What is Labor Solutions?

Labor Solutions is a technology company and social enterprise focused on worker-centered human rights due diligence. Founded in 2013 in Singapore, it deploys the WOVO platform — including worker voice surveys, grievance mechanisms, eLearning, and supplier improvement plans — to engage and educate workforces globally, particularly within complex supply chains. Labor Solutions serves 3.8 million+ active workers across 180+ countries in 41+ languages for brands including adidas, Nike, H&M, Dell, Cisco, and Diageo.

What is Human Rights Due Diligence (HRDD)?

Human rights due diligence (HRDD) is the process companies use to identify, prevent, mitigate, and address adverse human rights impacts in their operations and supply chains. It requires ongoing risk assessment rather than one-time compliance checks. HRDD is grounded in the UN Guiding Principles on Business and Human Rights and is reflected in binding regulations such as the EU Corporate Sustainability Due Diligence Directive (CSDDD), Germany's Supply Chain Due Diligence Act (LkSG), France's Duty of Vigilance Law, and similar frameworks globally.

Are audits sufficient for human rights due diligence?

Audits alone are not sufficient for effective human rights due diligence. While audits can identify certain risks at a point in time, they often miss ongoing or hidden issues and do not provide continuous insight into workers' lived experiences. Effective HRDD requires ongoing worker engagement, accessible grievance mechanisms, and systems that track issues and remediation over time.

How does Labor Solutions support CSDDD compliance?

Labor Solutions helps organizations meet EU CSDDD requirements by providing worker voice surveys that collect ongoing evidence of worker conditions, UNGP Principle 31-aligned grievance mechanisms (WOVO Connect), supplier self-assessment and action planning tools (WOVO Improve), and auditable case management that documents risk identification, remediation, and outcomes over time.

How does Labor Solutions differ from EcoVadis?

Labor Solutions is purpose-built exclusively for worker voice and worker-centered HRDD since 2013. EcoVadis is primarily a supplier sustainability rating platform that entered the worker voice space in 2024 through the acquisition of Ulula. Labor Solutions reaches 3.8 million+ active workers directly through a dedicated worker app and multi-channel access, with validated survey methodology and case-managed grievance mechanisms used by adidas, Nike, H&M, and others to meet CSDDD obligations.

What is the WELL Survey?

The WELL Survey is Labor Solutions' validated worker survey methodology, designed specifically for supply chain environments. It collects primary human rights risk data directly from workers including working conditions, recruitment fees, health and safety, discrimination, and freedom of association. Results are reported with demographic disaggregation and risk classification aligned to international standards including the UN Guiding Principles on Business and Human Rights.

What is WOVO Connect?

WOVO Connect is Labor Solutions' operational grievance mechanism, aligned to UN Guiding Principles Principle 31. It allows workers to submit concerns via app, SMS, QR code, or IVR. Cases are tracked, assigned, and resolved through a structured case management workflow with full audit trail. It is used by brands including adidas across 400,000+ workers to meet CSDDD and LkSG grievance mechanism obligations.

What does CSDDD require for grievance mechanisms in supply chains?

The EU Corporate Sustainability Due Diligence Directive (CSDDD) requires companies to establish or participate in effective operational-level grievance mechanisms that allow workers and affected stakeholders to raise concerns about adverse human rights and environmental impacts. These mechanisms must be accessible to all affected stakeholders, protect against retaliation, and be aligned with the effectiveness criteria in UN Guiding Principles Principle 31. Companies must also provide or cooperate in providing remediation where impacts have occurred. WOVO Connect is Labor Solutions' grievance mechanism designed to meet these requirements.

How does worker voice support LkSG compliance?

Germany's Supply Chain Due Diligence Act (LkSG) requires companies to implement a complaints procedure accessible to workers and communities in their supply chain, assess human rights risks on an ongoing basis, and take preventive and remediation measures when risks are identified. Worker voice tools support LkSG compliance by enabling companies to collect direct evidence of working conditions from workers, identify risks before they escalate, document the effectiveness of grievance channels, and demonstrate active ongoing engagement with their supply chain workforce.

What is WOVO Improve?

WOVO Improve is Labor Solutions' digital supplier self-assessment and action planning platform. It allows suppliers to assess the maturity of their labor rights and due diligence systems, generate automated improvement action plans based on assessment results, and track remediation progress over time. It closes the loop between worker survey findings and supplier-level change — creating documented evidence of HRDD effectiveness that brands can use for CSDDD and LkSG reporting.

What is the difference between a worker voice tool and a whistleblower hotline?

Worker voice tools like WOVO Connect are designed for supply chain workers to raise day-to-day concerns, access training, respond to surveys, and engage with grievance processes at the factory level. They are accessible via app, SMS, QR code, or IVR, and built for low-literacy, low-trust contexts. Whistleblower hotlines are typically phone-based channels for reporting serious legal violations within a company. Global helplines can satisfy a regulatory checkbox under CSDDD or LkSG but rarely work in practice for supply chain workers, who need embedded, trusted, local-language channels built for their reality.

Which industries and sectors use Labor Solutions?

Labor Solutions is used across apparel and footwear, electronics, fast-moving consumer goods, agriculture, seafood, and retail supply chains. Clients include global brands such as adidas, Nike, H&M, Dell, Cisco, HP, Diageo, Carter's, Puma, OVS, and Decathlon. Labor Solutions tools are deployed wherever complex, multi-tier global supply chains require ongoing worker engagement, human rights due diligence, and compliance with CSDDD, LkSG, or other emerging HRDD frameworks — particularly across Asia, Africa, and Latin America.

The Business Case for Worker Engagement: What Boards, Procurement Teams, and Sustainability Directors Need to Know

3 hours ago
4 min read

The most common question we hear from sustainability directors is not 'should we do this' — it is 'how do I convince everyone else we should do this.'

