It's as if each of the recent years has its "topic of the day" in law. The protection of personal data, anti-money laundering measures, and the introduction of whistleblower protection are just some of the issues that have been put to business in Bulgaria. This year's "topic of the day" is undoubtedly ESG (environmental, social, governance) - environmental, social, and good corporate practices for sustainable business development.
And if not every employer has the financial ability to undertake environmental practices to reduce its harmful impact on the environment, achieving social standards is generally available to companies. For more on this topic, we invited Atty. Mileslava Bogdanova, a specialist in labor law and managing attorney at Komarevski, Dimitrov & Partners.
What's behind the "S" in ESG?
Mileslava: The "S" stands for the component that covers the social requirements for companies. This includes a business's relationships with its suppliers, contractors, customers, and most importantly, its employees.
Thus, under the new requirements for companies, the issue of social responsibility is suddenly introduced - equality of men and women in the workplace, exclusion of discrimination between representatives of different generations, and integration of people with disabilities into the labour market. ESG is here, and businesses are expected to comply with the criteria.
Is this what the issue of equality and inclusion in Bulgaria is about today?
Mileslava: The answer is undoubtedly no. Long before the SDGs were set, business in Bulgaria was faced with another case, quite practical in nature - the labour shortage. This has necessitated the effective expansion of the groups of people to whom employers can turn in their search for the right candidate for a given position.
It was not only the "perfect fit" for the vacant position who began to be attractive to companies, but those who were early in their careers and had the usual appearance, in addition to the right qualifications. Candidates with blue-colored hair, in the later years of their career, from ethnic minorities are now also of interest.
As a natural process, irrespective of legal requirements, businesses have begun to seek, demand and integrate anyone willing to participate in the labour market. The Constitution defines all people as equal in rights and all citizens as equal before the law. Even before Bulgaria's accession to the European Union, a Law on Protection against Discrimination was adopted and in force. The legal framework in our country has not changed substantially over all these years, but there has been a change in the sensitivity of business and society to issues of inclusion and equality.
What is the role of the law in the current situation?
Mileslava: There is a growing awareness of the need for legal measures to reinforce the natural processes that we are observing aimed at helping under-represented groups in the employment context. For years, Bulgaria has had a legal framework that encourages employers to contract employees with permanent disabilities. A quota, albeit minimal in terms of proportion, is provided for the employment of such persons to ensure their access to the labour market.
Today, the focus is to impose measures to equalise the gender balance - ensuring equal access for men and women to management positions in companies and closing the significant gender pay gap in some sectors.
Action is being taken at the national level to integrate different minorities through employment programs. Efforts are being made to ease the processes for allowing third-country nationals to work in Bulgaria. These trends pose challenges for employers to meet the legal requirements for hiring employees, but also to ensure that they are not harassed by others in the team because of their different languages and culture.
There has been a trend towards hiring older candidates who are often not prepared to meet the technological requirements of the job and therefore require additional investment for qualification by employers. The issue of limiting, if not completely eliminating, discrimination on the grounds of sexual orientation is also becoming increasingly topical, although currently too sensitive for Bulgarian society. It is often a leading cause of cases of harassment, including sexual harassment, in the workplace.
And what is the role and responsibility of employers in the issue of equality and inclusion?
Mileslava: In the employment context, the law expects the employer to be the first level to address the issues mentioned. Businesses are required to be proactive and conceptual in ensuring an environment of equality and inclusion, to know where the boundary of acceptable differential treatment of individuals is, and when they need to provide protection. Breach of these obligations may result in the imposition of a sanction, but this is not the leading reason for employers to take on their tasks with commitment.
Today, achieving a welcoming and inclusive work environment is a matter of reputation for any company - to secure and retain the valuable team of employees it needs.
