By Marjolaine Chaintreau and Amina Razvi

Like millions of women working in garment factories in Asia, Lucky worried about receiving her monthly salary in cash. “I was concerned about walking out of the factory with that much money in my bag,” she said. “I also share my house with other people, so I didn’t know where to keep my money safe.” Recently, Lucky started receiving her salary on her mobile phone through BSR HERfinance Digital Wage program in Bangladesh. She can now use her mobile money account to buy items at the bazaar.

Recent data from the Higg Index from nearly 3,000 factories across 58 countries, representing 85 brands and retailer supply chains, reveals that paying workers digitally correlates positively with better working conditions. The Higg Index is a suite of tools that enables brands, retailers and facilities of all sizes to accurately measure and score a company or product’s sustainability performance.

Across the globe, factories that pay workers digitally are five times more likely to follow exemplary social and labor practices than those that pay with cash or checks. This includes offering wages that are equitable to the cost of living or providing bonuses when the company has a profitable year.

Source: www.inclusivebusiness.net

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