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

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

3. 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.

4. 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
Give example of factory where we had a commercial audit that supplier had passed but when impactt went in they found
Unreasonable fines
PPE is only issued during audits
Song played so that inappropriate workers exit though back to café
Child labour
Below min wage
Double books
The example of fake records and coaching in this slide are from that factory – impactt stats on China are…
In the sites we assessed 2007/2008 we found:
45% had double books
43% had coached workers
Mention on this slide or next that an ethical database does not mean a factory is ethical – it is just a database and is only as good as the quality of the info put on it! 4 4

5. Oxfam Purchasing Flow Chart

6. Oxfam tool to decide audit approach with a supplier

7. Engaging suppliers: Supplier Day workshop on ethical purchasing

8. 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

9. Oxfam recommendations for Better work in better supply chains
Better job security
Better relations between management and workers
Better purchasing practices
Smarter audit programme and support for government regulation
Work with others
Be transparent
Give example of factory where we had a commercial audit that supplier had passed but when impactt went in they found
Unreasonable fines
PPE is only issued during audits
Song played so that inappropriate workers exit though back to café
Child labour
Below min wage
Double books
The example of fake records and coaching in this slide are from that factory – impactt stats on China are…
In the sites we assessed 2007/2008 we found:
45% had double books
43% had coached workers
Smarter audit programme
Transparent rules, clear rights and responsibilities, regular meetings, right to join or form union
Better HR management
Mention on this slide or next that an ethical database does not mean a factory is ethical – it is just a database and is only as good as the quality of the info put on it! 9 9