitment to work-life policies and practices signals that an employee is seen as a whole person with a life outside the workplace.

Verna Myers, attorney, entrepreneur, author and cultural innovator, offers valuable context when she states, “Diversity is being invited to the party. Inclusion is being asked to dance.”

Andres Tapia, president of Diversity Best Practices, concludes, “Diversity is the mix; inclusion is making the mix work.”

Juliet Bourke, partner at Deloitte Human Capital Consulting, declares, “The potential to lift organizational performance is locked up in the individual and group potential of diverse employees and can be only unleashed by creating an inclusive working environment.”

Jennifer Brown, author, entrepreneur and inclusion consultant, notes, “The promised vision of a thriving and profitable future of innovation and flexibility can only exist in a culture where the maximum number of people feel comfortable and confident contributing their fullest selves to the work.” 26

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INCLUSION CONT.

III. Background Facts of Note

At the Center for Talent Innovation, the organization’s research spotlights four factors that drive inclusion: 1. Inclusive Leaders 2. Authenticity 3. Sponsorship and Visibility 4. Clear Career Paths

INCLUSIVE LEADERS This kind of leadership is based on a number of important behaviors: ensuring that team members speak up and are heard; making it safe to propose novel ideas; empowering team members to make decisions; taking advice and implementing feedback; giving actionable and concrete feedback; and sharing credit for team success.

AUTHENTICITY Research suggests that most everyone expends energy by repressing parts of their persona in the workplace in some way. High percentages of employees from minority and historically marginalized populations affirm that they “need to compromise their authenticity” to conform to their organization’s standards of demeanor or cultural norms.

SPONSORSHIP AND VISIBILITY A sponsor is a senior-level leader who elevates their protégé’s visibility within the corridors of power, advocates for key assignments and high visibility projects, and puts their political capital on the line for the protégé’s advancement. For those who feel marginalized by their gender, ethnicity, age, sexual identity/orientation, religious beliefs, or economic background, sponsorship is particularly important in driving engagement and fueling ambition.

CLEAR CAREER PATHS For women, LGBTQ+ individuals, people of color and other historically

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INCLUSION CONT.

marginalized groups, the map to career success and a pathway to senior leadership is fraught with challenges. Research shows that 45 percent of women off-ramp to take care of children, with increasing numbers also leaving to care for aging relatives. Individuals from traditionally underrepresented groups comment that they are frustrated by being passed over for high-profile assignments and feeling stalled in their careers.

Focusing on these four levers for greater inclusion can drive change. Employees with inclusive managers are 30 percent more likely to feel that their innovative potential is unlocked. Employees who are able to bring their whole selves to work are 42 percent less likely to say that they intend to leave their job within a year. Employees with sponsors are 62 percent more likely to have asked for and have received a promotion. Fully 70 percent of women who off-ramp would have stayed at their companies if they were provided with flexible work options.

IV. Resources

Global Diversity and Inclusion Benchmarks: Standards For Organizations Around The World ILFI Combined Inclusion and Employee Engagement Survey Template (contact ILFI for access)

V. Reference Articles

Deloitte Research Report: “Waiter, is that inclusion in my soup?”

The Inclusion Dividend: Why Investing in Diversity and Inclusion Pays Off by Mark Kaplan and Mason Donovan

Inclusion: Diversity, The New Workplace & The Will To Change by Jennifer Brown

VI. Organizations of Repute

The Centre for Global Inclusion Canadian Institute of Diversity and Inclusion The Forum for Workplace Inclusion

JUST CATEGORY: DIVERSITY + INCLUSION EMPLOYEE ENGAGEMENT

The JUST Label calls for organizations to proactively work to advance a culture and work environment where employees feel inspired, motivated, and engaged.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents commitment to employee engagement.

LEVEL TWO 1. Organization has a written policy that documents commitment to employee engagement. 2. Organization reports that at least 50 percent of the employees are engaged.

LEVEL THREE 1. Organization has a written policy that documents commitment to employee engagement. 2. Organization reports that at least 60 percent of the employees are engaged.

LEVEL FOUR 1. Organization has a written policy that documents commitment to employee engagement. 2. Organization reports that at least 70 percent of the employees are engaged.

II. Rationale

Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization and put discretionary effort into their work. Over 80 percent of H.R. professionals agree that an employee’s willingness to give their best at work is the primary hallmark of engagement. Employee engagement has emerged as a critical driver of business and operational success in today’s competitive marketplace. High levels of engagement promote retention of talent, foster customer loyalty, and improve organization performance and stakeholder value.

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Engaged employees look at the whole of the organization and understand their role in helping the organization accomplish important goals and strategic objectives. Organizations with a highly engaged workforce outperform their competition. Businesses with a highly engaged workforce are able to achieve higher earnings per share (EPS) and to recover more quickly after recessions and financial setbacks.

Most executives already understand that employee engagement directly affects an organization’s financial health, profitability, productivity, and ability to deliver excellent customer service. Over 60 percent of highly engaged organizations report being in the top quartile of financial performers compared to competitors in their industries. Over 90 percent of H.R. professionals agree that that there is solid evidence linking engagement to performance and the greatest impact is seen with customer service levels and with productivity.

Moreover, expectations of employees have changed over time. Researchers have reported that there is evidence that suggest that the current generation of employees in the workforce do switch jobs more often than previous generations of employees. Retention of top talent is more difficult than before. An organization that has an effective employee engagement strategy and a highly engaged workforce is more likely to retain top performers as well as to attract new talent. Vibrant, dynamic, successful organizations are values-driven with an employee-centric culture.

III. Background Facts of Note

Gallup has been tracking employee engagement in the U.S. since 2000. Though there have been some slight ebbs and flows, less than one-third of U.S. employees have been engaged in their jobs and workplaces during these past two decades. According to Gallup Daily tracking, 32 percent of employees in the U.S. are engaged. Worldwide, only 13 percent of employees working for an organization are engaged.

Many different factors can lead to stagnant or stubbornly low levels of engagement. Senior leaders can find clues to answer this question for their company among the various ways organizations provide employee engagement data.

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Gallup sees a clear divide emerging within the engagement practitioner community. On one end of the spectrum are scientifically and experientially validated approaches that lead to changes in individual and business performance, supported by strategic and tactical development and performance solutions that transform organizational cultures. Though these approaches require more focus, intentionality, and investment, organizations that use them are more likely to see increases in employee engagement.

At the other end of the spectrum are invalidated, unfocused annual surveys. Much like a traditional employee satisfaction survey, this type of survey usually measures a multitude of workplace dimensions that often have limited alignment with other business objectives and can make it difficult for leadership to take effective and appropriate action.

Technology makes it easy for organizations to create an employee survey and call it an engagement program. But surveys and metrics on their own don’t drive change or increase employee engagement levels. Many of these survey- only approaches measure employee perceptions and provide metrics instead of improving workplaces and business outcomes.

In reality, when companies focus exclusively on measuring engagement rather than on improving engagement, they often fail to make necessary changes that will engage employees or meet employees’ workplace needs. Nevertheless, organizations should implement some form of an annual employee engagement survey to track progress over time on this important indicator of organizational vitality. ILFI can provide sample questions for such a survey and instructions as to how to generate data for purposes of reporting.

Some of the research identifies organization-wide drivers of employee engagement. Research by Watson Wyatt indicates that the level of employee engagement depends on how effectively the organization: • Ensures that senior leaders set the direction. • Focuses employees at all levels on the customers or members. • Compensates people based on performance and customer service. • Communicates organizational strategy and goals.

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Quantum Workplace has identified four key factors that set organizations with higher engagement scores apart from others. Organizations with high employee engagement: • Set a clear, compelling direction that empowers each employee. • Engage in open and honest communication. • Maintain a focus on career goal and development. • Provide employee benefits that demonstrate a strong commitment to employee well-being.

In looking to engage employees globally, employers should: • View global H.R. decisions in the context of national culture. • Use valid research to align H.R. practices for a local population. • Remember that the norm for engagement varies widely from country to country. • Realize that the elements that create engagement also creates the employment brand. • Understand that how the organization conducts its work reflects. its organizational culture

IV. Resources

HR.com ILFI Employee Engagement Survey Template (contact ILFI for access)

V. Reference Articles

Society for Human Resources Management, “Developing and Sustaining Employee Engagement,” 2017

IBM Analytics, “The Employee Experience Index,” 2016 VI. Organizations of Repute

The Society For Human Resource Management

JUST CATEGORY: DIVERSITY + INCLUSION EQUITY

33 FULL-TIME EMPLOYMENT

The JUST Label calls for organizations to commit to and demonstrate that the hiring of full-time employees is the primary basis of their workforce and that the majority of their workforce consists of full-time employees.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents full-time employment practices.

LEVEL TWO 1. Organization has a written policy that documents full-time employment practices. 2. Organization has a minimum of 70 percent of its total workforce meeting the full-time employment definition.

LEVEL THREE 1. Organization has a written policy that documents full-time employment practices. 2. Organization has a minimum of 80 percent of its total workforce meeting the full-time employment definition.

LEVEL FOUR 1. Organization has a written policy that documents full-time employment practices. 2. Organization has a minimum of 85 percent of its total workforce meeting the full-time employment definition.

JUST Label organizations must not violate any federal, state, provincial, or municipal legislation related to employment. For the purposes of this metric, full- time employment for an individual is defined as a minimum of 30 hours per week.

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II. Rationale

Full-time employment of at least 30 hours per week with the appropriate pay and benefits, including medical benefits, is a necessity for individuals and families to have a measure of stability and predictability regarding their personal and financial well-being. Individuals with full-time employment, with appropriate pay and benefits, do not have to work several jobs to make a decent income. Full-time employment demonstrates an organization’s commitment to its employees and to the value they bring to the organization.

Full-time employment contributes significantly to the welfare and future well- being of individuals, families, and communities as well as to the organizations that hire and commit to full-time employees.

III. Background Facts of Note

The JUST Label recognizes that some people are only able to or only want to work part-time and that some organizations may need a number of part-time employees for operational imperatives. Therefore, recognizing that 100 percent full-time employment status for any given organization is not always the ideal, the JUST Label does not demand or reward 100 percent full-time employment.

In many industries, relying on part-time work has become the new normal. The number of people in the United States involuntarily working part-time increased 44.6 percent between 2007 and 2015. Involuntary part-time work is especially prevalent in the retail, leisure, and hospitality industries, accounting for 54.3 percent of the growth in involuntary part-time employment between 2007 and 2015. Black and Hispanic workers make up a disproportionate number of involuntary part time workers. According to the Economic Policy Institute, “while 3.7 percent of white people in the U.S. work part time involuntarily, 6.8 percent of Hispanic workers and 6.3 percent of black workers have part-time hours but want to work full time.”

Part-time workers frequently lack sufficient work hours, and they are more likely to experience unpredictable and/or variable hours. Part-time workers also suffer from a lower rate of pay and benefits coverage. The Economic Policy

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Institute reports that men working part-time earn 19 percent less per hour and women working part-time earn 9 percent less per hour, compared to similar full-time workers.

There are no standard definitions for full-time employment or part-time employment in the United States or Canada. Both full-time employment status and part-time employment status vary within state, provincial, and federal jurisdictions of both countries. For full-time employment, an individual works and receives compensation and benefits for a minimum number of hours as determined by relevant local, state, or federal legislation and/or by the employer as constituting full-time hours in line with industry standards. The typical range for full-time work hours is 30 to 40 hours of work per week with 30 hours per week as the cut-off between full-time and part-time employment.

Part-time employment consists of any number of hours of work in a week that is less than the established full-time hours for a particular employer. Typically, part-time employees work considerably less than 30 hours per week and often receive less compensation and benefits than full-time employees.

Contract workers, who perform work on a contractual basis that specifies timeframes and deliverables, are considered to be self-employed and are not considered as employees of the hiring organization. Contract workers receive compensation as agreed to in the terms of the contract and receive no other benefits.

IV. Organizations of Repute

American Federation of Labor Economic Policy Institute

JUST CATEGORY: EQUITY 36 PAY-SCALE EQUITY

The JUST Label calls for organizations to commit to and demonstrate that they have an equitable compensation scale program for all of their employees across all job classifications and pay-scale gradients from the lowest job classification employee to the highest job classification employee. Organizations must ensure that compensation scales for their most senior executives are reasonable, justifiable, equitable and in line with the rest of the corporate compensation structure. Within the JUST Label, organizations must have a compensation scale equity I. Indicator Metric

policy that shows the ratio of compensation between the lowest-compensated employee and the highest-compensated employee. In the ratio, the 1 represents the compensation of the lowest-compensated full-time employee, and the maximum number (40, 30, or 15) represents the compensation of the highest-compensated employee.

