//Case Study

DECENT WORK UNLOCKS ACCESS TO FINANCE

Access to finance is key for SME growth. Investors are important in mitigating the social risks by protecting and promote sound labour relations, it gives value chain stability as companies benefit from increased operational efficiency, reduced reputational risks and a healthier and more productive workforce.  

In a partnership between Swedfund and the Victoria Commercial Bank  the SWP method changed the way the bank use workplace cooperation to strengthen customer relations and the sustainablity as . 

The challenge of affordable & sustainable finance

In Kenya, access to affordable finance is a major constraint to the growth of small and medium sized enterprises (SMEs). Accordingly, Sweden’s Development Finance Institution, Swedfund, invested USD$ 5 million in the Kenyan bank, Victoria Commercial Bank (VCB) in 2018. The loan was directed at the bank’s SME clients with the objective of contributing to the development of SMEs in the country and reducing poverty through enhancing sustainable business. 

An important component of the Swedfund investments are to ensure that working conditions and environmental impact are systematically handled in the bank’s activities and loans – aligned with the organisation’s three pillars: impact on society, sustainability, and financial viability.

We are very pleased that through SWP, VCB has been given concrete tools and guidance to work on this topic [workplace cooperation] internally. With the support of SWP, VCB has been able to obtain significantly improved relations and dialogue within the company which positively contributes to a more inclusive workplace with improved internal working conditions, employee satisfaction, and better decision making. The fact that several of VCB’s clients are also interested in participating in the pilot [workplace programme] is a testament to the positive impact the programme has had.
Corinna Hornwall
ESG Manager, Swedfund

Partnering

In 2021, Victoria Commercial Bank, Swedfund and the Swedish Workplace Programme partnered with VCB to set up its workplace programme. The process with SWP provided VCB with a step-by-step way to engage all levels of the organisation to cooperate around the sustainability of the business, by creating a dynamic and decent work environment. The main tool is the elected workplace committee made up of both management and employees. Established to drive employee engagement and occupational health and safety. 

The benefits of this process inspired VCB to share the same tools and methodology with its SME clients who often faced challenges in accessing loans because of difficulties of fully meeting some of the requirements and standards. SWP has now engaged with two of the bank’s clients to set up workplace programmes.

voices

Before partnering with SWP, we did carry out audits and surveys but having a third-party lens has helped us to address the areas identified in the audit and give the whole organisation a voice via the committee set-up. Some changes we have noticed so far include staff motivation and engagement at all levels. The practical approach has been very resourceful, and we look forward to sharing the results and reports with both VCB and others.
Martin Rodgers AnangweHR Manger, Sintel
VCB is a great bank since they recommended us for the SWP programme. This means they offer holistic services to their customers. The training on change management was very helpful to the organisation. In addition, throughout the exercise [through the committee] management was able to identify the key issues that the employees thought should be included in our daily operations as well as areas of improvement.
Vanita Dinesh Halai, Director, Vintz Plastics and Kip PlastDirector
At VCB we are not just about providing credit facilities to our portfolio clients, we are spearheading them towards a socially sustainable pathway of improving their internal social workplace performance through innovative and creative sustainable finance initiatives. We are now looking to go beyond compliance and moving towards sustainability value-add criteria as a way of assessing the engagements and relationship with the clients we on-board. This is important when one considers environmental, social and governance performance is integrated into our overall client credit-risk rating.
William OkoyoESG Manager, Victoria Commercial Bank
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WHY IS THIS IMPORTANT?

Learn more about why social dialogue and sustainbility in Kenya. Why this is important for development.  

SWP IN Kenya
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info@nir.se

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Klarabergsviadukten 70

111 64 Stockholm

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EXECUTIVE SUMMARY

This executive summary presents the findings from the study “Workplace Cooperation: Finding Practical Solutions in the Colombian Context,” conducted by the Fundación Ideas para la Paz (FIP). The study evaluates the added value of the Swedish Workplace Programme (SWP) dialogue and cooperation model within the Colombian labor market.

Throughout 2022, FIP dedicated efforts to thoroughly understand the SWP model, including its concept, foundations, implementation process, and contributions to the labor market. In 2023, FIP documented the experiences of three companies—SKF Latin Trade, Securitas, and Epiroc—that implemented the SWP model in practice. The study also included face-to-face workshops to gather feedback from various stakeholders including civil society, businesses, government, academia, and international cooperation. The findings suggest that the SWP model has the potential to strengthen labor relations, contribute to decent work, and resolve workplace conflicts in Colombia.

The case studies highlight the importance of collaboration between employers and workers to promote decent work and sustainable development in Colombia. They demonstrate that social dialogue facilitates worker participation in labor decision-making, enhances their representativeness, and promotes cooperation between employers and employees, thus improving labor relations and contributing to the well-being of both employees and companies.

The SWP model is particularly noted for improving workplace relationships and commitment to jointly finding solutions to challenges faced by workers and the company. It empowers workers, enhances leadership, and helps integrate business policies into daily practices, reducing the initial disconnect between management objectives and the day-to-day realities of workers. The study also highlights the model’s capacity to manage conflicts constructively, transforming the perception of conflict as an opportunity for improvement. Structured dialogues deepen understanding of the underlying causes of conflicts, fostering empathy and facilitating effective resolution. This promotes a culture of collaboration and a democratic approach to decision-making, building trust.

Additionally, the model is recognized for enabling workers to make decisions, identify challenges, and propose solutions that impact their well-being, and bridging gender gaps in the workplace. Its inclusive approach adapts to the unique needs and characteristics of each company, promoting a stronger and more diverse organizational culture. It also drives good work performance and productivity by involving workers in problem identification and resolution, as well as in implementing improvements and efficiently identifying ESG (Environmental, Social, and Governance) risks for companies.

The document identifies the SWP model’s added value in empowering direct interaction among labor stakeholders in Colombia, overcoming historical or cultural reservations, and contributing to the development of stronger labor relations and improved workplace environments in the country.

Challenges and opportunities of the model are also discussed. The study points out the importance of addressing value chain risks, particularly in a global context where corporate clients demand decent work processes and due diligence. It emphasizes the need to integrate SMEs into this process and use anchor companies as drivers of social dialogue throughout the value chain. The role of the state in social dialogue and the importance of highlighting the benefits of the model for adoption across various business sectors are discussed.

The opportunities of the model include raising awareness of human rights in the workplace in line with the United Nations Guiding Principles (UNGP), to strengthen due diligence, manage risks, promote long-term sustainability, and improve organizational culture. The document also underscores the importance of involving workers in change processes, leveraging their insights for continuous improvement of processes, and fostering innovation opportunities. Lastly, it suggests replicating the model in value chains to address work environment risks and gender biases, involving suppliers and contractors, and integrating the model into corporate policies to strengthen existing programs and transform organizational culture towards resource efficiency and effective participation of employers and workers.