CASE STUDIES
Managing social risks: Middle East aluminium company
Kumi supported an aluminium company to enhance its capability to identify and manage social risks across its operations. This built on the support we previously gave our client in developing a responsible sourcing strategy aligned with the London Metal Exchange (LME) and Aluminium Stewardship Initiative (ASI) requirements.
Following this, our client recognised the need to address social risks in its business and committed to developing a management system that adhered to international best practices, including SA8000, local legislation, and other relevant standards. We recommended using the SA8000 as a foundational framework to build the company’s capacity for effective social risk identification, ensuring the company’s readiness to implement robust management practices moving forward.
SUMMARY: This case study demonstrates how a Middle East aluminium company strengthened its approach to social risk management by developing a management system aligned with international standards, including SA8000. Through risk mapping, management system assessments, gap analysis and leadership engagement, the company improved its ability to identify, manage and monitor social risks while preparing for growing customer, regulatory and stakeholder expectations.
Building our client’s capabilities
The team leveraged insights from our previous engagement with the client, our extensive experience in enhancing companies’ social performance capabilities, and our expertise in conducting Human Rights Risk Assessments (HRRA). To meet the company’s requirements, Kumi:
- Identified social risks: Kumi mapped the company’s operations and supply chains, understood the jurisdictions in which they operated, and analysed internal and external documents to identify applicable social risks.
- Assessed management systems: Kumi evaluated the company’s existing policies, processes, and methods for identifying and managing social risks within its operations and supply chains. This involved document reviews and remote and in-country interviews with relevant stakeholders. Our approach enabled us to map the company’s internal management structures and processes, ensuring the development of a tailored system.
- Developed a gap assessment report: Kumi reviewed areas for improvement and provided recommendations to rectify these gaps. This report was accompanied by a management systems manual, outlining step-by-step processes for establishing a system to identify, manage, and monitor social risks.
- Delivered a multi-stakeholder workshop: We conducted a workshop for senior leadership to explain the new system and ensure relevant employees understood their roles and responsibilities.
Outcomes and strategic integration
As a result of our work, senior leaders gained clear insights into current practices for managing social risks. Our recommendations and implementation support have positioned the company to align with international best practice standards.
The company is now better equipped to meet regulatory requirements, and downstream buyer and stakeholder expectations, ensuring long-term sustainability and ethical operating practices. In addition, the company is working to extend the social management system to other business units and subsidiaries.
Tim Perkin
Senior Consultant
Our other work
Frequently asked questions
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What is social risk management?
Social risk management is the process of identifying, assessing and managing risks that affect workers, communities and other stakeholders. It includes issues such as labour rights, health and safety, working conditions, discrimination and grievance mechanisms.
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Why is SA8000 useful for companies?
SA8000 provides an internationally recognised framework for developing management systems that address labour rights and workplace conditions. It helps organisations embed consistent processes for managing social performance.
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How does social risk management support regulatory compliance?
A structured management system helps organisations demonstrate that they have processes to identify, mitigate and monitor social risks, supporting compliance with customer requirements, international standards and emerging due diligence legislation.
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Why are leadership workshops important when implementing new management systems?
Senior leadership plays a critical role in assigning responsibilities, allocating resources and embedding social risk management into business decision-making. Training helps ensure consistent implementation across the organisation.
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Which sectors benefit most from social risk management systems?
Manufacturing, mining, metals, energy, construction and other industrial sectors with complex operations or global supply chains benefit from structured systems that improve worker protections, strengthen governance and meet stakeholder expectations.