ethicaltrade.org Purchasing Practices Programme integrating ethics into core business practices Julia Kilbourne January 2010 Sustainable procurement with developing countries

ethicaltrade.org ETI exists to improve the lives of workers and their families throughout the world Why are we here?

ethicaltrade.org ETI is a three-way alliance of companies, NGOs and trade unions, predominantly involved in retail supply chains Who are we? We are supported and part funded by DFID

ethicaltrade.org ETI multistakeholder diversity WWW

ethicaltrade.org What we do Identify and promote good practice Support local alliances that advance workers’ rights Drive improvements in members’ ethical trade performance Provide cutting edge training courses and resources Build coalitions among companies and other key players to achieve maximum impact

ethicaltrade.org The ETI Base Code underpins all our work What we do

ethicaltrade.org What we do

ethicaltrade.org It’s not only ETI members who apply this widely accepted benchmark What we do

ethicaltrade.org 1 in 6 children between the ages of 5 and 14 in the world works Putting ethical trade into context

ethicaltrade.org 5,000 people around the world die every day from work related accidents or diseases Putting ethical trade into context

ethicaltrade.org 12.3 million people around the world work as slaves or in other forms of forced labour Putting ethical trade into context

ethicaltrade.org Areas of most impact health and safety documentation (minimum wages, hours, benefits) awareness of legislation Areas of least impact freedom of association discrimination regular employment (Barrientos & Smith, 2007) What we’re best and worst at

ethicaltrade.org Our strategic priorities 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 What we expect of members 6 principles of ethical trade commitment purchasing practices capacity building identifying problems in the supply chain improvement actions transparency

ethicaltrade.org Commitment to driving change in the workplace Appropriate resource Incremental improvement Participation in ETI activities Reporting on progress against benchmarks and targets What we expect of members

ethicaltrade.org Benchmarking progress – 4 steps to leadership Foundation: Minimum policy, resources & process needed to begin ethical trade programme with suppliers Improver: Embedding policies, management systems and approach. Training and learning Achiever: Engage with suppliers to make sustainable improvement, share learning Leader: Demonstrates impact, tackling root causes, collaborative approaches with industry stakeholders, supports suppliers

ethicaltrade.org Principles of purchasing practices The company selects suppliers with good labour practices that are likely to observe the provisions of the Base Code.

ethicaltrade.org Principles of purchasing practices The company recognises the contribution that stable business relationships can make to the observance of good labour practices and endeavours to establish long term relationships with its suppliers.

ethicaltrade.org Principles of purchasing practices 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 Principles of purchasing practices The company ensures that the terms of agreements with its suppliers such as prices, lead times and quantities are consistent with the ability of the supplier to observe the provisions of the Base Code.

ethicaltrade.org Purchasing Practices Programme A programme to support all corporate members to implement ETI principles of implementation and management benchmarks Practical guidelines and examples Training to share elements of learning Support members to develop schemes to advance their implementation of the principles Systematic sharing of learning from projects (from in and outside membership) Assess the impact of purchasing practices schemes to improve working conditions

ethicaltrade.org Thank you About ETI The Ethical Trading Initiative (ETI) is a ground-breaking alliance of companies, trade unions and voluntary organisations. We work in partnership to improve the working lives of people across the globe who make or grow consumer goods – everything from tea to T-shirts, from flowers to footballs. Ethical Trading Initiative 8 Coldbath Square London EC1R 5HL UK T +44 (0) F +44 (0) E ethicaltrade.org