ETHICAL TRADE FOR PUBLISHERS. Why bother? Pam Wood Senior Project Manager

Transcription

1 ETHICAL TRADE FOR PUBLISHERS Why bother? Pam Wood Senior Project Manager

2 Who is? Impactt is a consultancy specialising in labour standards in supply chains with 17 years experience of working with brands, suppliers, factories and workers. We have experience working worldwide. with offices in the UK, China, India and Bangladesh, and Associates in Argentina, Australia, Eastern Europe, Kenya, Turkey, Vietnam and Thailand.

3 Why bother with ethical trade?

4 What is ethical trade? Understand labour risks in your supply chain Act responsibly towards the workers who make the products you sell Be proud of how you behave towards people in our supply chain

5 We demand Innovation Flexibility Speed Value

6 Suppliers have to Be fast Be smart Cut some corners?

7 But is it okay if children make our products?

8 But is it okay if tight lead times means workers have to work through the night?

9 But is it okay if workers get no rest?

10 But is it okay if workers don t make enough money to meet their basic needs?

11 But is it okay if workers are seriously injured while making our product?

12 But is it okay if my suppliers subcontract from unknown workshops?

13 But not in my supply chain, right?

14 Impactt s Labour Exploitation Index 8 Impactt's Exploitation Asia Index

15 But not in my UK factories, right?

16 Impactt s Labour Prevalence Index Forced labour Coached Workers Double books UK PREVALENCE INDEX Hours over 60/week Nonpayment of minimum wages Child labour no robust age verificati on system No union or ineffective union % 0% 11% 65% 39% 0% 44% 82% % 5% 10% 45% 25% 0% 33% 75% % 52% 35% 68% 16% 0% 26% 90% % 33% 33% 56% 33% 0% 33% 83% % 42% 45% 36% 27% 0% 52% 100% % 18% 21% 74% 21% 0% 26% 91% % 4% 4% 83% 13% 0% 17% 95% Note: draft; numbers being verified and updated

17 Who cares?

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19 Customers 60% 50% 40% 30% 20% 46% 31% 55% 10% 0% 46% of consumers bought primarily for ethical reasons 31% actively sought information on a company s behavior and policies 55% chose a product based on a company s behavior Co-op ethical consumerism report 2010

20 In the Downturn Customers 42% of customers globally say social purpose would affect their decision when choosing between two brands of similar quality & price (Edelmen, 2010) Sales of ethical clothing have grown 72% in the last two years to reach 177 million (Co-op ethical consumerism report 2010) 50% of UK customers consider social and environmental factors in their purchasing decisions (Ethical Consumer Magazine Nov 2008)

21 Employees m m 86% of British workers believe it is important that their employer should be responsible to society and the environment More than half feel it is very important Ipsos MORI (Nov 2008) I have often spoken to customers regarding ethical trade. I cannot bear child exploitation. A lot of people will talk about it but take no steps to try and do something about it. It therefore is very important to me that the company I work for does take it seriously. UK Customer Service Centre Manager

22 Non-Governmental Orgs.

23 Media

24 Investors 83% of investors believe that environmental and social factors have a huge impact on shareholder value Institutional Shareholder Services /2 of shareholder proposals in 2011 will focus on social/ environmental issues Ernst and Young Climate change and sustainability report 2010

25 Building blocks EFFICIENCY PRODUCTION MANAGEMENT PLANNING & DEVELOPMENT COMMUNICATION ETHICAL TRADE HR PRACTICES QUALITY MANAGEMENT RESOURCES

26 The efficiency case

27 Cost of poor standards Long hours Poor H&S means Tired workers Poor nutrition Lower productivity Lower quality More accidents / fatalities Harsh treatment Additional cost

28 ETI Efficiency Video

29 Cost of getting it wrong We won t feel good about ourselves Threat of litigation Late delivery Poor quality Bad publicity Reputational damage

30 Benefits of getting it right Enhanced brand value and better business Feel good factor Stronger relations with suppliers Good publicity Increased efficiency, better quality Reduced risk Happy customers

31 What can we do? Get support from senior management Map your supply chain Gauge and manage labour risks Establish a Code of Conduct Communicate your standards to suppliers Have an active and robust ethical programme for their supply chain Work to better understand workers viewpoints Understand labour issues in specific countries and support suppliers to address factory-specific issues Question audit results and work with suppliers to close non-compliances

32 Thank you