It is important to consider whether or not senior management receives inequitable compensation relative to the lowest-paid workers in all forms of compensation, such as a flexible work schedule, vacation days, transportation stipends, performance awards, bonuses, and stock options. For the purpose of this metric, however, we ask organizations to report on compensation in the form of base salary.

LEVEL ONE 1. Organization has a written policy that documents pay-scale equity practices.

LEVEL TWO 1. Organization has a written policy that documents pay-scale equity practices. 2. Organization has a maximum compensation scale ratio of 1:40.

LEVEL THREE 1. Organization has a written policy that documents pay-scale equity practices. 2. Organization has a maximum compensation scale ratio of 1:30.

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LEVEL FOUR 1. Organization has a written policy that documents pay-scale equity practices. 2. Organization has a maximum compensation scale ratio of 1:15.

II. Rationale for Metric

The goal of a compensation equity program is to reduce the huge discrepancies in employee compensation that relates to the traditional overvaluation of work performed by senior executives and the undervaluation of work performed by employees in the lowest job classifications. The JUST Label recognizes that there are real and merited differences in employee compensation scales within each organization’s compensation program but it puts a realistic and equitable maximum limit on the ratio between highest-compensated and lowest- compensated employee.

III. Background Facts of Note

Communities plagued with inequality suffer socially. According to the Institute for Policy Studies, communities with less inequality have strong social cohesion and greater networks of mutual aid and caring. Organizations have an opportunity to improve their communities by minimizing inequality in their pay scale.

According to the 2018 World Inequality Report, the majority of wealth globally is now held in the pockets of individuals and corporations (as opposed to governments). This means that organizations have an increased responsibility to ensure that wealth is distributed equitably.

A Pew Research Center report indicates that income inequality in the United States is getting worse. In 2016, Americans in the top tenth of the income distribution curve earned 8.7 times as much as Americans in the bottom tenth. In 1970, the top tenth earned 6.9 times as much as the bottom tenth. According to the U.S. Bureau of Labor, the top 20 percent of U.S. households own more than 84 percent of the wealth, whereas the bottom 40 percent owns only 0.3 percent.

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There is a large disparity between the compensation given to many senior executives, such as CEOs, and the compensation given to other workers in the same organization. The overcompensation of these senior executives has been increasing significantly over the last 40 years. Chief executives of companies in the Standard & Poor’s 500-stock index made an average of $13.94 million in 2017. The average production and nonsupervisory worker made $38,613. That means CEOs are paid 361 times the average worker, according to a report released by the AFL-CIO, a federation of trade unions.

Total compensation involves salary and non-salary elements. Salary elements include base salary and performance awards, while non-salary elements include hours of work, holidays, vacations, personal leaves, sick leaves with pay, family- related leaves, compassionate leaves, bereavement leaves, education leaves, relocation pay, severance pay, and other like benefits.

Pay-scale equity particularly affects traditionally underserved and marginalized groups. Women, African Americans, Latinx, and part-time workers are overrepresented in the population of low wage earners in the United States. Additionally, according to the Institute for Policy Studies, over the past thirty years wealth for the average white family has grown at 1.2 times the rate of growth for Latinx families and 3 times the rate of growth for black families. If the racial wealth gap continues to grow at this rate, over the next three decades we will see the average wealth of white households increase by over $18,000 per year while Latino and black households will see their respective wealth increase by only $2,250 and $750 per year. Organizations have an opportunity to demonstrate that their compensation programs do not contribute to income and wealth inequality.

IV. Resources

AFL-CIO: Search pay-scale ratios for private companies, aflcio.org/paywatch/company-pay-ratios

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V. Reference Articles

World Inequality Lab, “World Inequality Report,” 2018: wir2018.wid.world/files/download/wir2018-full-report-english.pdf

www.scientificamerican.com/article/economic-inequality-it-s-far-worse-than- you-think/

www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages- have-barely-budged-for-decades/

Institute for Policy Studies, ips-dc.org/report-ever-growing-gap/

VI. Organizations of Repute

The Ethics Resource Center (ERC) Ethics World Institute for Policy Studies (IPS) Canadian Institute of Policy Studies (CIPS) AFL-CIO—Executive PayWatch

JUST CATEGORY: EQUITY 40 FREEDOM OF ASSOCIATION

The JUST Label calls for organizations to commit to and demonstrate that they actively support the right of employees to self-organize, and if desired, to join or form a union to represent the employees in collective bargaining. Organizations must not, in any way, resist or campaign against unions or take action against employees for involvement or membership in a union or informal self-organization. The organization needs to have established protocols to address collective bargaining issues and to resolve employee concerns. In particular, it is necessary for management to meet with employee group representatives to discuss and resolve items of importance to employees that are not otherwise covered in collective bargaining agreements or established individual performance management protocols.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents freedom of association principles and workplace democracy.

LEVEL TWO 1. Organization has a written policy that documents freedom of association principles and workplace democracy. 2. Organization does not resist employee self-organization and/or unionization for collective bargaining purposes.

LEVEL THREE 1. Organization has a written policy that documents freedom of association principles and workplace democracy. 2. Organization demonstrates active support of employee self-organization and/or unionization for collective bargaining purposes.

LEVEL FOUR 1. Organization has a written policy that documents freedom of association principles and workplace democracy. 2. Organization demonstrates advocacy of employee self-organization and/ or unionization for collective bargaining purposes. Worker cooperatives can apply for recognition at this level.

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II. Rationale for Metric

Employee self-organization groups and unions, through collective bargaining with employers, have helped employees in many ways, such as the protection of employee rights, improvement of working conditions, and increased pay, compensation, and benefits. However, employer opposition and resistance to, and interference with, employee self-organization groups and employee unions is on the rise, in both private and public sector organizations. Employers and policies often create barriers for employees to form unions, largely based on the premise that unionization is too expensive for the employer.

The JUST Label is meant to encourage organizations to be employee and union friendly, to protect the rights of workers, and to recognize all of the positive benefits that accrue to organizations as a result.

III. Background Facts of Note

According to the International Labor Organization, “in collective bargaining, one or more trade unions and one or more employers or employers’ organizations negotiate with the intention of reaching agreement on two broad subjects: terms and conditions of employment; and the rules that govern how the two sides will jointly address workplace issues and resolve any disputes that arise between them.” Bargaining is a joint decision-making process in which both sides have the right to refuse a proposal.

Properly certified unions represent the employee membership and negotiate contracts with management regarding conditions of employment, such as wages, hours of work, benefits, and other terms of employment. In addition to formally certified unions, other forms of collective agreements can protect workers at the national, regional, sectoral, or occupational level.

In the United States and Canada, it is illegal for employers to interfere with, discriminate against, or terminate employees on the basis of them seeking to establish a union or being a member of a union that represents them in

JUST CATEGORY: EQUITY 42 FREEDOM OF ASSOCIATION CONT.

collective bargaining. Employers must engage in collective bargaining with the union that represents their employees.

According to data from the OECD, Iceland has the highest rate of union membership worldwide (91.8 percent of its citizens were labor union members in 2018). Sweden and Belgium follow, with union members accounting for over 50 percent of their citizens in 2018. Worldwide, however, union membership is declining. For example, in 2017, the percentage of workers belonging to a union in the United States was 10.7 percent, compared to 30 percent in 1955, according to the Bureau of Labor Statistics. In the U.S. private sector, these union rates have fallen even lower to under 7 percent. In Japan, union membership was 17.1 percent in 2017, as compared to 55 percent in the 1950s.

IV. Resources

Fairhotel.org

V. Reference Articles

Bureau of Labor Statistics Organization for Economic Cooperation and Development (OECD): stats.oecd.org/Index.aspx?DataSetCode=TUD

VI. Organizations of Repute

Canadian Labour Congress (CLC) American Federation of Labor (AFL) American Civil Liberties Union (ACLU) International Labor Organization International Labor Rights Forum

JUST CATEGORY: EQUITY 43 LIVING WAGE

The JUST Label calls for organizations to commit to and demonstrate that they provide a minimum of a living wage for all of their employees. A living wage is defined as financial compensation that reflects what individuals need to support themselves and their families above the poverty line, based on the actual costs of living in any specific community. A living wage helps with the essential costs of living and an improved standard of living for low-wage individuals and families. The goal is for employees to afford to live a healthy life in the local community where they work.

I. Indicator Metric

The JUST Label uses the applicable national minimum wage as a reference point to determine reasonable and livable financial compensation for an organization’s lowest-paid employees. National minimum wage benchmarks are usually set at or below a poverty-level standard of living. The JUST Program asks organizations to provide at a living wage for their entry level employees that is higher than the minimum wage. The living wage should apply to all employees, including part-time, temporary, contract workers, and interns.

Living wage calculators such as MIT’s U.S. Living Wage Calculator, Living Wage Canada, and the Wage Indicator Foundation’s global Living Wage Calculator can assist your organization to create living wage commitments that more specifically apply to your region.

LEVEL ONE 1. Organization has a written policy that documents its living wage commitment.

LEVEL TWO 1. Organization has a written policy that documents its living wage commitment. 2. U.S. based organizations must reference the MIT Living Wage Calculator at the 2 Adults/1 Child Family Unit. Organizations not based in the United States commit to a Living Wage framework that is widely recognized and regularly updated by a NGO or educational institution.

JUST CATEGORY: EQUITY 44 LIVING WAGE CONT.

3. If no Living Wage framework or calculator exists, organization pays a living wage that is at least 200 percent of the applicable national minimum wage.

LEVEL THREE 1. Organization has a written policy that documents its living wage commitment. 2. U.S. based organizations must reference the MIT Living Wage Calculator at the 2 Adults/2 Children Family Unit. Organizations not based in the United States commit to a Living Wage framework as referenced at Level Two + 10 percent. 3. If no Living Wage framework or calculator exists, organization pays a living wage that is at least 225 percent of the applicable national minimum wage.

LEVEL FOUR 1. Organization has a written policy that documents its living wage commitment. 2. U.S. based organizations must reference the MIT Living Wage Calculator at the 2 Adults/3 Children Family Unit. Organizations not based in the United States commit to a Living Wage framework as referenced at Level Two + 20 percent. 3. If no Living Wage Framework or calculator exists, organization pays a living wage that is at least 250 percent of the applicable national minimum wage.

II. Rationale for Metric

The living wage metric encourages organizations to initiate and/or sustain the payment of a living wage for all of their employees and to find meaningful opportunities to improve, through increased wages and benefits, the lives of their employees.

A living wage is meant to help with the essential costs of living and to provide for an adequate standard of living. A realistic living wage is needed to help raise families out of poverty and contribute to their physical, social, and financial well-being and to that of their communities. Compared to a legislated minimum wage, a living wage is a higher standard for employers to meet in reference to compensation for their employees.

JUST CATEGORY: EQUITY 45 LIVING WAGE CONT.

Living wage calculators and data about the specific regional cost of living can help organizations develop a more realistic living wage.

III. Background Facts of Note

According to research in the American Journal of Public Health, a living wage is associated with substantial health improvements for employees and their families.

While helpful to set minimum wage standards, minimum wage legislation often sets the wage bar very low for employers and does not address the very real challenge of insufficient income faced by many of the lowest-paid employees. The U.S. federal poverty measure, for example, does not take into consideration workers’ out-of-pocket costs, like childcare and health care. Further, the U.S. federal minimum wage of $7.25/hour has not changed since 2009 and the “real value” of the minimum wage has largely been in decline since 1968.

As of 2018, there are still twenty-one U.S. states and countless cities and counties that still abide by $7.25/hour as their minimum wage standard. Twenty- nine U.S. states, plus the District of Columbia, and nearly two dozen cities and counties, have set their own minimum wages higher than the U.S. federal minimum wage. The “Fight for 15” advocacy movement sparked many of these wage increases. Multiple cities such as Seattle, Los Angeles, San Francisco, New York City, and Washington, D.C. have implemented a minimum wage increase to $15/hour.

