IMPLEMENTATION PROPOSAL
EICC’s New Strategy
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Background
o 2012: EICC approved new governance and accountability model
o 2013: Implemented governance & accountability model. Began strategic planning
• Hired FSG to develop strategic review (shared value approach)
• Consulted with senior executives and stakeholders
o 2014: Implementation plan
• Mission & Vision
• Strengthening Standards and Accountability
• Learning and Capability Building
• Sensing Emerging Issues
o 2015: Plan approval and implementation
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FSG.ORG
3 © 2013 FSG
Code of Conduct & Member Compliance: Develop and update Code of Conduct and ensure member accountability
Audit Process: Provide a structure (VAP), validate auditors, and develop tools
Emerging Issues: Monitor, research, and/or engage directly on key issues (e.g., conflict minerals, working hours, environment)
Transparency: Share audit results and measure performance
Capacity Building: Develop educational materials on CSR issues
Establish Standards & Accountability
Solve Issues in the Value Chain
Baseline: EICC Is currently engaged in Five Main Activity Areas that Fall Into Two Categories: Standards & Accountability and Issues Work
Key Conclusions
o EICC has a strong value proposition
• The Code of Conduct & shared implementation tools are the core of our value
o To meet our future, improvement is needed:
• Transparency and Sharing
• Shared Standards and Accountability
• Learning and Capability Building
• Issue Management
• Engagement and Partnerships
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MISSION & VISION
EICC’s New Strategy
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Approved by the EICC Board of Directors on Nov. 18, 2014:
o Vision: A global electronics industry that creates sustainable value for workers, the environment and business.
o Mission: Members, suppliers and stakeholders collaborate to improve working and environmental conditions through leading standards and practices.
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Mission and Vision
EICC’S 2020 GOAL
EICC’s New Strategy
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2020: EICC Seal
o Development of commercially valuable and credible EICC seal of social, environmental and ethical responsibility recognized and accepted by brands, government procurers and retailers
o One audit per facility used by all customers.
o Incentives: better audit performance and closures = fewer re-audits
o Includes random audits, in-house training based on audit findings
o Includes equivalency
o Factories pay for certification; EICC members require it
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2020 Objective: Factory Certification
o Concept: Certify Code conformance at the factory level that is commercially valuable and credible
• One audit per factory
• Accepted by all customers, required by some
o Value to factory: increase sales, fewer audits
o Value to customer: Assurance & consistency of conformance, fewer resources spent on audits
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Early Framing Ideas
o Allow other audit approaches if equivalent for compliance
o Based on benchmarking from related Industry success stories and case histories
o Includes random audits, in-house training based on audit findings
o Factories pay for certification; EICC members require it
o Regular cadence of audits
• Reduced frequency for good results
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MEMBERSHIP REQUIREMENTS
EICC’s New Strategy
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Key Principles for EICC Membership
o A rising tide lifts all boats – by building a bigger community of practice, bringing ALL companies in the electronics industry forward and encouraging all to join the EICC to share our Code and tools, engage in peer networking and best practice sharing, and leverage our trainings and other resources
o EICC is an inclusive organization - EICC should be driving continuous improvement – recognizing where companies are on the maturity curve and encouraging them to improve every year toward the highest membership category. We provide capability to help members progress toward our vision – regardless of member’s level of maturity.
o EICC will assist members to move to higher membership categories by providing support and education.
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Membership Categories
Supporter – “Learn” •Express support for the mission and vision of the EICCand its Code of Conduct
Affiliate – “Commit” •Senior executive signed commitment to Code•Code posted to company website•Submission of corporate SAQ
Regular – “Comply” •100% compliant to membership requirements*(Existing member have until Jan 1, 2017)•Strengthened requirements for AMA/CMA (third partyverification of program.•Close all priority findings
Full – “Verify” •Same activities as regular, but verified•Achieve audit score of 180 or better on initial orclosure audit for 25% of at-risk member and supplier facilities**•Publish corporate responsibility report
*Requirements include submitting SAQ on 100% of company and supplier facilities constituting 80%of spend; audit 25% of at-risk facilities. Alternates exist for some requirements.**180 on a closure audit means no priority findings and two or fewer major findings left unclosed
Requirements by Category
Supporter Affiliate Regular Full
Public Commitment to Code of Conduct(Supporter = “express support”)
X X X X
Complete corporate SAQ X X X
C-level commitment signed X X X
SAQs completed for 100% of own facilities, 80% Tier 1 spend or equivalent risk assessment
X* X
Complete VAP on 25% of “at risk” major supplier facilities
X* X
Close out priority findings X X
All audit scores 180 or higher for 25% of at-risk facilities audited within 12 months**
X
Issue corporate responsibility report X
EICC-verified performance X
* Existing members: Must be in compliance with regular by 1/1/2017**Audit scores over 180 allows for up to two open major findings (no open priority findings)
Progressing on the Maturity Curve
Regular
Affiliate
Full
• 100% compliance tomembershiprequirements **
• CMA/AMA verified(if applicable)
• Close all priorityfindings
• Access EICC tools and resources• Join EICC community of practice
• 100% verified compliance• Close priorities and majors• CMA/AMA verified (if applicable)• Publish sustainability report
• Commitment to Code• Submission of
corporate SAQ
Supporter
** Current members must be 100% compliant no later than January 1, 2017. New/applicant members must meet 100% compliance immediately to qualify for this category.
