International labour standards and corporate social responsibility. International Training Centre ILO September 2017 Turin

Transcription

1 International labour standards and corporate social responsibility International Training Centre ILO September 2017 Turin

2 Issues and assumptions regarding CSR and ILS Vera Köppen, FWF

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4 TOPICS FOR THIS AFTERNOON Fair Wear Foundation Why do brands join Labour standards in garment supply chain Role of brands What does FWF do Examples of remediation Tools

5 CONTEXT FWF

6 FAIR WEAR FORMULA MOVIE

7 FWF FWF multi-stakeholder DNA /stakeholder engagement Focus on progress/remediation Shared responsibility Focus on purchasing practices

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9 Companies and labour rights Legal framework on standards Non-financial reporting Responsibility (UNGP, OECD) Push from procurement/consumers Business case: productivity, stability, reducing risk

10 WHY DO BRANDS JOIN FWF Legitimacy for their own monitoring/remediation Neutral third party investigate complaints Support due diligence, monitoring, remediation Collaborative action

11 All actors have to act, align activities, embed it in own practices

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14 ROLE OF MEMBER COMPANIES What does FWF ask from our member companies?

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17 COHERENT MONITORING SYSTEM Map supply chain Risk assessment Due diligence Dialogue with suppliers Inform/train Assess/audits Facilitate/contribute to remediation Track progress Communicate

18 ROLE FWF Stakeholder engagement Complaints mechanism Verification Factory audits Assessment of brand performance Support remediation and training

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20 FWF BRAND PERFORMANCE CHECK COMBINES BEST OF Corporate CSR self-reporting Credibility + transparency problems, but has detailed info External reporting (e.g. NGOs) Independence and objectivity, but limited access

21 PERFORMANCE ASSESSMENT AND PUBLIC REPORTING Sourcing practices (selection of suppliers, due diligence, planning, pricing, evaluating) Monitoring and remediating Informing/training and Complaints handling Information management Transparency Evaluation within company

22 Issues and assumptions

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26 PROBLEMEN IN DE KETEN

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28 LOW WAGES

29 WAGELADDER

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31 EXAMPLES REMEDIATION Reducing overtime Adressing gender based violence Solving problems related to FoA Explorations on steps towards living wage

32 EXCESSIVE OVERTIME Why a problem? What do you think are possible root causes?

33 EXCESSIVE OVERTIME Internal factors: Management issues production capacity production line design payment system Employee issues employee motivation number of skilled employees absenteeism

34 EXCESSIVE OVERTIME External factors: Issues concerning buyers: Forecasting of production Leadtime Approval of samples Changes in styles Issues concerning suppliers: Late delivery of material or accessories Others: Power cuts Cotton price Re-order

35 EXCESSIVE OVERTIME Reducing OT Time is not the only thing that matters. Efficiency Wage Health and safety

36 FWF BEST PRACTICE AWARD WINNER 2015 Reducing overtime

37 GENDER BASED VIOLENCE In some countries widespread Typically not found in audits

38 FWF VIOLENCE PREVENTION PROGRAMME Art focus groups Training Helpline Support anti-harassment committees Build supportive environment/dialogue Prevent production pressure Supervisor training

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40 CONTEXT PRODUCTION COUNTRIES ILO conventions on Freedom of association and Collective Bargaining Global rights index from global trade union organisation (ITUC) Scale 1-5 Bangladesh Yes, but... 5 China No 5 India No 5 Indonesia Yes 5 Myanmar Yes/No 5 Turkey Yes, but... 5 Vietnam No 5

41 FREEDOM OF ASSOCIATION

42 STEPS TOWARDS LIVING WAGE Best wage=negotiated wage Analyse price escalation Analysing cost implications/lmc Piloting ways to get it to workers Nudie: increase on FOB Continental: Pay part increased labour costs Albiro: test costing sheets+ funds Switcher: setting aside funds/item Mayerline: support CBA

43 WAYS TO SUPPORT REMEDIATION Dialogue Supplier seminars Training Consultant Materials Financial support Longer term commitment Adapt price

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45 TOOLS Wage Ladder/Labour minute costing Workplace education programme Portals on living wage and womens safety at work Country studies Gender-Based-Violence toolkit Enhanced monitoring programme for Myanmar, Bangladesh, Turkey Guidance on e.g. homeworkers, sumangali, sandblasting Audit quality assessment tool Exchange and knowledge sharing platform Trainings and pilot projects

46 KEY ELEMENTS FOR SUCCESS? Embedding CSR in organisation Sustainable sourcing Using leverage to improve Transparency on issues Sharing learnings from remediation Collaborative approach (strategic partnership, cooperation agreement) Enabling environment/stakeholder engagement

47 Respect should not be interpreted as a passive verb

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