The living wage model is “an alternative measure of basic needs.” The MIT Living Wage Calculator is a United States-focused, market-based approach “that draws upon geographically specific expenditure data related to a family’s likely minimum food, child care, health insurance, housing, transportation, and other basic necessities (e.g. clothing, personal care items, etc.) costs.” It does not, however, budget for other needs that many people would consider “basic,” such as entertainment costs or savings for the purposes of retirement or the purchase of capital assets.

JUST CATEGORY: EQUITY 46 LIVING WAGE CONT.

The Global Living Wage and Minimum Wage map provides country-specific data based on costs of living. The Asian Floor Wage was originally created to support higher wages for garment workers in Asia, but it can be applied to other industries. The Asian Floor Wage is calculated based on the consumption of goods and services, the costs of living, and the purchasing power of wages in Asia.

IV. Resources

MIT Living Wage Calculator (U.S.): livingwage.mit.edu/ Living Wage (Canada): www.livingwagecanada.ca/ Living Wage Foundation (U.K.): www.livingwage.org.uk/ Global Living and Minimum Wage map: wageindicator.org/salary/ wages-in-context Asian Floor Wage: https://asia.floorwage.org/what Global Living Wage Coalition: https://globallivingwage.org/

V. Reference Articles

Rajiv Bhatia, Mitchell Katz, “Estimation of Health Benefits From a Local Living Wage Ordinance,” American Journal of Public Health 91, no. 9 (September 1, 2001): pp. 1398-1402.

VI. Organizations of Repute

UC Berkeley Labor Center Living Wage Action Coalition Canadian Centre for Policy Alternatives Universal Living Wage organization Living Wage Foundation UC Davis Center for Poverty Research International Labor Rights Forum

JUST CATEGORY: EQUITY 47 GENDER PAY EQUITY

The JUST Label calls for organizations to commit to and demonstrate that they have a working gender equity pay-scale program. JUST encourages organizations to work to eliminate gender-based wage discrimination in their organizations. Pay scales should meet or exceed applicable legislated wage requirements and industry standards and compensate, on the same basis, all individuals performing the same or similar work or work of equal value.

I. Indicator Metric

Gender pay equity includes all forms of remuneration such as salary, commissions, vacation pay, severance pay, and bonuses. It also includes employer contributions to pensions, short-and long-term disability plans, and all forms of healthcare and health insurance. For the purpose of this metric, however, we ask organizations to report on (at a minimum) remuneration in the form of base salary.

Singular positions such as CEO, COO, executive director, etc., can be excluded from the calculations. Pay classes with no gender diversity can be excluded. Pay classes with fewer than four employees can be excluded. JUST uses the following formula to calculate the variance at each pay level.

Average (Mean) Base Salary For Men = A Average (Mean) Base Salary For Women = B Variance = (A-B)/A×100

OR use the Gender Pay Gap Calculator from Dezeen: www.dezeen.com/gender-pay-gap-calculator

LEVEL ONE 1. Organization has a written policy that documents its gender pay equity.

LEVEL TWO 1. Organization has a written policy that documents its gender pay equity. 2. Organization must have a gender equity pay-scale with a maximum variance in pay of 10 percent between genders within each of the organization’s pay-scale classes.

JUST CATEGORY: EQUITY 48 GENDER PAY EQUITY CONT.

LEVEL THREE 1. Organization has a written policy that documents its gender pay equity. 2. Organization must have a gender equity pay-scale with a maximum variance in pay of 8 percent between genders within each of the organization’s pay- scale classes.

LEVEL FOUR 1. Organization has a written policy that documents its gender pay equity. 2. Organization must have a gender equity pay-scale with a maximum variance in pay of 5 percent between genders within each of the organization’s pay scale classes.

II. Rationale for Metric

Gender pay-scale equity addresses wage and benefits discrimination based on gender within organizations. The goal of gender equity pay-scale programs is to eliminate systemic bias and discrimination that relates to the undervaluation of work traditionally performed by women and to ensure that women are treated on the same basis as men in terms of compensation for the work they perform. Today, in many organizations, a significant gender gap remains in pay-scale and compensation. Women’s work is still undervalued in terms of the compensation women receive as compared to men doing similar work or work of equal value.

Pip Marlow, CEO of Suncorps Group, argues that it is “just good business” to eliminate the gender bias. Attaining gender pay equity, she argues, allows businesses to attract and retain the best talent.

III. Background Facts of Note

According to the Institute for Women’s Policy Research, the gender pay gap remains in nearly all occupations, whether the sector is male-dominated, female- dominated, or more evenly mixed gender. The gap exists for women at all education levels, and the gap is largest among top earners (National Women’s Law Center, Economic Policy Institute).

JUST CATEGORY: EQUITY 49 GENDER PAY EQUITY CONT.

Australia’s Workplace Gender Equality Agency cites three main causes for the gender pay gap: • the “motherhood penalty,” in which women are penalized for taking time off work to care for families • penalties for part time employment and leave, and • Women experiencing less successful negotiation outcomes than men.

According to U.N. Women, on average there is a 23 percent variance between men and women’s wages, meaning that women earn only 77 percent of men’s compensation globally. In the United States, the variance is only slightly smaller at 20 percent. Statistics Canada data shows the gender wage gap is 30 percent for full-time workers. The Organisation for Economic Co-operation and Development (OECD) reports that globally, the average gender pay gap for member countries is 14.5 percent for full-time workers. This gap has real financial consequences for women and families: The National Women’s Law Center estimates that women lose an average of $403,440 over the course of a 40-year career due to the gender pay gap.

The wage gap does not look the same for all women. In the United States, while white women are paid 79 percent less than white men, black, Latina, and Native women, are paid even less on average than their white male counterparts. According to the Institute for Women’s Policy Research and the National Women’s Law Center, the median weekly earnings of black female workers in the U.S. was 67.7 percent that of their white male counterparts, and the median earnings of Latina and Native female workers in the United States was even lower, at 54 percent and 57 percent, respectively. Although mothers are significant, if not primary, breadwinners in half of families with children under eighteen in the United States, mothers (with full-time, year-round jobs) are paid 71 cents for every dollar paid to fathers.

IV. Resources

American Association of University Women, “The Gender Pay Gap By State: An Interactive Map,” www.aauw.org/research/the-simple-truth-about-the- gender-pay-gap/

JUST CATEGORY: EQUITY 50 GENDER PAY EQUITY CONT.

Gender Pay Gap Calculator from Dezeen: www.dezeen.com/gender-pay-gap-calculator/

Guide to Gender Pay Equity, Australian government: www.wgea.gov.au/sites/default/files/guide-to-gender-pay-equity.pdf

Economic Policy Institute, Gender pay gap calculator: www.epi.org/multimedia/gender-pay-gap-calculator/

Comprehensive gender pay gap calculator for your organization: www.wgea.gov.au/elearning-modules/using-gender-pay-gap-calculator

See the gender pay gap in each U.S. state (interactive map): www.aauw.org/resource/gender-pay-gap-by-state-and-congressional-district/

Gender Pay Gap by Industry search tool: graphics.wsj.com/gender-pay-gap/

United Nations Women: interactive.unwomen.org/multimedia/infographic/ changingworldofwork/en/index.html

V. Reference Articles

“Average female and male earnings.” Statistics Canada, 2011. www5.statcan.gc.ca/cansim/a26?lang=eng&id=2020102

National Women’s Law Center, nwlc.org/resources/the-lifetime-wage-gap-state-by-state/

www.oecd.org/els/LMF_1_5_Gender_pay_gaps_for_full_time_workers.pdf

Getting a Job: Is there a Motherhood Penalty? Harvard Kennedy School, gap.hks.harvard.edu/getting-job-there-motherhood-penalty

JUST CATEGORY: EQUITY 51 GENDER PAY EQUITY CONT.

VI. Organizations of Repute

Economic Policy Institute National Women’s Law Center Institute for Women’s Policy Research PL+US United Nations Women

JUST CATEGORY: EQUITY 52 EMPLOYEE HEALTH

53 PHYSICAL HEALTH

The JUST Label calls for organizations to proactively support the physical health of their employees. Everything from the design of our buildings to our workplace culture affects the physical health of employees.

I. Indicator Metric

The JUST Program uses the Center for Disease Control (CDC)’s Workplace Health Model to assess the progress of physical health promotion. The CDC offers a systematic and stepwise process of building a workplace health promotion program that emphasizes four main steps: 1. Needs and Interests Assessment 2. Program Planning Process 3. Program Implementation 4. Program Evaluation

LEVEL ONE 1. Organization has a written policy that documents its work to optimize the physical health status of employees.

LEVEL TWO 1. Organization has a written policy that documents its work to optimize the physical health status of employees. 2. Organization has completed Steps 1 (Workplace Health Assessment) and 2 (Planning The Program) of the Center for Disease Control (CDC) Workplace Health Model. Alternatively, organizations that have achieved WELL Building Certification at the Silver Level or Fitwel Certification at the 1 Star Level can apply for this level of recognition.

LEVEL THREE 1. Organization has a written policy that documents its work to optimize the physical health status of employees. 2. Organization has completed Steps 1, 2 and 3 (Implementing The Program) of the Center for Disease Control (CDC) Workplace Health Model. Alternatively, organizations that have achieved WELL Building Certification at the Gold Level or Fitwel Certification at the 2 Star Level can apply for this level of recognition.

JUST CATEGORY: EMPLOYEE HEALTH 54 PHYSICAL HEALTH CONT.

LEVEL FOUR 1. Organization has a written policy that documents its work to optimize the physical health status of employees. 2. Organization has completed Steps 1, 2, 3 and 4 (Evaluation) of the Center for Disease Control (CDC) Workplace Health Model. Alternatively, organizations that have achieved WELL Building Certification at the Platinum Level or Fitwel Certification at the 3 Star Level can apply for this level of recognition.

II. Rationale

The JUST Label’s metrics recognize that organizations may be in various stages in the development and strengthening of their health management systems, and the CDC’s Workplace Health Model promotes continuous progress and improvements.

Health comes in many forms. For some employees, health promotion means ensuring that they can easily access a gender-neutral bathroom during work hours. For others, it means designing a culture and space that supports biking and walking to work. We spend most of our days at work, so employers have a responsibility to ensure that employees feel safe, supported, and energized at work.

The JUST Program asks organizations to ensure that workers are provided working conditions that allow them to do their best work and live long, healthy lives. Organizations should make it easy for their employees to make healthy choices and, ensure that everyone feels included in the vision of what healthy looks like.

III. Background Facts of Note

Social determinants of health (i.e., income, social exclusion, education) impact both chronic physical conditions and mental health. Health-promotion efforts such as encouraging physical activity and nutritious foods and ensuring adequate income and social support can enhance protective factors and reduce risk factors related to aspects of mental and physical health.

JUST CATEGORY: EMPLOYEE HEALTH 55 PHYSICAL HEALTH CONT.

Promoting a healthy work environment pays off for employers and employees. The Center for Disease Control (CDC) reports that companies that have exemplary safety, health, and environmental programs outperformed the S&P 500 by between 3 and 5 percent.

Health promotion should also be inclusive of people of all abilities. Implementing accommodations for people with different accessibility needs can benefit a large number of employees. For example, according to the Partnership on Employment and Accessible Technology, 60 percent of all working-age adults are likely or very likely to benefit from the use of accessible technology.

Organizations can promote health in the following ways, for example: • Ensure the use of frequent breaks • Ensure that people with disabilities can access spaces (both digital and physical spaces) • Provide facilities such as bike racks and showers to encourage biking to work and exercise during the workday • Provide incentives to promote non-vehicular forms of transportation • Provide discounts on gym memberships or provide on-site exercise equipment • Promote healthful foods (inclusive of plant-based menu selections) and drinks at company events and cafeterias • Providing standing desks and ergonomic furniture

IV. Resources

CDC, Healthy Workforce Infographic: www.cdcfoundation.org/businesspulse/ healthy-workforce-infographic

Center for Disease Control, Guide to Breastfeeding Interventions www.cdc.gov/breastfeeding/pdf/breastfeeding_interventions.pdf

JUST CATEGORY: EMPLOYEE HEALTH 56 PHYSICAL HEALTH CONT.

V. Reference Articles

Health, Well-Being and Productivity in the Workplace - RAND Corporation Report

VI. Organizations of Repute

Center for Disease Control World Health Organization Fitwel International WELL Building Institute Physicians Committee for Responsible Medicine

JUST CATEGORY: EMPLOYEE HEALTH 57 WELL-BEING

The JUST Label calls for organizations to provide a healthy work environment that holistically fosters employee well-being. Organizations have an opportunity not only to reduce the amounts of work-related stress but to prevent this stress by creating an environment that nourishes and energizes employees.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents its work to optimize the emotional, social, and spiritual well-being of employees.

