LETTER | It is common knowledge that certain corporate entities in the manufacturing and service industry are opting strategically into the environmental, social and governance (ESG) framework.

While it is a welcome move where the environment, social and good governance are integrated, which projects stakeholder capitalism, the drawback is there seems to be a tendency among these companies to domesticate the ESG principles, which are supposed to take a universal dimension.

One of those areas of concern is the shadow labour practices in relation to foreign workers and International Labour Organization (ILO) conventions that could be ignored by auditors who are handling social governance aspects.

For example, there is a tendency to ensure a particular factory or hotel meets labour law requirements for its Malaysian workers while ignoring that many foreign workers have no weekly off days and their salaries are paid irregularly or with large gaps in between.

There are elements of forced labour in such practices that need to be addressed by the authorities who are involved in the ESG certification process.

Malaysian companies have yet to fully comply with ILO conventions such as freedom of association, and even fundamental conventions on violence and harassment in the workplace.

All these aspects of social governance are ignored by reframing it in the Malaysian corporate context which does not do justice to ESG principles and values.

Therefore, the Association for Welfare, Community and Dialogue (ACID), which welcomes the ESG as a way to reduce social conflicts and empower the working class, besides preserving the environment, urge the human resources minister to look into such contradictions and follow the universal conventions on labour rights.

ESG concepts will not bring any significant changes if it's going to be merely a corporate rebranding exercise.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.