Proposed KRAV Standard Future Additional Requirements for Social Responsibility for All Products and Raw Materials

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1 Proposed standard for Social Responsibility 16.4 Proposed KRAV Standard Future Additional Requirements for Social Responsibility for All Products and Raw Materials Definitions Corruption Generally speaking as the abuse of entrusted power for private gain. Corruption is that someone influences a result of a decision, through offers, services, money, threats or force, against applicable rules and regulations. Corruption can be classified as grand, petty and political, depending on the amounts of money lost and the sector where it occurs. Corruption includes bribery, extortion, nepotism, racketeering, fiddling and embezzlement. Family-owned business A family-owned business may be defined as any business in which one or more family members are involved and the majority of ownership or control lies within the family. Indigenous peoples UN s definition of indigenous peoples is that the indigenous people are those who have a historical continuity with the communities in the territory which later was invaded or colonized by others, consider themselves distinct from the rest of the population, now live in this territory, and strive to preserve, develop and transmit their traditional territories and their ethnic identity to future generations. Living wage The remuneration received for a standard work week by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs including provision for unexpected events. Management system A management system is a documented system that includes organizational structure, planning, responsibilities, practices, routines, processes, and resources for development, implementing, performing, modifying and maintaining an activity. Management systems can be certified, but certification is not required for this definition. Examples of standards for certifiable management systems are ISO 9001 and ISO Management system for social accountability 1

2 A management system for social management system enables organizations to improve their social performance through a process of continuous improvement. An oversimplification is "Plan, Do, Check, Act". A more complete system would include accountability (an assignment of personal responsibility) and a schedule for activities to be completed, as well as auditing tools to implement corrective actions in addition to scheduled activities, creating an upward spiral of continuous improvement. Second-party verification Second-party verification is when verification is done by a person outside the company where the requirements will be verified, by the buyer or on behalf of the buyer. The verification should be done by a person with auditor competence in organic production. Verification can be made against one or several of KRAV s checklists. Third-party verification Third-party verification is when verification is done by a certification body that is accredited for organic production. The verification of the additional requirements of section 16.4 may be carried out by a certification body that is accredited for certification according to standards for social responsibility. The verification of the extra requirements may be carried out against one or several of KRAV s checklists Future Requirements for Social Responsibility The standards in this section apply to all products and raw material Different Categories of Standards KRAV s standards in section 16.4 have been divided into categories which enter into force at different times. The different categories of standards are: Requirements that an importer has to fulfill (I) Basic social requirements for your suppliers and sub-contractors (B) Detailed social requirements for your suppliers and sub-contractors (D) Entry Into Force (I) You must take the following steps to introduce and follow the standards in section 16.4: Inform your suppliers and sub-contractors about the standards in section 16.4 no later than , and the latest date that they must comply with each part of the standard. 2

3 Comply with the standards in category I no later than Your suppliers and sub-contractors must comply with the standards in category B and D no later than Non-compliance (I) If your suppliers or sub-contractors have non-compliances according to Section B of the standards, they have to correct them by latest within three months after the non-compliances have been detected, and it is your responsibility to make sure they do so. If your suppliers or sub-contractors have non-compliances according to Section D of the standards, they have to correct them by latest within one year after the non-compliances have been detected, and it is your responsibility to make sure they do so Risk Assessment and Continuous Improvement (I) By you must have completed a risk assessment that details the risk of non-compliance with the standards in section16.4 for any of your suppliers and sub-contractors. You must use KRAV s template for risk assessment. You must work continuously to: take reasonable and appropriate measures to ensure that your suppliers and their subcontractors work to continually improve compliance with KRAV standards on social responsibility. identify all risks for non-compliance with KRAV s standards on social responsibility and minimize these risks. try to understand the basic reasons for any negative impacts on human rights, so that you can prevent, deter and deal with the causes. This is especially important if you import or bring in product or raw material from risk areas or sectors. 3

4 Human Rights (B) A product created under conditions that violate basic human rights, or that infringe upon indigenous land rights cannot be certified according to the KRAV standards. Your suppliers and their sub-contractors must work systematically to respect the basic rights of the people living and working on organic operations Limitations in Local Laws (B) Your suppliers and their sub-contractors must comply with local laws. If there are limitations in the local laws, your suppliers and their sub-contractors must work in the best possible way to comply with the KRAV standards in section 16.4 despite those limitations. KRAV s standards are based on the International Labour Organisation s (ILO) Conventions and Recommendations, the UN Conventions on the Rights of the Child, the Children s Rights and Business Principles developed by the United Nations Global Compact, UNICEF and Save the Children, and the United Nations Declaration on the Rights of Indigenous Peoples, The articles of United Nations Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights The Labour Concerned (B) The standards in section 16.4 apply to the entire workforce, and thus apply to seasonal workers, migrant workers, agency-supplied workers or those who help with activities out of personal interest, such as volunteers or interns. All workers in the production must have comparable working conditions. The standards must not be circumvented by, for example only short-term employment, offering temporary employment or pay per day systems. The standards in section 16.4 do not apply to family owned operations without hired labor Services and Transportation (B) The requirements do not include sub-contractors performing non-production core business functions such as plumbing, cleaning, machine repair, or electrical work Employment Agency Workers (D) KRAV allows temporary work agencies with a legal status that can document full compliance with the KRAV standards. Temporary work agencies must be transparent and ready to document their compliance with the local labour legislation of the country of production. 4

5 Management System (B) Your suppliers and sub-contractors must define an employment policy and operate a management system for human resources based on social responsibility. Your suppliers and sub-contractors must have a written employment policy that is in accordance with KRAV s social requirements. To enforce this policy, they must operate a management system for social responsibility in accordance with the size and the resources of the operation. This system must: Identify those responsible for the following the standards of social responsibility Assess compliance with all labour regulations and ILO conventions and recommendations Provide easy mechanisms for a social dialogue, in particular regular meetings with employee representatives at an appropriate frequency, with the aim to solve problems and conflicts as well as to address concerns or grievances Assess on a regular basis employer/employee relations and any need for improvement No Involuntary Labour (B) Your suppliers and their sub-contractors must not: have coercive or any other form of involuntary labour. force workers to stay at the workplace by withholding their salaries, property, documents or by any other means. expose workers to inhuman or degrading treatment, corporal punishment, mental or physical pressure or verbal abuse. The standard is based on the main ILO conventions 29/1930 and 105/1957 (Abolition of forced labor) No Discrimination (D) Your suppliers and their sub-contractors must ensure that no employee is discriminated against in recruitment, allocation of duties, compensation, access to training, promotion, termination, retirement or in any other respect due to, for example: marital status ethnicity family responsibilities disabilities birth 5

6 sex caste membership in a trade union or other eligible organization national origin political affiliation or opinion religion sexual orientation disease social origin age The standard is based on main ILO convention 111/1958. See also conventions 11, 135, 154 and recommendation 146, convention 100/1951, 11, 135, 110 (Plantation convention), 154 and recommendation No Child Labour (B) Your suppliers and their sub-contractors must not: directly or indirectly employ children under the age of 15, except for applicable exceptions recognized by the ILO. ILO exceptions apply to low-income countries where legislation approves employment at 14 years of age, for example in India, Bangladesh and Pakistan. Your suppliers and their sub-contractors must: take special care when terminating the employment of children, as there is a risk that they will move into more inappropriate work, for example prostitution or drug-related trafficking. comply with child rights principles developed by the United Nations Global Compact, UNICEF and Save the Children, if children are moved from a workplace. Exception: Children are allowed to experience working in an operation provided that such work is not dangerous or hazardous to their health and safety it does not jeopardize the child s educational, moral, social, mental, spiritual and physical development they are supervised by adults or have authorization from a legal guardian The standard is based on ILO conventions 138/1973 (Minimum age convention), 182/1999 (Worst forms of Child Labour). See also conventions 10 (attending school), 79 (attending school), 142 and recommendation

7 Young Workers (D) Where young workers between the ages of 15 and 18 are employed, your suppliers and their subcontractors must ensure that: the work is not harmful to their health or development and the working hours and location do not conflict with their attendance at school, their ability to participate in vocational orientation approved by the competent authority or their capacity to benefit from training or instruction programs Freedom of Association and Collective Bargaining (B) Your suppliers and their sub-contractors must: respect the right of all workers to freely form, have membership in and organize trade unions and to bargain collectively, free from interference, intimidation and retaliation. not prevent workers representatives from having access to other workers in the workplace or from interacting with them. implement a dialogue between employees (employee s representatives) and management. This dialogue must be in part formal and documented, with a goal of avoiding or solving labour conflicts and creating a climate of trust and open communication between the management and the workforce. in countries where trade union activity and collective bargaining is unlawful or in which free and democratic trade union activities are not allowed, respect these principles by allowing workers to freely choose their own representatives with whom the company can negotiate work-related issues. The standard is based on main ILO conventions 87/1949 and 98/1951. See also conventions 11, 135, 154 and recommendation Wages (D) Your suppliers and their sub-contractors must: Pay salaries regularly and in legal tender. Pay salaries on time and according to contract. Only make deductions from wages according to the conditions and to the extent stipulated by law or established in collective agreements. Clearly and accurately inform their employees about the basis for calculating wages for each payment, salary level and payment period. Provide employees with a written salary statement on request. 7

8 If workers so choose, they may receive part of their wage in kind for services such as housing, food or others offered by the operation. The value attributed to such deductions shall be fair and reasonable. Compulsory deductions are not permitted. It is recommended that operators respect the right of the workers to receive a living wage that is sufficient to provide them with a decent living for themselves and their families, as well as the social benefits legally granted. KRAV supports efforts to accurately define living wages in the countries and regions of production. Once stakeholders agree on an accurate definition of living wages in a country or region, KRAV supports efforts to implement such living wages in all organic operations in that country or region. The standard is based on ILO convention 12/1958, 102/1952, 131/1970, 173/ Wage Level (B) Your suppliers and their sub-contractors shall comply, as a minimum, with either: wages mandated by governments minimum wage legislation (on a national or regional basis, according to what is relevant in the country), or industry standards approved on the basis of collective bargaining, according to whichever is higher and in favour of the worker. The standard is based on ILO conventions 12/1958, 102/1952, 131/1970, 173/ No Excessive Overtime (D) Your suppliers and their sub-contractors must: Ensure that workers are not required to work more than 48 hours per week, unless otherwise defined in a collective bargaining agreement. Give each employee at least one day off each working period of seven days. Follow national laws and regulations or collective agreements at least regarding hours of work, night work and rest periods. Your suppliers and their sub-contractors must not require workers to work more than the contract hours and the national or regional sectorial legislation stipulates. Overtime shall be remunerated in the form of supplementary payments or time off. Overtime must: Always be agreed on between employer and employee. Not be required regularly. Be paid at the rate of the minimum statutory compensation. Be paid for workers who receive piece rate pay so that they receive at least the minimum wage during regular working hours. The standard is based on ILO conventions 1/1919, 14/1921, 106/1957, 131/1970, 173/

9 Prevent Threats to Health and Safety of Workers (B) Your suppliers and their subcontractors must ensure that there are systems in place to detect, assess, avoid and respond to potential threats to the health and safety of workers. They are responsible to take effective measures to prevent workers from having accidents, injuries or illnesses, arising from, associated with, or occurring during work. These standards are based on ILO conventions 155/1981 (Occupational Health and Safety) and 184/2001 (Safety and Health in Agriculture) Safe and Hygienic Working Conditions (D) The working environment of your suppliers and their sub-contractors must be safe and hygienic. Your suppliers and their sub-contractors must: comply with occupational health and safety regulations, or with international standards where domestic legislation is weak or poorly enforced. provide appropriate safety training. provide equipment to protect workers from noise, dust, sunlight and exposure to chemicals or other hazards in all production and processing operations. respect the right to healthy working and living conditions of workers and local communities. Vulnerable individuals such as - but not limited to - young workers, new and expecting mothers and persons with disabilities, must receive special protection. ensure adequate access to potable water. provide residential employees with habitable housing and access to potable water, to sanitary and cooking facilities and to basic medical care. If families reside on the operation, the operator must also enable access to basic medical care for family members and to school for children. regularly evaluate and improve workers protection and especially take use of the experiences in case of an accident. improve workers protection through compulsory insurance schemes. The active co-operation between management and workers, and/or their representatives is essential in order to develop and implement systems aimed towards ensuring a safe and healthy work environment. This may be achieved through the establishment of occupational health and safety committees. 9