LEVEL TWO 1. Organization has a written policy that documents its work to optimize the emotional, social, and spiritual well-being of employees. 2. Organization has begun planning and has initiated some components of a comprehensive employee well-being program (that includes flexible working arrangements, mindfulness training, financial education, lactation/ breastfeeding room, meditation/prayer/reflection space, gender neutral bathrooms, employee resource groups, employee assistance programs, planned social/volunteer outings, and counseling programs).

LEVEL THREE 1. Organization has a written policy that documents its work to optimize the emotional, social, and spiritual well-being of employees. 2. Organization has initiated and provides documentation of a comprehensive employee well-being program.

LEVEL FOUR 1. Organization has a written policy that documents its work to optimize the emotional, social, and spiritual well-being of employees. 2. Organization has implemented and continuously refines a robust employee well-being program. 3. Organizations reporting that at least 50 percent of employees feel engaged at work can apply for recognition at this level.

JUST CATEGORY: EMPLOYEE HEALTH 58 WELL-BEING CONT.

4. Organizations that have received a Best Places To Work award (or equivalent national or global award) from within the past two years can apply for recognition at this level.

II. Rationale

The JUST Program’s goal is to encourage organizations to have work environments that are safe, healthy, and rejuvenating for everyone. A well-being program should serve a diverse workforce with unique emotional, social, and spiritual needs. Organizations should create a workplace in which employees feel comfortable, empowered, and encouraged to take care of themselves and their families in whatever ways they see fit. The JUST Label metrics recognize that organizations may be in various stages in the development and strengthening of their well-being programs.

III. Background Facts of Note

People can experience work-related stress when they face work demands and pressures that are not matched to their knowledge and abilities and which challenge their ability to cope. The World Health Organization (WHO) suggests that stress at work is associated with heart disease, depression, and musculoskeletal disorders. The WHO also found evidence that high job demands, low job control, and effort-reward imbalances are risk factors for mental and physical health problems.

Investing in employee well-being can reduce healthcare costs, increase productivity, increase morale, and give your organization a competitive edge. A 2007 study by the European Agency for Safety and Health at Work suggests that the overall cost to British employers of stress, anxiety and depression amounts to £1,035 per employee per year (€1,220), with 32.4 percent of this cost due to absenteeism, 58.4 percent due to disengagement and 9.2 percent due to staff turnover.

The Affordable Care Act in the United States requires that most employers

JUST CATEGORY: EMPLOYEE HEALTH 59 WELL-BEING CONT.

provide a private space with a lock, that is not a bathroom stall, for pumping breast milk. Still, many companies have decided to interpret the ACA by designating closets, shower stalls, and bathrooms as lactation rooms. Other companies have no place to pump at all, sometimes forcing parents to pump in their cars because adequate space is not provided. According to the U.S. Office of the Surgeon General, a lack of a place to pump can contribute to a parent’s decision to stop breastfeeding their child and thus has negative health effects for the parent and baby.

According to the CDC’s Guide to Breastfeeding Interventions, support for lactation at work benefits both individual families as well as employers “via improved productivity and staff loyalty; enhanced public image of the employer; and decreased absenteeism, health care costs, and employee turnover.” IV. Resources

How to Establish and Design a Wellness Program - Society for Human Resource Management

V. Reference Articles

World Health Organization, “Health Impact of Psychosocial Hazards at Work: An Overview,” apps.who.int/iris/bitstream/ handle/10665/44428/9789241500272_eng.pdf;jsessionid=1B8C982ADA2686562 635AB8436901465?sequence=1

Sainsbury Centre for Mental Health, OSHA Europe, “Calculating the Cost of Work Related Stress and Psychosocial Risks,” osha.europa.eu/en/tools-and- publications/publications/literature_reviews/calculating-the-cost-of-work- related-stress-and-psychosocial-risks

Office of the Surgeon General (US); Centers for Disease Control and Prevention (US); Office on Women’s Health (US). Rockville (MD): Office of the Surgeon General (US); 2011.

JUST CATEGORY: EMPLOYEE HEALTH 60 WELL-BEING CONT.

VI. Organizations of Repute

World Health Organization Centers for Disease Control and Prevention (United States) Corporate Health and Wellness Association

JUST CATEGORY: EMPLOYEE HEALTH 61 EMPLOYEE BENEFITS

62 EMPLOYEE HEALTH CARE

The JUST Label calls for organizations to provide a comprehensive employee benefits plan for their employees that includes comprehensive health care insurance coverage (medical, dental, vision). Organizations should support the health of their employees by offering benefits packages that meet the needs of employees and their families.

I. Indicator Metric

To meet the criteria for a JUST Label, organizations must meet and exceed all government rules and regulations regarding the provision of health care insurance for their employees and their employees’ families. The levels of recognition account for different levels of employer support for health care insurance.

If the government fulfills any of the requirements for an indicator level, those government benefits may be included in the percentage of the organization’s coverage.

Employers should make comprehensive health care accessible for their employees, without compromising other benefits or pay. Employers should provide optional health care coverage to family members.

LEVEL ONE 1. Organization has a written policy that documents employee health care and cost-sharing structure.

LEVEL TWO 1. Organization has a written policy that documents employee health care and cost-sharing structure. 2. Organization is responsible for paying at least 60 percent of a comprehensive health care plan for employees, including at least 60 percent of medical, dental and vision.

LEVEL THREE 1. Organization has a written policy that documents employee health care and cost-sharing structure.

JUST CATEGORY: EMPLOYEE BENEFITS 63 EMPLOYEE HEALTH CARE CONT.

2. Organization is responsible for paying at least 75 percent of a comprehensive health care plan for employees including at least 75 percent of medical, dental and vision.

LEVEL FOUR 1. Organization has a written policy that documents employee health care and cost-sharing structure. 2. Organization is responsible for paying 100 percent of a comprehensive and holistic health care plan for employees including medical, dental and vision. The plan will also allow for alternative and complementary health care options such as chiropractic, naturopathic, traditional Chinese medicine, homeopathy, and herbal medicine.

II. Rationale for Metric

The JUST Label encourages organizations to take responsibility for the provision and payment of a comprehensive benefits package for their employees and their families. Organizations should cover a large percentage of total health care costs. The four levels recognize differences in organizations’ abilities to financially support a higher percentage of healthcare insurance costs.

III. Background Facts of Note

The United States is still dependent on employer-sponsored health insurance for those who do not qualify for Medicaid and Medicare (government-sponsored health insurance programs). According to the Kaiser Family Foundation, employer-based health insurance coverage represents the largest source of health insurance in the United States, with 49 percent of the total U.S. population receiving employer-based health insurance as of 2017. Further, 35 percent of Americans were covered by government-based health insurance, including Medicaid or Medicare and 9 percent of Americans were uninsured.

A deductible is the amount that the employee pays for covered health insurance services before the insurance plan kicks in. After a deductible, the insured person will usually pay a copayment or coinsurance for covered services, with

JUST CATEGORY: EMPLOYEE BENEFITS 64 EMPLOYEE HEALTH CARE CONT.

the insurance company covering the rest. An insurance premium is the monthly bill to the insurance company. Typically, in the United States, people with health insurance pay a premium contribution in addition to benefits through a deductible. Depending on their health status and other factors, someone may prefer different forms of risk and cost-sharing structures in their insurance plan.

In 2010, the United States government passed the Affordable Care Act (ACA). This legislation represents the most significant regulatory overhaul of the U.S. healthcare system since passage of Medicare and Medicaid in 1965. Under the ACA, organizations with 50 or more employees, including for-profit and not-for- profit entity employers, must provide “minimum value” and “affordable” health insurance coverage for their full-time employees, or they are subject to financial penalties. According to the U.S. Department of Health and Human Services, a plan provides “minimum value” if: • it is designed to pay at least 60 percent of the total cost (considering deductibles, copays, coinsurance) of medical services for a standard population of employees (not including dependents), and • its benefits include substantial coverage of physician and inpatient hospital services.

The U.S. Department of Health and Human Services has developed a minimum value calculator that can be used to determine if a plan provides minimum value. The minimum value calculator is available at https://goo.gl/4lVFbe.

IV. Resources

U.S. Department of Health and Human Services, Minimum Value Calculator: https://goo.gl/4lVFbe

JUST CATEGORY: EMPLOYEE BENEFITS 65 EMPLOYEE HEALTH CARE CONT.

V. Reference Articles

Insurer Participation on ACA Marketplaces www.kff.org/health-reform/issue-brief/insurer-participation-on-aca- marketplaces/

Commercial Member Health Plan Study www.jdpower.com/business/press-releases/jd-power-2018-commercial- member-health-plan-study

VI. Organizations of Repute

The Agency for Healthcare Research and Quality (AHRA) The Institute for Healthcare Improvement (IHI) The Employee Benefit Research Institute (EBRI) Williams Institute at UCLA Physicians For A National Health Program

JUST CATEGORY: EMPLOYEE BENEFITS 66 RETIREMENT PROVISION

The JUST Label calls for organizations to offer a defined benefit plan or defined contribution plan that will help employees save income for their retirement years.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy that documents employee retirement provision.

LEVEL TWO 1. Organization has a written policy that documents employee retirement provision. 2. Organization offers a defined contribution plan with auto-enrollment with default contribution level of 3 percent and immediate eligibility. Certified Employee-Owned businesses can apply at this level.

LEVEL THREE 1. Organization has a written policy that documents employee retirement provision. 2. Organization offers a defined contribution plan with auto-enrollment with default contribution level of 5 percent and immediate eligibility with employer match (minimum of 3 percent of salary). Certified Employee Majority-Owned businesses can apply at this level.

LEVEL FOUR 1. Organization has a written policy that documents employee retirement provision. 2. Organization offers a defined contribution plan with auto-enrollment with default contribution level of 5 percent, auto-escalation of 1 percent per year (capped at 10 percent per year) and immediate eligibility with employer match (minimum of 5 percent of salary). Organizations that offer a defined benefit pension plan can apply at this level. Certified Employee 100 Percent Owned businesses can apply at this level.

JUST CATEGORY: EMPLOYEE BENEFITS 67 RETIREMENT PROVISION CONT.

II. Rationale for Metric

In 2017, the National Institute on Retirement Security (NIRS) commissioned its fifth nationwide public opinion research project. The survey is conducted on a biennial basis to monitor over time how Americans feel about their financial security in retirement and to assess their views on policies that could improve their retirement outlook. This research is intended to serve as a tool for policymakers, thought leaders, and retirement service providers as they work to stem the retirement crisis and refortify the U.S. retirement infrastructure.

Three-fourths (76 percent) of Americans are concerned about economic conditions affecting their ability to achieve secure retirement. The overall level of concern held steady from the 2015 report (74 percent). Additionally, a full 80 percent of Americans agree that the average worker cannot save enough on their own to guarantee a secure retirement, up from 73 percent from the 2015 report.

Some 88 percent of Americans agree that the rising cost of long-term care is a major factor that makes preparing for retirement more difficult. Americans say other factors that make retirement more difficult are: salaries not keeping up with the cost of living (83 percent), increasing debt from student loans, housing or credit cards (81 percent), fewer defined benefit pension plans (64 percent), increased life expectancy (64 percent), funding and managing their retirement savings on their own (52 percent), and stock market volatility (44 percent).

Some 88 percent agree that the United States faces a retirement crisis, holding steady from 2015 (86 percent). The level of concern is high across gender, income, age and party affiliation. Importantly, more than half (55 percent) strongly agree there is a crisis. Nearly three-fourths of Americans (74 percent) say that part of the problem is that employers do not contribute enough money for workers to be able to achieve a secure retirement. And three-fourths (75 percent) also say that preparing for retirement is only getting harder.

In fact, Americans are so worried about economic security in retirement that they are willing to trade pay for retirement benefits. Some 72 percent are willing to take less in pay increases in exchange for guaranteed retirement income in retirement, up from 67 percent in 2015.

JUST CATEGORY: EMPLOYEE BENEFITS 68 RETIREMENT PROVISION CONT.

Some 82 percent of Americans have a favorable view of pensions. A full 85 percent say all workers should have access to a pension plan so they can be independent and self-reliant in retirement, holding steady from 2015. 71 percent of Americans say that pensions do more to help workers achieve a secure retirement as compared to 401(k) plans, and 65 percent say pensions are safer than 401(k) plans because the risks are managed professionally rather than by individual investors.

