18 September | 09:00-10:15 ICT

Turning Compliance into Competitive Advantage: Why Business and Human Rights is Important for SMEs

Organized by:

International Labour Organization

Background

Small and medium-sized enterprises (SMEs) are the backbone of economies, yet they face unprecedented challenges such as economic headwinds, regulatory uncertainty, intrusive surveillance technologies, and climate pressures. Increasingly, SMEs are required to demonstrate commitment to Business and Human Rights (BHR) and ESG reporting. While larger companies may have resources to comply, SMEs often lack capacity, awareness, or incentives, and are frequently neglected in debates on sustainability. This session explores how SMEs can transform compliance with BHR and ESG requirements into an opportunity for competitive advantage, with a focus on decent work and labour rights

Key Objectives

Discuss what ESG, BHR, and Responsible Business Conduct (RBC) mean in principle and practice for SMEs, with a focus on decent work and labour rights.
Examine the challenges SMEs face in meeting compliance and reporting requirements.
Share experiences and proven strategies from SMEs that have turned compliance into opportunities for competitiveness

Guiding Questions

What are the key concepts of ESG, BHR, and RBC, and how do they specifically apply to SMEs?
What barriers prevent SMEs from effectively complying with reporting and due diligence requirements?
How can SMEs leverage responsible business practices to gain competitive advantage and attract investment?

Format

Tripartite-plus session with presentations and moderated discussion. Includes ILO specialists, employer and worker representatives, and private sector SMEs sharing practical experiences. The session will be chaired by Josée Laporte, RBC Specialist and Focal Point for Africa and Asia, Multinational Enterprises and Responsible Business Conduct Unit (MULTI/RBC). Representatives of government, workers’ and employers’ organizations will be nominated by the ILO Governing Body to participate alongside representatives from multinational companies.

Session Partners