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Social Fingerprint: Measure and Improve Social Performance
- 1. Social Fingerprint®: Measure & Improve Social Performance Presented at the ISSP Conference September 22, 2011 by Craig Moss, Director – Corporate Programs & Training © Social Accountability International 2011
- 2. Live Tweet We welcome your feedback, questions & comments! SAI on Twitter: @sa_intl Conference hashtag: #SFatISSP
- 3. Social Accountability International @sa_intl #SFatISSP Multi-stakeholder organization - established May 1997 Developed leading social compliance standard and certification system - SA8000® Multi-industry and global Leader in social compliance training for brands, suppliers and auditors Contracted by many governments and multi-national agencies to conduct CSR awareness and supplier training
- 4. @sa_intl #SFatISSP SAI Corporate Programs Work with brands and retailers to use management systems to drive continual improvement of social performance in their supply chains - applicable to various codes and standards Published “Implementing a Socially Responsible Supply Chain” Developed Handbook for World Bank/IFC on client use of management systems to meet PS2 Members include Carrefour, Disney, HP, Gap, Timberland, Anvil Knitwear, Rosy Blue, General Mills, Chiquita, Gucci, TNT, Otto Group, Billabong, etc.
- 5. Session Overview (Really Brief) Introduction to Social Performance Challenge: Prescription versus Judgment Setting the Stage: Social Performance in the Global Supply Chain Measure & Improve: Using a Process-based Approach (Really Quick) Tour of Social Fingerprint® Discussion @sa_intl #SFatISSP
- 6. aka Labor Standards Performance, Social Compliance, Labor Compliance @sa_intl #SFatISSP Introduction to Social Performance
- 7. SA8000®: Labor Standard @sa_intl #SFatISSP © Social Accountability International
- 8. Attitudes Skills Knowledge @sa_intl #SFatISSP Elements of Social Performance Improving social performance requires improvement by managers and workers in all three areas
- 9. @sa_intl #SFatISSP Social Performance in the Global Supply Chain
- 10. Consumer Electronics Supply Chain CONSUMER ELECTRONICS BRAND PO SUPPLIER: ASSEMBLY, QC & PACKAGING Sub-Contractor: Memory Sub-Contractor: Batteries Sub-Contractor: Displays Sub-Contractor: Plastic Cases Sub-Supplier: Wires Sub-Supplier: Switches Sub-Supplier: Dormitory Sub-Supplier: Cleaning Sub-Supplier: Connectors Sub-Supplier: Cells Sub-Supplier: Security Sub-Supplier: Cafeteria X X X X Produce Meat Paper Tools Bakery X X X X © Social Accountability International
- 11. @sa_intl #SFatISSP Socially Responsible Supply Chain Trends Increasing use of “Strategic Suppliers” Working with suppliers to build internal capacity More training, less auditing All industries struggling with how to manage sub-contractors Integrating social compliance into sourcing operations and performance measurements Shift from “the stick” to “the carrot”
- 12. Prescription versus Judgment © Social Accountability International 2011 @sa_intl #SFatISSP
- 13. Discrimination or Not? Women at the shoe factory in India are not allowed to perform certain production jobs after the age of 25 since younger workers are considered to be more efficient at this particular task. © Social Accountability International @sa_intl #SFatISSP
- 14. Prescription Choice 1 Choice 2 © Social Accountability International 2011
- 15. The Third Option © Social Accountability International 2011
- 16. More Choices – More Decisions © Social Accountability International 2011
- 17. Prescription vs. Calibration © Social Accountability International 2011
- 18. Judgment and the Theory of Motivated Reasoning Our Beliefs versus New Facts Confirmation Bias Disconfirmation Bias Changing Attitude is REALLY HARD © Social Accountability International @sa_intl #SFatISSP
- 19. Measure & Improve Using a Process-based Approach @sa_intl #SFatISSP
- 20. @sa_intl #SFatISSP You Can’t Improve What You Don’t Measure Losing weight Running a marathon © Social Accountability International
- 21. @sa_intl #SFatISSP Social Fingerprint® Program Approach “Measure & Improve” Focuses on processes and management systems – not only code violations Builds on SA8000 management systems Analyzes system development and implementation Supports continual improvement along any standard, industry code or corporate code Shapes the path and creates small steps to improvement
- 22. Social Fingerprint® Programs © Social Accountability International @sa_intl #SFatISSP
- 23. Social Fingerprint® Program: Uses Self-Assessment Internal tool to measure and improve Risk assessment tool “Remote” Independent Evaluation Phone interview and document review Benchmarking Field Verification © Social Accountability International @sa_intl #SFatISSP
- 24. Social Fingerprint® Process Categories © Social Accountability International
- 25. Social Fingerprint® Levels @sa_intl #SFatISSP 1 = Little or no awareness, systems or interest 2 = Limited systems with sporadic implementation 3 = Systems in development with partial implementation 4 = Fully developed systems with improving implementation 5 = Mature systems, fully implemented inside and outside company
