When the United Nations adopted the 2030 Agenda for Sustainable Development, it made a commitment to creating a more prosperous, equitable, and sustainable future. At the heart of this agenda are 17 Sustainable Development Goals (SDGs), including two that are directly relevant to this case study:
- SDG 8: Decent Work and Economic Growth – Advocating for sustainable and inclusive economic progress to improve living standards through quality job creation.
- SDG 10: Reduced Inequalities – Focusing on minimizing income disparities and strengthening social protection within and across countries.
As a leading multinational in logistics and transportation, our client recognized the pivotal role they could play in advancing these SDGs, particularly through the lens of living wages.
The Challenge: Defining a Fair Wage Policy
Determined to embed social responsibility throughout their operations, our client approached Ksapa to help define and implement a comprehensive living wage policy. This initiative aimed to:
- Identify priority risk areas where poverty and wage inadequacy were prevalent
- Establish a methodology for calculating living wages at specific locations
- Raise awareness and drive action within HR departments
- Extend the policy to cover both direct employees and subcontractors
Our Multifaceted Approach
Ksapa delivered a three-stage process to address this challenge:
- Scoping & Data Collection
- Gathered public data on living wage benchmarks and government policies
- Focused initially on female employees and subcontractor workforce
- Living Wage Calculation
- Developed a proprietary tool to determine appropriate living wage levels
- Cross-referenced external data with the client’s internal compensation information
- Activation & Implementation
- Engaged HR teams to build awareness of living wage concepts
- Prioritized action plans based on risk levels, wage bill, and employee benefits
Delivering Tangible Impact
The project yielded several key outcomes:
- Established a robust, data-driven living wage framework
- Catalyzed salary adjustments to ensure decent compensation
- Expanded the policy scope to include subcontracted workers
- Enabled annual monitoring of wages against cost of living fluctuations
- Strengthened the client’s brand reputation and supply chain resilience
Sustainable Progress Towards the SDGs
By addressing living wages, our client took a significant step towards aligning their business practices with the UN’s 2030 Agenda. This initiative:
- Directly contributed to SDG 8 (Decent Work) and SDG 10 (Reduced Inequalities)
- Positioned the client as an industry leader in social responsibility
- Laid the foundation for continuous improvement and expanding the scope
- Demonstrated how corporates can leverage their scale to drive systemic change
Looking ahead, the client plans to regularly update their living wage data, extend the program to additional locations, and explore ways to collaborate with peers, suppliers, and policymakers. Ksapa remains a trusted partner in this ongoing journey towards a more equitable and sustainable future.
Interested in embedding decent wages across your global operations?
Contact Ksapa to:
- Learn more about our living wage assessment methodology
- Discuss tailoring a program to your organization’s unique needs
- Explore collaborative opportunities to drive industry-wide change
