Research Sustainability Social Hotspot Analysis

Social Hotspot Analysis

What is the Social Hotspot Analysis?

The Social Hotspot Analysis quantifies the impact an organization or industry’s activities have on society. The Social Hotspot Analysis can be applied to manage critical hotspots within the global supply chain, communicate social impact to stakeholders, and meet the social obligations of Corporate Social Responsibility (CSR) based on valid data.

Corporate Social Responsibility requires understanding the role supply chains play in sustainability. Business is increasingly shaped by sustainability directives pursuing targets set by political objectives such as the Paris Agreement and the EU’s Green Deal, meaning managing impact is a prerequisite for strategic decision-making and long-term success. The Social Hotspot Analysis evaluates an organization or industry’s global supply chain and identifies the (potential) risks in the social dimension, thereby enabling informed sustainability management.

How is the Social Hotspot Analysis measured?

The Social Hotspot Analysis uses an extensive range of indicators to provide a refined understanding of an organization or industry’s upstream impact on society. These indicators include:

Health & safety
Livings wages
Gender pay gap
Workforce diversity
Employee training
Risk of corruption
Risk of child labor
Risk of modern slavery

What does the Social Hotspot Analysis offer organizations and industries?

The Social Hotspot Analysis provides various benefits for organizations and industries. These benefits include:

Identifying critical hotspots along the global value chain, accompanied by detailed analysis categorized according to country, sector, and supplier
Supporting due diligence in human rights and fulfilling Corporate Social Responsibility (CSR) to meet regulatory requirements and stakeholder demands
Sharpening internal company values and overarching objectives
Applying scientific sustainability research to communicate contribution to political targets and develop stakeholder specific messages
Contextualizing sustainability performance in the social dimension by comparing with relevant benchmarks

Political Context

The United Nations has set 17 Sustainable Development Goals (SDGs) on its 2030 Agenda. The SDGs were adopted by all UN Member Nations in 2015 and are a call for global cooperation to promote peace, prosperity, and planetary well-being.

WifOR’s sustainability research supports organizations and industries in orienting themselves to achieve the Sustainable Development Goals. The Social Hotspot Analysis positively contributes to the following SDGs: