ethicaltrade.org Peter Williams ETI NGO Caucus Co-ordinator Respect for workers worldwide

ethicaltrade.org ETI is a three-way alliance of companies, NGOs and trade unions, predominantly involved in retail supply chains … (+ some procurement agencies) what is ETI?

ethicaltrade.org ETI membership WWW

ethicaltrade.org ETI member companies agree to implement the ETI base code ETI base code

ethicaltrade.org Expectations on members (obligations) 6 principles of implementation commitment purchasing practices capacity building identifying problems in the supply chain improvement actions transparency companies must make progress implementation is monitored annually

ethicaltrade.org Implementation principle #2 – core business practices 2.1 The company selects suppliers with good labour practices/likely to observe the Base Code. 2.2 The company recognises that stable business relationships contribute to good labour practices and endeavours to establish long term relationships with its suppliers. 2.3 The company ensures that the terms of agreements with its suppliers (prices, lead times etc) are consistent with the ability of the supplier to observe the Base Code. 2.4 Buying staff and other personnel whose decisions may affect working conditions and labour practices in the supply chain are made aware of the potential impact of such decisions. They are provided with training and guidelines that enable them to carry out company ethical trading policy and their performance is assessed and managed accordingly

ethicaltrade.org how company performance is measured Beginner/Foundation: basic policy, resources & process to begin ethical trade programme with suppliers Improver: Embedding policies and approach Achiever: Sustainable solutions; revising commercial practices; support to suppliers; impact in pilots Leader: Demonstrable impact; tackles root causes; collaborates with stakeholders; impact across supply chains

ethicaltrade.org Measuring company performance Management Indicators Beginner Improver Achiever Leader Principle 1: Commitment The company is in the early stages of establishing an ethical trade programme Commitment is being translated into action The company is actively managing its ethical trading issues. CN The company is a leader in the field of ethical trade Principle 2: Monitoring, Independent Verification & Reporting The company has begun to review & report the issues in its supply chain. Developing a monitoring programme & produces outline reports on progress. Produces comprehensive & credible reports on its supply chain. CN In depth reports supported by independent assessments. Principle 3: Awareness Raising & Training The company has begun the process of identifying training & awareness raising needs. The company is addressing the needs for training & initiating awareness raising. Provides training to all involved in ethical trade & is improving awareness of suppliers & their workers. CN High quality internal training & long term engagement with suppliers & their workers representatives. Principle 4: Corrective Actions Addresses the need for corrective actions as they come to light. Has developed systems for recording & following up necessary corrective actions. Has well established systems for identifying & following up corrective actions to ensure improvements are being made. CN Achieves sustained improvements by working with suppliers to identify persistent problems, identify solutions & to share learning. Principle 5: Management Procedures, Pricing & Incentives The company has identified the key personnel responsible for ethical trade & is considering the wider commercial issues The company has clearly defined the role of staff involved in ethical trade & is developing performance indicators for both staff & suppliers. The company has a well established & systematic approach to ethical trading with clear responsibilities & incentives for staff & suppliers. CN The company’s management of ethical issues is fully integrated into its commercial management with robust procedures & incentives.

ethicaltrade.org Overall performance

ethicaltrade.org ETI priorities = learning from impact assessment promoting good workplaces payment of living wages integrating ethical trade into core business practices tackling discrimination in the workplace focusing improvements on the most vulnerable workers moving beyond audit

ethicaltrade.org Progress on critical implementation issues! Impact assessmentCompany reports 2006 Company reports 2007 Company reports 2008 Communication to workers Vulnerable workers Freedom of association Discrimination/gender Living wage Complex chains 2 nd /3 rd tier Capacity building Better audits Core business practices

ethicaltrade.org Progress on critical implementation issues! Impact assessmentCompany reports 2006 Company reports 2007 Company reports 2008 Communication to workers Vulnerable workers Freedom of association Discrimination/gender Living wage Complex chains 2 nd /3 rd tier Capacity building Better audits Core business practices

ethicaltrade.org Progress on critical implementation issues! Impact assessmentCompany reports 2006 Company reports 2007 Company reports 2008 Communication to workers Vulnerable workers Freedom of association Discrimination/gender Living wage Complex chains 2 nd /3 rd tier Capacity building Better audits Core business practices

ethicaltrade.org Progress on critical implementation issues! Impact assessmentCompany reports 2006 Company reports 2007 Company reports 2008 Communication to workers Vulnerable workers Freedom of association Discrimination/gender Living wage Complex chains 2 nd /3 rd tier Capacity building Better audits Core business practices

ethicaltrade.org Any questions? Ethical Trading Initiative 8 Coldbath Square London EC1R 5HL UK T +44 (0) F +44 (0) ethicaltrade.org