Corporate Social Accountability Management - SA 8000

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Corporate Social Accountability Management - SA 8000

  1. 1. Corporate Social Accountability Management - SA 8000 Corporate Social Accountability Management - SA 8000 Professor Hector R Rodriguez School of Business Mount Ida College
  2. 2. <ul><li>Society </li></ul><ul><ul><li>The Corporation and Its Stakeholders </li></ul></ul><ul><ul><li>People for the Ethical Treatment of Animals </li></ul></ul><ul><ul><li>Corporate Citizenship </li></ul></ul><ul><ul><li>The Social Responsibility of Business </li></ul></ul><ul><ul><li>The Shareholder Primacy Norm </li></ul></ul><ul><ul><li>CSR, Citizenship and Sustainability Reporting </li></ul></ul><ul><ul><li>Responsible Investing </li></ul></ul><ul><ul><li>The Community and the Corporation </li></ul></ul><ul><ul><li>Taxation and Corporate Citizenship </li></ul></ul><ul><ul><li>Corporate Philanthropy Programs </li></ul></ul><ul><ul><li>Employees and the Corporation </li></ul></ul><ul><ul><li>Managing a Diverse Workforce </li></ul></ul><ul><ul><li>Corporate Social Accountability – SA 8000 </li></ul></ul><ul><li>Environment </li></ul><ul><ul><li>A Balanced Look at Climate Change </li></ul></ul><ul><ul><li>Non-anthropogenic Causes of Climate Change </li></ul></ul><ul><ul><li>Sulfates, Urban Warming and Permafrost </li></ul></ul><ul><ul><li>Conventional Energy </li></ul></ul><ul><ul><li>The Kyoto Protocol </li></ul></ul><ul><ul><li>Green Building </li></ul></ul><ul><ul><li>Green Information Technology </li></ul></ul><ul><ul><li>Transportation, Electric Vehicles and the Environment </li></ul></ul><ul><ul><li>Geo-Engineering </li></ul></ul><ul><ul><li>Carbon Capture and Storage </li></ul></ul><ul><ul><li>Renewable Energy </li></ul></ul><ul><ul><li>Solid, Toxic and Hazardous Waste </li></ul></ul><ul><ul><li>Forests, Paper and Carbon Sinks </li></ul></ul><ul><ul><li>Life Cycle Analysis </li></ul></ul><ul><ul><li>Green Chemistry </li></ul></ul><ul><ul><li>Water Use and Management </li></ul></ul><ul><ul><li>Water Pollution </li></ul></ul><ul><ul><li>Environmental Management Systems </li></ul></ul>Course Map – Topics Covered in Course
  3. 3. <ul><li>Activist campaigns and bad publicity </li></ul><ul><li>Regulatory weaknesses & effects </li></ul><ul><li>Cost and price pressure </li></ul><ul><li>Financial worthiness and insurance </li></ul><ul><li>Consumer preference </li></ul>Driving Forces for Social Accountability
  4. 4. <ul><li>SA8000 stands for “Social Accountability” </li></ul><ul><li>It is based on a set of internationally accepted standards that participating organizations must commit to. </li></ul><ul><li>Standards come from ILO (International Labor Organization) & other human rights conventions. </li></ul><ul><li>SA8000 has the support of major companies and organizations over a wide spectrum of interests </li></ul><ul><ul><li>Designed for independent verification </li></ul></ul><ul><ul><li>A global standard, designed for use by any company, anywhere in the world </li></ul></ul><ul><ul><li>Has been developed with stakeholders </li></ul></ul><ul><ul><li>Is designed to take local laws and requirements into account </li></ul></ul>What is SA 8000?
  5. 5. <ul><li>Child labor is not permitted </li></ul><ul><li>Forced labor is not permitted </li></ul><ul><li>Health and safety have to be assured </li></ul><ul><li>Freedom to organize and collective bargaining have to be guaranteed </li></ul><ul><li>Discrimination is not permitted </li></ul><ul><li>Disciplinary practices are not permitted </li></ul><ul><li>Working hours shall not exceed 48 hrs a week, with a maximum of 12 hrs overtime </li></ul><ul><li>Remuneration shall be sufficient </li></ul><ul><li>Management systems shall guarantee that the requirements are effectively satisfied </li></ul>9 Main Requirements of the Standard
  6. 6. <ul><li>No use of child labor. </li></ul><ul><li>Remediation of children found to be working below legal age and shall support such children in attending school. </li></ul><ul><li>Promote the education of children and young workers. </li></ul>Child Labor <ul><li>No exposure of children or young workers to situations that are hazardous, unsafe, or unhealthy </li></ul>