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Benefits by Category
Supporter Affiliate Regular Full
EICC tools X X X X
EICC training X X X X
EICC conferences and networking X X X X
Ability to join and participate in EICC workgroups X X X
Use of EICC logo (Affiliate-member logo for Affiliates) X X X
Can vote on member-wide decisions (code and member compliance revisions, etc.)
X X
Can serve in leadership roles in EICC workgroups X X
Can run for a position on the EICC Board of Directors X X
Note: For the first transitional year of the new membership categories, all EICC Full members will be placed in the Regular membership category and all Applicant members will automatically be placed in the Supporter category. Member companies can also opt into a category of their choosing. In Year 2 of the program, all EICC members will have to declare to EICC their appropriate member category.
LEARNING & CAPABILITY BUILDING
EICC’s New Strategy
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Introducing the EICC Learning Academy
o Objectives:• Lasting results and continuous improvement
• Certify member’s staff for key topics
• Connect L&CB to audit corrective actions
o Approach:• Needs assessment tied to audit findings, staff needs or other
demonstrated gaps
• Utilize the best training materials from the most capable providers in each discipline
• Best-in-class resource hub, featuring extensive training and guidance documents
• Comprehensive, automated Learning Management System (LMS), with certificates for sub-disciplines
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Path to Leadership
1. Create curriculum for leadership paths
• Certificate example: “Factory Lead,” “Supervisor”, CSR Director
• Intensive online VAP auditor training
• Curricula geared towards overall EICC CSR proficiency
2. Earn certification of proficiency for EICC programs
3. Certificate travels with the person
• Creates an incentive for continuous learning
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SENSE EMERGING RISKS
EICC’s New Strategy
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Sensing and Responding Overview
Step 1: Analyze data from current programs – VAP, L&CB, CFSI to establish baselines and observe emerging trends
Step 2: Increase and deepen understanding of member challenges with more frequent and in-depth dialogue with members
Step 3: Engage with and follow external sources (news media, stakeholders, influencers and partners, events)
Step 4: Summarize trends and perspective in annual session to prioritize risks and opportunities
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Strengthen the EICC brand to enable the coalition to attract and convene the right collaborators to solve problems.
o Implement this plan to strengthen credibility and ensure the EICC can sense emerging issues.
o Update EICC core communications content and collateral to reflect a strengthened and invigorated organizational identity with a forward-moving brand.
o Increase and deepen membership to show we’re the premier supply chain sustainability coalition and the best-equipped to solve problems.
o Proactively engage with industry and stakeholders to educate, collaborate and show thought leadership.
o Proactively work with news media and help shape member and industry messaging.
EICC Reputation Enhancement
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IMPLEMENTATION TIMELINE
EICC’s New Strategy
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Implementation Timeline
o December 2013: FSG report delivered
o January-March 2014: Draft implementation plan developed by EICC staff
o March 14, 2014: Draft implementation plan delivered to Board of Directors for review
o March 21, 2014: Face-to-face feedback session on draft implementation plan with Board of Directors during face-to-face meeting
o May 15-June 20, 2014: Board of Directors taskforce works with EICC staff to review and develop implementation plan
o June 20, 2014 (during Board of Directors face-to-face meeting): Final input from Board of Directors
o July-August, 2014: EICC staff update and revise draft implementation plan
o September 30-October 3, 2014: Review by SEAC and general membership as part of Town Hall meeting
o December 10-11, 2014: Final review by the Board and determination of continued member outreach and final approval of membership categories and implementation plan.
o June-July, 2015: Membership Voting Period
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