An overwhelming majority of Americans (88 percent) say Americans with pensions are more likely than those without a pension to have a secure retirement, up from 85 percent in 2015. And, 87 percent say the average retiree does not know enough about managing investments to be able to make their retirement savings last, which is a key financial worry for 401(k) plan participants.

Other OECD countries face similar challenges. In Canada, poverty rates have been rising and recently plateaued for seniors, and savings data show that many Canadians, particularly those without an employer pension plan, have wholly inadequate retirement savings. Poverty trends over the recent past depend critically on which poverty measure one uses. Using the low-income measure (LIM), we see that senior poverty has increased from a low of 3.9 percent in 1995 to 11.1 percent, or one in nine, in 2013. The poverty rates for single seniors, particularly women (at nearly 30 percent), are very high and cause for concern.

Historically, the level of benefits in the U.K.’s State Pension program has been low, with many people receiving means-tested benefits. About 50 percent of pensioners qualify for these benefits. This development is a concern because means-tested benefits are administratively expensive to provide and have a stigma for many people. OECD figures for gross replacement rates (replacement of gross earnings, not subtracting taxes) for a worker with average earnings are 21.6 percent for the United Kingdom, compared to 35.2 percent for the United States.

III. Background Facts of Note

A large portion of Americans lack access to or do not participate in workplace retirement plans. Additionally, Americans are not saving enough in their

JUST CATEGORY: EMPLOYEE BENEFITS 69 RETIREMENT PROVISION CONT.

individual accounts at a time when their retirement income needs are increasing thanks to rising longevity and costs.

The Boston College Center for Retirement Research at Boston College finds that 52 percent of households are “at risk” of not having enough to maintain their living standards in retirement. The Government Accountability Office (GAO) finds that many retirees and workers approaching retirement have limited financial resources. About half of households age 55 and older have no retirement savings.

The typical working-class household has virtually no retirement savings. When all households are included—not just households with retirement accounts—the median retirement account balance is $2,500.

The number of private sector pension plans continues to decline thanks to a complex regulatory environment. There were some 29,000 private sector pensions in 2006, and that number has fallen to 22,000 by 2014. In 1975, a full 88 percent of private sector workers with a workplace retirement plan had pension coverage.

Social Security is a central component of retirement security for Americans. For most, it is the only source of lifetime income adjusted for inflation. As the normal retirement age rises to 67, its benefits are being reduced. Almost 22 percent of people age 65 and older live in families that depend on Social Security benefits for 90 percent or more of their income. Another 24 percent receive at least half, but less than 90 percent, of their family income from Social Security. Reliance on Social Security increases with age, with 30 percent of persons aged 80 and older depending on Social Security for 90 percent or more of family income. In 2012, Social Security kept almost a third of older Americans out of poverty.

In Canada, the overall median value of retirement assets of those aged 55– 64 with no accrued employer pension benefits is just over $3,000. For those with annual incomes in the range of $25,000–$50,000, the median savings is just $250. For those with incomes in the $50,000–$100,000 range, the median savings is only $21,000.

JUST CATEGORY: EMPLOYEE BENEFITS 70 RETIREMENT PROVISION CONT.

IV. Reference Articles

National Institute on Retirement Security www.nirsonline.org/research/

Employee Benefit Research Institute /www.ebri.org/research/?fa=genretire

V. Organizations of Repute

National Institute on Retirement Security Center For Retirement Research at Boston College Employee Benefit Research Institute Economic Policy Institute Broadbent Institute (Canada) NEST Insight (U.K.)

JUST CATEGORY: EMPLOYEE BENEFITS 71 FAMILY/MEDICAL LEAVE

The JUST Program calls on organizations to provide comprehensive paid family and medical leave for their employees, so employees can fulfill parental responsibilities, care for loved ones, and care for themselves.

I. Rationale for Metric

A strong paid family leave policy can improve the health of employees, children, and families and support greater gender equity in the workplace. Paid family leave also strengthens employee loyalty and retention and boosts morale, according to the Boston Consulting Group. Inclusive and gender-neutral leave policies empower all types of people to care for their loved ones and themselves.

The International Labor Organization recommends that women have at least 14 weeks of paid maternity leave. A study in the Economic Journal found that a mother’s return to full-time work before her child reaches 12 weeks results in reduced breastfeeding, reduced well-baby care medical visits, and more. Additionally, women who take longer maternity leaves report an overall improvement in mental health, fewer depression symptoms and a reduction in severe depression. What’s more, 26 weeks of paid leave would increase U.S. women’s labor force participation and result in a 5 percent increase in the U.S. GDP.

Longer paternity or parental leave enables to be more involved in caring for their children from a young age and contributes to more equitable parenting. Further, when fathers are more engaged with their children, their children have better developmental outcomes, such as fewer behavior problems and improved cognitive and mental health outcomes. A study of four OECD countries (including the United States) even found evidence that longer paternity leaves and increased time fathers spend caring for their very young children is associated with higher cognitive test scores for their children. Men are much more likely to take leave— and longer lengths of leave—when parental or paternity leave is paid and when the workplace culture supports and encourages men taking parental leave.

Family leave policies impact everyone, not just parents. 29 percent of the U.S. population provides care for a chronically ill, disabled, or aged family member

JUST CATEGORY: EMPLOYEE BENEFITS 72 FAMILY/MEDICAL LEAVE CONT.

or friend during any given year and spends an average of 20 hours per week providing care for their loved one. Sick adults also have substantially better health outcomes when they receive support from family members, so it is important that families are able to care for each other.

Paid sick leave is crucial to ensuring the health of employees, families, workplaces, and communities. When sick employees come to work, they may spread infectious illnesses to other employees and reduce productivity for themselves and others. Sick employees do not perform to the best of their abilities at work, at home, or in their communities. Research also shows that there is significant economic costs to the employer associated with employees’ lack of access to paid sick leave. Research shows that workers who go to work while sick stay sick longer, lower their productivity as well as that of their coworkers, and can spread illnesses. A 2003 study by Stewart et al. found that in 2003, employers lost $1,685 per employee per year due in productivity losses associated with health conditions.

II. Indicator Metric

LEVEL ONE 1. Organization has a written policy on family and medical leave.

LEVEL TWO 1. Organization has a written policy on family and medical leave. 2. Organization provides up to 6 weeks of paid leave for any employee welcoming a child through birth, adoption or foster placement or dealing with a serious health condition of their own or a loved one. 3. Flexible Work Arrangements: Organization allows positive (employee- requested) scheduled work flextime (non-standard hours).

LEVEL THREE 1. Organization has a written policy on family and medical leave. 2. Organization provides up to 12 weeks of paid leave for any employee welcoming a child through birth, adoption or foster placement or dealing with a serious health condition of their own or a loved one.

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3. Flexible Work Arrangements: Organization allows positive (employee- requested) scheduled work flextime (non-standard hours), allows for negotiated compressed workweek.

LEVEL FOUR 1. Organization has a written policy on family and medical leave. 2. Organization provides up to 24 weeks of full paid leave for any employee welcoming a child through birth, adoption, or foster placement or dealing with a serious health condition of their own or that of a loved one. Organization has implemented a Parental Leave Transition Program that addresses all three phases (1. preparing for leave, 2. during leave, and 3. returning from leave). 3. Flexible Work Arrangements: Organization allows positive (employee- requested) scheduled work flextime (non-standard hours), allows for negotiated compressed workweek as well as negotiated telecommuting (working at home).

Great paid family leave policies apply equitably to all employees (salaried, hourly, full-time, part-time) and to all caregivers (i.e., birthing mothers, fathers, adoptive parents, foster parents, surrogate mothers, employees caring for aging parents). Caregiving policies should enable employees to take leave to care for close loved ones, with an inclusive definition of family.

Inclusive paid leave policies are transparent and accessible for all current and prospective employees. Companies should create an organizational culture in which all employees feel empowered to make use of their paid leave policies and no employee fears retaliation if and when taking leave. Organizations should particularly encourage fathers to take parental leave in order to create a more equitable workplace and society.

For this indicator, “paid leave” refers to employment-protected leave in which employees are paid at least 60 percent of their normal salaries.

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III. Background Facts of Note

The Project on Global Working Families published a report in 2008 which reviews the family leave policies of 173 countries. Out of these 173 countries, 168 offered some guaranteed leave with income to women in connection with childbirth. Ninety-eight of these countries offered 14 or more weeks of paid leave. The United States was among only four other nations (Lesotho, Liberia, Papua New Guinea, and Swaziland) that guaranteed no paid leave for mothers. Some countries, such as India, mandate paid leave, but leave it up to the employers to cover the costs. This has caused debate among proponents of women’s rights because some argue that this will increase discrimination against women, especially at smaller organizations, due to employers’ perceptions of increased costs of female employees.

A majority (86 percent) of the U.S. civilian workforce (workers in private industry and local and state government) have no paid family leave. As a result, far too many U.S. workers are forced to quit their jobs or risk being fired to care for their loved ones. As the global population gets increasingly older, employees will need to care for aging loved ones more and more. Worldwide, the 65-and- over population will more than double by 2050.

From 2015 to 2018, more than 100 brand-name companies across a range of industries have announced new or expanded paid family leave policies. For example, Etsy offers 26 weeks fully paid parental leave taken over two years after birth or adoption. Countless organizations such as PwC, Pinterest, and Johnson & Johnson offer thousands of dollars in reimbursement for expenses related to adoption, surrogacy, fertility treatment, and breast milk shipping costs.

In the United States, the federal Family Medical Leave Act (FMLA) requires organizations with at least 50 employees to provide up to 12 weeks of employment-protected, gender-neutral, unpaid leave during a 12-month period for employees to care for a newborn, adopted or foster child, to care for a family member, or to attend to the employee’s own serious medical health condition. Some U.S. states have established additional leave laws, including paid sick leave, paid medical leave, and paid school/parental leave.

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Job protection is common across most maternity and paternity leave policies worldwide. Parental leave is becoming more gender-inclusive in OECD countries, but the average paternity leave taken in OECD countries was still only 0.9 weeks in 2015. Further, 18 out of 34 OECD countries offered higher average payment rates to mothers than to fathers, and all OECD countries offered longer durations for maternity leave than for paternity leave. Fathers are also more likely to use leave when it is well paid and flexible. It is important for fathers to use paid leave because it can ease the caregiving burden for women.

Studies have shown that when work increasingly interferes with family life, job satisfaction generally decreases. Work interfering with family life also takes a toll on the health and relationships of employees. Specifically, work-family conflicts can cause physical problems, such as poor appetite, elevated blood pressure, fatigue, nervous tension, and general stress-related outcomes such as depression and anxiety. Work’s interference into family life is likely to cause particular problems for female workers.

Almost one third of U.S. workers (28 percent) have no paid sick leave, resulting in workers having to choose between going to work even when sick or losing pay and possibly falling behind on bills. Further, lower-income people in the United States have less access to paid sick leave, but suffer the most from loss of pay if they take time off. The Worker’s Lab reports that in the United States, “69 percent of the lowest-paid 10 percent of the workforce and 81 percent of food preparation workers [have] no paid sick leave.”

An increasing number of U.S. cities and states are implementing paid sick leave policies. As of 2018, ten states had implemented paid sick leave policies, with four states adding paid sick leave policies in 2018.

IV. Resources

Guide to Paid Leave in the Workplace: paidleave.us/resources#workplace-policy

Parental Leave Cost Savings Calculator: instacare1.typeform.com/to/VGpxte

JUST CATEGORY: EMPLOYEE BENEFITS 76 FAMILY/MEDICAL LEAVE CONT.

V. Reference Articles

Making Paid Leave Work for Every Family - Center for American Progress

Family Matters: The Business Case for Investing in the Transition to Parenthood - Families and Work Institute

Why Paid Family Leave is Good for Business - Boston Consulting Group

VI. Organizations of Repute

The Worker’s Lab Paid Leave For The United States Center For Parental Leave Leadership

JUST CATEGORY: EMPLOYEE BENEFITS 77 TRAINING + EDUCATION

The JUST Program calls on all organizations to support, sponsor, and contribute to the continuing education, training, and skill development of their employees. JUST Organizations should have clearly communicated policies and dedicated funds set aside annually to support each employee’s development.

