Human Rights Risk Assessment a concrete tool for

Human Rights Risk Assessment: a concrete tool for CSR in international supply chains SAI tools in context Valore Sociale International Conference Eileen Kaufman TM Social Accountability International 13 May 2011 1

Social Accountability International • Multi-stakeholder NGO established in 1997 • Convenes key stakeholders to develop consensus-based voluntary social standards • Promotes understanding & implementation of voluntary social standards worldwide • Affiliate SAAS accredits qualified organizations to verify compliance to standards What is unique about SA 8000®? • • Global; Verifiable; Applicable to any sector; Developed by business, NGOs & trade unions together. Social Accountability International 13 May 2011 2

Multi-stakeholder Advisory Boardaffiliations of individual members • Non-Business • – Care International [USA] – The College of New Jersey [USA] – Ethos Institute [Brazil] – FILCAMS-GCIL [Italy] – National Child Labor Committee [USA] – Rainforest Alliance [USA/Costa Rica] – Solidaridad [Netherlands] – SAI [USA] – TCCI [India] – UNI [Switzerland] – UFCW [USA] – WWF [USA] • Technical: RINA [Italy] Social Accountability International 13 May 2011 Business – Carrefour [France] – Chiquita [Belgium/USA] – BSCI [Belgium] – Dole [USA] – Eileen Fisher [USA] – GAP [USA] – Gucci [Italy] – Legacoop Nazionale [Italy] – Otto [Germany] – PGC Switcher [India/Switzerland – Tchibo [Germany] – TNT Express [Netherlands] 3

SAI tools • SA 8000® • CERTIFICATION—corrective actions, surveillance, open complaint system • SAAS ACCREDITATION • PUBLIC LIST OF CERTIFIED ORGANIZATIONS • CAPACITY BUILDING… • AUDITOR TRAINING • SUPPLIER TRAINING • SOCIAL FINGERPRINT ™ • LEARNING PARTNERSHIPS. Social Accountability International 13 May 2011 4

SA 8000® • Child Labor • Forced Labor • Freedom of Association and Right to Collective Bargaining • Working Hours • Basic Needs Wage • Discrimination • Discipline • Health & Safety • Management system sustainability Social Accountability International 13 May 2011 5

SA 8000® statistics • • • 1, 421, 000 workers 2478 certified workplaces 65 countries 66 industries In Italy – 211, 757 workers – 834 certified facilities Social Accountability International 13 May 2011 6

Facility Workers, by Industry Social Accountability International 13 May 2011 7

Facility Workers, by Country Social Accountability International 13 May 2011 8

ACCREDITATION Structure ISEAL International Social and Environmental Accreditation and Labeling Alliance ASI, FSC, MSC, FLO, MAC, RA, SAAS, SAI, WWF… [ Standard setting standard, Impact Assessment Standard] SAAS --SOCIAL ACCOUNTABILITY ACCREDITATION SERVICES [Accreditation Agency] Accredited Certification Organizations [20 international companies] CERTIFIED FACILITY Social Accountability International 13 May 2011 9

CAPACITY BUILDING: Central America--Scope of Project Cultivar • With USDOL support, SAI’s Project Cultivar worked to promote a culture of compliance with national labor legislation in the agriculture industries of 3 countries: – Honduras, Nicaragua, and Dominican Republic • Targeted agricultural sectors which provide substantial employment & face the severest challenges to labor rights: – Banana, Sugarcane, and Melon • Local partners provided training and technical assistance to workers, managers, and government labor inspectors on Occupational Health & Safety (OSH), Complaints Management Systems (CMS); and Social Dialogue Social Accountability International 13 May 2011 10

Cultivar Achievements • Beyond the farm • On the farm – All 38 farms improved use of personal protective equipment – 1, 915 workers, 240 managers, 315 government labor inspectors – 95 Worker-leaders trained to train peers; 40 Workers trained by peer worker trainers – 26% of farms established or reactivated Mixed Worker-Manager Committees for OSH – 45% of participating producers reported an increase in resolved grievances at the farm level – Honduras: University Certificate Program on Social Dialogue, Labor Relations and Management Systems - 32 graduates (include workers, union officials, private and public sector) – Nicaragua: Departmental OSH Council Re-activated – Dominican Republic: For the first time in Dominican history, Cultivar facilitated dialogue among Dominican sugar companies, sugarcane producers, government, workers on labor rights to address semi-feudal labor conditions Social Accountability International 13 May 2011 11

