Protection of indigenous and workers’ rights in the forest, as well as in manufacturing facilities, is an important part of sustainable procurement. Forests and forest-products manufacturing facilities are potentially dangerous work environments. Initial processing of the wood often occurs in remote and sparsely populated areas where job opportunities, social support systems, government supervision and adequate infrastructure may be limited. Forces and conditions beyond the control of government authorities can sometimes be found in forest areas.

The forest sector employs millions of workers throughout the various steps of the value chain (Box 13). Forest companies sometimes make up for governmental voids and take a leadership role in addressing social and governance issues. Values such as fair pay, employment benefits, training, health and safety, and interaction with local communities are a part the “social contract” between employers and the communities in which they operate. Violations of workers’ rights can lead to unsafe work conditions, reduction of local benefits, discriminatory behavior, low wages, and an increase in migrant and informal work.

A number of international conventions, treaties and processes, including the International Labour Organization’s core labor standards, incorporate considerations about social aspects of forest-based industries (Table 7). In some instances compliance with the law can be sufficient to meet the demands of individuals and communities, but land tenure issues can present cases where legality does not equate with fairness.

Some of the most pressing social issues related to sustainable procurement include:

• Violation of property rights, and the rights of local peoples (including indigenous groups). Forestry operations (logging and processing) should consider, and be compatible with, the local land tenure rights regime, which may include community-based forest management systems. Subsistence use of the forest should be respected. Violations of the rights of local peoples may include bribery and access to large concessions through gifts to certain members of the community without the consent of the full community
• Participation and consultation. Forest operations should include the meaningful participation of and consultation with local communities and indigenous peoples appropriate to the nature and scale of the operation, the type of ownership (public vs. private), and local legal regimes and customs. Engagement that is based on information, inclusiveness, dialogue, legal recognition, monitoring and evaluation and capacity building can benefit communities and businesses alike. Especially where land tenure and traditional rights are uncertain, the appropriate degree of consultation and consent can be controversial. The principles of “free, prior and informed consent” (FPIC) are evolving through international debate to help define and require appropriate consultation and consent. ILO Convention 186 (ILO, 1998) defines FPIC as the right of communities “to exercise control, to the extent possible, over their own economic, social and cultural development”. A full discussion of FPIC can be found in Herz et al., 2007.
• Capacity building. Building the capacity of local peoples (including indigenous groups) to work in the industry sector, and understand, negotiate and participate in agreements regarding the management of their resources.
• Recognition and support of cultural identity. This includes maintenance, use and promotion of traditional knowledge and practices of local communities and indigenous peoples.

The differences in social performance between and within countries and regions are significant. It is important to know where the wood is coming from. Areas of concern include the following:

• Areas associated with armed conflict (in some cases logging and trade in wood-based products have been used to sponsor armed conflict).

• Areas known to have flagrant violations and avoidance of workers’ and human rights.