Caveat Emptor—

seeking a sustainable supply

chain

-how can you know?

-opportunities for ethical

purchasing

Eileen Kohl Kaufman, Executive Director, SAI

© Social Accountability International

What’s wrong in workplaces?

Child labor: brick making, China; carpets and embroidery, India Forced labor, Hawaii! Excessive hours Health & Safety—water, breaks, heat, light, “PPE” Freedom of association Discrimination—religious, gender, political …. Wages—in a regular work week Discipline Un-meetable deadlines and quotas …unenforced laws & inadequate incentives to comply

Who cares?

We do---we are:

Investors—Individuals, CALPERS, Norwegian Govt Pension, et al

Retailers Students Parents Customers Governments –trade agreements, USDA import rules Development lenders-IFC

Boycott?

© Social Accountability International

How can I know?

I’m fifteen, I don’t want to buy things made by people younger than I, how can I know? I’m buying toys, don’t want them to be made by children I’m investing, I don’t want to own companies that treat women employees badly Was my IPod made where toxic fumes made workers ill? Do workers need to put in 80 hours to make enough to eat? I want to buy things made in legal, ethical workplaces I want to own shares in companies whose values agree with mine I want to sell products that are made in accordance with my principles. I want to work for an ethical company

background, consumer focused

Garments: Levi Strauss, first supplier code c. 1991 National labor committee; Clean Clothes Campaign SAI, ETI Certification Many company codes, many audits, many systems

…Need for standardized audit practices, uniform code, based on international norms and experience.

MANAGEMENT SYSTEMS –necessary, not sufficient VALUE SYSTEMS-necessary, not sufficient

Responses—

business to business focused-

SAI, ETI, BSCI, ICTI, EICC…

SAI’’s mission is to improve working conditions around the world—not only eliminate sweatshops but build an enabling environment for workers to exercise their rights. Do this through the SA8000© standard [based on UN and ILO conventions and national law] defining minimum working conditions

Public Certification of compliance Do this through multi-stakeholder partnerships for training and technical assistance along the supply chain

Workers Managers Auditors Purchasing staff Labor inspectors

Provide information to buyers about standards being met Provide information to producers about how to sustainably meet the standards Do this internally by pegging pay to social performance—

Social Accountability International

Multi-stakeholder NGO, established in 1997

Fair workplaces, decent work, human rights at work--tools:

Standards Setting: SA8000® Certification—corrective actions, semi annual surveillance, open complaint system Capacity Building Training and Technical Assistance Social Fingerprint™ learning, measure & improve, systems Learning partnerships SAAS accreditation Public List of certified organizations Public List of companies using systems

Multi stakeholder advisory board

Non Business Care International [USA] Ethos [Brazil] FILCAMS-GCIL [Italy] FTA [Belgium] NCLC [USA] Rainforest Alliance [USA-Costa Rica] Solidaridad [Netherlands] SAI [USA] UNI [Switzerland] UFCW [USA] WWF [USA]

Business Carrefour [France] Chiquita [USA] Eileen Fisher [USA] GAP [USA] Gucci [Italy] Legacoop Nazionale [Italy] Otto [Germany] PCG [Switzerland/India] TCCI [India] Tchibo [Germany] TNT Express [Netherlands]

SA8000 Standard

Child Labor Forced Labor Freedom of Association and Right to Collective Bargaining Hours Basic Needs Wage Discrimination Discipline Health & Safety Management systemssustainability

Bases: national law, ILO conventions, UN conventions

“People do what is inspected, not what is expected” What is explicitly rewarded

Modes of assurance and verification

Internal audit Second party audit Third party audit Accompanying complaints and grievance mechanisms Periodic surveillance of certified organizations and of auditors performance

Stakeholder consultation by certification auditors, stakeholder consultation about use of standards, guidance

How Multistakeholder, multinational, multisectoral

Governance--Advisory Board-trade unions, business, NGOs Implementation--Country Programs—trade unions, NGOs, business, government

