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Corporate Social Responsibility - CSR General term for companies’ contributions to people, environment and society. Goes beyond laws and regulations.
CSR and Ethical Trade CSR is about taking responsibility of how your way of doing business affect others Ethical Trading = Socially responsible business that safeguards and promotes human rights, workers’ rights, economic development end the environment in the supply chain.
Global trade – cheep goods at high costs Dark side of the coin:
More than 200 million children between 5 and 14 years work without possibility of attending school
Nearly 10 million children are exposed to the worst forms of child labour, including forced labour.
More than 2 million people die every year due to health and safety related accidents and diseases
160 million people get health related diseases every year.
270 million people a year are involved in work place accidents
Many drivers of ethical trading - expectations Employees – motivation/recruitment Customers - B2B/B2C Workers – legal compliance Business professionalisation Increased expectations from many stakeholders! Government and public sector Board and owners Media, campaign organisations, indicies
Multi stakeholder initiative established (MSI) in 2000
Advocate and resource center for ethical trading (responsible supply chain management).
ETI Norway is not about guarantee: members commit to continuous improvements
Membership, non-profit based alliance of companies, trade unions, NGOs, employers’ associations and public sector Open to all sectors (P.t. 122 members) Commitment to Declaration of Principles, including - Adopt ETI-Norway Base Code - Annual report on implementation progress publicly available Enable members through
Capacity building both at home and in supply chain
Extensive network of local resources who can assist in improvements
More about ETI Norway
Even more about ETI Norway 7 6 5 4 3 2 1 Based on national law and internationally accepted conventions (UN/ILO) Practical guidance IEH assists companies, public institutions and organisations with responsible supply chain management. Large international network Relevant ressources and tools
11 Someofourmembers Companies – small and big Organizations Public entities Total turnover ofaprox. 450 bill. UAH
EIT Norway’s approach to ethical trade 7 6 5 4 3 2 1
Supplier code of conduct (ethical requirements)
Method for implementation: continuous improvements
– systematic work usingpracticle tools
Network and cooperation
– exchange of good practices
ETI Norway - Base Code General principle: compliance with national laws and regulations No forced labour Freedom of organisation and collective bargaining No child labour No discrimination No harsh treatment Occupational health and safety (OHS) Living wage Overtime Regular employment Respect for marginalised groups Sustainable environmental management 13
88% think Norwegian companies arereponsible for reducingthe risk ofunacceptableworkingconditions
68% think Norwegian companies canactuallycontribute to real improvements at the production facility
Source: «Den etiske forbruker», Synovate/ IEH, May 2011
Norwegian government «Public entities as forerunners» Public procurement State ownership
? CEOs 90 % thinkethical trade and production is important 75 % trust thatthe products theysellaremade under decentconditions 67% don’treallyknowwheretheir products aremade Source: IEH-survey 2010
Key factors for success International standards and national law in theproducing country (standardisation – directions) Shareexperiences Cooperation betweencustomer and supplier Long-term business relationships Auditsgivediagnosis, not cure Uselocal experts in capacitybuilding, improvement programs and to performaudits Workerinvolvement