10 These standards are based on ILO conventions 155/1981 (Occupational Health and Safety) and 184/2001 (Safety and Health in Agriculture) Employment Contract (D) All employees of your suppliers and their sub-contractors must: understand the terms of their employment contract receive a written employment contract in a language and presentation understandable to the them. This applies to both permanent and temporary employees. The employment contract must specify at least the following: - wages - frequency and method of payment, - location, type and hours of work, - recognition of workers freedom of association, - disciplinary procedure, - health and safety procedure, - eligibility and terms of overtime, holiday pay, sickness benefit and other benefits such as maternity and paternity leave, and - worker s right to terminate employment No Trafficking (B) KRAV opposes all kinds of human trafficking, for example through illegal organizations or networks negotiating between employers and migrant workers. KRAV opposes any ransoming of employers and/or workers. This must not exist in your operation or at your suppliers or their subcontractors Legalized Migrants (B) You, your suppliers or their subcontractors may not hire non-legalized migrant workers or other non-legalized workforce Counteract Corruption and Embezzlement (B) You, your suppliers and their subcontractors and other business partners must not be involved in any form of corruption, including (but not limited to) giving or receiving monetary bribes or other types of benefits Policy Against Bribes and Corruption (B) 10

11 You, your suppliers and their sub-contractors must confirm in writing that you refrain from corruption in all your routines that concerns your business activities Respecting and Protecting the Rights of Indigenous Peoples (B) You, your suppliers and their sub-contractors must respect and protect the rights of Indigenous peoples. You, your suppliers and their sub-contractors operations must not be in conflict with the UN Declaration on the Rights of Indigenous Peoples. The UN Declaration of Rights of Indigenous Peoples (UNDRIP) established a universal framework of minimum standards for the survival, dignity, well-being and rights of the world s Indigenous peoples. The main themes in the 46 articles contained in the declaration are the right to selfdetermination, the right to be recognized as distinct peoples, the right to free, prior and informed consent and the right to be free from discrimination. Following standards are proposed to complement section 16.1, 16.2 and standard New text is underlined and deleted text is crossed. This is not the whole standard in section 16.1, 16.2 and 18. You can find it on our webpage Introductory Standards Involve Suppliers and Sub-contractors (new standard) It is your responsibility to ensure that your suppliers and their sub-contractors comply with KRAV standards in Chapter 16 for the products and raw materials you are going to KRAV label Extra Requirements in Agreements (new standard) You must include the extra requirements in Chapter 16 in agreements with all of your suppliers. 11

12 16.2. Different Ways to Verify the Extra Requirements Verification of Extra Requirements Verification of all extra requirements must be carried out on-site throughout the entire supply chain, at your suppliers and their sub-contractors. You are responsible for a product or raw material complying with the KRAV extra requirements by verifying in one of the following ways (K): It is certified according to a standard that KRAV recognizes. Verification is carried out by a certification body using any of the KRAV checklists. Until verification can be carried out by a second party using any of the KRAV checklists. Verification is carried out by a second party using any of the KRAV checklists Third-party Verification Third-party verification must be carried out by a certification body accredited for organic production. Verification of the extra requirements in section 16.4 may be done by a certification body accredited for certification of social standards. Verification of the extra requirements can be done using one or several of the KRAV checklists. Verification of the KRAV extra requirements can be done using one or several of the KRAV checklists. (K) When third-party verification is carried out for requirements in section 16.4, verification must: be carried out by a person trained in social responsibility according to SaaS, SAN / Rainforest Alliance, IMO Fair for Life, FLOCERT or as a lead auditor for the UTZ. include interviews with workers, including migrant workers, without management being present. The largest language groups must be represented among the interviewees. focus especially on labour in primary production, social dialogue, wages and conditions for migrants Second-party Verification Second-party verification must be done by someone outside the company that is being verified regarding the extra requirements. The verification must be carried out by a person with competence to audit organic production. Verification can be done using one or several of the KRAV checklists. (K) Second-party verification must be phased out by

13 Chapter Knowledge for Auditors about Import and Bringing In In order to be able to carry out audits of import and bringing in an auditor must be familiar with: International Labour Organisation (ILO) Conventions and Recommendations the UN Convention on the Rights of the Child Children s Rights and Business Principles developed by the United Nations Global Compact, UNICEF and Save the Children The United Nations Declaration on the Rights of Indigenous Peoples The Universal Declaration of Human Rights The UN Guiding Principles on Business and Human Rights the standards recognised by KRAV which are available on the KRAV website. In order to be able to carry out audits of import and bringing in an auditor must: know about the four ILO conventions 138, 118, 105 and 98, know about the standards recognized by KRAV which are available on the KRAV website. 13