SA8000 Certification on a Global Scale

Transcription

1 SA8000 Certification on a Global Scale Presented at the Social Responsibility Workshop Lisbon, Portugal November 27 th, 2007 by Sean Ansett, SAI European Representative Social Accountability International 2008

2 What is Changing?

3 What is changing? Corporate Social Responsibility mainstreaming Growing awareness by consumers Training capacity needs New sectors Climate change Emerging BRIC economies Need for partnership New US Administration Back to the Farm..

4 CSR Trends CSR, once a do-gooding slideshow, is now seen as mainstream. But yet too few companies are doing it well. Daniel Franklin (Source : Economist, 19 de Enero 2008)

5 Consumers?

6 Complex (Fuente : Economista, 19 de Enero 2008)

7 Compliance Risks Worldwide media exposure/potential negative image Perceived lack of transparency Campaigns from activists Brand reputation risk among consumers Negative perception among buyers Increased scrutiny by investment community Unauthorized use of sub-contractors License to operate 7 SAI 2008

8 Social Accountability International Established in May 1997 Developed premier social compliance standard - SA8000 Licenses Certification Bodies (CBs) to audit through Social Accountability Accreditation Services Multi-Stakeholder organization includes trade unions, NGOs and corporations Multi-industry and global Member of International International Social and Environmental Accreditation and Labeling (ISEAL) - an association of leading international standard-setting organizations that focus on social and environmental issues - Forest Stewardship Council, Rainforest Alliance, Fairtrade Labeling Organization International Leader in training for developing socially compliant supply chains - training for auditors, buyers and suppliers Manage SAI country programs in Europe, Americas and Asia Foster corporate adoption of CSR through Corporate Programs, members include Gap, Timberland, Toys R Us, Carrefour, HP, General Mills, Chiquita, Dole, Gucci, TNT, Otto Group, Tchibo, Billabong, Private Label Manufacturers Association, etc 8 SAI 2008

9 Social Accountability Accreditation Services SAAS is structured and operates as an accreditation body. SAAS manages and directs accreditation activities, including the granting, maintaining, extending, reducing, suspending and withdrawing of accreditation for applicable social standards and verification codes, such as SA8000 and InterAction. The primary activities for SAAS are: To accredit and monitor organizations seeking to act as certifiers of compliance with social standards, including the Social Accountability 8000 standard for ethical working conditions, the InterAction PVO Standards, and other such verification standards; To offer accreditation services to certification bodies (CBs); To determine the qualifications of such organizations to perform full, reliable, and impartial audits of employers against specified social standards; To provide confidence to all stakeholders in SAAS accreditation decisions and in the certification decisions of its accredited CBs; To continually improve the SAAS accreditation function activities and systems, in compliance with ISO/IEC Guide and SAAS Procedure 201, Accreditation of Certification Bodies of Social Accountability Systems ; To be impartial and fair to all applicant and accredited certification bodies. 9 SAI 2008

10 Working with SAI Globally Gap Inc. The Walt Disney Company Human Rights at Work TM

11 Social Accountability International (SAI) Globally 1,779 certified factories globally 67 countries 933,272 workers covered (Summary statistics as of June, 2008)

12 Social Accountability International Portugal SAI 2008

13 SA8000: LABOR STANDARD Based on UN and ILO Conventions & ISO Management Systems Child Labor Forced Labor Health & Safety Freedom of Association Discrimination Discipline Working Hours Compensation Management System Child labor shall not be used People have the right to change jobs and shall not be forced to work People must not be endangered at work People have the right to organize and be heard at work thru collective bargaining Hiring, promotions and wages must be equal and fair People must not be abused at work and free from all corporal punishment Overtime is limited, voluntary and paid at a premium People must earn enough to live on during a regular work week A management system is the key to sustainable compliance, including requirement for a worker representative 13 SAI 2008

14 What has changed? 2001 to 2008

15 Themes Behind the Standard Redrafting Process Idea was not to weaken the standard, but to clarify and strengthen it. Attempt to make the language of the standard conform to ILO conventions, and other codes, such as the ETI base code and the JO- IN s work.

16 I. Purpose & Scope New language clearly sets forth the standard s larger purpose: to protect and empower all personnel within a company s scope of control and influence This language leaves no doubt that everyone employed by the company within their scope of control and influence direct-hires, suppliers & subcontractors, sub-suppliers, and home workers, are covered by the standard.

17 III. Definitions Child The developing-country exceptions under ILO Convention 138 that are cited in the 2001 SA8000 are eliminated in the 2008 standard. This was due to the fact that very few countries have taken the ILO exception.

18 III. Definitions Human Trafficking The definition of human trafficking should be read in conjunction with Section 2 of the standard Forced & Compulsory Labor.

19 III. Definition SA8000 Worker Representative Defined as a worker chosen to facilitate communication with management on all matters relating to SA8000. Should be read in conjunction with Should be read in conjunction with Paragraph 9.3: SA8000 Worker Representative.

20 IV. Social Accountability Requirements Child Labor Unlike the 2001 standard, SA requires companies to have written procedures for the remediation of child laborers. This was done in order to clarify and improve auditability. Companies must also provide financial support to enable children to attend and remain in school

21 Forced & Compulsory Labor 2.2 Companies and their suppliers are prohibited from withholding any part of any personnel s salary, benefits, property, or documents to force them to continue working for the company. The 2001 standard required only that a company prohibit the lodging of deposits or identity papers.

22 Health & Safety 3.3 SA contains added details with respect to training personnel on health and safety: These include on-site instruction and job- specific instructions. Additionally, the instructions must be repeated in cases where accidents have occurred.