I. Indicator Metrics

Training can take the form of professional continuing education, leadership training, tuition support for higher education, community college, or General Education Diploma (GED) courses, apprenticeship and skilled trades programs, stackable certificates, language training, or other personal development such as financial literacy and management.

The support provided can include directly paying tuition and fees, reimbursement for books, travel, lodging and expenses, and providing paid work-time attendance.

LEVEL ONE 1. Organization has a written policy on employee training and continuing education benefits.

LEVEL TWO 1. Organization has a written policy on employee training and continuing education benefits. 2. Organization allocates at least $500 per Full Time Employee Per Year for training and continuing education purposes.

LEVEL THREE 1. Organization has a written policy on employee training and continuing education benefits. 2. Organization allocates at least $1,000 per Full Time Employee Per Year for training and continuing education purposes.

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LEVEL FOUR 1. Organization has a written policy on employee training and continuing education benefits. 2. Organization allocates at least $2,000 per Full Time Employee Per Year for training and continuing education purposes.

At minimum, the policy must clarify any eligibility requirements for employees to qualify, the dollar value available to each employee, what costs and trainings are covered by the policy, and whether employees receive regular pay during training hours.

II. Rationale for Metric

One of the hardest business expenses to justify when budgeting can be training and education for employees. When a budgetary line item doesn’t directly affect an organization’s revenue or income stream, it can be difficult to decide to invest in it. Investing in your employees through a continuing education program is an important step toward strengthening your organization and directly impacting employee engagement. Some of the major reasons for implementing a robust continuing education program include:

1. INCREASED PRODUCTIVITY AND EFFICIENCY Gartner Research estimated that each hour of effective training is worth five hours of added productivity to the sponsoring organization.

2. EMPLOYEE RETENTION Showing ALL of your organization’s employees that you are willing to invest in them with continuing education and professional development programs is an effective way to improve employee retention.

3. CROSS-TRAINING AND COVERAGE Cross-training your employees also can help employees themselves move up their career path. Acting as an “understudy” in a role in your organization is a great way to facilitate promotions and role changes, which both make positive impacts on overall organizational morale.

JUST CATEGORY: EMPLOYEE BENEFITS 79 TRAINING + EDUCATION CONT.

4. REDUCED COSTS Increased job proficiency through continuing education can also lead to reduced costs.

5. PASSION AND PURPOSE A learning and development culture encourages your employees to grow professionally, which will in turn make your organization stronger and more resilient. A learning and development culture promotes personal growth, skills development, leadership competencies, and an opportunity to focus on learning and developing the strengths of your employees.

III. Background Facts of Note

Continuing education and training can include a variety of formats and techniques; this could mean skills training as well as leadership and professional development.

Increasing numbers of organizations are recognizing the value and importance of ongoing in-service and external programs, courses, workshops, seminars, conferences, membership in associations, and apprenticeships. For example, Starbucks offers free college tuition from Arizona State University for employees through the Starbucks College Achievement Plan.

In 2016, Pew Research Center found that 87 percent of workers believe it will be essential for them to get training and develop new job skills throughout their work life in order to keep up with changes in the workplace. This survey noted that employment is much higher among jobs that require an average or above- average level of preparation (including education, experience and job training); average or above-average interpersonal, management and communication skills; and higher levels of analytical skills, such as critical thinking and computer skills.

In 2017, the Society for Human Resource Management reported that 43 percent of companies offer executive or leadership coaching, 22 percent offer formal mentoring programs, 16 percent offer career counseling, and 72 percent of U.S. employers offer on-site professional development.

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According to the American Society for Training & Development (ASTD), companies with fewer than 500 employees devote fewer training hours per employee than larger organizations.

According to the U.S. Department of Commerce, 91 percent of apprentices find employment after completing their program, and their average starting wage is above $60,000.

In the United States, apprenticeships are concentrated in the building trades— carpenters, plumbers, electricians, and so on—and particularly within unions; the Building Trades Unions have more than 1,600 training centers in the United States, with over $1.3 billion of funding per year. Nearly two-thirds of all registered apprentices in the United States are in the construction industry.

IV. Resources

How To Implement A Continuing Education Program: www.inc.com/ guides/2010/08/how-to-implement-a-continuing-education-program.html

Association For Talent Development

V. Reference Articles

Lifelong Education and Labor Market Needs www.evolllution.com/wp-content/uploads/2012/08/evo-research-final.pdf

VI. Organizations of Repute

American Society for Training & Development (ASTD) American Council on Education (ACE) National Center for the Study of Adult Learning and Literacy

JUST CATEGORY: EMPLOYEE BENEFITS 81 STEWARDSHIP

82 LOCAL COMMUNITIES

The JUST Label calls for organizations to maintain a direct relationship to the communities that they serve and where they operate. Organizations and their employees operate within communities, so they need to be active participants in ensuring the health and vibrancy of their local economies and communities.

I. Indicator Metric

Organizations can engage with local communities through a variety of methods. Organizations allow communities differing levels of support and input depending on the method of engagement. Some examples of engagement methods include convening stakeholder groups for input, conducting a social impact assessment, developing community consultation committees, formalizing a community development plan based on local community needs, appointing local community members to the board of directors, and negotiating a community benefits agreement.

LEVEL ONE 1. Organization has a written policy that documents support of local communities.

LEVEL TWO 1. Organization has a written policy that documents support of local communities. 2. Organization has described the means by which stakeholders are identified and how it engages with stakeholder groups that are particular to the community (including vulnerable groups).

LEVEL THREE 1. Organization has a written policy that documents support of local communities. 2. Organization has described the means by which stakeholders are identified and how it engages with stakeholder groups that are particular to the community (including vulnerable groups). 3. Organization has conducted a social impact assessment and provided public disclosure of assessment findings.

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4. Organization has developed broad-based local community consultation committees.

LEVEL FOUR 1. Organization has a written policy that documents support of local communities. 2. Organization has described the means by which stakeholders are identified and how it engages with stakeholder groups that are particular to the community (including vulnerable groups). 3. Organization has conducted a social impact assessment and provided public disclosure of assessment findings. 4. Organization has developed broad-based local community consultation committees. 5. Organization has formalized a community development plan or community benefits agreement based on local communities’ needs.

II. Rationale for Metric

Community members and stakeholders have the right to be involved in the decision making about projects and programs that will affect their lives. Organizations should engage local communities not only to ensure that local communities benefit from decisions and investments, but also because local communities can contribute invaluable knowledge and unique perspectives that can aid in organizational success. Further, proactive community engagement can ease tension, minimize risks, and generate goodwill and broad-based support of new developments and projects.

III. Background Facts of Note

The International Association for Impact Assessment defines Social Impact Assessment as a process to analyze, monitor, and manage “the intended and unintended social consequences, both positive and negative, of planned interventions (policies, programs, plans, projects) and any social change processes invoked by those interventions.” The purpose of the assessment

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is “to bring about a more sustainable and equitable biophysical and human environment.” Organizations should implement Social Impact Assessments early on in decision-making processes. When organizations identify impacts in advance, they can make better decisions about how to proceed and they can take actions to minimize harm and maximize benefits of a planned activity. The Social Impact Assessment originally emerged in the 1970s in the United States, but has since been introduced in many countries worldwide.

The Partnership for Working Families defines community benefits agreement as “a contract signed by community groups and a real estate developer to provide specific amenities and/or mitigations to the local community or neighborhood. Site-specific community benefits agreements (CBAs) ensure that particular projects create opportunities for local workers and communities.” In some cases, the terms from a CBA may be incorporated into an agreement between the local government and the developer, giving the local government the power to enforce the community benefit terms. CBAs provide benefits to the developer and to the community. Communication between the developer and the local community minimizes developers’ risk while maximizing positive impact for local residents and economies.

IV. Resources

International Association for Impact Assessment: www.iaia.org/wiki-details.php?ID=23

Good Jobs First: www.goodjobsfirst.org/accountable-development

Evaluation tools: www.betterevaluation.org/

Social Return on Investment tool: www.socialvalueuk.org/resource/guidance-on-starting-out-on-sroi-2/

Community benefit agreement toolkit (for real estate developers and related professions): www.forworkingfamilies.org/resources/policy-tools-community- benefits-toolkit

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Community Engagement Toolkit: collectiveimpactforum.org/sites/default/files/ Community%20Engagement%20Toolkit.pdf

V. Organizations of Repute

Partnership for Working Families Good Jobs First

JUST CATEGORY: STEWARDSHIP 86 COMMUNITY VOLUNTEERING

The JUST Label calls for organizations to commit to and demonstrate the nature and extent of their community volunteer involvement. Community volunteering is an important measure of the civic health of a community, a state, and a nation.

I. Indicator Metric

For the JUST Label, volunteering is defined as a service only to recognized charitable, non-profit, faith-based, or educational institutions. Employer- supported volunteering programs must be at an organization of the employee’s choice.

LEVEL ONE 1. Organization has a written policy on volunteering.

LEVEL TWO 1. Organization has a written policy on volunteering. 2. Organization provides 8 hours of paid volunteer time per year for volunteering purposes at an organization of the employee’s choice.

LEVEL THREE 1. Organization has a written policy on volunteering. 2. Organization provides 16 hours of paid volunteer time per year for volunteering purposes at an organization of the employee’s choice.

LEVEL FOUR 1. Organization has a written policy on volunteering. 2. Organization provides 24 hours of paid volunteer time per year for volunteering purposes at an organization of the employee’s choice. Organization-sponsored volunteering efforts can be recognized up to a maximum of 8 hours.

II. Rationale for Metric

Community volunteering is an investment in a community and its people. Volunteering provides valuable community services and strengthens a community

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in many ways, such as supporting families, improving schools, supporting youth, and beautifying the community. Volunteering also benefits the volunteers, who can gain invaluable skills and insights to bring back to their work role.

It is important for organizations to demonstrate the extent of their civic engagement through support for, and involvement in, volunteer activities in their local, state, and broader communities. The JUST Label wants to recognize, through its Indicator Metric, those organizations that are involved in the important initiative that is community volunteering, and to encourage organizations to increase both corporate participation and corporate support of employee involvement.

The JUST Label rewards organizations for allowing employee choice in volunteering activities. A Snapshot 2017 survey by America’s Charities shows that people volunteer for deeply personal reasons, and maintaining this personalization can increase the likelihood that employees will participate in volunteering efforts.

III. Background Facts of Note

The Corporation for National and Community Service (CNCS) is the federal agency that has a key role in support of the American culture of citizenship, service and responsibility. According to the CNCS, in 2015, almost 25 percent of U.S. residents volunteered in a formal organization, providing $184 billion in estimated value. The most popular service activities were clustered in four areas—fundraising; collecting, preparing, distributing, or serving food; engaging in general labor or transportation; and tutoring or teaching.

Workplace volunteering encourages organizations to better their communities. Some organizations choose one-time or periodic events for their employees to become involved with as volunteers, while other organizations design ongoing local programs and causes for their employees to become engaged in. Many organizations give their employees paid time away from their usual work to participate in community volunteering. For example, Statistics Canada reports, “In 2010, 57 percent of employees in Canada who did volunteer reported

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that they had received one or more formal means of support to do so from their employers.” In order to help with community volunteering, employers did a number of things, such as approving changes to employee work hours, reducing their regular work activities, and providing various forms of employee recognition.

Volunteering equips employees with skills that can increase their effectiveness in their day-to-day work role. According to research by the City of London, volunteering increases competences such as communication and negotiating skills, ability to help others, ability to set individual performance goals, and adaptability. Supporting employee volunteering can even serve as a low-cost way to train employees in these types of skills. Volunteering requires employees to challenge themselves and to build relationships with people who may have a very different world view or experiences from their own. The City of London reports that employees find that moving out of their “comfort zone” in this way to be “extremely useful in both developing their skills and transferring these skills back into the workplace.”

IV. Resources

City of London Corporate Citizenship, “Volunteering: The Business Case”: corporate-citizenship.com/wp-content/uploads/Volunteering_The_business_ case.pdf

V. Reference Articles

America’s Charities, “Snapshot 2017,” www.charities.org/snapshot2017 Statistics Canada

JUST CATEGORY: STEWARDSHIP 89 COMMUNITY VOLUNTEERING CONT.

VI. Organizations of Repute

The Corporation for National and Community Service (CNCS) (U.S.) United Way (U.S.) Points of Life Foundation (U.S.) U.S. Agency for International Development (U.S.) Government of Canada - Statistics Canada Volunteer Canada Imagine Canada

JUST CATEGORY: STEWARDSHIP 90 ANIMAL WELFARE

The JUST Label calls for organizations to develop policies, programs and practices that support the humane, compassionate treatment of all animals.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy on its commitment to animal welfare.

