csr and smes: implications and potential benefits bart slob chisinau, october 30, 2009
TRANSCRIPT
CSR and SMEs: implications and potential benefits
Bart Slob
Chisinau, October 30, 2009
Legislation
Consumer / userHealth and Safety
Environment
E.g. packaging, WEEE,
RoHS, cadmium
CE Marking
Social / fairtrade labels
SA 8000 / OHSAScertificate
Codes ofconduct
ISO 9000 seriescertificate
EN / IS0standards
ECO LabelsIS0 14001Certificate
Quality Social accountability Environment
Market-driven requirements
CSR-related market access requirements: combination of legislation and market demands
ISO 26000, GRI, UNGC
CSR for SMEs
How to manage risks and create opportunities?
Step 1: Identify relevant buyers’ requirements
• Database search by product group
– Legislative and non-legislative requirements
• Internet search on relevant codes of conduct
– Potential buyers
– Sector codes
CSR for SMEs
Step 2: assess your position and ambition
• Baseline analysis• Compliance to legislation• Extent to which buyers’ requirements are met• Risk management versus market opportunities• Stakeholder expectations• CSR ambition responsibility / market strategy• Build support within your company and among
your stakeholders
CSR for SMEs
Step 3: develop a code of conduct
• Company code• Sector code• Region code• Code for suppliers• Code developed by a multi-stakeholder initiative
CBI’s code of conduct builder
Tip: use examples in CBI database
CSR for SMEs
Step 4: identify areas of improvement• Priorities, objectives, procedures• Checklists
Step 5: show performance and compliance• Reporting• Certification of management systems• Labels
Legislation
Consumer / userHealth and Safety
Environment
E.g. packaging, WEEE,
RoHS, cadmium
CE Marking
Social / fairtrade labels
SA 8000 / OHSAScertificate
Codes ofconduct
ISO 9000 seriescertificate
EN / IS0standards
ECO LabelsIS0 14001Certificate
Quality Social accountability Environment
Market-driven requirements
Requirements regarding social issues in the supply chain are often non-legislative!
ISO 26000, GRI, UNGC
Social issues
• Social issues become increasingly important in international trade
• Negative publicity on labor conditions may have an impact on your clients’ sales → your sales
• EU companies use the improvement of labor conditions as a criterion for trade with companies in developing countries
• Improved labor conditions will positively impact productivity and quality of final products
Buyers’ requirements related to social aspects
The Basis: The International Labor Organization (ILO)
• the UN organization dealing with aspects of work
• International labor standards
• Governments are obliged to implement ratified Conventions in their own national policies
• Many social requirements on labor conditions by the private sector are based on the ILO Conventions
– they have proven to be internationally acceptable
ILO
• ILO Conventions are translated into:
– social codes of conducts
– suppliers declarations
– social management systems
– labeling initiatives
• To upgrade the labor conditions in supply chains, mainly in developing countries supplying to the EU markets.
ILO
Which of the nearly 200 ILO Conventions are being used by the private sector as
market access requirements?
ILO
1. Right to union membership and to negotiate
2. Non-discrimination
3. Forced labor
4. Minimum age
5. Working hours
6. Equal remuneration
7. Minimum wages
8. Occupational Health and Safety
ILO
Exports to the EU:
• Take notice of these Conventions
• Make a plan on how to implement them at your company & how to show you comply (audits, certification, labelling)
Many EU companies will see these issues as minimum
social requirements and will expect their suppliers to
be at least aware of the issues and working on
improvement to the minimum level.
8 core ILO Conventions
• Freedom of association & collective bargaining– ILO Convention nr. 87 (freedom union membership)– ILO Convention nr. 98 (organise & collective bargaining)
• Abolition of forced labour– ILO Convention nr. 29 (no forced labour)– ILO Convention nr. 105 (no forced labour)
• Equality– ILO Convention nr. 111 (non discrimination)– ILO Convention nr. 100 (equal remuneration)
• Elimination of child labour– ILO Convention nr. 138 (minimum age)– ILO Convention nr. 182 (worst forms of child labour)
Additional issues often mentioned
• Maximum work hours per week & overtime (48 hrs/week + 12 hrs/week)
• Minimum / Living wage
• Good and healthy working conditions
Meeting buyers’ requirements related to CSR
Guidelines• ISO 26000
Auditing and management systems• BSCI• SA 8000• OHSAS 18001• GRI
Codes and labeling• GLOBALGAP• Ethical Trading Initiative• Labels
In short: what to do?
1. Select initiatives relevant to your product or sector
2. Use self assessments & audits to benchmark your performance
3. Position and ambition
4. Use the tools to improve, comply and market
