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SA 8000

SA 8000. Heinrich A. Bieler. Public Trends and Expectations. General distrust of business and industry practices fuelled by media Expectation that business uphold similar values to individuals in the community Increasingly discriminating purchasing decisions

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SA 8000

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  1. SA 8000 Heinrich A. Bieler

  2. Public Trends and Expectations • General distrust of business and industry practices fuelled by media • Expectation that business uphold similar values to individuals in the community • Increasingly discriminating purchasing decisions • Thirst for more public information • Internet & other media providing information

  3. Social / Ethical Management Positions Public • Believes in fundamental human values • Has increasing awareness of business practices & their impact • Beyond what is produced • quality & price • To how it is produced • Social & ethical issues • Environmental issues • Health & safety issues Business Sector • Supports human values • Subject to increasing competitive pressures • Wishes to employ (and be seen to employ) good “corporate citizenship” • Conduct business • Responsibly • Honestly • Fairly • Considerately

  4. The new „Paradigm“ for Business • Business takes responsibility for those impacts it can control or influence • Aims for a “win - win” situation for all stakeholders: • Investors • Customers • Employees • Subcontractors • Communities • Leaders in business.. • Recognise the strategic importance of the interrelationship between their products, activities and services and their stakeholders. • Manage their resources and risks accordingly

  5. The „New Paradigm“ Challenge • 1. Do nothing • 2. Fire-fight burning issues • 3. Produce esoteric management policies / codes / mission & vision statements • Hope everyone does their bit • Call PR firm for help with “Dateline” interview • OR... • 4. Take a leadership role • Apply proven principles to control & manage risks

  6. The Informed Consumer Retailer Suppliers India, China, Kenya, Brazil, Indonesia, Turkey, etc. Retailer Consumer Retailer Retailer Consumer informed of supplier details becomes aware of supply chain issues Media

  7. The uninformed Consumer Retailer Suppliers India, China, Kenya, Brazil, Indonesia, Turkey, etc. Retailer Consumer Consumer view of the supply chain stops at retailer Retailer Retailer

  8. Knowledge of Supply Chain Supplier Supplier Supplier Supplier Supplier Retailer Supplier Supplier Supplier Supplier Supplier Supplier Supplier

  9. Second Party Audit: Retailer Side Team to: . plan audits . perform audits . write audit reports . give opinion (OK/not OK) Retailer Code of Practice Audit A Audit B Audit D Supplier A Audit C Example: In ‘97, SGS-ICS has performed for Disney over 350 independent audits of suppliers to ensure that they were in compliance with Disney’s code of practice: CN, PH, ID, PK, IN, US, MX Supplier B Supplier D Supplier C Does not respect Code of Practice

  10. Second Party Audit: Supplier Perspective Retailer A Retailer B Code of Practice A Code of Practice B - Disturbance of production during the audits - Several Code of Practice imposing several systems Audit A Audit B Supplier Audit C Audit D Does not respect Code of Practice C Code of Practice C Code of Practice D Retailer C Retailer D

  11. Why use a Standard • To provide a basis for audit and improvement that represents the interests of stakeholders, whilst being biased to none in particular. • Is widely understood, accepted and is verifiable by both internal and external means. • A baseline against which acceptable practices may be measured.

  12. SA 8000 • The first global standard for ethical sourcing • Designed for independent verification • A global standard, designed for use by anycompany, anywhere in the world • Has been developed with stakeholders • Is designed to take local laws andrequirements into account “SA 8000 is definitely a move in the right direction and complements efforts such as the Ethical Trading Initiative in Europe, to put these issues onto the global agenda” Dr Geoff Spriegel - Sainsbury’s Supermarkets Ltd..