- 27. Mapping Social Fingerprint® to SA8000 or a Rigorous Code Implementation Tips Verify that policies and procedures in Management Systems meet SA8000 or Code Think both ways Use the 9 Social Fingerprint categories to tackle any individual labor code element Use the 9 Social Fingerprint categories as a detailed plan for a management systems audit Social Fingerprint improvement tips can help with corrective actions and remediation © Social Accountability International @sa_intl #SFatISSP
- 28. @sa_intl #SFatISSP Human resource policies and procedures meeting the selected code or standard
- 29. @sa_intl #SFatISSP Trained multi-department team that leads the effort and includes worker representation
- 30. @sa_intl #SFatISSP Effective two-way communication channels and joint participation
- 31. @sa_intl #SFatISSP The system for handling and addressing grievances
- 32. @sa_intl #SFatISSP Severity and frequency of problems in meeting labor standards – systemic or isolated
- 33. @sa_intl #SFatISSP Effective system for addressing problems and making changes to prevent them from recurring
- 34. @sa_intl #SFatISSP Cooperation with outside auditors and involvement with external stakeholders to enhance efforts to improve labor standards
- 35. System for training on the attitude, skills and knowledge needed to improve labor standards - in your company and supply chain @sa_intl #SFatISSP
- 36. @sa_intl #SFatISSP System for informing suppliers of labor standard and methods for influencing them to meet the code or standard and improve
- 37. Social Fingerprint® in Action @sa_intl #SFatISSP
- 38. © Social Accountability International @sa_intl #SFatISSP Comparison: 50 Suppliers in China
- 39. Case Study: Benefits & Results @sa_intl #SFatISSP 60 vendors in one country - random survey of 23: 91% agreed or strongly agreed - online system easy to use 100% implemented improvement tips immediately (57% 3-5 tips; 24% implemented 6+ tips) Improvement highlights–reporting “significantly better” Management Systems – 48% Internal Social Performance Teams – 44% Worker Involvement & Communication – 35% Progress on Corrective Actions – 44% 82% agreed or strongly agreed that Social Fingerprint was more helpful than other social performance programs © Social Accountability International
- 40. @sa_intl #SFatISSP Social Fingerprint® Getting Started: Quick Tour
- 41. © Social Accountability International
- 43. © Social Accountability International
- 53. Questions & Answers @sa_intl #SFatISSP
Editor's Notes
- We polled 20 top auditors that had been selected as part of a national trainer development program in India – 23% said this was acceptable. 77% said no.
- In a situation that is black or white, most trained auditors will come to the same conclusion. Is this discrimination or not – although even then you may be surprised. But we know that the world has shades of grey. Social auditing always deals with shades of gray and judgment. But as code systems try to create more structure and more calibration in their global programs, many look at a code situation and prescribe more choices for the auditor to select from.
- So they may prescribe a third option that the auditor can select. The intent is good because not all situations are black and white. But now the calibration between auditors becomes more important. We may agree on black versus white. But I may now think it is gray, and you may still say it is black. No one is right. No one is wrong. Different perceptions resulting in different judgment.
- But many programs now have many predetermined options. What if we add three shades of gray between black and white? More prescriptive. More definition, but the unintended consequence is that it actually requires more judgment to select the shade of gray and we are now less likely to agree. Behavioral studies on decision-making show that people’s ability to make rational choices decreases when the number of choices becomes too large. In an auditing program, we are not only dealing with the choice that one person makes – but trying to calibrate the choices that all the people make.
- What if there are 8 shades of grey – or 8 prescribed choices – for the auditor to choose from? We have a system with a lot of nuance. A system that will give us great information on what is happening in the field – but a system that requires more and more calibration. A systems where it is less and less likely that you and I will agree if the situation is one shade or another. As a quick polling exercise - is the top right and lower left square the same shade of gray? Decision-making for the auditor and calibration between the auditors becomes an exercise in becoming more aware of the factors that influence the decision-making. The auditor is taking in lots of inputs (objective evidence), then weighing the merit and importance of the evidence, then ultimately making a judgment – is it white, is it black, or is it one of the shades of gray.
- But many programs now have many predetermined options. What if we add three shades of gray between black and white? More prescriptive. More definition, but the unintended consequence is that it actually requires more judgment to select the shade of gray and we are now less likely to agree. Behavioral studies on decision-making show that people’s ability to make rational choices decreases when the number of choices becomes too large. In an auditing program, we are not only dealing with the choice that one person makes – but trying to calibrate the choices that all the people make.