The SA-8000 standard aims to improve labor conditions globally through a framework encompassing core international labor rights, including abolition of child and forced labor, health and safety, and fair wages. It promotes a customer-centric approach in business, emphasizing responsible practices and the importance of third-party audits for compliance. The standard enables businesses, workers, trade unions, NGOs, and consumers to engage collaboratively in ensuring humane working conditions and encourages organizations to report on their progress publicly.

1. SOCIAL ACCOUNTABILITY
INTERNATIONAL
SA - 8000
Improving Labor Conditions Around the World
through a Voluntary Workplace Standard, Independent
verification and Public Reporting
Dr. M.MADHAVAN
Assistant Professor in Economics
A.A.Govt. Arts College, Namakkal - 637002

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The Business
 What is business?
 The aim of business is to be in business
 In Business Change is only Constant.
 Maximization of return to share holders is turned as
maximization of return to stake holders.
 Business is not only to doing well but also to doing
good to others.
 Business is not only Technical Investment but it is
Socio Technical Investment.

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The Standards & Business
 More than 26,000 Standards are available in the world
 Certain standards are applicable only for certain products
 Certain standards are applicable only for certain countries
 Only certain standards are treated as common for all – Ex:
ISO, SA-8000 etc.,
 The standards are very useful for the business people.
 This will increase the confidence level of buyers

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WHY SA – 8000
 Customer is the King.
 Service to the Customer results in ‘Money’
 Heavy Competition
 Profit Maximization by optimum utilization of resourses
 What comes from the people should go back to the people
 Islands’ of wealth can not survive in the ocean of poverty
 Business has moved from ‘Charity’ to ‘Business
Partnership’
 60% of the customers are interested to know under what
conditions the products are produced.
 Europe has taken a decisions to insist on their suppliers to
go for SA-8000.

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THE MARKET SCENARIO
Trust Me
Because Today
Business has moved from “Profit Centric” to “Customer Centric”, and the satisfied employees will only satisfy the customers.
Show Me
Prove Me
Invoice Me
Corporate Social Contribution
to
Corporate Social Responsibility

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WHAT IS THE DIFFERENCE IN SA 8000?
 First Party Audit – Trust Me
 Second Party – Code – Through buyers Agency
 Third Party Audit – SA-8000, ISO
 The standard was developed by NGO’s, Business People, Trade
Union, UN Organizations.
 It is based on the ISO model making, it is easier to interrogate
with ISO quality for environment standards
 First auditable standard on “work place standard”
 Can be applied to many sectors
 Create management systems for implementation
 Third party audit is ensured.

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Difference between ISO & SA-8000
ISO
 Management system
 Standard developed at
National Level and then
International
 Less focus on interviews
SA-8000
 Performance system &
Management system
 Global standard from the
beginning
 Interviews with workers

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The Benefits
 Greater employee relation
 Enhanced productivity & Quality
 Improved management systems (From Top level to
Bottom level)
 Protection of reputation
 Developing new markets and new customers

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SA Standards – Concentrates on
 Abolition of Child labour
 Abolition of Forced labour
 Health & Safety
 Freedom of association
and right to collective
bargaining
 Disciplinary practices
 Discrimination
 Working hours
 Remuneration
 Management systems
An auditable “Third Party” Standard which is globally recognized

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World scenario on SA-8000
SA-8000 - Living Wage
FLA - Fair Labour Association (Only for Apparel & Food Wear)
– (USA Only)
WRAP - World Retails Apparel Products (Environment)
ETI - (UK) – Living Wage
CCC - Clean Cloth Campaign (EU) – Distributing post cards to
the consumer, explaining various standards. Making
awareness to the consumer
1987 - Europe started the movement against child labour

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A
P C
D
PLAN, DO, CHECK, ACT

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MANUAL
Systems Manual – Abide the Standard
Procedures Manual – Residual Measures. Should
be displayed.
Records – No. of accidents , No. of
people who obtained medical facility

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SA-8000 – The Standard
 A Standard that covers all core international labour rights
– Cover child labour, forced labour, health & safety,
freedom of association and right to collective bargaining,
discrimination, discipline, working hours and wages.
 Management system requirement for ongoing compliance
– Certified facilities must have the management system in
place to assure long-term compliance and continuous
improvement
Contd ….

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SA-8000 – The Standard (contd…)
 Involvement by all stakeholders – Full participation by
business, workers and trade unions, socially responsible
investors, NGOs and government in the development
and operation of SA-8000 including the advisory board,
development and revision of the standard and auditing
system, conferences, training and the complaints and
appeals system.
Contd ….

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SA-8000 – The Standard (contd…)
 Public reporting – The name and address of all SA8000
certified facilities are available on the SAI website and
facilities that lose their certification are removed from
this official list. Companies that become SA8000
signatories must release their plan for achieving SA
8000 certification of designated company – owned and
supplier facilities and submit annual progress reports to
SAI for verification followed by public posting.
Contd ….

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SA-8000 – The Standard (contd…)
 Harnessing consumer and investor concern – through
the SA 8000 Certification and Signatory Programs, SAI
helps consumers and investors to identify and support
companies that are committed to assuring human rights
in the work place.

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Code of Conduct Elements
 CHILD LABOUR – No workers under the age of
15; minimum lowered to 14 for countries operating
under the ILO Convention.
 FORCED LABOUR – no forced labour, including
prison or debt bondage labour, no lodging of
deposits or identify papers by employers or outside
recruiters.

