Below is an excerpt from ISS ESG’s recently released “Investment Implications of Pandemic Risk on Workforce Restructuring.” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
In its third in a series of papers mapping the impact of the COVID-19 pandemic on environmental, social, and governance considerations, ISS ESG explores corporate preparedness for responsibly managed layoffs in the wake of the economic impact of the coronavirus.
As governments implement measures to contain the global spread of the coronavirus pandemic (COVID-19), many sectors of the economy are facing an abrupt and unprecedented reduction in commercial activity. Thousands of job losses are announced each day as companies implement emergency measures to reduce costs and guarantee solvency. The International Labour Organization (ILO) estimates that up to 24.7 million workers could be out of work. The economic crisis in the wake of the pandemic is testing companies’ abilities to ensure the respect of international labour standards and to meet expectations of responsible business conduct when implementing large-scale collective layoffs.
By: Krzysztof Kowalczyk, Thiago Toste, Ronja Wöstheinrich; ISS ESG