The International Labour Organization (ILO) outlines a “systems approach” in a brief to address the lack of decent work in complex supply chains. This method aims to identify root causes and guide efforts by governments, employers, and workers to improve both business performance and labor standards.

Micro, small, and medium enterprises (MSMEs) in lower supply chain tiers face challenges like limited financing, poor infrastructure, and weak labor law enforcement. These obstacles hinder growth and the ability to enhance working conditions and access more lucrative markets.

By integrating into supply chains with higher quality, sustainability, and compliance standards, MSMEs can benefit from increased productivity, higher wages, and job creation. However, tackling fundamental systemic challenges is crucial for these advantages to be realized.

ILO launched the ‘Decent Work in Supply Chains Evidence Hub’ to enhance the accessibility of its research on improving labor conditions in global supply chains. The organization emphasizes the importance of a systems approach in addressing supply chain work deficits for long-lasting positive impacts on productivity, wages, safety, and job quality.

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