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Walking the talk – Responsible supply chains

Corporate Social Responsibility - CSRGeneral term for companies’ contributions to people, environment and society. Goes beyond laws and regulations.

Do no harm? Doing good? Who is paying the price?

Social responsible investments

Sustainable business

Corporate citizenship

CSR and Ethical Trade

Ethical Trading = Socially responsible business that safeguards and promotes human rights, workers’ rights, economic development end the environment in the supply chain.

CSR

Employeepolicies

Environment / climate

Animal welfare

Supply chain

Product safety

Corruption

Local communities

CSR is about taking responsibility of how your way of doing business affect others

Dark side of the coin:

• More than 200 million children between 5 and 14 years work without possibility of attending school

• Nearly 10 million children are exposed to the worst forms of child labour, including forced labour.

Global trade – cheep goods at high costs

• More than 2 million people die every year due to health and safety related accidents and diseases

• 160 million people get health related diseases every year.

• 270 million people a year are involved in work place accidents

Source: ILO

Media, campaign organisations, indicies

Employees – motivation/recruitment

Business professionalisation

Board and owners

Government and public sector

Workers –legal compliance

Customers - B2B/B2C

Many drivers of ethical trading - expectations

Increased expectations from many

stakeholders!

Ethical trade: Why?• The business case: licence to operate, professional business

conduct• The moral imperative: Who wants others to suffer for their

welfare? • Common interest in sustainable development – responsible

business is key

“It is an Utopian notion that poverty can be overcome without the active engagement of business”

Kofi Annan

Our vision:

Cooperation and trade that safeguard

• Human rights

• Workers’ rights

• Sustainable development

Our main goals:

• Increase engagement in ethical trading

• Strengthen members’ ethical trading efforts

Ethical Trading Initiative Norway (ETI Norway)

About ETI Norway

• Advocate and resource center for ethical trading (responsible supply chain management).

• ETI Norway is not about guarantee: members commit to continuous improvements

• Multi stakeholder initiative established (MSI) in 2000

• Membership, non-profit based alliance of companies, trade unions, NGOs, employers’ associations and public sector

• Open to all sectors (P.t. 122 members)

• Commitment to Declaration of Principles, including- Adopt ETI-Norway Base Code- Annual report on implementation progress

publicly available

Enable members througho Capacity building both at home and in supply chaino Extensive network of local resources who can assist in improvements

More about ETI Norway

Even more about ETI Norway

Relevant ressources and tools

Practical guidance

IEH assists companies, public institutions and

organisations with responsible supply

chain management. Large international network

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Based on national law and internationally accepted conventions (UN/ILO)

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Some of our members• Companies – small and big• Organizations• Public entities• Total turnover of aprox.

450 bill. UAH

• Supplier code of conduct (ethical requirements)– goals

• Method for implementation: continuous improvements– systematic work using practicle tools

• Network and cooperation– exchange of good practices

EIT Norway’s approach to ethical trade

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1. No forced labour2. Freedom of organisation and collective bargaining3. No child labour4. No discrimination5. No harsh treatment6. Occupational health and safety (OHS)7. Living wage8. Overtime9. Regular employment10.Respect for marginalised groups11.Sustainable environmental management

ETI Norway - Base Code

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General principle: compliance with national laws and regulations

• Practical and structured methods for responsible supply chain management• Focus on improvements with time (process)• Specific tools and support through the whole process

Implementation model - seven steps

Practice Practice Practice Practice Practice

• CoC as basis in selection of new suppliers.

Practice

• Describe• Reporting

Practice

Foundation Commucate requirements

Risk assesment Improvements Business practice

New suppliers

Communication and reporting

• Organization

• Planning• Establish

CoC• Buy in in

org.• Training

• Communicate CoC to suppliers

• Map supply chain

• Risk assesment

• Prioritisation

• Improvement plan

• Good practices

• Dialogue based process

• Facilitate compliance

• Incentives• Capacity

building

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Member pages – resources, tools, information

Give members guidance and practical support.

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ETI Norway film; Better Business, Better Lives

http://www.etiskhandel.no/Artikler/4191.html

• 88% think Norwegian companies are reponsible for reducing the risk of unacceptable working conditions

• 68% think Norwegian companies can actually contribute to real improvements at the production facility

Source: «Den etiske forbruker», Synovate / IEH, May 2011

Norwegian consumers on ethical trade

Norwegian government

• «Public entities as forerunners»• Public procurement• State ownership

CEOs

• 90 % think ethical trade and production is important

• 75 % trust that the products they sell are made under decent conditions

• 67% don’t really know where their products are made

Source: IEH-survey 2010

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Key factors for success

• International standards and national law in the producing country (standardisation – directions)

• Share experiences• Cooperation between customer and supplier• Long-term business relationships• Audits give diagnosis, not cure• Use local experts in capacity building, improvement

programs and to perform audits• Worker involvement