Investors should be aware of the following standards for effective certifications:

International Labour Organization’s (ILO) Core Conventions
Eight fundamental international labor standards established by the International Labour Organization (ILO). These conventions cover essential principles and rights at work, aimed at promoting decent working conditions and protecting workers' rights worldwide.

International Organization for Standardization (ISO)
A non-profit organization that convenes global experts to standardize approaches on various topics from product development to project management.

ISEAL
ISEAL is a global membership organization that brings together sustainability standards and certification bodies that commit to the ISEAL Codes of Good Practice to drive measurable change in environmental sustainability, social justice, and economic development.

OECD Guidelines for Multinational Enterprises (MNE) on Responsible Business Conduct (OECD Guidelines)
A set of recommendations from The Organisation for Economic Co-operation and Development (OECD) for multinational enterprises operating in or from adhering countries aimed at promoting responsible business conduct in a global context, consistent with applicable laws and internationally recognized standards. They cover a wide range of areas to ensure that MNEs contribute positively to economic, environmental, and social progress.

United Nations Guiding Principles on Business and Human Rights (UNGPs)
A global standard for preventing and addressing the risk of adverse impacts on human rights linked to business activity. Endorsed by the UN Human Rights Council in 2011, these principles are grounded in international human rights law and provide a framework for states and businesses to uphold human rights in a business context.

Universal Declaration of Human Rights (UDHR)
A foundational international document, adopted by the United Nations General Assembly in 1948, that enshrines the fundamental human rights and freedoms to which all individuals are entitled. UDHR represents a milestone in the history of human rights, setting out, for the first time, fundamental human rights to be universally protected.The first document to ensure the universal protection of fundamental human rights, which paved the way for subsequent human rights treaties which exist today at a global and regional level.

Below is a select reading list on social certifications:

Angelini, Antonella and Shauna Curphey. “The Overlooked Advantages of the Independent Monitoring and Complaint Investigation System in the Worker-Driven Social Responsibility Model in US Agriculture.” Business and Human Rights Journal 7, no. 3 (October 2022): 494–99. https://doi.org/10.1017/bhj.2022.25.
Quijano, Gabriela and Joseph Wilde-Ramsing. “A Piece, Not a Proxy.” SOMO, November 25, 2022. https://www.somo.nl/a-piece-not-a-proxy/.
LeBaron, Genevieve, Andreas Rümkorf, Jessie Brunner, Luis C.deBaca, Vivek Soundararajan, and Priscilla Fisher. “Social Auditing and Ethical Certification.” Re:Structure Lab, July 2022. https://static1.squarespace.com/static/6055c0601c885456ba8c962a/t/62d746146f5dc5205a17621c/1658275349325/ReStructureLab_SocialAuditingandEthicalCertification_July2022.pdf.
“Hidden Harm: Audit Deception in Apparel Supply Chains and the Urgent Case for Reform.” Transparentem, October 2021. https://transparentem.org/project/hidden-harm/.
Kelly, Ilona M., Christie Miedema, Ben Vanpeperstraete, and Ilana Winterstein. “Fig Leaf for Fashion. How Social Auditing Protects Brands and Fails Workers.” Clean Clothes Campaign, 2019. https://cleanclothes.org/file-repository/figleaf-for-fashion.pdf/view.
Kashyap, Aruna. “‘Obsessed with Audit Tools, Missing the Goal.’” Human Rights Watch, November 15, 2022. https://www.hrw.org/report/2022/11/15/obsessed-audit-tools-missing-goal/why-social-audits-cant-fix-labor-rights-abuses.
Kuruvilla, Sarosh. “Private Regulation of Labor Standards in Global Supply Chains: Problems, Progress, and Prospects.” Cornell Scholarship Online, 2021. https://doi.org/10.7591/cornell/9781501754517.001.0001.
“Not Fit-for-Purpose: The Grand Experiment of Multi-Stakeholder Initiatives in Corporate Accountability, Human Rights and Global Governance.” MSI Integrity, July 2020. https://www.msi-integrity.org/not-fit-for-purpose/.
Outhwaite, Opi, and Olga Martin-Ortega. “Worker-Driven Monitoring – Redefining Supply Chain Monitoring to Improve Labour Rights in Global Supply Chains.” Competition & Change 23, no. 4 (August 2019): 378–96. https://doi.org/10.1177/1024529419865690.

Investors may also find this resource helpful:

ITC Standards Map
A map containing detailed information on voluntary sustainability standards, codes of conduct, audit protocols, and reporting frameworks.

Certifications Red Flags

Further Reading