Researching the Corporation and Supply Chain Advocacy Hotel Viengtai, Bangkok 4-6 November 2009

Overview Supply Chain Research Maping the Chain Mapping the landscape Identifying leverage points Supply chain advocacy / campaign Case Study: Travelling Textiles Case Study: Seeing Clearly Participant exercise

Global Trade

Supply Chain Research Supply Chain Research – review Supply chains are complex Buyer & Producer driven Key research challenges Understnding supply chain structures Identifying location Identifying extent & depth of subcontrcting / shadow factories Key research options Selected factory Entire supply chain Life Cycle Analysis – product focus

Mapping Supply Chains Identify locations Identify brands Online searches, e.g. Use of third parties Extent / items of sub- contracting Shadow factories Identify buyers & producers- raw materials Production units & purchase price / power Audits & compliance

Mapping Ctd. Document factory conditions Number of workers (gender, age, migrant) Wages /piece-rates Hours /Overtime Social security entitlements Employment contract / bonded labour Management practices, e.g. Discretionary fines / dicipline Health and safety Training Right to organise / raise grievances Social isolation / harassment Living conditions Environmental impact

Mapping the Landscpe Understand the political, socio-economic landscape Understand the national laws / regulatory environment Identify all stakeholders, e.g. Workers, communities (North/South aliances) NGOs / trade unions Industry associations Third parties (agents, buyers, trading houses etc) Retailers Consumers Auditors / certification bodies

Leverage points Supply chain power / leverage points Identify weak spots Identify where advocacy / campaigning can have most impact Linking startegy to brands North / south collaboration – access to parent companies

Bottle Necks

Supply Chain Advocacy Identify objectives Research, fact-finding, verification Analyse various strategies What will meet objectives? What is realistic? Are you prepared to mediate? Undertake risk analysis Identify / collaborate with stakeholders Identify points of leverage Learn for other campaigns Develop communication / media strategy Manage expectations

Case Study: Travelling Textiles Sustainability roadmap - Gorman natural fibre garment 8 retail outlets / 32 wholesale clients Sourced & manuf.- Australia, China, Vietnm, Japan, New Zealand Gorman – Sustainability reputation / agreed to Map the Chain Strong on commitment. Soft on delivery Focus on environmental impact Labour practices poor – Australia / Vietnam

Travelling Textiles - Roadmap

Travelling Textiles - environment

Travelling Textiles – Global

Case Study: Key Findings “Need to disclose all stages of chain, including fibre cultivation, textile & garment production, retailing, consumer use & end-of-life to assess social & environmental impact”. “Direct relationships with suppliers most likely to support responsible business conduct” “Labour rights & human rights violations remain high in garment sector – including in developed economies”

Case Study: Seeing Clearly (China) Mod-Style optical frames 22 suppliers in China Secondary data / labour law Mapping framework Factory inspections Worker interviews Third party (NGO) verification Brand identification Pressure on brands

Key Findings Low wages / penalty rates not paid Excessive Hours /OT Social security payments not made / accessible Harsh management practices Discretionary fines No Right to organise and collectively bargain Rural/urban discrimination Health & Safety / fatigue Brand influence / leverage exists

Challenging Perceptions

Participant Exercise RockStar Mining Use the information provided, skills from this program, and your experience, to develop and action research advocacy strategy in response to alleged human rights violations by rock star mining

More Information: SOMO research Manual – Part 4 Multilateral Organisations- P.8 Corporate & supply chain - P.13 Internet – P.16 Media – P Company websites – P Market Research – P.20 Business websites – P.21 Activists / sector websites – P Remember to reference often & consistently - Annex P