Global Social Compliance Programme

1. Global Social Compliance Programme Programme Presentation & Update August 2009 1

2. ² Over 1000 codes and implementation systems 3

3. The Situation today Shared Supply Base All consumer goods Sourcing Companies Result Today Carrefour/ICS Wal-Mart Ikea HP/EICC Migros/BSCI Company X • Audit Fatigue • Confusion • Inefficiency • High Cost • Focus on audits • not on • remediation Social Audit Supplier A SocialAudit Social Audit SocialAudit Social Audit SocialAudit 4

4. What GSCP does EICC BSCI ETI GSCP Vision: To harmonise existing efforts to deliver a shared, consistent and global approach for the continuousimprovement of workingand environmental conditions in global supplychains Best Practice Common approach ICS Equivalence Company Scheme SAI 5

5. A global cross-industry Platform • Build consensus on best practices • Develop a clear and consistent message for suppliersglobally • Drive convergence by building comparability and transparency • Reduce audit fatigue and duplication • Strengthen collaborative efforts for building capacity and training 6

6. GSCP Governance Model Task Force Recommendation Advisory Board Executive Board Consultation Mandate Mandate Mandate Expert Working Group 1 Expert Working Group 2 Expert Working Group n Consultation Recommendation Secretariat 7

7. GSCP Task Force 8

8. GSCP Boards Executive Board AdvisoryBoard 9

9. GSCP Scope & Principles • No duplication • Best practices • No lowering of standards • Open source • Engaging civil society • stakeholders • Business-driven • Driven from the top level • Global • Food and non food • Non competitive 10

10. What GSCP is not • NOT another monitoring scheme • NOT a substitute to existing initiatives • NOT an accreditation or certification body 11

11. 6.Remediation 5. Data Sharing 4. Management Systems 3. AuditorCompetence Build Reference Tools based on best practice 2. Audit Process & Methodology 1. Reference Code GSCPWorking Plan Build understanding, comparability & transfer of information Environmental Module: site-specific environmental requirements Equivalence Process 12

12. Reference Tools To uphold relevant international standards where they exist To build consensus around what good looks like To provide a common interpretation of fair labour and environmental requirements and their implementation To create comparability and transparency between systems 13

13. Reference Tools • These tools can voluntarily either be: • Integrated in part or in full by companies into their existing systems • Used by companies or initiatives as a reference against which to compare or otherwise review their existing tools through an equivalence process CONVERGENCE 14

14. GSCP Methodology for each tool DESIGN • Gathers • existing best practices and • drafts the • reference tool • Manages a public consultation to ensure accuracy and that it represents among all stakeholders CONSULT REVIEW APPROVE Submits the recommendation to the Advisory and Executive Board for review, comment, revision and approval • Prepares a recommendation on how the draft reference tools should be amended based on consultation results 15

15. Step1 - ReferenceCode • 6 months open consultation led by an Expert Working Group • All comments received compiled and analysed • Recommendations to the Advisory Board • Approved and launched end Sept. 08 • Review Protocol in place 16

16. Step 2 - Audit Process & Methodology What reference tools? • Common guidelines on • Audit process • Employment site profile • Self-assessment • Audit Checks • Audit Report • Alert Notification • Supplementary Audit Information • Summary of findings & Corrective Actions • Where do we stand? • Draft reference tools tested through: • Web consultation • Test audits • Final Draft being reviewed by AB & EB 17

17. Step 3: Auditor Competence Objective • To increase consistency between auditors and audits • To allow common training guidelines • To send a clearer and unified message to suppliers How & When • Expert working group and process started in April 09 • The group will GSCP will make sure to work in collaboration with existing efforts (e.g. Verite/CREA) 18

18. Step 4: Companies’ Management Systems Objective • Understand, share, align best practices in each system • Build greater understanding, transparency and trust • Allow the different systems to better work together 19

19. Step 5: Data Sharing Objective • Improve transparency • Gain better and wider market knowledge • Facilitate better planning and remediation • Develop protocols for data ownership & sharing 20

20. Step 6: Remediation A Forum - To build relevant tools • To openly discuss issues of common interest • To exchange experiences and learn from each other’s practice in the field • To strengthen collaborative approaches Next General Meetings: • San Francisco, 19-20 October 2009 21

21. Module on Environment • • Integration of basic site-specific environmental requirements within GSCP • • Definition of the following reference tools based on best practices: • Draft reference requirements • & guidelines for suppliers • Draft reference Audit systems • & methodology • Draft reference requirements • for auditor competence • • Public consultation on reference • requirements and guidelines • April to June 2009 22

22. GSCP Equivalence Process GSCP Reference Tools can beused as a benchmark for companies/schemes to understand where they stand against best practice and against other companies/schemes REFERENCE TOOLS based on best practice X Y E B D A C Y = the gap between company systems / schemes “D” and “C” 23

23. Shared Benefits 24

24. For questions, please contact Claudine Musitelli, GSCP Directorc.musitelli@theconsumergoodsforum.com 25