LEVEL TWO 1. Organization has a written policy on its commitment to animal welfare. 2. Organization does not participate in the harmful or abusive treatment of animals, including animal testing, animal experimentation and factory farming practices. 3. Organization contracts with caterers and food suppliers that source certified humane animal products. 4. Organization makes plant-based food options available for catered events and external functions.

LEVEL THREE 1. Organization has a written policy on its commitment to animal welfare. 2. Organization does not participate in the harmful or abusive treatment of animals, including animal testing, animal experimentation, and factory farming practices. 3. Organization contracts with caterers and food suppliers that source certified humane animal products. 4. Organization ensures that at least 50 percent of food served for catered events and external functions are plant-based. 5. Organization purchases supplies, materials, and ingredients that have not been tested on animals.

LEVEL FOUR 1. Organization has a written policy on its commitment to animal welfare.

JUST CATEGORY: STEWARDSHIP 91 ANIMAL WELFARE CONT.

2. Organization does not participate in the harmful or abusive treatment of animals, including animal testing, animal experimentation, and factory farming practices. 3. Organization serves an exclusively plant-based menu for catered events and external functions. 4. Organization purchases supplies, materials, and ingredients that have not been tested on animals. 5. Organization allows a pet-friendly workplace environment at least one day a week. 6. Organization actively encourages volunteering at animal shelters or sanctuaries. 7. Organization directs 10 percent of total annual charitable donations to animal welfare and protection groups.

II. Rationale for Metric

Corporate social responsibility as a mainstream business concept has been pursued for some time. A growing number of businesses have risen to the task of being accountable not just for profit margins, but also for the greater good of their employees, their communities, and the environment. While environmental and social metrics have been the primary focus so far, animal welfare should be an equally important part of operating a socially responsible business.

Humans have a mixed and sometimes paradoxical attitude when it comes to non-human animals. Some animals are considered family members while others are seemingly just commodities for our industries, entertainment, research facilities, and dinner plates. The research suggests, however, that the perceived importance of animal welfare is generally very high.

According to research firm Faunalytics, at least three-fourths (75 percent or more) of U.S. adults said that the welfare and protection of animals is “very” or “somewhat” important for all of those listed—these include companion animals,

JUST CATEGORY: STEWARDSHIP 92 ANIMAL WELFARE CONT.

animals raised for food and racing, wildlife, and animals in shelters, laboratories, zoos, aquariums, circuses, and rodeos.

This sentiment is supported by public opinion surveys. Of six causes tracked in a 2014 Humane Research Council survey of 1,000 American adults, animal protection was ranked most favorably in importance, followed by environmental protection and civil liberties.

The results of the 2014 survey were striking. Of six major charitable causes listed, animal protection emerged as the cause most favorable to Americans, garnering support from 85 percent of Americans, up from 71 percent in 2005. Also significant is that those who have “a great deal of respect” for animal protection organizations and activists more than doubled over the time period, jumping from just a quarter of the United States adult population in 2005 to more than half of that population in 2014.

Seventy-four percent of respondents agreed with the statement that “humans have an obligation never to harm animals,” and 79 percent agreed that “animals should be protected from all suffering and harm caused by humans.” These percentages reflect an increase from the 2005 poll results of 56 and 64 percent, respectively.

Through their policies, business practices, and preferences, organizations have the ability to foster greater awareness of the plight of animals and to instill a culture of greater respect, connection, and compassion. Organizations can choose to make available more plant-based menu options when providing food to employees and for external functions. Organizations can ensure that they purchase supplies, ingredients, and goods that have not been tested on animals. Organizations can adopt policies that make the workplace more companion animal friendly. Organizations can financially support those non-profit groups that are engaged in animal welfare and protection activities.

In his total commitment to nonviolence, Mahatma Gandhi always included animals, stating, “The greatness of a nation and its moral progress can be judged by the way its animals are treated.”

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Nobel Peace Prize Laureate Dr. Albert Schweitzer noted, “We must fight against the spirit of unconscious cruelty with which we treat the animals. Animals suffer as much as we do. True humanity does not allow us to impose such sufferings on them. Until we extend our circle of compassion to all living things, humanity will not find peace.”

Albert Einstein declared, “Our task must be to free ourselves by widening our circle of compassion to embrace all living creatures and the whole of nature in its beauty.”

III. Background Facts of Note

The word “vivisection,” or animal experimentation, does not begin to describe how hundreds of millions of animals are used in science and industry every year, let alone capture the physical pain, deprivation, and emotional distress experienced by animals who are cut up, poisoned, burned, irradiated, gassed, shocked, dismembered, or genetically designed to suffer. Nor does it reflect the tragedy of each individual life—however short and brutal—caged in an artificial environment that deprives them of experiencing life as nature intended. Primates, dogs, cats, rats, mice, rabbits, pigs, horses, birds, reptiles, amphibians, fish, and guinea pig are harmed, abused and sacrificed as a result of animal experimentation.

The practice of animal experimentation has been debated for centuries— seemingly pitting the pursuit of knowledge and human health against compassion for animals. Society has allowed animal experimentation because people have been convinced that it was a necessary evil, and that it was the only way to find cures for human diseases and to make drugs, cosmetics, and other products safe. Secrecy and security have ensured that people are unaware of what happens behind the laboratory doors or wrongly trust that the laws intended to prohibit cruelty to animals include protection for animals used in research.

Society looks to science to inspire, to inform, to heal, and to help solve the world’s problems. Science is about discovery and exploration. Science replaces ignorance and superstition with knowledge. But scientific investigation that exploits innocent animals as objects to use and abuse, causing pain, suffering, and death, is not progress or reflective of a socially just society.

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Research by Cruelty Free International suggests that at least 115 million animals are used in experiments worldwide each year. The most prolific animal testing countries in the world, in ranked order, include the United States, Japan, China, Australia, France, Canada, the United Kingdom, Germany, and Brazil. Animal experiments are not in decline and are on the increase in many parts of the world.

The vast majority of animals raised for food in the United States and in other industrialized countries are produced in large industrial operations more commonly referred to as factory farms. Factory farming is an unsustainable method of raising food animals that concentrates large numbers of animals into confined spaces.

According to the U.S. Department of Agriculture, more than nine billion farm animals are slaughtered in the United States annually. The organization Compassion in World Farming estimates that 99 percent of animals raised for food are subject to factory farming conditions. Approximately seventy billion farm animals are reared for food in the world each year.

As the number of companies that farmers sell livestock, eggs, or milk to has decreased due to mergers and increasing consolidation of the food industry, the number of dairy, poultry, pork, and beef producers in the United States has also declined sharply over the last thirty years. The meat-packing, milk, and egg- processing industries are controlled by just a handful of large corporations, and the remaining farms raising food animals have grown bigger.

The vast quantities of manure from factory farms often make their way into the local environment, where they pollute air and water. Pollution from factory farms runs off into streams that feed into major waterways, contributing to algal blooms and dead zones that impact water supplies and destroy aquatic ecosystems, recreation, and livelihoods.

Factory farms are unhealthy and stressful work environments. Workers are subjected to increased exposure to air pollutants produced at factory farms,

JUST CATEGORY: STEWARDSHIP 95 ANIMAL WELFARE CONT.

including particulate matter carrying mold, animal dander, and pathogens. Exposure to air pollutants can lead to respiratory illness and other chronic health concerns. Factory farms are also astonishingly unsafe workplaces. In 2016, six out of every one hundred workers in the animal foods production industry reported a work-related injury or illness.

Factory farms contribute to the rise of antibiotic-resistant bacteria. Factory farms feed routine, low doses of antibiotics to animals to prevent disease in unsanitary, crowded living conditions. It is estimated that 80 percent of the antibiotics used in the United States are used in factory farming settings. Overuse of antibiotics creates conditions for bacteria to develop resistance to them, and when these antibiotic-resistant bacteria spread to humans in our food supply, via animal to human transfer on farms, or through contaminated waste, they can cause serious or even deadly antibiotic-resistant infections in humans.

IV. Resources

Leaping Bunny Program Choose Cruelty Free Happy Cow Global Reference For Plant Based Food Service Outlets Humane Farm Animal Care (HFAC) Certified Humane Program

V. Reference Articles

Faunalytics

VI. Organizations of Repute

Animal Legal Defense Fund Compassion in World Farming The Humane League Animal Equality Mercy For Animals World Animal Protection National Anti-Vivisection Society Cruelty Free International

JUST CATEGORY: STEWARDSHIP 96 CHARITABLE GIVING

The JUST Label calls for organizations to have a corporate commitment to and be actively involved in charitable giving of finances to worthy causes within the communities where they are located or elsewhere.

I. Indicator Metric

Charitable organizations (501c3), charitable foundations, and government entities can apply for Level Four automatically.

LEVEL ONE 1. Organization has a written policy on charitable giving.

LEVEL TWO 1. Organization has a written policy on charitable giving. 2. Organization donates 0.25 percent of gross sales or 1 percent of net profits. Product Line-level members of 1% For The Planet can apply for this recognition level. Twenty-five percent of the donation can be in the form of in-kind product or service donations.

LEVEL THREE 1. Organization has a written policy on charitable giving. 2. Organization donates 0.5 percent of gross sales or 2 percent of net profits. Brand Line-level members of 1% For The Planet can apply for this recognition level. Twenty-five percent of the donation can be in the form of in-kind product or service donations.

LEVEL FOUR 1. Organization has a written policy on charitable giving. 2. Organization donates 1 percent of gross sales or 3 percent of net profits. Whole Company-level members of 1% For The Planet can apply for this recognition level. Twenty-five percent of the donation can be in the form of in-kind product or service donations.

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II. Rationale for Metric

Charitable giving is an opportunity for people and organizations with resources to share those resources with people in need. Giving to charities helps to make communities better places to live, and giving helps to raise the standard of living for those individuals and groups in need.

Charitable giving demonstrates an organization’s involvement in its community and enriches the lives of people who give as well as the lives of people who are the beneficiaries of the gifts. Charitable giving affords organizations opportunities to express their values by supporting causes important to them.

III. Background Facts of Note

In the United States, charitable giving was over $410 billion in 2017, up 5.2 percent from 2016. According to Giving USA, individuals gave 70 percent of the 2018 total amount, while corporate giving accounted for just 5 percent of the total giving in 2018.

Charitable giving by Canadians as reported by Statistics Canada (November 11, 2015) shows that the donor rate of Canadian adults (aged 15 and over) is 84 percent, and Canadians annually donate about $10.6 billion CAD, with an average donation of $446. Canadian corporations, on average, donate about 1.0 percent of their pretax profits to charitable causes.

IV. Resources

Giving In Numbers: cecp.co/home/resources/giving-in-numbers/

V. Organizations of Repute

National Committee for Responsive Philanthropy (NCRP) The Giving Back Fund (a non-profit that tracks philanthropy worldwide) CharityWatch (formerly, American Institute of Philanthropy [AIP]) Charity Navigator

JUST CATEGORY: STEWARDSHIP 98 POSITIVE PRODUCTS + SERVICES

The JUST Program calls for organizations to commit to providing products and services that contribute positively to their communities and society. It is up to the organization to determine what a positive impact looks like to them, but the JUST Program encourages organizations to think holistically and consider both the social and environmental impacts of their products and services.

I. Indicator Metric

The JUST Label defines positive products and services as those that contribute to the betterment of society and the environment. These positive products and services, either directly for the user, or indirectly to others beyond the immediate user, contribute to beneficial outcomes. A commitment to positive products and services includes the complete life cycle of a product or service, from concept to design, manufacture, sale, use, reuse and disposal.

LEVEL ONE 1. Organization has a written policy that addresses its commitment to and involvement with products and services that have positive societal and environmental impacts.

LEVEL TWO 1. Organization has a written policy that addresses its commitment to and involvement with products and services that have positive societal and environmental impacts. 2. Organization offers some products and services that have positive social and environmental benefits.

LEVEL THREE 1. Organization has a written policy that addresses its commitment to and involvement with products and services that have positive societal and environmental impacts. 2. Organization has a comprehensive portfolio of products and services that have positive social and environmental benefits. Positive products and services make up at least 50 percent of the organization’s total products and services by revenue. Certified B Corps or Benefit Corporations can apply at this level.

