Company-based grievance mechanisms
Contents
If you are unsure which company is involved in the harm you or people you represent have experienced, read more here about how companies and supply chains can be connected to harms.
1. What is a company-based grievance mechanism?
A company-based grievance mechanism is a way for people to raise concerns directly with a company when they believe that the company's activities, products, services or business relationships have caused, contributed to, or are linked to human rights or environmental harm. A complaint can concern harm caused directly by the company, but it can also concern harm it is involved in through its suppliers, contractors, subsidiaries or other business relationships.
The company grievance mechanism is normally run by the company itself.
Why companies establish a grievance mechanism
The International standards, notably the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, emphasise the importance of effective grievance mechanisms as part of responsible business conduct and due diligence.
In practice, some mechanisms have more of a local scope, if, for instance, operated by a factory or other production site for local workers under local laws, contractual arrangements with sourcing companies, and/or as part of an auditing or certification scheme.
Mechanisms operated by larger companies often, in principle, extend to workers and communities across the company’s global supply chains. But real-life accessibility is a challenge because supply chains are opaque and workers at supplier sites may often not be aware of the global brands they are supplying to. While many recent or emerging supply chain laws, such as the German Supply Chain Due Diligence Act (LkSG), require companies covered by them to establish a complaints procedure, they fall short of explicitly addressing the underlying issue of supply chain transparency.
Criteria for a non-state-based grievance mechanism
According to the UNGPs, a non-judicial non-state-based grievance mechanism should fullfill eight criteria:
Legitimate
Must earn trust from stakeholder groups and be accountable for fair conduct; enhanced by functional independence, often involving independent third parties or high levels of stakeholder participation in design/oversight.
Accessible
Must be known to all stakeholder groups and offer multiple, appropriate entry points (e.g., face-to-face, hotline, email, in person); must provide adequate assistance for those facing barriers (e.g., language, cost, digital literacy, fear of reprisal).
Predictable
Provide a clear procedure with indicative time frames for each stage, clarifying available outcomes and monitoring means.
Equitable
Ensure aggrieved parties have reasonable access to information, advice, and expertise to engage on fair, informed, and respectful terms; must actively seek to address power imbalances.
Transparent
Keep parties informed about progress and provide sufficient information about the mechanism's performance (e.g., through public registers, annual reports) to build confidence; confidentiality must be maintained where requested by rightsholders
Rights-compatible
Ensure that outcomes and remedies accord with internationally recognized human rights standards.
Source of continuous learning
Systematically draw on relevant data and experiences to identify lessons for improving the mechanism and preventing future harms (e.g. by identifying and tackling systemic issues).
Based on engagement/dialogue
Consulting stakeholder groups and their representatives (e.g., trade unions, communities) on the design and performance, focusing on dialogue as the means to resolve grievances.
Mechanisms by business associations or MSIs
Some complaints mechanisms are operated by business associations, industry initiatives or other organisations that companies participate in.
For example, a company may participate in a certification or multi-stakeholder initiative that has its own complaints procedure. If your concern relates to a company, product, supplier or project covered by that initiative, you may be able to submit a complaint through this mechanism, especially when the company does not have a mechanism of its own.
To find out more about this, go to this page.
Banks and investors
If a bank, investor or other financial institution has financed or supported the company or project connected to the harm, you may also be able to raise a complaint with that institution.
For example, a community affected by a large infrastructure project may be able to complain not only to the company carrying out or involved in the project, but also to a bank that financed it, if the bank has a relevant environmental and social grievance mechanism. Whether this option is available depends on the institution involved. Some financial institutions have dedicated complaint mechanisms for people affected by projects or activities that they have financed.
To find out more about complaints to banks and investors, see here.
2. When can I use a company grievance mechanism?
A company complaint can be useful when you believe that a company is causing human rights or environmental harm, contributing to harm, including in conjunction with other entities in its supply and value chain, or that it is in other ways linked to harm through its business relationships. This means that you can also file a complaint when the company is connected to risks and harm through its suppliers, contractors, subsidiaries or other business relationships.
In particular, you can consider using a company grievance mechanism if
- you want to alert the company of ongoing or imminent rights violations because they haven’t reacted to these violations yet or you believe the company is not aware of the harm;
- you want the company to stop harmful practices;
- you want the company to take steps to prevent further harm after something has occurred already;
- you want the company to provide remedy, compensation, restoration or other support for harm;
- you want to give the company an opportunity to address the issue directly;
- you want to create a record of your concern before taking further action.
A company complaint can sometimes be quicker or more practical than filing a formal complaint with a public agency or independent body, or going to a court. However, as with other procedures, there is no guarantee that the issue will be resolved.
3. What can I complain about?
Company grievance mechanisms can cover many different types of human rights and environmental harm a company may be involved in through its activities, products, services, operations or business relationships. In general, a company may allow you to raise any concern about harms or potential violations, even if these do not relate to one specific law.
Harms to workers' rights
These can include unsafe or unhealthy working conditions, workplace accidents, unpaid wages or withheld benefits, excessive working hours, forced labour, child labour, discrimination, harassment, violence or abuse at work, including gender-based. Violations can also amount to restrictions on workers' freedom of association or collective bargaining, interference with trade union activities, or retaliation against workers or whistleblowers who raise concerns.
These rights at stake are reflected in the fundamental principles and rights at work recognised by the International Labour Organization (ILO), including freedom of association and collective bargaining, the elimination of forced and child labour, non-discrimination, and the right to a safe and healthy working environment.
