Natura &Co’s commitment to fair wages and equity drives the company’s 2030 Vision.
Nature &Co At the beginning of the year, it announces significant progress in its journey of social transformation. The company reached the goal of a decent income for all employees in Latin America, advancing its Vision 2030, called Commitment to Life, launched in 2020 and updated in September 2023.
By establishing a living wage for employees, Natura &Co is not only addressing economic issues, but also promoting the appreciation of human dignity and contributing to the elimination of inequalities. which highlights the Sustainability and Human Rights manager of Natura &Co América Latina, Marina Leal.
Access to decent income is the gateway to maintaining an individual’s basic rights. This impacts a better quality of life, autonomy and, consequently, further development of our network, he adds.
A decent income is calculated based on a survey of the local cost of living and what is necessary for a decent standard of living, in a given place and during normal working hours. This includes the ability to access food, water, housing, education, healthcare, transportation, clothing and other essential needs, as well as provision for unexpected situations. A different concept from the minimum wage, which is regulated by the government, updated based on economic indices and often does not correspond to an updated standard of dignified living.
To make the diagnosis and understand the size of the challenge, the first step was to define the methodology that would be used, given that Natura &Co has operations in different countries that have different realities, points out Lilian Ikeda, manager of Remuneration, Incentives and Mobility of Natura &Co Latin America.
After studies, the company decided to adopt the living wage reference provided by the Wage Indicator Foundation, which is calculated according to the cost of living, which varies between the regions of Brazil and the countries of Hispanic America.
In addition to a metric, Natura &Co considers decent income as a parameter for measuring impact, being one of the main methodologies used in Integrated Profit & Loss Accounting (IP&L, or Integrated Profit and Loss Accounting), a tool launched in 2022 by the company that manages to monetize the impact of business on human, social and environmental capital.
Based on this analysis, we structured an evaluation and payment monitoring program for employees, consultants and we are finalizing studies in partner communities in the Amazon, adds Marina.
Salary Equity
In addition to achieving a living wage for employees, Natura &Co celebrates other progress in equitable remuneration. In 2022, the company put an end to the inexplicable salary differences between men and women and significantly reduced gross salary differences in Latin America. And in Brazil, the racial wage gap was eliminated.
Since 2020, the holding has been developing annual studies on salary equity in the group with Mercer, a leading human resources consultancy.
The studies cover more than 15 individual factors, such as: salary, position, level of experience, time in the role, performance, country, and, among others, gender and race. And the first initiatives to reduce the differences highlighted were carried out in 2021, comments Lilian.
In Latin America, the target set for 2023 of having 50% of women in senior leadership (director positions and above) was achieved in 2020. In 2022, the company ended the year with 52% of women in senior leadership. Currently, they are the majority at all functional levels, except operational.
Decent income and salary equity a continuous journey
Natura &Co seeks to strengthen the economic development of its network, focusing on its priority audiences. In Viso 2030, the commitment to Human Rights stands out. The goals include a 10% increase in the consultants’ human development index and social advances in agroextractive communities. The objective is to generate a measurable impact on decent income, reflected in health, education and citizenship, anchored in gender and racial equity.
Lilian reinforces the commitment, indicating that achieving the goals of a decent and equitable salary for employees is a milestone that is part of an ongoing journey.
While the topic is still in its infancy in Latin America, Natura &Co is considered one of the great references globally. The company is already present in international certifications such as B Corp and Corporate Knights, and is part of the Dignified Wage Movement of the Global Compact ofHIM Brazil.
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