Who Benefits from Improved Labor Standards?Buyers More effective and reliable supply chain Measurable corporate social responsibility track record Improved employee recruitment, retention and performance Better risk management
SAI Around the World Europe and the Middle East Belgium Poland Czech Republic Portugal Denmark Romania Asia Finland Slovenia Bangladesh Laos France Spain China MalaysiaNorth America Germany Sweden India PakistanUS Greece Switzerland Indonesia PhilippinesMexico Hungary Syria Japan Singapore Italy Turkey Korea Sri Lanka Netherlands UK Taiwan Thailand Central and Vietnam South America Africa Argentina Ghana Brazil Kenya Chile Lesotho Costa Rica Mauritius Ecuador South Africa Guatemala Honduras Peru SAI Offices
Background to Social Accountability“Where, after all, do universal human rights begin? Insmall places close to home – so close and so small thatthey cannot be seen on any map of the world. Yet theyare the world of the individual person: theneighborhood he lives in; the school or college heattends; the factory, farm or office where he works.Such are the places where every man, woman and childseeks equal justice, equal opportunity, equal dignitywithout discrimination. Unless these rights havemeaning there, they have little meaning anywhere.”Eleanor Roosevelt – remarks at the United Nations Commission onHuman Rights – March 27, 1948.
The Uninformed Consumer Retailer Suppliers Retailer India, China, ConsumerKenya, Brazil, Indonesia, Turkey, etc. Retailer Consumer view of the supply chain Retailer stops at retailer
AssumptionThe consumer values regarding socialaccountability, ethics and so forth arepassed via the retailer to the retailer’s supplychain.SoProvided supply chain meets requirementsof consumer values - NO PROBLEM
The Informed Consumer Retailer Suppliers Retailer India, China, Retailer ConsumerKenya, Brazil, Indonesia, Retailer Turkey, Consumer etc. informed of supplier details becomes aware Media of supply chain issues
Why was SA 8000 Developed Consumers and other stakeholders have become increasingly concerned about whether products have been manufactured under conditions of violation of human rights, child labor and discrimination – as often reported by the media. The existing management of many companies cannot adequately cope with the myriad demands imposed by labor laws, codes of conduct of individual companies, as well as their stakeholders.
Why Use A Standard? - SA8000 is a broad consensus document represents the interests of many stakeholders, while being biased to none in particular is sufficiently rigid yet flexible meets the expectations of civil society, yet is suitable for application across all industry sectors and localities
Why Use A Standard? - SA8000 SA 8000 unambiguously respects the key aspects of the ILO and UN conventions relevant to human rights in the workplace contains measurable and flexible management system requirements
Why Use A Standard? - SA8000 fundamental management concept embodied in section 9 requires mechanisms to ensure control, response and accountability ensures that company management respects social accountability as a strategic business issue
Social Accountability International (CEPAA) Now (SAI)• Affiliate of the Council on Economic Priorities• Established 1997 ,Its Mission is to provide accurate and impartial analysis to evaluate corporate social performance.• Advisory Board convened to oversee SA 8000 development and accreditation processes
SAI (Continued)• Consists of representatives of Unions, human rights and children’s rights organisations, academia, retailers, manufacturers, contractors, consulting, accounting and certification firms: e Amnesty International, Association , Avon, Body Shop, CEP, Eileen Fisher, Group M, International Textile Garment and Leather Workers Federation, KPMG , National Child Labour Committee, Reebok, SGS ICS, Toys R Us, University of Texas
SAI Mission Development of consensus based voluntary based standard. Accredit qualified organization to verify compliance. Promoting understanding of such standards world wide.
The 4 Parties + The Public The Public Supplier Client/ Retailer 1st party 2nd party Enterprise XYZ Accredited Certification Body 3rd party SGS-ICS - Ensures that certification bodies Accreditation respect national or international Body requirements (eg: ISO Guide 62) - The only accreditation body 4th Party worldwide (not like ISO 9000)
What is SA 8000 Released in October 1997, the Social Accountability 8000(or SA 8000) Standard is the first global ethical standard. SA 8000 has been developed based on the conventions of the International Labor Organization, the Universal Declaration of Human Rights, as well as the United Nations Convention on the Rights of a Child. It is applicable to all companies regardless of scale, industry and location Its objective is to ensure ethical sourcing and production of goods and services.
What is SA 8000 SA 8000 aims to promote continuous improvement of workplace conditions. It encourage buyers to work with their suppliers to implement a social accountability policy that can improve the work place condition through technical assistance and increased awareness. General adherence to this standard will improve brand image and company reputation. SA 8000 address workplace conditions
How does SA 8000 Work As in the cases of ISO 9000 quality management system and ISO 14000 environmental management system, SA 8000 provides a framework for independent assessment by a third party certification body SA 8000 includes a set of social accountability standards and a guidance document
How does SA 8000 Work Through continuous assessment, it provides the companies with a system for continuous improvement Through an appeal process to the certification body, non-governmental organizations (i.e. NGOs), if they have supporting evidence, can challenge the SA 8000 certification of a company
Who Can Apply ForCertification Companies want to verify their Social Record. Contractors that are producing goods for US and European companies. Multinational Companies seek to ensure that they procure from companies which are not exploitative .
Special Features of SA 8000Audit Specific Social performance standard with minimum requirement. Auditors are required to consult and learn from interested parties such as NGO’s, Trade unions etc. A complaint and appeal mechanism.
Benefits of SA 8000Certification Increased customer recognition and loyalty. Globally recognized standard . Increase the ability of business to trade internationally. Removing the need of business to undergo multiple COC audits. Assurance that brand are produced in human and socially responsible conditions.