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SA 8000 Capabilities SA 8000 Capabilities

Presentation a. SA 8000 – An overview b. The need for SA 8000 c. Presentation a. SA 8000 – An overview b. The need for SA 8000 c. IQNet - Global SA 8000 capability d. Introduction to IQNet Ltd 2

a. SA 8000 – An overview 3 a. SA 8000 – An overview 3

What is SA 8000 a. SA 8000 – An overview - Standard for the What is SA 8000 a. SA 8000 – An overview - 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

Why have a Standard a. SA 8000 – An overview § to ensure that Why have a Standard a. SA 8000 – An overview § 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 SA 8000 a. SA 8000 – An overview World Conventions: • • Development of SA 8000 a. SA 8000 – 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

What does SA 8000 cover a. SA 8000 – An overview 1. Child Labor What does SA 8000 cover a. SA 8000 – An overview 1. Child Labor 2. Forced Labor 3. Health & Safety 4. Freedom of Association & Right to Collective Bargaining 5. Discrimination 6. Disciplinary Practices 7. Working Hours 8. Remuneration 9. Management Systems 7

a. SA 8000 – An overview What does SA 8000 cover Company 2 nd a. SA 8000 – An overview What does SA 8000 cover Company 2 nd Tier Supplier Sub-supplier Supplier Sub-supplier Supply Chain 1 st Tier 8

a. SA 8000 – An overview Who is involved UNIONS SHAREHOLDERS NGOs MULTI-NATIONALS HUMAN a. SA 8000 – 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 SA 8000 10 b. The need for SA 8000 10

Why now b. The need for SA 8000 Need to standardise suitable working conditions: Why now b. The need for SA 8000 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 SA 8000 Impacts of globalisation: § Greater expansion of markets b. The need for SA 8000 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 SA 8000 Effects of globalisation: Benefits: - More business opportunities b. The need for SA 8000 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 SA 8000 Triple Bottom Line ECONOMIC ENVIRONMENTAL SOCIAL SUSTAINABILITY 14 b. The need for SA 8000 Triple Bottom Line ECONOMIC ENVIRONMENTAL SOCIAL SUSTAINABILITY 14

b. The need for SA 8000 Managing business risks: Bully supervisors Excessive overtime hours b. The need for SA 8000 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 SA 8000 Example - Child Labour Regional Estimates: Courtesy of b. The need for SA 8000 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

Example - Child Labour b. The need for SA 8000 Courtesy of UNICEF Courtesy Example - Child Labour b. The need for SA 8000 Courtesy of UNICEF Courtesy of ILO 17

Business Impact b. The need for SA 8000 OUTCOMES: - Damaged reputation - Brand Business Impact b. The need for SA 8000 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 SA 8000 capability 19 c. IQNet - Global SA 8000 capability 19

c. IQNet - Global SA 8000 capability IQNet Capabilities Global Certification: - About 20 c. IQNet - Global SA 8000 capability IQNet Capabilities Global Certification: - About 20 IQNet Partners SA 8000 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 SA 8000 capability IQNet Capabilities Credibility and Consistency: - IQNet c. IQNet - Global SA 8000 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 SA 8000 capability IQNet Certification Path Application Pre-Visit Certification Audit c. IQNet - Global SA 8000 capability IQNet Certification Path Application Pre-Visit Certification Audit Surveillance Audit Re-certification Audit IQNet SA 8000 Assessment Process 22

d. Introduction to IQNet Ltd 23 d. Introduction to IQNet Ltd 23

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Accreditation Granted 1 st May 2007 Accreditation Granted 1 st May 2007

Tony Di Palma Managing Director Bollwerk 31 P. O. Box CH-3001 Bern Switzerland Phone 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. [email protected] ch www. iqnet-ltd. com Contact Details