Learning partnerships PPP: GTZ/BSCI/SAI RAGS-DFID ISEAL, MFA Forum, Project Cultivar, ELE Project Cultivar ITGLWF, Rainforest Alliance, WWF, Solidaridad Apple, Gap, Gucci, Chiquita, BSCI, Tata, Eileen Fisher, Anvil, Billabong, Otto, Coop Italia, Tchibo, Otto, Timberland USDoL, GTZ, UNIDO, CIPE, UN Women InterAction, AccountAbility, Transparency International UNGC –supply chain; human rights

What

SA8000ILO, UN, law, mgt systemssustainable Certification empowering buyers and sellers.

SAAS-18 accreditations

2500+ certified workplaces, 1.5 million workers, 68 countries, 67 products—website list! Governments use in different ways: Italy, Pakistan, Sri Lanka, Medak Collector, Romania, Netherlands Brazil, India, China, Central America, Egypt Guidance, case studies, research

Workers Committee Elections, Chai-Da

Benefits

Workers: hours, pay, training, freedom of association, safer workplace Managers: product quality, staff retention, productivity, more customers, savings on shipping costs, Community : children in school Customers—wholesale and retail: product quality, meet ethical demand

ACCREDITATION SCHEMATIC

ISEAL International Social and Environmental Accreditation and Labeling Alliance ASI, FSC, MSC, IFOAM, FLO, MAC, RA, SAAS, SAI SOCIAL ACCOUNTABILITY ACCREDITATION SERVICES SAAS [Accreditation Agency]

Accredited Certification Organizations [19 international companies—UL, Bureau Veritas, Lloyds….]

CERTIFIED CERTIFIED CERTIFIED FACILITY FACILITY FACILITY 1.1 million workers, 2300 organizations, 60+countries, 60+ business types

Getting reliable information-

efficiently

‘social certification’----product v. process SA8000 [workers] Organic [soil] Fair trade MSC –[marine] FSC-[forest] WWF aquaculture

“Trust but verify” Measure what matters Inspected/expected Systems to meet the standards, inspectors to verify systems followed. Anecdotal—snapshot v. ongoing practices/systems Press; Labels; Brand reputation; Company reports; Campaigners reports

Track your T--

Anvil, TSG, Switcher/Prem

Anvil Knitwear’s Interactive Website http://trackmyt.com/ Solidaridad’s Made-By Website

http://www.made-by.nl/tracktrace.php?lg=en

Tirupur Steering Group http://tirupursg.org/ Switcher/Prem Durai

Prem, Press http://www.premgroups.com/prem/social_project.asp?name=Press Switcher, programs in India

http://www.switcher.ch/english/about-switcher/switcher-foundation/projects-in-india.php

Timberland www.timberland.com www.earthkeeper.com www.sa-intl.org www.ethicaltrade.org www.fairlabor.org

EILEEN FISHER-

SOCIAL CONSCIOUSNESS

Joining hands in a team building activity, women at one of our Chinese factories take part in a worker training program conducted by Social Accountability International.

Human Rights EILEEN FISHER’s is committed to SA8000, one of the most comprehensive workplace

standards in the world. SA8000 sets forth fundamental human rights in nine areas….All factories that produce clothing for EILEEN FISHER are required to apply SA8000 to their facilities and to exhibit continual improvement in its implementation. Training on a variety of related topics is provided to factory managers and workers as needed. Since women represent 80 percent of our factory workers, we feel SA8000 protects and supports them in the workplace.

some

SAI affiliated companies

Gucci Carrefour Timberland Anvil Disney GAP OTTO Group Tchibo

Rosy Blue Tata Steel Chiquita Billabong Eileen Fisher TNT HP

Key current issues

Integrate purchasing and compliance

Companies Governments, too

Incentive structures Ruggie principles-protect, respect, remedy ISO26000

UNGC reporting GRI reporting

© Social Accountability International

Social Accountability International

15 West 44th St New York, NY 10036 212-684-1414 212-684-1515 [fax] www.sa-intl.org eileen@sa-intl.org