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LEVEL FOUR 1. Organization has a written policy that addresses its commitment to and involvement with products and services that have positive societal and environmental impacts. 2. Organization is focused exclusively on products and services, certified by a third party (if available), that have social and environmental benefits. Certified B Corp Best For The World Honorees can apply at this level.

II. Rationale for Metric

Products and services should positively address societal concerns such as: renewable energy adoption; climate change mitigation; potable water access; public transportation; recycling and waste management; social and economic inequities; discrimination and racial justice; poverty reduction; affordable high- performance housing development; production of natural and organic foods; holistic physical and emotional health care; educational services and lifelong learning; animal protection and welfare; advancement of the arts and sciences; and conservation and restoration of the natural environment.

Economies often incentivize businesses to sacrifice fair labor practices and environmental sustainability for profits. In contrast, the JUST Label seeks to identify and reward those organizations that remain steadfast in their values of creating a better world and who provide products and services that are socially positive and beneficial for communities, society, the environment, people, animals, and the planet.

III. Background Facts of Note

The promotion of positive products and services as a corporate responsibility is gaining significant momentum. Constituent materials in many products are harmful to the health of humans, animals, and the natural environment in both the short and long terms. To increase awareness and understanding of health and toxicity concerns for products and for certain materials, two organizations, The Healthy Building Network and the International Living Future Institute

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(ILFI), have identified a number of materials, chemicals, and products that are detrimental to health. The Healthy Building Network developed the Pharos Project to provide a comparison framework for evaluating and selecting materials for the building materials market. ILFI, through the Living Building Challenge, has created a Red List of prohibited materials and chemicals that it says should be phased out of production and cannot be used for buildings seeking Living Building recognition.

Fairtrade International (FLO) and its member affiliates, Fairtrade USA and Fairtrade Canada, are non-profit organizations whose purpose is to change the terms of trade for the products consumers purchase. They want “to ensure the farmers and artisans behind those products get a better deal” and for consumers to have information on these products so that they can make informed and values-oriented purchases. The FLO has a Fair Trade certification system for both producers and sellers. According to Fairtrade International, “producers have to meet a variety of criteria that focus on a range of areas including labour standards, sustainable farming, governance, and democratic participation.” Similarly, FLO stipulates that businesses that purchase products from Fairtrade-certified producer organizations must abide by their standards that focus on “the terms of trade.”

IV. Organizations of Repute

The Healthy Building Network Fairtrade International (FLO) Fairtrade USA Fairtrade Canada Industry Canada—Government of Canada Green America B-Labs International Living Future Institute

JUST CATEGORY: STEWARDSHIP 101 PURCHASING/ SUPPLY CHAIN

102 EQUITABLE PURCHASING

The JUST Label calls for organizations to intentionally procure products and services that have a positive impact on people and the environment. Organizations have an opportunity to affect positive change with the purchases they make to support business operations.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy on equitable purchasing.

LEVEL TWO 1. Organization has a written policy on equitable purchasing. 2. Organization has, in the prior quarter, purchased locally a minimum of 10 percent of its goods and services, as determined by total dollars spent, from independent, locally owned and operated businesses.

LEVEL THREE 1. Organization has a written policy on equitable purchasing. 2. Organization has, in the prior quarter, purchased locally a minimum of 20 percent of its goods and services, as determined by total dollars spent, from independent, locally owned and operated businesses. 3. At least 5 percent of all goods and services purchased must be from certified Minority and Women-Owned Businesses (MWOBEs), Service- Disabled Veteran-Owned Businesses (SDVOBs), certified B Corps, JUST Organizations or worker cooperatives.

LEVEL FOUR 1. Organization has a written policy on equitable purchasing. 2. Organization has, in the prior quarter, purchased locally a minimum of 30 percent of its goods and services, as determined by total dollars spent, from independent, locally owned and operated businesses. 3. At least 10 percent of all goods and services purchased must be from certified Minority and Women-Owned Businesses (MWOBEs), Service- Disabled Veteran-Owned Businesses (SDVOBs), certified B Corps, JUST Organizations or worker cooperatives.

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For the purposes of this indicator, purchases should be sourced from suppliers and vendors that are situated within a 500 kilometer radius from an organization’s place of operation.

II. Rationale for Metric

Organizations have significant opportunity to make a difference in their communities by proactively procuring products and services from small, local, independent businesses.

Locally owned, independent businesses often have trouble competing with large corporations, internet-based distributors, chains, and big box retailers. Supporting local businesses is an investment in the local community. When organizations purchase locally, they can reduce the environmental footprint related to shipping.

Organizations can help redistribute wealth and invest in the community by supporting independent, locally owned and operated businesses, certified MWBEs, SDVOBs, certified B Corps, cooperatives, and other JUST Organizations.

III. Background Facts of Note

When an organization or business has local ownership and local control, there is much more likelihood that the owners will consider the needs of, and the benefits to, the local people and the local community in their business decision making because the owners are a part of that community.

Local sourcing involves the support of the local economy through the acquisition and use of local materials, supplies, and services, locally manufactured products, and locally grown food rather than those imported from far distances. With local or regional sourcing, supply chains are usually shorter and are more predictable and certain in regard to product delivery times. Local or regional sourcing is not just about geographic distance—it has to

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do with scale and ownership and how these elements impact positively on local community business, economic, and job-creation opportunities.

Further, when organizations proactively seek to purchase from local small businesses owned by women, veterans, and minorities, it often provides a significant boost to job creation and wealth in traditionally underserved communities.

IV. Resources

Equitable Development ToolKit: Local Food Procurement, www.policylink.org/sites/default/files/edtk_local-food-procurement.pdf

National Minority and Women-Owned Business Directory published by Diversity Information Resources

V. Organizations of Repute

The Business Alliance for Local Living Economies (BALLE) Certified Employee-Owned Sustainable Purchasing Leadership Council National Minority Supplier Diversity Council

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The JUST Label calls for organizations to develop policies, programs, and practices that improve social performance and social responsibility across the supply chain or through the selection of subcontractors.

I. Indicator Metric

LEVEL ONE 1. Organization has a written policy on socially and environmentally responsible supply chain management.

LEVEL TWO 1. Organization has a written policy on socially and environmentally responsible supply chain management. 2. Organization has documented processes used, such as due diligence, to identify and assess significant actual and potential negative social impacts in the supply chain or with the selection of subcontractors.

LEVEL THREE 1. Organization has a written policy on socially and environmentally responsible supply chain management. 2. Organization has documented actions taken to address social impacts and may include changing its procurement practices and selecting suppliers/ subcontractors who have demonstrated a commitment to diversity and inclusion practices. Other actions may include working with the supplier to adjust performance expectations, build capacity and training protocols, and change processes as necessary.

LEVEL FOUR 1. Organization has a written policy on socially and environmentally responsible supply chain management. 2. Organization is measuring and reporting on the social sustainability of their supply chain using Social Life Cycle Assessment. Organization has implemented strategies, programs, and processes to generate Social

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Handprints. Organization has documented and reported Net Positive Impact on one or more key indicators. 3. Organization has implemented a robust contracting process with a clear focus on improving social equity outcomes through the use of certified minority- or women-owned contractors and subcontractors. Utilization goals have been established and reviewed on an annual basis.

II. Rationale for Metric

Every company risks reputational, economic, and legal consequences if its suppliers or contractors engage in inhumane or illegal employment practices, violations of human rights, corruption, or other harmful activities. Customers are becoming more aware of and sensitive to how workers are treated throughout the supply chain. Government policy makers are under pressure to implement more effective regulations governing social conduct in supply chains. NGOs are ramping up pressure on businesses to enforce more ethical and socially responsible supply chain performance.

Tragedies such as the fire at the Tazreen Fashions factory, which killed 117 workers, and the Rana Plaza factory building collapse, which killed more than 1,000 workers, have forced leading retailers and brands to take a deeper look at the risks in their supply chains and the overall effectiveness of their supply chain management and audit practices. Corporations are adopting new strategies to close the gaps in their social compliance processes and to ensure ethical sourcing practices and safer supply chains.

Social Life Cycle Assessment (S-LCA) is a social impact (and potential impact) assessment technique that aims to assess the social and socio-economic aspects of products and their potential positive and negative impacts along their life cycle encompassing extraction and processing of raw materials, manufacturing, distribution, use, re-use, maintenance, recycling, and final disposal.

While Corporate Social Responsibility (CSR) addresses the social impact at the enterprise level using management information, and SA8000 certification focuses on the factory level, S-LCA uses information gathered at company,

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factory, and process levels, and it does so for the whole product life cycle from cradle to grave. It is important to note that social impact is not directly linked to the production chain process of a product. It is not determined by physical flows, unlike the E-LCA, but from the way the life cycle of the product affects stakeholders. Therefore, the identification of all stakeholders involved with the product/service life cycle is a fundamental issue when performing a S-LCA.

III. Background Facts of Note

Along with the Corporate Social Responsibility evolution over the last two decades, there has been growing demand for direction and guidance on incorporating social issues into sustainability strategies and impact assessments. Organizations have begun to implement principles and systems recommended by international initiatives such as the United Nations Global Compact and Social Accountability International.

Aspects of measurement have also been driven by new indicators formulated under the Global Reporting Initiative, which UNEP co-launched in the late 1990s. Guidelines for Life Cycle Assessment: A “Code of Practice,” published by the Society of Environmental Toxicology and Chemistry (SETAC) in 1993, laid the foundation for further development to the practice of environmental Life Cycle Assessments (E-LCA), enabling us to reach the current state of E-LCA practice.

In 2006, life cycle experts acknowledged the necessity to offer a complementary tool to assess a product’s social life cycle aspects. The UNEP Guidelines for Social Life Cycle Assessment of Products is the first international voluntary guidance document to assess social impacts along the life cycle of products in a global context. It provides an analysis and description of the current practice of social Life Cycle Assessment (S-LCA) as well as a methodology and suggests social impact categories linked to key stakeholder groups such as workers, consumers, and local communities.

The UNEP Guidelines for Social Life Cycle Assessment of Products provides a road map, a framework, and a spotlight for stakeholders engaging in the assessment of social and socio-economic impacts of a product’s life cycle. First,

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the S-LCA Guidelines provides a road map, which describes the context, the key concepts, the broader field in which tools and techniques are developed, and their scope of application. The road map is important because it relates to the history, initiatives, and ideas that are both molding the S-LCA technique and essential to its broad application.

Shared concerns about the state and sustainability of environmental, economic, and social dimensions of today’s and tomorrow’s world are expressed through the concept of Sustainable Development. The journey toward true sustainability finds sustainable production and consumption at its very heart. It also relates to the social responsibility of organizations and the objective to improve social and environmental performances along with sustained economic profitability—all with the perspective and vision to contribute to greater human well-being.

Because it is systemic, rigorous, and holistic, Life Cycle Assessment is the preferred tool when it comes to accessing information about potential and real impacts of a product’s life cycle. Life cycles of products involve material, energy, and economic flows. They also consist of stories about production and consumption impacts on the workers, the local communities, the consumers, the society, and all supply chain actors.

Second, the S-LCA Guidelines provides a framework. It presents key elements to consider and provide guidance for the goal and scope, inventory, impact assessment, and interpretation phases of a social life cycle assessment. The S-LCA Guidelines provide the necessary basis for the development of databases and the design of software tools that will ease the practice of S-LCA.

The framework detailed in the S-LCA Guidelines is in line with the ISO 14040 and 14044 standards for Life Cycle Assessment. Adaptations for the consideration of social and socioeconomic issues are described in the framework. It provides a two-fold classification of social impacts: by stakeholder categories and impact categories. S-LCA includes a set of subcategories, which are social and socioeconomic issues of concern.

Third, the S-LCA Guidelines highlights areas where further research is needed. This spotlight is important to enable researchers and S-LCA practitioners to identify where additional resources and efforts should be invested.

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IV. Resources

UNEP Guidelines for Social Life Cycle Assessment of Products

Product Social Impact Life Cycle Assessment (PSILCA) Database

Social Hotspots Database

SA 8000 - Social Accountability Certification

V. Reference Articles

Supply Chain Management: An International Journal

The International Journal of Life Cycle Assessment

Contracting For Equity haasinstitute.berkeley.edu/sites/default/files/gare-contract_for_equity_0.pdf

VI. Organizations of Repute

The Life Cycle Initiative Hosted by UN Environment Social Accountability International

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