Prospect of ethical purchasing in Asia - Prasad Modaak

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Prospect of ethical purchasing in Asia - Prasad Modaak

  1. 1. Prospect of Ethical Purchasing in Asia Prasad Modak Chairman, GPNI Image source - https://www.zoobarcelona.cat/en/know-the-zoo/where-the-animals-live/asia/
  2. 2. What is Ethical Purchasing? Ethical purchasing promotes good labour and environmental standards in supply chains Image source - http://threadfair.wordpress.com/category/sweatshop-free/
  3. 3. ‘The assumption of responsibility of a company for the labour and human rights practices in its supply chain’. Source - http://www.ethicaltrade.org/
  4. 4. Ethical Trading Initiative Base Code o Employment is freely chosen o Freedom of association and the right to collective bargaining are respected o Working conditions are safe and hygienic o Child labour shall not be used Image source - http://theaidworker.com/?p=110 Image source - http://www.theguardian.com/society/2008/dec/08/nhs- instruments-child-labour
  5. 5. Ethical Trading Initiative Base Code o Regular employment is provided o No harsh or inhumane treatment is allowed o Living wages are paid o Working hours are not excessive o No discrimination is practised Source - http://rhodiesworld.com/5-ways-to-live-and-not-merely-exist/
  6. 6. FAIRTRADE Certification o A product certification system that allows people to identify products that meet agreed environmental, labour, and developmental standards. o Overseen by a standard-setting body, Fairtrade International (FLO), and a certification body, FLO-CERT.
  7. 7. FAIRTRADE Standards Source - http://www.fairtrade.net/standards.html
  8. 8. Products Certified by FAIRTRADE Source - http://www.fairtrade.net/products.html
  9. 9. Relevance of Ethical Purchasing in Asia
  10. 10. Source: http://www.cbc.ca/news2/interactives/timeline-bangladesh/
  11. 11. Children employed in a workshop manufacturing surgical instruments for export. Sialkot, Pakistan. © International Labour Organization/ Crozet M.
  12. 12. Worker and Fire Safety Low Wages Child Labour
  13. 13. Prospects of Ethical Purchasing in Asia
  14. 14. Members of Ethical Trading Initiative Brands purchased in Asian Countries
  15. 15. Source - http://www.thebodyshop.in/
  16. 16. Vodafone Code of Ethical Purchasing o Designed to promote safe and fair working conditions and the responsible management of environmental and social issues in Vodafone’s supply chain. Image Source - https://www.vodafone.com.mt/supplychain
  17. 17. Application of the Code o Suppliers are asked to confirm (in writing) that they are implementing the Code, or similar purchasing standard such as: – Electronics Industry Code of Conduct (EICC) – Ethical Trading Initiative (ETI) Base Code – Social Accountability International’s SA 8000 – Chartered Institute of Purchasing and Supply Ethical Business Practices in Purchasing and Supply
  18. 18. Code of Ethical Purchasing 1. Child Labour 2. Forced Labour 3. Health & Safety & Wellbeing 4. Freedom of Association 5. Discrimination 6. Disciplinary Practices 8. Payment 7. Working Hours 10. Environment 9. Individual Conduct
  19. 19. Arcadia Ethical Sourcing o Arcadia group - UK's largest fashion retailer o Do not own or operate factories and have a network of international suppliers o Goods sourcing - top five countries are China, Turkey, Romania, Mauritius and India Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading
  20. 20. Arcadia Ethical Sourcing o Ethical trading: – Ethical Audit Programme – Country Risk Assessments – RAGS - the Responsible and Accountable Garment Sector Project – Joint Turkey Project – Strategic Labour Priorities – Code of Conduct Guidebook – Management Systems – Sumangali – Prohibited Activities Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading
  21. 21. Arcadia Ethical Sourcing o Code of Conduct applies to the supplier, manufacturer or any other person involved in supplying goods to the companies o Code based on International Labour Organisation (ILO) conventions and recommendations o Code of Conduct Guidebook extends practical guidance to suppliers and factories on how to improve labour standards based on their Code Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading
  22. 22. Arcadia Code of Conduct o Employment is freely chosen o Freedom of association and the right to collective bargaining are respected o Working conditions are safe and hygienic o Child labour shall not be used o Living wages are paid o Working hours are not excessive o No discrimination is practiced o Regular employment is provided o No harsh or inhumane treatment is allowed Source - https://www.arcadiagroup.co.uk/fashionfootprint/our-products/Ethical%20Trading
  23. 23. Deepa grows cotton on a Fairtrade certified farm in Gujarat, India. Sourcing Fairtrade cotton healthcare textiles is one way of demonstrating sustainability and can improve the lives of small-scale cotton farmers. © Simon Rawles India Agrocel Pure & Fair Cotton Growers’ Association formed in 2005 with the guidance of the Agri- Service Division of Agrocel Industries Ltd Aims to improve the livelihoods of small-scale and marginalised Indian farmers by enabling them to participate in organic and Fairtrade production and by marketing with added value their production of cotton, rice, nuts and other crops Project in 5 States - Gujarat, Tamil Nadu, Andhra Pradesh, Orissa, and Karnataka
  24. 24. LI & FUNG LTD Hong Kong-headquartered multinational group Source - http://www.lifung.com/eng/company/
  25. 25. Environment Community Engagement Human Rights Source - http://www.lifung.com/eng/company/
  26. 26. The Ruia Group is one of the fastest growing multinational industrial conglomerates headquartered in India. A member of Ethical Trading Initiative. Source - http://www.ruiagroup.co.in/
  27. 27. Study conducted as part of the annual Ethical Shopping Survey by MasterCard both online and offline in 25 countries within Asia/Pacific, Middle East and Africa between 5 December 2011 and 6 February 2012
  28. 28. Asia/ Pacific region - interviews with 7,373 respondents from 14 markets, with 500 consumers in Hong Kong, were asked questions about their ethical shopping habits. Consumers in Thailand, Philippines, Vietnam, Indonesia and China have a greater willingness to pay more for items that are environmentally friendly, observe fair trade principles, or where a percentage of the item’s cost is donated to a good cause, as compared to their counterparts in New Zealand, Australia and Japan.
  29. 29. Hong Kong Consumers Continue to Embrace Ethical Shopping: MasterCard Survey Hong Kong, 7 May 2012 Willingness to pay more for products that are: o environmentally friendly (56%) o observe fair trade principles (51%) o where a percentage of the item is donated to a good cause (49%) Women and those aged between 18 and 24 more likely to make ethical purchases. Respondents between ages 50 - 64 are more willing to buy from merchants known for partnering with and donating to charities. Retail outlets preferred over online purchase – 60%
  30. 30. Concluding Remarks
  31. 31. Micro-Small-Medium Enterprises in most Asian nations Unorganized sectors Absence of enabling regulatory and governance framework for environmental issues, health & safety of workers
  32. 32. There is a market and purchasing practice for environmental friendly and fair trade practices goods. Ethical Purchasing in Asia will go a long way in improving environment and working conditions. Large brands sourcing from Asia should extend their international practices to these countries which will boost local practices “Fostering a socially and environmentally sound approach to doing business also makes good business sense, as our experience is that driving improvements in these areas enhances performance across the board”.
  33. 33. THANK YOU

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