Other negative human rights impacts
These may include violations of land or property rights, forced displacement, impacts on Indigenous Peoples and local communities, damage to livelihoods, or restrictions on access to land, water or other natural resources, or of the right to Free, Prior and Informed Consent (FPIC). Other examples include threats or intimidation against community members or Human Rights Defenders, violence by security providers, and health and safety risks affecting workers or communities.
Environmental harm
This can include pollution of air, water or soil, contamination of drinking water, destruction of ecosystems or biodiversity, deforestation, harmful emissions, including climate-related, environmental damage affecting people's health or livelihoods, hazardous waste, or unsustainable use of natural resources. Environmental harm can also lead to human rights impacts. For example, pollution of a river may not only be an environmental concern but may also affect people's right to health, access to water, food or livelihoods.
You do not need to identify the exact convention or legal provision that has been violated before making a complaint. If you are unsure which right or standard applies, focus on explaining what happened, who was affected, where and when it happened, how the company is connected to the harm, and what you want the company to do about it. The company or the relevant grievance mechanism can then assess the concern against the applicable standards and requirements. It might also be helpful to reach out for legal advice.
4. What information should I prepare?
You do not need to have a lot of detailed information or evidence before submitting a complaint with a company. However, the more specific information you can provide, the easier it may be for the company to understand and investigate your concern.
Where possible, prepare a clear description of what happened, where it happened, when it happened, who was affected, and how the company is connected to the harm (specifying, for instance, whether the connection is through any subsidiaries or direct/indirect suppliers and sub-suppliers of the company). Prepare any evidence you have, including names of witnesses or other affected people, but only if it is safe to provide them. If you have already engaged with the company, add information about any previous attempts to raise the issue.
Lastly, you should also include what you would like the company to do, whether this is compensation, an apology or preventing further harm, or a combination of action.
Think about your and others’ safety first
Before sharing names, documents or other sensitive information, consider whether doing so could expose you or other people to retaliation, intimidation or other risks. You should carefully assess this no matter if you file your complaint with your local employer or with another company that you believe is connected to the situation e.g. as a buyer.
Some mechanisms allow complaints to be made confidentially or anonymously. However, anonymity can sometimes make it more difficult for the company to investigate the complaint or communicate with you.
Before submitting a complaint, check the company's rules to understand whether there are any specific requirements and whether using the mechanism could affect another process.
Do not agree to waive legal rights or accept a settlement without understanding its consequences if the proposed remedy involves a release of legal claims, compensation agreement or other legally binding document.
If you are concerned about your safety or unsure about any agreement, it is helpful to seek advice from a lawyer, CSO, trade union or other support organisation before submitting the complaint.
5. How does a company complaint work?
Every company mechanism is different, but the process usually works like this, or at least it should, according to the international standards:
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Find the company's complaint mechanism
Check the company's website for its online complaints procedure or perform a search online, especially if you are considering filing your complaint with a larger company operating and sourcing globally. Both local and global complaints mechanisms may also be announced at the production site via posters and other signs.
If you are using a company’s online complaints channel, you will find information on the web portal on who can submit a complaint, how to submit the complaint, whether anonymous complaints are accepted, what languages are available and whether there are deadlines or other requirements.
Submit your complaint
You may be able to submit the complaint through an online form, by email, by post, by telephone or hotline, through an app, through a worker representative, trade union or in person.
Make sure to think about your and others’ safety first (see above) and keep a copy of your complaint and proof that you submitted it.
The company acknowledges the complaint
The company will usually confirm that it has received your complaint (if it is not compeletely anonymous) and provide information about what will happen next.
The company assesses the complaint
The company will then look at your complaint and see if they will act on it. Depending on the complaint and the company, they might ask you for additional information, try to speak with you and contact suppliers or contractors, if other business relationships were mentioned in the complaint. Some larger companies may commission third-party audits to find out more about specific complaints in their supply chain, while it may normally be more advisable for them to reach out to complainants directly, or to civil society and community organisations or unions speaking on their behalf.
The company responds
The company should then explain its findings to you and what action it intends to take.
Follow up
If the response does not address your concerns, you can ask the company to reconsider its response, or you can use any appeal or escalation procedure available under its mechanism.
6. How long does the process take?
There is no single timeframe for all company grievance mechanisms. Some complaints might be addressed very quickly. Others may take several months or longer. Generally, the company's mechanism should provide information on the expected timeframe and keep you informed if the process is delayed. If the company does not provide any information about the progress of your complaint, it might be helpful to follow up with them under the contact details they mention in their complaint mechanism.
7. What are the limitations and risks?
Company grievance mechanisms can be useful, but they also have considerable limitations:
- The company controls the process: as the mechanism is often operated by the company itself, it may not be fully independent.
- The company may reject or delay a complaint: a company may decide that a complaint does not fall within the scope of its mechanism or may take a long time to respond; sometimes they might not respond at all.
- The process may not be transparent: You may not receive all the information the company has collected, or know exactly how it reached its conclusions.
- Remedy provided may not be sufficient: the company's response may not fully address the harm experienced and remediation may not be satisfactory, or fully absent.
- There may be risks of retaliation: especially workers and communities may be exposed to job loss, threats or intimidation, discrimination or other forms of retaliation.
- Inaccessible mechanisms; mechanisms may only exist on paper, or workers and communities in global supply chains may simply not know what global brands are connected to risks and harms they are experiencing locally, given the current lack of supply chain transparency.
8. What if the company refuses to address the issue or does not react at all?
If the company does not respond, rejects the complaint without a proper explanation, delays the process, fails to investigate properly or does not provide an adequate remedy, you can consider other avenues. Click here for more information.