  7. 7. <ul><li>Safe working environment and adequate steps to prevent accidents and injury </li></ul><ul><li>Appointment of health and safety representative </li></ul><ul><li>Routine and documented health and safety trainings </li></ul><ul><li>Clean bathrooms and potable water </li></ul><ul><li>Sanitary food storage and dormitory facilities if applicable </li></ul>Health and Safety
  8. 8. <ul><li>No running water </li></ul><ul><li>Inadequate hoods </li></ul><ul><li>Dirty walls </li></ul><ul><li>Distribution of smoke throughout building </li></ul><ul><li>High infection risk </li></ul>Health and Safety
  9. 9. <ul><li>Respect right of personnel to form and join trade unions of their choice </li></ul><ul><li>Engagement and/or support of discrimination is prohibited </li></ul><ul><li>Freedom of religious expression </li></ul><ul><li>Mental, physical and verbal abuse are not allowed </li></ul>Right of Association
  10. 10. <ul><li>Written and publicly available policy that that defines social accountability and labor conditions in conformance with SA 8000 and applicable laws </li></ul><ul><li>Designated representative to enforce policy </li></ul><ul><li>Routine managerial review and updating of policy </li></ul><ul><li>Written statement and documented evidence from suppliers and subcontractors of commitment to social accountability </li></ul><ul><li>Investigation of concerns regarding conformance and nonconformance and appropriate corrective action </li></ul><ul><li>Communication with all interested parties </li></ul>Management Systems
  11. 11. Elements of a Social Management System
  12. 12. <ul><li>Companies that operate production facilities can seek to have individual facilities certified to SA8000 through audits by one of the accredited certification bodies. </li></ul><ul><li>Since the SA8000 system became fully operational in 1998, there are certified facilities in 30 countries on five continents and across 22 industries. </li></ul>Certification to SA8000
  13. 13. <ul><li>Benefits for Business </li></ul><ul><ul><li>Putting company values into action </li></ul></ul><ul><ul><li>Enhancing company and brand reputation </li></ul></ul><ul><ul><li>Improving employee recruitment, retention and performance </li></ul></ul><ul><ul><li>Better supply chain management and performance </li></ul></ul>Benefits of Implementing SA 8000 <ul><li>Benefits for Consumers and Investors </li></ul><ul><ul><li>Clear and credible assurance for ethical purchasing decisions </li></ul></ul><ul><ul><li>Identification of products made ethically and companies committed to ethical sourcing </li></ul></ul><ul><ul><li>Broad coverage of product categories and production geography. </li></ul></ul>
  14. 14. <ul><li>Fewer accidents </li></ul><ul><li>Enhanced opportunities to be organized </li></ul><ul><li>A way to address and improve the conditions where people work </li></ul>Worker Benefits <ul><li>Increased worker awareness about core labor rights </li></ul><ul><li>Enhanced communication to the management </li></ul><ul><li>Evidence that labor rights are good for society and business </li></ul><ul><li>Improved business practices lead to economic growth and new job opportunities </li></ul>
  15. 15. SA 8000 Certified Companies
  16. 16. Summary <ul><li>There are several forces driving social accountability </li></ul><ul><li>SA 8000 is a standard that provides social accountability guidelines, including: </li></ul><ul><ul><li>Child labor, </li></ul></ul><ul><ul><li>Forced labor, </li></ul></ul><ul><ul><li>Working hours, </li></ul></ul><ul><ul><li>Compensation and </li></ul></ul><ul><ul><li>Workplace safety. </li></ul></ul><ul><li>A company can get its social accountability management system certified </li></ul><ul><li>Such a certification benefits the business, consumers, investors and workers. </li></ul>

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