Who Benefits from Improved Labor Standards?

BuyersMore effective and reliable supply chainMeasurable corporate social responsibility track record Improved employee recruitment, retention and performance Better risk management

SAI Around the World

USMexico

Argentina Brazil Chile Costa Rica Ecuador Guatemala Honduras Peru

Belgium Poland Czech Republic PortugalDenmark RomaniaFinland Slovenia France SpainGermany SwedenGreece Switzerland Hungary Syria Italy Turkey Netherlands UK

Ghana Kenya Lesotho Mauritius South Africa

Laos MalaysiaPakistanPhilippinesSingaporeSri LankaTaiwanThailandVietnam

North America

Central and South America

Europe and the Middle East

Africa

Asia

SAI Offices

BangladeshChinaIndiaIndonesiaJapanKorea

“Where, after all, do universal human rights begin? In small places close to home – so close and so small that they cannot be seen on any map of the world. Yet they are the world of the individual person: the neighborhood he lives in; the school or college he attends; the factory, farm or office where he works. Such are the places where every man, woman and child seeks equal justice, equal opportunity, equal dignity without discrimination. Unless these rights have meaning there, they have little meaning anywhere.” Eleanor Roosevelt – remarks at the United Nations Commission on Human Rights – March 27, 1948.

Background to Social Accountability

The Uninformed Consumer The Uninformed Consumer

Consumer

Retailer

Retailer

Retailer

Retailer

Suppliers

India, China,Kenya, Brazil,

Indonesia,Turkey,

etc. Consumer view of the supply chain stops at retailer

Assumption

The consumer values regarding social accountability, ethics and so forth are passed via the retailer to the retailer’s supply chain.

So

Provided supply chain meets requirements of consumer values - NO PROBLEM

The Informed ConsumerThe Informed Consumer

Consumer

Retailer

Retailer

Retailer

Retailer

Suppliers

India, China,Kenya, Brazil,

Indonesia, Turkey,

etc.

Consumer Consumer informed of informed of supplier details supplier details becomes aware becomes aware of supply chain of supply chain issuesissues

MediaMedia

Why was SA 8000 Developed

Consumers and other stakeholders have become increasingly concerned about whether products have been manufactured under conditions of violation of human rights, child labor and discrimination – as often reported by the media. The existing management of many companies cannot adequately cope with the myriad demands imposed by labor laws, codes of conduct of individual companies, as well as their stakeholders.

Why Use A Standard? - SA 8000

is a broad consensus document represents the interests of many

stakeholders, while being biased to none in particular

is sufficiently rigid yet flexible meets the expectations of civil

society, yet is suitable for application across all industry sectors and localities

Why Use A Standard? - SA 8000

SA 8000unambiguously respects the key aspects of the ILO and UN conventions relevant to human rights in the workplacecontains measurable and flexible management system requirements

Why Use A Standard? - SA 8000

fundamental management concept embodied in section 9

requires mechanisms to ensure control, response and accountability

ensures that company management respects social accountability as a strategic business issue

Social Accountability International (CEPAA) Now (SAI)

• Affiliate of the Council on Economic Priorities• Established 1997 ,Its Mission is to provide

accurate and impartial analysis to evaluate corporate social performance.

• Advisory Board convened to oversee SA 8000 development and accreditation processes

SAI (Continued)

• Consists of representatives of Unions, human rights and children’s rights organisations, academia, retailers, manufacturers, contractors, consulting, accounting and certification firms: Amnesty International, Association , Avon,

Body Shop, CEP, Eileen Fisher, Group M, International Textile Garment and Leather Workers Federation, KPMG , National Child Labour Committee, Reebok, SGS ICS, Toys R Us, University of Texas

SAI Mission

Development of consensus based voluntary based standard.Accredit qualified organization to verify compliance.Promoting understanding of such standards world wide.

Supplier

Client/Retailer

1st party 2nd party

Accredited Certification

Body

Accreditation Body

3rd party

4th Party

EnterpriseXYZ

- Ensures that certification bodies respect national or international requirements (eg: ISO Guide 62)

- The only accreditation body worldwide (not like ISO 9000)

SGS-ICS

The 4 Parties + The Public

The Public

What is SA 8000

Released in October 1997, the Social Accountability 8000(or SA 8000) Standard is the first global ethical standard. SA 8000 has been developed based on the conventions of the International Labor Organization, the Universal Declaration of Human Rights, as well as the United Nations Convention on the Rights of a Child. It is applicable to all companies regardless of scale, industry and location Its objective is to ensure ethical sourcing and production of goods and services.

What is SA 8000

SA 8000 aims to promote continuous improvement of workplace conditions.It encourage buyers to work with their suppliers to implement a social accountability policy that can improve the work place condition through technical assistance and increased awareness.General adherence to this standard will improve brand image and company reputation.SA 8000 address workplace conditions

How does SA 8000 Work

As in the cases of ISO 9000 quality management system and ISO 14000 environmental management system, SA 8000 provides a framework for independent assessment by a third party certification body SA 8000 includes a set of social accountability standards and a guidance document

How does SA 8000 WorkThrough continuous assessment, it provides the companies with a system for continuous improvement Through an appeal process to the certification body, non-governmental organizations (i.e. NGOs), if they have supporting evidence, can challenge the SA 8000 certification of a company

Who Can Apply For Certification

Companies want to verify their Social Record.Contractors that are producing goods for US and European companies.Multinational Companies seek to ensure that they procure from companies which are not exploitative .

Special Features of SA 8000 Audit

Specific Social performance standard with minimum requirement.Auditors are required to consult and learn from interested parties such as NGO’s, Trade unions etc.A complaint and appeal mechanism.

Benefits of SA 8000 Certification

Increased customer recognition and loyalty.Globally recognized standard .Increase the ability of business to trade internationally.Removing the need of business to undergo multiple COC audits.Assurance that brand are produced in human and socially responsible conditions.