Tools to assess supply chain risks and engage suppliers on improvements Rachel Wilshaw, Ethical Trade Manager Laura Hancock, Ethical Purchasing Officer

The scope of Oxfam’s purchasing Marketing Trading International Development Humanitarian Campaigns and Policy Finance and IS HR

Labour issues in global supply chains In the Bangladesh garment industry, only 25% waged workers have contracts In the Moroccan agriculture industry, only 20% of waged workers earn the legal minimum wage In the Thailand shrimp industry, 40% migrant workers regularly work shifts >12 hours. Across 98 manufacturing sites assessed by Impactt, child labour was found in 25% cases.

Traditional audits miss significant labour issues A factory Oxfam wanted to source from ‘passed’ a commercial audit but a ‘forensic’ audit found child labour, wages below minimum and faked records

Oxfam Purchasing Flow Chart

Oxfam tool to decide audit approach with a supplier

Engaging suppliers: Supplier Day workshop on ethical purchasing

Engaging suppliers: new Oxfam GB global centre New build offices in Oxford Major procurement and ethical purchasing challenge –Complex supply chain –Labour issues new to industry Dialogue with contractors at selection stage Joint assessments of with sustainability consultants

Oxfam recommendations for Better work in better supply chains 1.Better job security 2.Better relations between management and workers 3.Better purchasing practices 4.Smarter audit programme and support for government regulation 5.Work with others 6.Be transparent