The report, titled, “The Case for Living Wages: How paying living wages improves business performance and tackles poverty” outlines how living wages are attracting growing support among business, civil society, and governments as not only a prerequisite for tackling mounting inequalities, but also as a means of supporting enhanced business resilience, stability, and growth.
Drawing from existing literature as well as over 30 interviews with leading businesses, investors, academics, and organizations who support fairer wages, the report presents a compelling case that paying a living wage can deliver:
- More motivated and productive workforce, with lower staff turnover
- Improved revenues and profits
- Increased value chain resilience and performance
- Reputational benefits
- Improved investor prospects
- Readiness for future regulatory reporting.
It also underlines that businesses looking to put living wages at the heart of their commercial and sustainability strategies do not need to start from scratch as there is a wide variety of proven tools and experienced organizations available to help kick start the journey to paying a living wage.
The report’s authors issue a clear call for a mindset shift – emphasizing the need for businesses to start thinking about the payment of living wages as an investment in success rather than just a business cost.
Supporting living wages and incomes throughout global value chains is a critical focus area of the Business Commission to Tackle Inequality and we welcome this new report as an important evolution in the conversation around the clear and compelling business case for tackling inequality and generating shared prosperity for all.