SA8000 Capabilities Presentation a. SA8000 – An overview b. The need for SA8000 c. IQNet - Global SA8000 capability d. Introduction to IQNet Ltd 2 a. SA8000 – An overview 3 a. SA8000 – An overview What is SA8000 - Standard for the improvement of working conditions - Promotes ethical and fair treatment of workers - Incorporates international human rights conventions - Developed by Social Accountability International (SAI), now known as Social Accountability Accreditation Services (SAAS) 4 a. SA8000 – An overview Why have a Standard to ensure that labour standards for workers are respected to be transparent and use an independent verification of company practices to avoid practices that violate human rights and avoid turning a ‘blind eye’ to suppliers which violate human rights 5 Development of SA8000 a. SA8000 – An overview World Conventions: • • • • Freedom of association & collective bargaining Freedom from forced labor Abolition of child labor Freedom from discrimination Also covers Fairness: • Provisions for a basic living wage • Definition of long working hours • Health and safety in the workplace 6 a. SA8000 – An overview What does SA8000 cover 1. 2. 3. 4. 5. 6. 7. 8. 9. Child Labor Forced Labor Health & Safety Freedom of Association & Right to Collective Bargaining Discrimination Disciplinary Practices Working Hours Remuneration Management Systems 7 a. SA8000 – An overview What does SA8000 cover Company 2nd Tier Supplier Supplier Sub-supplier Supplier Supplier Sub-supplier Supplier Supplier Sub-supplier Supply Chain 1st Tier 8 a. SA8000 – An overview Who is involved UNIONS SHAREHOLDERS NGOs MULTI-NATIONALS HUMAN RIGHTS GROUPS WORKERS SUPPLY CHAIN CERTIFYING BODIES CONSUMERS GOVERNMENTS 9 b. The need for SA8000 10 b. The need for SA8000 Why now Need to standardise suitable working conditions: • around the world due to ‘globalisation’ • because of varying codes of conduct in different industries • to have a standardised certification process (assess conformity) • to establish a baseline for consistency and comparison 11 b. The need for SA8000 Impacts of globalisation: Greater expansion of markets Job shifts from developed to developing countries Competition between countries to be low-cost producers and attract investors 12 b. The need for SA8000 Effects of globalisation: Benefits: - More business opportunities - Economic growth potential Disadvantages: - Declining workplace conditions - Wages that do not support a family - Less job security - More restrictions on trade unions 13 b. The need for SA8000 Triple Bottom Line ECONOMIC ENVIRONMENTAL SOCIAL SUSTAINABILITY 14 b. The need for SA8000 Managing business risks: Bully supervisors Excessive overtime hours Death Neglect of safety equipment Less Productivity Higher Reject Rate Discrimination Wages not enough to live on Suppliers not truthful Injury Buyer Boycott Brand Value Children hired in secret Illegal 15 b. The need for SA8000 Example - Child Labour Regional Estimates: Courtesy of Asia Pacific region 127.3 million child workers (aged 5-14 years old) Sub-Saharan Africa 29% of children (under 15) are sent to work Latin America 17.4 million child workers Industrialised & transition economies 2.5 million children are working 16 b. The need for SA8000 Example - Child Labour Courtesy of UNICEF Courtesy of ILO 17 b. The need for SA8000 Business Impact OUTCOMES: - Damaged reputation - Brand devaluation - Consumer boycott Sialkot Pakistan NIKE was accused of using child labour in the production of its footballs in Pakistan. 18 c. IQNet - Global SA8000 capability 19 c. IQNet - Global SA8000 capability IQNet Capabilities Global Certification: - About 20 IQNet Partners SA8000 capable - More than 60 auditors qualified - Potential coverage exceeding 50 countries Local Service Delivery: - Auditing resources locally deployed - Knowledge of local labour laws / codes - Local language capabilities (essential for worker interviews) 20 c. IQNet - Global SA8000 capability IQNet Capabilities Credibility and Consistency: - IQNet Partners : Leaders in their region - Key stakeholder involvement (eg UNICEF) - Auditing resources “calibrated” (global training initiative) 21 c. IQNet - Global SA8000 capability IQNet Certification Path Application Pre-Visit Certification Audit Surveillance Audit Re-certification Audit IQNet SA8000 Assessment Process 22 d. Introduction to IQNet Ltd 23 24 25 Accreditation Granted 1st May 2007 Tony Di Palma Managing Director Bollwerk 31 P.O. Box CH-3001 Bern Switzerland Phone +41 31 310 24 40 Fax +41 31 310 24 49 Mobile +41 79 830 43 21 tony.dipalma@iqnet.ch www.iqnet-ltd.com Contact Details