Other SAI Latin American Programs • Environment and Labor Excellence for CAFTA-DR Program – SAI provides technical assistance on Labor Norm Compliance to: • Fresh fruit providers to Hortifruti / Wal Mart Central America in Costa Rica • Alcoholes Finos Dominicanos S. A. in the DR and their sugarcane providers – Convenes Dialogue Roundtables for the Dominican Sugarcane industry on various issues in agriculture – Applied Social Fingerprint (Self. Evaluation & Diagnostic) for 2 sugarcane mills in DR • Project Comply & Win – Building capacity of the Ministries of Labor on Labor Rights Compliance through research, development, validation, and training in: • Code of Ethics • Labor inspector protocols concerning Freedom of Association and Collective bargaining – Drafted protocols concerning frequent violations in agriculture and health and safety for DR and Guatemala Social Accountability International 13 May 2011 12

SOCIAL FINGERPRINT™ • “Measure and improve” • Focuses on processes and management systems—not only code violations • Builds on SA 8000 management systems • System development and implementation • Supports continual improvement along any standard, industry code or corporate code • Shapes the path and creates small steps Social Accountability International 13 May 2011 13

Social Fingerprint™ Structure • . Social Accountability International 13 May 2011 14 © Social Accountability International

Social Fingerprint™ Programs Company Supply Chain Management Looks inside a company at how they manage social performance Typically for suppliers © Social Accountability International Looks at how a company manages social performance in its supply chain Typically for brands/retailers Social Accountability International 13 May 2011 15

LEARNING PARTNERSHIPS • • UNGC ISEAL VALORE SOCIALE BSCI, GIZ, DFID ·ETI-Norway ∙CIPE ·TI-USA – —[India, China] • IFC • ITGLWF • ETI-UK ∙GEIK ·MFA forum Social Accountability International 13 May 2011 16

Tuscany Encourages SA 8000 Certification: • The Tuscany Region provides funding to SMES for up to 50% of costs relating to SA 8000 certification • Local Chambers of Commerce provide funds for social reports • SA 8000 certified enterprises are entitled to a 0. 50% reduction of their IRAP (Regional Tax on Productive Businesses) • If a business demonstrates increased safety and healthcare in the workplace, it is eligible for reductions in insurance costs Social Accountability International 13 May 2011 17

UMBRIA • Register of SA 8000® certified companies • Regione contributions cover 50% of the consultancy and certification expenses, addressed to those companies who implement certifiable management systems. • Enrolment in the register entitles the company to priority status for: – financial incentives – Invitations to tenders for public works or goods and services – Being government suppliers, when other legal requirements are met. • http: //www. isealalliance. org/sites/default/files/E 055_SAI_Tuscany. p dfhttp: //www. isealalliance. org/sites/default/files/E 055_SAI_Tuscany. pdf Social Accountability International 13 May 2011 18

SAI Corporate Members Anvil Knitwear, Inc. Beraca Billabong Int’l Limited Carrefour Group Charles Voegele Trading AG Chiquita Brands Int’l, Inc. Eileen Fisher Inc. Gap Inc. Garnet Hill General Mills, Inc. Gucci HP OTTO Group (Gmb. H & Co KG) PCG Private Label Mfrs. Association Rosy Blue Tchibo Gmb. H The Timberland Company TNT The Walt Disney Company Social Accountability International 13 May 2011 19

Risks Opportunities • • • RISK OPPORTUNITY Harming workers------- healthier workers Harming reputation— -brand more valuable Harming product quality—>better quality Losing customers------- -more customers High staff turnover----- more experienced employees • Poor worker-manager communication—>good ideas, social dialogue Social Accountability International 13 May 2011 20

• www. sa-intl. org Social Accountability International 13 May 2011 21