  13. SA 8000 • A common standard seeking to guarantee the basic rights of workers • A set of universal requirements in line with the ILO Conventions • The first auditable global social standard • Provides the framework for the independent verification of the ethical production of goods and services • Has been developed by CEPAA, now SAI (Social Accountability International) • More information: www.cepaa.org

  14. Social Accountability International (SAI) • A charitable human rights organization • Dedicated to improving workplaces and communities by developing and implementing socially responsible standads • SAI convenes key multi-sectoral stakeholders to develop consensus-based voluntary standards • SAI accredits qualified organizations to verify compliance • SAI promotes understanding and implementation of such standard worldwide

  15. The Standard SA 8000 (download: www.cepaa.org) Management Discrimination Communication Working Hours Supply Chain Remuneration Disziplinary Practices Health & Safety Freedom of Association & Right to Collective Bargaining Forced Labour Child Labour

  16. Improvement Process SA8000 Certification Basic Code of Practice Unacceptable Level

  17. Stepped Approach Monitoring SA 8000Certification SupplierVerification(full or reduced) Supply ChainVerificationSA 8000 Completeness of Coverage per Supplier Supply ChainVerificationReduced Requirements

  18. Implementation  Learn about the requirements  Commitment of the Top Management  Projectplanning  Training, Information, Contacts to NGOs  Process / evidence definition  Process implementation / providing evidence  Monitoring / Management Review  (Pre-Audit) Certificition  Continual Improvement

  19. Stakeholder Map Taxes Church Laws Shareholder Goverment Parties Religion Unions NGOs Capital Organisation Accidents Banks Owner Insurance Management Social Security EmployeesWorkers Suppliers Media Families Clients Competitors Hobbies TV/Radio Internet Press

  20. Certification Process United Nations, EU Local Staff NGOs Local/ International norms Local legislation Interpretation of SA 8000 for audit, with certification objective Conformity to SA 8000 standard ? ’Audit Report Surveil-lances Suppliers Code of Practice Audit Client SA 8000 standard requirements Accredited Certificate Basic requirements Enterprise XYZ Elements of the implementation decision Implementation Audit and Certification

  21. Certification Audit: Documentation • Documentation • Contract of Employment • Human Resource Manual / Procedures • Published Policy • PR Material • Quality Manual / Procedures • Health and Safety Manual / Procedures

  22. Certification Audit: Records • Records • Pay Stubs • Payroll • Fire, Health and Safety Certificate • Job Application • Test Results (e.g. Potable Water) • Production Schedules • Identity Documents

  23. Certification Audit: Interviews and Focus Groups • Worker Interview • Anonymity • Simple, clear questions • Language • Gender • Notes • Ev. Off-site interviews • Focus Groups • Group of workers selected randomly • Two / three Subjects • Group Briefed at Start / summary given at end of Session

  24. Certification Audit: Questionnaire, Observations • Questionnaire / Survey • Larger sample • Anonymous • Use to cross check • Brief, clear (10 – 15 Questions) • Observations • Use and common sense

  25. Data Collection Matrix

  26. Auditors Ethics • Audit team selection (gender) • Language • Knowledge of customs and laws • Understanding of the culture • Do no harm • Information is about people • When auditors leave, people remain • If you cannot do the work – do not try • Do not deceive • Do not misrepresent

  27. Integrated Systems → Integrated Audits

  28. Worker Benefits • Fewer accidents • Enhanced opportunities to be organized • A way to address and improve the conditions where people work • Increased worker awareness about core labor rights • Enhanced communication to the management • Evidence that labor rights are good for society and business • Improved business practices lead to economic growth and new job opportunities

  29. Employer benefits • A credible and effective way to put social responsability into action • Enhanced company and brand reputation • Improved employee recruitment, retention and performance • Gains in quality and productivity • Savings from fewer workdays lost and lower insurance bills • Less expensive than an internal compliance program • Better relationships among workers, trade unions, companies, customers, NGOs and government

  30. Consumer benefits • Clear, credible information for those who want to make ethical purchasng decisions • Useful data for socially responsible investors • Identification of products made under humane conditions • Identification of companies making progress toward humane conditions • Broad coverage of product categories and production geography

  31. Additional Information ? SGS Société Generale de Surveillance SA 1, place des AlpesP.O. Box 2152CH-1211 Geneva 1 www.sgs.com SGS Switzerland SASystems &Services Certification Technoparkstrasse 1CH-8005 Zurichheinrich_bieler@sgs.com

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