Introduction to CSR management systems 30112020 1 Agenda

Introduction to CSR management systems 30/11/2020 1

Agenda • What & Why Standards? • SA 8000 & ISO 14001 overview • Benefits of integrating SA 8000 & ISO 14001 • Other CSR initiatives – Global compact – Business Social Compliance Initiative( BSCI) – ISO 26000 30/11/2020 2

Codes/Standards • Company code – May or may not refer to external codes – No consensus on what should be included and how to implement • Industry code – Developed thru industry association E. g. International Council of Toy Industries (ICTI) Code of Business Practice. • Multi-stakeholder codes/initiatives – Involvement of all various stakeholders E. g. WRAP • Management system standard – STANDARD is a document, established by consensus and approved by a recognized body, that provides, for common and repeated use, rules, generic models guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context. 30/11/2020 3

Why standards • Provide a collection of requirementsgeneric • Structured approach readily available • Uniform point of reference • Easy comparison possible • Sharing of best practices possible 30/11/2020 4

SA 8000: 2001 • First international auditable standard on Social Accountability • Multi stakeholder initiative- Based on ILO recommendations • Wide spread acceptance • Based on the Plan Do Check Act (PDCA) approach • Includes performance requirements & management system elements 30/11/2020 5

SA 8000: 2001 -requirements • Performance requirements/clauses– Child labour – Forced labour – Health & Safety – Freedom of association – Discrimination – Disciplinary actions – Working hours – Remuneration 30/11/2020 6

SA 8000: 2001 -requirements • Management system elements – – – – – Policy Management review Representative( Sr. Mgmt, H&S, Non-mgmt ) Roles & responsibility Control of Suppliers/sub-contractors & sub-suppliers( home workers) Addressing concerns and taking action Outside communication Access for verification Records 30/11/2020 7

Comparisons of various initiatives INITIATIVE SCOPE INDUSTRY FOCUS OBJECTIVE • SA 8000 GLOBAL • FLA USA APPAREL & FOOTWEAR DEVELOP ACCREDITATION / LABEL FOR GLOBAL Cos. , • WRAP USA APPAREL FACTORY CERTIFICATION • ETI UK MULTI-INDUSTRY • ISO 26000 Global MULTI-INDUSTRY MGMT SYSTEM MULTI INDUSTRY DEVELOP ACCREDITATION & CERTIFICATION PROCEDURE SHARE LEARNING; DEVELOP METHODOLOGY DEVELOP GUIDELINES

Benefits of SA 8000 • Comprehensive coverage of labour standards • Protection of reputation and trading performance • Management systems establishes social accountability as part of business practices • Enhanced Supply Chain & Customer Relationship Management • Mechanism for continuous improvement of working conditions • Formal framework for stakeholder involvement 30/11/2020 9

ISO 14001 -Enviomental mgmt systems • The ISO 14000 family addresses various aspects of environmental management • ISO 14001: 2004 requirements–Generic • framework for a holistic, strategic approach to the organization's environmental policy, plans and actions. • Common reference point for stakeholders 30/11/2020 10

Integrated Management Systems(IMS) Integrate the focus of an organization across several aspect which are critical to an organization Quality Social Accountability Environment IMS H&S Food Safety Mgmt Information Security 30/11/2020 11

Why an IMS • Parts of an organization may be working at cross purposes • Internal ‘silos’ each with its own processes, objectives & goals • Duplication of documentation • Lack of accountability • Interfaces may not be managed. 30/11/2020 12

IMS-Benefits • Comprehensive approach to risk management ( CSR and environment-triple bottom line approach) • Holistic picture of diverse parts of an organization • Unified/Integrated systems brings clarity and consistency • Reduced bureaucracy-decision seen in the context of the organization. • Reduction in time spent on auditing. • Strength of one system can be leveraged to manage the other(s) • Comprehensive policies can be developed E. g. purchasing( Consider Quality, EHS, IS, CRS issues). 30/11/2020 13

Other CSR frameworks 30/11/2020 14

Business Social Compliance Initiative (BSCI) • • initiative of European retail companies initiated by the Foreign Trade Association (FTA), Brussels Tries to Answer : can retailers and suppliers meet requirements of high quality, low prices and socially fair produced goods? Focused on providing a common approach to European Commerce provides standardized Management Tools is open to retailers, importers and manufacturers –covers all consumer goods transparent -involves stakeholders in Europe and supplier countries Saves cost and time through prevention of multiple auditing Key benefits – – – • Optimizes working conditions Increases productivity Higher product quality Higher satisfaction for workers and consumers Same requirements for all suppliers involved through their customers No certificate is issued 30/11/2020 15

BSCI- Requirements • Requirements – – – – – • Legal compliance Freedom of association and right to collective bargaining Prohibition of discrimination Compensation Working hours Work place health & Safety Prohibition of child labour Prohibition of forced labour Environment and safety issues Management systems Terms of implementation – – – Management responsibility Employee awareness Record keeping Complaints & corrective actions Suppliers and sub-contractors Monitoring 30/11/2020 16

ISO 26000 • Sustainable business for organizations means – not only providing products and services that satisfy the customer, and – doing so without jeopardizing the environment, – but also operating in a socially responsible manner that society increasingly demands. Pressure to do so comes from customers, consumers, governments, associations and the public at large. Respect ISO 26000 Compliance to legislation 30/11/2020 Responsibility Total Freedom 17

ISO 26000 • • • Guidance standard – published in 2010. Move from good intentions to actions Do not contain requirements-certification will not be possible Assist organizations in addressing their social responsibilities while respecting cultural, societal, environmental and legal differences and economic development conditions; Provide practical guidance related to operationalizing social responsibility, identifying and engaging with stakeholders, and enhancing credibility of reports and claims made about social responsibility; Emphasize performance results and improvement; increase confidence and satisfaction in organizations among their customers and other stakeholders; Be consistent with and not in conflict with existing documents, international treaties and conventions and existing ISO standards; Not be intended to reduce government's authority to address the social responsibility of organizations; Promote common terminology in the social responsibility field; and Broaden awareness of social responsibility. 30/11/2020 18

Thank you! 30/11/2020 19