23 Health & Safety 3.6 SA requires companies to ascertain the risks to new and expectant mothers arising out of their work activity. Companies must also take steps to minimize the risk of injury to expectant mothers. Note: these provisions are partnered in prohibition of pregnancy tests in 5.4.

24 FoA & Collective Bargaining 4.1 All personnel have the affirmative right to form, join, and organize trade unions, and to bargain collectively. Company must effectively inform personnel they are free to join T.U. of their choice and guarantee no retaliation from the company. Explicit prohibition of co. interference in the formation of worker orgs, their activities, and collective bargaining.

25 Discrimination 5.4 The 2008 standard introduces a new prohibition requiring companies to abstain from testing women for pregnancy or virginity

26 Working Hours 7.2 SA requires companies to provide personnel at least one day off following six consecutive days of working. Companies can deviate from this rule as long as two conditions are met: 1) National law must allow work time to exceed this limit; and, 2) A freely negotiated collective bargaining agreement must be in place that allows work time averaging.

27 Remuneration 8.1 SA explicitly states that a company must respect the right of personnel to a living wage. This statement is intended to place basic needs wage calculations into context (e.g. in some countries it s not possible to assume two wage earners) The committee also decided the definition of a living wage has seen emerging consensus around: a basic needs wage and discretionary income.

28 Management Systems 9.3 Under 9.3, companies must ensure that workers have the right to representation on all matters relating to the standard. Where (representative union exists) union performs this role. Where no union exists, workers must be allowed to elect an SA8000 worker representative from among themselves. Under no circumstances shall the SA8000 worker representative be a substitute for a trade union.

29 Management Systems 9.14 SA requires companies to demonstrate their willingness to participate in dialogues with all interested stakeholders in attaining sustainable compliance with the standard. Reflects the emerging consensus within the CSR movement that dialogue with local stakeholders is vital in achieving sustainable compliance with social standards.

30 Compliance & Management Systems The Key to Continual Improvement

31 ISO & SA8000 Systems Similarities of ISO & SA8000 Management system based Documented policies and procedures Senior management support is critical Worker participation is key Continual improvement approach Self-monitoring is crucial Conforms to the fundamental management system audit principles as stated in ISO Plan, Do, Check, Act 31 SAI 2008

32 SA8000 Management Systems Standard Senior Management will direct the implementation of the company s policy for social accountability and labor conditions Senior Management will insure that policies include: Commitment to conform to all requirements of the SA8000 Standard Commitment to comply with all applicable and requirements to which the company subscribes, including international law Commitment to continual improvement Policies must be documented, implemented, maintained, communicated Policies must be accessible and comprehensible to all personnel, whether directly employed or contracted Policies must be publicly available 32 SAI 2008

33 Management System Components Company Code of Conduct Adopted by Board & CEO CEO Statement to Employees & Suppliers Statement of Scope and Risk Analysis based on Supplier Mapping Company Organization Chart, including CSR department or function Employment policies (hiring, compensation, termination) IT support plan for integrating compliance and sourcing data Job Descriptions of CSR staff & CSR advocate in sourcing department Training plan and curriculum for staff, suppliers and auditors Key Performance Indicator reports for compliance and sourcing Supplier Contracts & Purchase Orders, including authorization procedures Control of sub-contractors and sub-suppliers Supplier compliance policy, sub-contractor policy, including termination and incentives New Supplier Evaluation Forms, including self-assessment Auditing policy and procedure (including internal, second and third party) Corrective Action, Remediation and Complaint Policies and Procedures Policies for engaging external stakeholders, including NGOs Public Reporting policy, strategy and guidelines 33 SAI 2008

34 Social Auditing Much more subjective than quality or environmental auditing Auditors need to use their judgment in the face of conflicting evidence Audit quality and calibration is a constant issue Cultural norms heavily influence auditor views Management intent has a big impact on how their actions are viewed Interviewing techniques are critical - truth, lies and judging motives Snapshot audits Conflicting messages from customers - sourcing versus compliance 34 SAI 2008

35 Steps to Compliance Create internal social compliance team - managers and workers Must have CEO support Establish a social policy and management systems Integrate internal compliance with basic business operations Clearly communicate the policy: Internally - to managers and workers in all departments Externally - to buyers, suppliers, sub-contractors and investors Develop specific procedures based on the policy Integrate social compliance procedures with other procedures Define specific action plans and timelines Conduct an internal test audit Management review 35 SAI 2008

36 Benefits from Improved Social Compliance Production Benefits, Management and Worker Benefits

37 Production Benefits Improved worker retention (example in China: 78% to 32% annual employee turnover in 3 years) Lower training and recruitment cost Better quality / lower defect rate Fewer accidents / work days lost Safety and protective equipment improvements Accident rate increases sharply beyond 60 hours per week 37 SAI 2008

38 SA8000 Benefits to Workers Fewer injuries & accidents. Adherence to labor laws. More awareness of labor rights. Enhanced opportunities to organize. Higher compensation. Better communications with management. Human Rights at Work

39 SA8000 Benefits for Employers Gains in quality & productivity. Higher employee retention. Better relations with workers, trade unions, NGOs, customers. Effective management systems. Enhanced brand & reputation. Increased attractiveness to global buyers. Innovation Human Rights at Work

40 Closing thought It is no longer when, but how John Ruggie, The UN Secretary General s Special Representative on Human Rights

41 5 West 44th Street, 6th Floor New York, NY tel: (212) fax: (212)

42 TM