Glossary term
Grievance Mechanism
Subject: Sustainability and ESG, Human Rights, Labour and Supply Chain
Also known as: Remedy mechanism, Complaints mechanism
A grievance mechanism is a formal channel through which people affected by an organisation's activities can raise complaints about harm, have them looked at fairly and, where justified, obtain a remedy.
Explanation
Workers, including those employed by suppliers, and nearby communities often have no easy way to tell a company that something has gone wrong. A grievance mechanism gives them one. It usually has a clear way to submit a complaint, a stated timeline for response, a fair review by people not involved in the issue, and an agreed range of remedies, from an apology to compensation or a change in practice. Some are run by the company, some by industry groups, some by a third party. The UN Guiding Principles set effectiveness tests for these channels, among them legitimacy, accessibility and predictability. It differs from a whistleblower line, which is mostly for staff reporting wrongdoing inside the firm. Complaints with no route in tend to resurface later as a strike, a lawsuit or a press investigation.
Example
Workers at a garment brand's supplier factory in another country complain that overtime is unpaid. The brand runs a hotline in the local language and a worker committee at each site. A complaint is logged, a neutral reviewer visits within two weeks, and the supplier is told to repay the wages. The brand then checks with the workers that payment was received.
Not to be confused with
- Whistleblower Mechanism
- Mainly serves insiders reporting misconduct. A grievance mechanism serves anyone affected by the organisation's operations, including communities and supply-chain workers.