Social Fingerprint : Measure & Improve Social Performance

Transcription

1 Social Fingerprint : Measure & Improve Social Performance Presented at the ISSP Conference September 22, 2011 by Craig Moss, Director Corporate Programs & Training Social Accountability International 2011

2 Social Accountability International Multi-stakeholder organization - established May 1997 Developed leading social compliance standard and certification system - SA8000 Multi-industry and global Leader in social compliance training for brands, suppliers and auditors Contracted by many governments and multi-national agencies to conduct CSR awareness and supplier training

3 SAI Corporate Programs Work with brands and retailers to use management systems to drive continual improvement of social performance in their supply chains - applicable to various codes and standards Published Implementing a Socially Responsible Supply Chain Developed Handbook for World Bank/IFC on client use of management systems to meet PS2 Members include Carrefour, Disney, HP, Gap, Timberland, Anvil Knitwear, Rosy Blue, General Mills, Chiquita, Gucci, TNT, Otto Group, Billabong, etc.

4 Session Overview (Really Brief) Introduction to Social Performance Challenge: Prescription versus Judgment Setting the Stage: Social Performance in the Global Supply Chain Measure & Improve: Using a Process-based Approach (Really Quick) Tour of Social Fingerprint Discussion

5 Introduction to Social Performance aka Labor Standards Performance, Social Compliance, Labor Compliance

6 SA8000 : Labor Standard 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 Social Accountability International

7 Elements of Social Performance " Improving social performance requires improvement by managers and workers in all three areas Attitudes Skills Knowledge

8 Social Performance in the Global Supply Chain

9 Consumer Electronics Supply Chain PO CONSUMER ELECTRONICS BRAND Sub-Contractor: Batteries SUPPLIER: ASSEMBLY, QC & PACKAGING Sub-Contractor: Memory Sub-Contractor: Plastic Cases Sub-Contractor: Displays Sub-Supplier: Wires Sub-Supplier: Connectors Sub-Supplier: Switches Sub-Supplier: Cells Sub-Supplier: Dormitory Sub-Supplier: Security Sub-Supplier: Cleaning Sub-Supplier: Cafeteria X X X X X X X X Produce Meat Paper Tools Bakery Social Accountability International

10 Socially Responsible Supply Chain Trends Increasing use of Strategic Suppliers Working with suppliers to build internal capacity More training, less auditing All industries struggling with how to manage sub-contractors Integrating social compliance into sourcing operations and performance measurements Shift from the stick to the carrot

11 Prescription versus Judgment Social Accountability International 2011

12 Discrimination or Not? Women at the shoe factory in India are not allowed to perform certain production jobs after the age of 25 since younger workers are considered to be more efficient at this particular task. Social Accountability International

13 Prescription Choice 1 Choice 2 Social Accountability International 2011

14 u The Third Option Social Accountability International 2011

15 More Choices More Decisions Social Accountability International 2011

16 Prescription vs. Calibration Social Accountability International 2011

17 Judgment and the Theory of Motivated Reasoning Our Beliefs versus New Facts Confirmation Bias Disconfirmation Bias Changing Attitude is REALLY HARD Social Accountability International

18 Measure & Improve Using a Process-based Approach

19 You Can t Improve What You Don t Measure Losing weight Running a marathon Social Accountability International

20 Social Fingerprint Program Approach Measure & Improve Focuses on processes and management systems not only code violations Builds on SA8000 management systems Analyzes system development and implementation Supports continual improvement along any standard, industry code or corporate code Shapes the path and creates small steps to improvement

21 Social Fingerprint Programs Company Supply Chain Management Looks inside a company at how they manage social performance Looks at how a company manages social performance in its supply chain Typically for suppliers Typically for brands/retailers Social Accountability International

22 Social Fingerprint Program: Uses Self-Assessment Internal tool to measure and improve Risk assessment tool Remote Independent Evaluation Phone interview and document review Benchmarking Field Verification Social Accountability International

23 Social Fingerprint Process Categories Company Program (Supplier) Management Systems Internal Social Performance Team Worker Involvement & Communication Complaint Management & Resolution Level & Type of Non-Conformance Progress on Corrective Actions Supply Chain Management Program (Brand/Retailer) Scope & Risk Aggregate Score of Suppliers Annual Improvement of Suppliers Internal Integration of Compliance and Sourcing Supplier Communication & Purchasing Practices Complaint Management & Resolution External Stakeholder Engagement Training & Capacity Building Management of Suppliers & Contractors Social Accountability International

24 Social Fingerprint Levels 1 = Little or no awareness, systems or interest 2 = Limited systems with sporadic implementation 3 = Systems in development with partial implementation 4 = Fully developed systems with improving implementation 5 = Mature systems, fully implemented inside and outside company

25

26 Mapping Social Fingerprint to SA8000 or a Rigorous Code Implementation Tips Verify that policies and procedures in Management Systems meet SA8000 or Code Think both ways Use the 9 Social Fingerprint categories to tackle any individual labor code element Use the 9 Social Fingerprint categories as a detailed plan for a management systems audit Social Fingerprint improvement tips can help with corrective actions and remediation Social Accountability International

27 Human resource policies and procedures meeting the selected code or standard

28 Trained multi-department team that leads the effort and includes worker representation

29 Effective two-way communication channels and joint participation

30 The system for handling and addressing grievances

31 Severity and frequency of problems in meeting labor standards systemic or isolated

32 Effective system for addressing problems and making changes to prevent them from recurring

33 Cooperation with outside auditors and involvement with external stakeholders to enhance efforts to improve labor standards

34 System for training on the attitude, skills and knowledge needed to improve labor standards - in your company and supply chain

35 System for informing suppliers of labor standard and methods for influencing them to meet the code or standard and improve

36 Social Fingerprint in Action

37 Comparison: 50 Suppliers in China Self-Assessment SAI Evaluation Social Accountability International

38 Case Study: Benefits & Results 60 vendors in one country - random survey of 23: 91% agreed or strongly agreed - online system easy to use 100% implemented improvement tips immediately (57% 3-5 tips; 24% implemented 6+ tips) Improvement highlights reporting significantly better Management Systems 48% Internal Social Performance Teams 44% Worker Involvement & Communication 35% Progress on Corrective Actions 44% 82% agreed or strongly agreed that Social Fingerprint was more helpful than other social performance programs Social Accountability International

39 Social Fingerprint Getting Started: Quick Tour

40 Social Accountability International

41

42 Social Accountability International

43

44

45

46

47

48

49

50

51