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CODE OF CONDUCT ELEMENTS (CONTD…)
 HEALTH AND SAFETY – provide a safe and healthy
work environment; take steps to prevent injuries; regular
health and safety worker training; system to detect threats
to health and safety; access to bathrooms and potable
water.
 FREEDOM OF ASSOCIATION AND RIGHT TO
COLLECTIVE BARGAINING – respect the right to form
and join trade unions and bargain collectively; where law
prohibits these freedoms, facilitate parallel means of
association and bargaining

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CODE OF CONDUCT ELEMENTS (COTND…..)
 DISCRIMINATION-no discrimination based on
race, caste, origin, religion, disability, gender
sexual orientation, union or political affiliation, or
age; and no sexual harassment.
 DISCIPLINE –No corporal punishment. Mental or
physical coercion or verbal abuse.

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CODE OF CONDUCT ELEMENTS (CONTD……)
 WORKING HOURS- comply with the applicable law but,
in any event, not more than 48 hours per week with at
least one day off for every seven day period; voluntary
overtime paid at a premium rate and not to exceed 12
hours per week on a regular basis; exceptions for regular
and overtime limits due to extraordinary circumstances
 COMPENSATION- wages paid for a standard work week
must meet the legal or industry standards and be sufficient
to meet the basic need of workers and their families; no
disciplinary deductions.

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CODE OF CONDUCT ELEMENTS
(CONTD…….)
 MANAGEMENT SYSTEMS –The management
systems need to assure long-term compliance.
 This element requires that facilities seeking to gain and
maintain certification go beyond simple compliance to
institutionalize the intent and elements of the standard.

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HOW COMPANIES CAN IMPLEMENT SA 8000
 SAI has two ways for companies to formally implement
SA 8000 to assure humane workplaces:
 CERTIFICATION OF FACILITIES TO SA 8000: A
company that operates production facilities can seek to
have individual facilities certified to SA 8000 through
audits by one of the accredited certification. Since the SA
8000 system became fully oriental in 1998.

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HOW COMPANIES CAN IMPLEMENT SA 8000
 SA 8000 SIGNATORY: A company that focuses on
selling goods or that combines production and selling can
become an SA 8000 Signatory, which requires that it issue
a plan for moving designated company-owned and/or
supplier facilities to SA 8000 certification over time and
report publicly on progress against this plan. Launched in
late 1999, the SA 8000 Signatory program has attracted
entities representing more than $ 100 billion in annual
revenue.

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TRADE UNION AND NGO PARTICIPATION
 As part of the SA 8000 system’s inclusive, multi-sectoral
approach, SA 8000 features the extensive involvement of
workers, trade unions and NGOs:
 A multi –sector Advisory Board that includes substantial
representation from trade unions and human rights NGO’s
developed SA 8000 and overseas implementation and
revisions
 During certification audits, auditors are required to consult
with interested parties as part of the information gathering
process, including local trade unions and NGOs

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TRADE UNION AND NGO PARTICIPATION (CONTD……..)
 Auditing guidelines require that workers be
interviewed and tie the numbers of workers
interviewed to the size of the factory’s workforce.
 Facilities that do not meet elements of the standard
are guided to seek out unions and NGOs to help
with corrective actions.
 There is an easy complaints and appeals process
that any one can use to challenge a certification

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TRADE UNION AND NGO PARTICIPATION (CONTD……)
 To inform trade unions and NGOs about SA 8000,
the SAI provides free places for them at the
auditor’s training courses.
 As part of the bi-annual review of SA 8000, they
seek guidance from all stakeholders through
consultative workshops and individual requests for
comment.

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BENEFITS OF SA 8000 TO BUSINESS, WORKERS,
TRADE UNIONS, NGOs AND CONSUMERS.
 Along with assuring humane workplaces, the
implementation of SA 8000 offers additional benefits for
business, workers, trade unions, NGOs and consumers.
BUSINESS BENEFITS
 A credible and effective way to put company values into
action.
 Preserving and enhancing company and brand reputation
 Improving employee recruitment, retention and
performance

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BENEFITS OF SA 8000 TO BUSINESS, WORKERS, TRADE
UNIONS, NGOs AND CONSUMERS (CONTD…….)
 Better supply chain management and performance.
 Cost savings in developing, adopting and
monitoring a workplace code of conduct
 The opportunity to develop stronger relationships
with workers, trade unions, customers, NGOs and
government.

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BENEFITS TO WORKER, TRADE UNION AND
NGO
 Enhanced opportunities to organize trade unions and
bargain collectively.
 An additional avenue to educate workers about core
labour rights.
 Another way for workers to speak up about the conditions
under which they work.
 Support for the proposition that labour rights are
good for society and business
 Opportunity to work directly with business on labour right
issues.

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WORKER, TRADE UNION AND NGO BENEFITS (CONTD…..)
 A tool for generating public awareness of working
conditions, core labour rights and companies that
are committed to assuring humane working
conditions.

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CONSUMER BENEFITS
 Clear and credible assurance for consumers who
want to make ethical purchasing decisions
 Identification of individual products made under
humane conditions (Certification) and companies
making progress toward humane conditions in
their supply chains.
 Broad coverage of product categories and
production geography.

32. Thank You
+91-9865210146
manimadhavan@gmail.com
SA-8000
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