The brief, titled “From root causes to real change: Using a systems approach to foster decent work deep in supply chains,” explains that “systems approach” methodology can pinpoint fundamental reasons behind the lack of decent work in intricate supply chain segments and offer strategies for remediation.
By recognising pervasive “systemic” challenges, this approach aims to guide sustained efforts by government bodies, employer and worker groups, and development experts to advance both commercial performance and labour standards, says ILO.
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The document observes that MSMEs in secondary supply chain levels grapple with challenges like restricted financing, subpar infrastructure, and lax enforcement of labour laws.
These difficulties impede their growth and their capacity to improve work conditions and penetrate more profitable markets.
ILO micro, small and medium enterprises branch chief Dragan Radic said: “Through a systems approach, we aim to strengthen MSME competitiveness and promote decent work by first identifying the root causes of key bottlenecks and later working with ILO constituents to address them in a long-lasting way.”
First-tier suppliers typically manage to adhere to regulations and gain from direct relationships with buyers.
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By GlobalDataThe organisation notes that for MSMEs in subordinate tiers, integrating into supply chains with higher standards for quality, sustainability, and compliance can yield tangible benefits like increased productivity, higher wages, and job creation.
Nonetheless, without addressing the fundamental “systemic” challenges, these advantages remain inaccessible.
ILO action programme on supply chains director Dan Rees said: “This kind of long-term, holistic thinking is what it takes to unlock decent work opportunities where they’ve historically been out of reach. Supply chains can be an entry point for decent work in MSMEs when they are supported within a stronger, more coherent system, achieving real ripple effects in productivity, wages, safety and overall job quality.”
The brief also emphasises that “it is important to recognise that a systems approach is not a cure-all for supply chain challenges”.
In conclusion, the document urges stakeholders to focus on initiatives that are within their available resources and that align with organisational priorities and technical competencies for maximum effectiveness.
