Corporate Social Responsibility - CSR<br />General term for companies’ contributions to people, environment and society. Goes beyond laws and regulations.<br />
CSR and Ethical Trade<br />CSR is about taking responsibility of how your way of doing business affect others<br />Ethical Trading = <br />Socially responsible business that safeguards and promotes human rights, workers’ rights, economic development end the environment in the supply chain.<br />
Global trade – cheep goods at high costs <br />Dark side of the coin:<br /><ul><li>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 </li></ul>Source: ILO<br />
Many drivers of ethical trading - expectations<br />Employees – motivation/recruitment <br />Customers - B2B/B2C<br />Workers –<br />legal compliance <br />Business professionalisation<br />Increased expectations from many stakeholders!<br />Government and public sector<br />Board and owners<br />Media, campaign organisations, indicies<br />
Ethical trade: Why?<br /><ul><li>The business case: licence to operate, professional business conduct
The moral imperative: Who wants others to suffer for their welfare?
Common interest in sustainable development – responsible business is key</li></ul>“It is an Utopian notion that poverty can be overcome without the active engagement of business”<br />Kofi Annan<br />
Ethical Trading Initiative Norway (ETI Norway)<br /> Our vision:<br />Cooperation and trade that safeguard<br /><ul><li>Human rights
Sustainable development</li></ul>Our main goals: <br /><ul><li>Increase engagement in ethical trading
Strengthen members’ ethical trading efforts</li></li></ul><li>About ETI Norway<br /><ul><li>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</li></li></ul><li>Membership, non-profit based alliance of companies, trade unions, NGOs, <br /> employers’ associations and public sector<br />Open to all sectors (P.t. 122 members)<br />Commitment to Declaration of Principles, including<br /> - Adopt ETI-Norway Base Code<br /> - Annual report on implementation progress <br /> publicly available<br />Enable members through<br /><ul><li>Capacity building both at home and in supply chain
Extensive network of local resources who can assist in improvements </li></ul>More about ETI Norway<br />
Even more about ETI Norway<br />7<br />6<br />5<br />4<br />3<br />2<br />1<br />Based on national law and internationally accepted conventions (UN/ILO)<br />Practical guidance<br />IEH assists companies, public institutions and organisations with responsible supply chain management.<br />Large international network<br />Relevant ressources and tools<br />
11<br />Someofourmembers<br />Companies – small and big<br />Organizations<br />Public entities<br />Total turnover ofaprox. 450 bill. UAH<br />
EIT Norway’s approach to ethical trade<br />7<br />6<br />5<br />4<br />3<br />2<br />1<br /><ul><li> Supplier code of conduct (ethical requirements)</li></ul>– goals<br /><ul><li> Method for implementation: continuous improvements</li></ul>– systematic work usingpracticle tools<br /><ul><li> Network and cooperation</li></ul>– exchange of good practices<br />
ETI Norway - Base Code<br />General principle: compliance with national laws and regulations <br />No forced labour<br />Freedom of organisation and collective bargaining<br />No child labour<br />No discrimination<br />No harsh treatment<br />Occupational health and safety (OHS)<br />Living wage<br />Overtime<br />Regular employment<br />Respect for marginalised groups<br />Sustainable environmental management<br />13<br />
Implementation model - seven steps<br /><ul><li> Practical and structured methods for responsible supply chain management
Specific tools and support through the whole process</li></ul>Commucate requirements<br />Business practice<br />Improvements<br />Foundation <br />New suppliers<br />Risk assesment<br />Communication and reporting<br />Practice<br />Practice<br />Practice<br />Practice<br />Practice<br />Practice<br /><ul><li>CoC as basis in selection of new suppliers.
?<br />CEOs<br />90 % thinkethical trade and production is important<br />75 % trust thatthe products theysellaremade under decentconditions<br />67% don’treallyknowwheretheir products aremade<br />Source: IEH-survey 2010<br />
Key factors for success<br />International standards and national law in theproducing country (standardisation – directions)<br />Shareexperiences<br />Cooperation betweencustomer and supplier<br />Long-term business relationships<br />Auditsgivediagnosis, not cure<br />Uselocal experts in capacitybuilding, improvement programs and to performaudits<br />Workerinvolvement<br />