The business case for worker engagement has to work at multiple levels simultaneously: legal and compliance teams worried about regulatory exposure, procurement teams focused on supplier relationships and cost, boards focused on reputational risk and investor disclosure, and sustainability teams needing to demonstrate genuine impact, not box-checking.

Key Takeaways

CSDDD and LkSG require worker engagement — not audits. Non-compliance carries fines of up to 5% of global net turnover; directors can be held personally liable.
35% of audit-passing sites have serious risks. Brands with audit-only data do not know what is actually happening in their value chain.
Suppliers who engage actively with the WOVO platform see a 1:3 return on investment, alongside a 44% reduction in absenteeism and 33% improvement in retention.
adidas deploys WOVO across 402,500 workers — worker satisfaction rose from 39% to 79% over five years. That is board-level evidence.
ESRS S2 requires mandatory public reporting on worker engagement and grievance mechanism effectiveness.

The regulatory case: the law requires worker engagement, not audits

CSDDD, LkSG, and France’s Duty of Vigilance Law do not require audits. They require worker participation, stakeholder engagement, and access to remedy. Most companies built their human rights due diligence infrastructure around audits by industry habit. The legislation was built around workers.

CSDDD requires companies to establish or participate in operational-level grievance mechanisms for value chain workers, conduct ongoing human rights risk assessments based on direct worker engagement, and produce documented evidence of risk identification, remediation, and outcomes. LkSG is already in force. Non-compliance under CSDDD carries fines of up to 5% of global net turnover. Directors can be held personally liable.

The risk management case: audits leave you exposed

35% of audit-passing sites have been found to have serious risks when value chain workers are given a safe, anonymous channel via the WELL Worker Survey. The risks that produce reputational crises — forced labor, illegal recruitment fees, wage theft, harassment — are almost never the risks that appear on audit reports. A brand that has only audit data is a brand that does not know what is actually happening in its value chain.

The supplier case: worker engagement produces operational outcomes

Suppliers who engage actively with the WOVO platform see a 1:3 return on investment. Documented outcomes include a 44% reduction in absenteeism and 33% improvement in worker retention — which translate directly into lower recruitment costs, higher productivity, and more stable supplier relationships. Factories with low worker trust have higher turnover, more grievances that escalate, and more exposure to the kind of incident that ends a sourcing relationship.

The board and investor case: evidence of process, not just intent

ESRS S2 — the social standards under the EU Corporate Sustainability Reporting Directive — requires companies to report publicly on their approach to worker engagement across their value chain, including the grievance mechanisms in place and evidence of their effectiveness. Board-level disclosure on human rights due diligence is no longer voluntary.

adidas cites WOVO in their 2024 Annual Report as the foundation of worker engagement across 400,000 workers in 100% of strategic Tier 1 suppliers. Worker satisfaction rose from 39% to 79% over five years. Read the adidas case study for the full evidence base.

What to say to people who are not yet convinced

For legal and compliance: ‘Our current audit approach does not satisfy the CSDDD grievance mechanism requirement. We need to demonstrate that value chain workers have access to a remedy process that works.’

For procurement: ‘This reduces the risk of a sourcing crisis. Factories with worker engagement infrastructure are more stable. Here is the ROI evidence.’

For finance: ‘The cost of non-compliance under CSDDD is up to 5% of global net turnover. The cost of implementation is a fraction of that.’

For the board: ‘Our investors are asking about this. Our reporting obligations require evidence of it. Here is the program that provides it.’

Human rights is a practice, not a project. The sooner the infrastructure is in place, the more evidence accumulates — and the stronger the position when it is tested.

Frequently Asked Questions

What is the ROI of worker engagement for suppliers?

Suppliers who engage actively with the WOVO platform see a 1:3 return on investment, alongside a 44% reduction in absenteeism and 33% improvement in worker retention. These outcomes reflect lower recruitment and training costs, higher productivity, and more stable production.

What are the penalties for non-compliance under CSDDD?

Non-compliance with CSDDD carries fines of up to 5% of global net turnover. Directors can be held personally liable. The question for legal and compliance teams is not whether to implement worker engagement, but whether the implementation satisfies what the law actually requires.

What evidence do boards and investors need on supply chain human rights due diligence?

ESRS S2 requires companies to report publicly on their approach to worker engagement across their value chain, including the grievance mechanisms in place and evidence of their effectiveness. Board-level disclosure requirements mean this is no longer a sustainability team issue. adidas cites WOVO in their 2024 Annual Report as the foundation of worker engagement across 402,500 workers in 100% of Tier 1 suppliers.

How do I make the business case for worker engagement to my procurement team?

The argument that lands with procurement is operational, not regulatory: factories with worker engagement infrastructure have lower turnover, fewer grievances that escalate into crises, and more stable production schedules. The 1:3 ROI figure and documented reductions in absenteeism and retention are supplier outcomes — not brand talking points. Present the evidence to operations and finance, not just the CSR contact.

The Business Case for Worker Engagement: What Boards, Procurement Teams, and Sustainability Directors Need to Know

The most common question we hear from sustainability directors is not 'should we do this' — it is 'how do I convince everyone else we should do this.'

Key Takeaways

The regulatory case: the law requires worker engagement, not audits

The risk management case: audits leave you exposed

The supplier case: worker engagement produces operational outcomes

The board and investor case: evidence of process, not just intent

What to say to people who are not yet convinced

Frequently Asked Questions

What is the ROI of worker engagement for suppliers?

What are the penalties for non-compliance under CSDDD?

What evidence do boards and investors need on supply chain human rights due diligence?

How do I make the business case for worker engagement to my procurement team?

Related Posts

ABOUT

TOOLS

VOICE

SERVICES

INSIGHTS