Eti norway and ukraine visit

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Eti norway and ukraine visit

  1. 1. 1<br />Walking the talk – <br />Responsible supply chains<br />
  2. 2. Corporate Social Responsibility - CSR<br />General term for companies’ contributions to people, environment and society. Goes beyond laws and regulations.<br />
  3. 3. 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 />
  4. 4. 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
  5. 5. Nearly 10 million children are exposed to the worst forms of child labour, including forced labour.
  6. 6. More than 2 million people die every year due to health and safety related accidents and diseases
  7. 7. 160 million people get health related diseases every year.
  8. 8. 270 million people a year are involved in work place accidents </li></ul>Source: ILO<br />
  9. 9. 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 />
  10. 10. Ethical trade: Why?<br /><ul><li>The business case: licence to operate, professional business conduct
  11. 11. The moral imperative: Who wants others to suffer for their welfare?
  12. 12. 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 />
  13. 13. Ethical Trading Initiative Norway (ETI Norway)<br /> Our vision:<br />Cooperation and trade that safeguard<br /><ul><li>Human rights
  14. 14. Workers’ rights
  15. 15. Sustainable development</li></ul>Our main goals: <br /><ul><li>Increase engagement in ethical trading
  16. 16. Strengthen members’ ethical trading efforts</li></li></ul><li>About ETI Norway<br /><ul><li>Multi stakeholder initiative established (MSI) in 2000
  17. 17. Advocate and resource center for ethical trading (responsible supply chain management).
  18. 18. 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
  19. 19. Extensive network of local resources who can assist in improvements </li></ul>More about ETI Norway<br />
  20. 20. 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 />
  21. 21. 11<br />Someofourmembers<br />Companies – small and big<br />Organizations<br />Public entities<br />Total turnover ofaprox. 450 bill. UAH<br />
  22. 22. 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 />
  23. 23. 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 />
  24. 24. Implementation model - seven steps<br /><ul><li> Practical and structured methods for responsible supply chain management
  25. 25. Focus on improvements with time (process)
  26. 26. 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.
  27. 27. Describe
  28. 28. Reporting</li></ul>Practice<br /><ul><li>Organization
  29. 29. Planning
  30. 30. Establish CoC
  31. 31. Buy in in org.
  32. 32. Training
  33. 33. Communicate CoC to suppliers
  34. 34. Improvement plan
  35. 35. Good practices
  36. 36. Dialogue based process
  37. 37. Map supply chain
  38. 38. Risk assesment
  39. 39. Prioritisation
  40. 40. Facilitate compliance
  41. 41. Incentives
  42. 42. Capacity building</li></li></ul><li>15<br />Member pages – resources, tools, information<br />Give members guidance and practical support.<br />
  43. 43. 16<br />ETI Norway film; Better Business, Better Lives<br />http://www.etiskhandel.no/Artikler/4191.html<br />
  44. 44. Norwegian consumers on ethical trade<br /><ul><li>88% think Norwegian companies arereponsible for reducingthe risk ofunacceptableworkingconditions
  45. 45. 68% think Norwegian companies canactuallycontribute to real improvements at the production facility</li></ul>Source: «Den etiske forbruker», Synovate/ IEH, May 2011<br />
  46. 46. Norwegian government<br />«Public entities as forerunners»<br />Public procurement<br />State ownership<br />
  47. 47. ?<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 />
  48. 48. 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 />

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