1. Verité Humanizing the Global Workplace The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

2. Verité Established in 1995, with a mission to ensure that people worldwide work under safe, fair and legal conditions Non-profit headquartered in Amherst, MA, working through a network of local partners Operates in 65 countries Works with private companies including Fortune 500 brands, local and international NGOs, trade unions, multi-stakeholder groups, and governments

3. Verité Works to improve performance in meeting social, labor and environmental standards in corporate supply chains Programs include : –Standards monitoring –Factory-based management systems training –Worker-focused programs –In-depth research on labor issues –Corporate compliance program assessment and development –Auditor assessment and training Funding: fee for service, grants, and individual donations

4. Verité Codes of Conduct and Social, Labor and Environmental Compliance Programs in the Private Sector Marie Apostol Executive Director, Verité Southeast Asia

5. Verité Code of Conduct ILO definition: Policy statements that define ethical, social and environmental standards of corporate behavior Always voluntary, complement government legislation Various types: –company codes, trade association codes, multi-stakeholder codes, model codes, inter- governmental codes

6. Verité Why Codes of Conduct Globalization - increasing deregulation, national efforts to attract FDIs Growth of “the brand” and global value chains Speed and availability of IT Changes in stakeholder definitions of liability (legal and moral, Sarbanes Oxley) Stakeholders’ need for visibility of social, labor and environmental practices in the workplace

7. Verité On Wall Street, a Rise in Dismissals Over Ethics New York Times Published: March 29, 2005 By LANDON THOMAS Jr. “With regulatory scrutiny heightened, there has been a wave of firings as corporations move to stop perceived breaches of ethics.”

8. Verité ‘Business case’ The literature shows systematic evidence of multinational companies exposed by so-called anti-sweatshop campaigns being subsequently punished by the market through sharp decreases in share prices. Responsibility Breeds Success, Development Outreach, Nigel Twose and Ziba Cranmer, World Bank

9. Verité Groups Influencing Social Compliance  Trade Unions  Consumers  Media  NGOs  Students  Investors (owners)  International Organizations  Church/religious groups  Business partners

10. Verité Scope of Codes of Conduct Child Labor Forced Labor Non-Discrimination Freedom of Association Fair wages, hours and benefits OHS EHS Discipline and Termination Practices Ethics and governance Supplier engagement

11. Verité Key Differentiator: Implementation and Enforcement of Codes Approach – punitive vs. rewards based Who does the monitoring? How is it being monitored (methodology, sources of information)? What is the scope and depth of coverage of the supply chain being monitored? How is the information from monitoring used? How and to whom is information reported? How is performance measured?

12. Verité How Social Compliance Programs Are Evolving Brand-driven  multi-stakeholder Top-down  participatory & collaborative Monitoring-focused  problem-solving Perceived as ‘policing’  integral to business Program strategy  integrated into biz strategy Reactive  proactive Expensive  cost-effective

13. Verité Towards Effectiveness: Some Lessons (Verite) A purely punitive approach has not led to significant change Transparency should be the basis of engagement Accountability is key: no one should get a free ride More voices in the dialogue enhance both process and outcomes – local voices are essential, and workers’ voices are critical Focus on intent and desired outcomes improves collaboration The best solutions consider and promote the interests of all stakeholders Culture and language differences can make or break an engagement There should always be space for workers to organize The business case has to be made

14. Verité Greater integration with business & relation to social development. Social Benefit Accountability Worker Empowerment Enforcement of Codes of Conduct Transparency

15. Verité http://www.verite.org Social Entrepreneur: Dan Viederman Grant Amount: $1,015,000 over three years Award Year: 2007 Dan Viederman's experience in leading nongovernmental organizations (NGOs) in rapidly growing countries like China convinced him of the need to improve workplace conditions globally. When he came to Verité in 2001, he took the organization beyond its factory audit roots and engaged workers in a solutions- driven, participatory model that improved working conditions for 200,000 workers by 2005. Verité's reputation for credibility and impact has prompted international firms such as Gap, Levi's and Starbucks to seek its help for major restructurings. With support from Skoll, Verité will strengthen partnerships with NGOs in dozens of countries and will train 1,500 practitioners to replicate its model by the end of 2009.

16. Verité

18. www.verite.org Marie Apostol Executive Director Verité Southeast Asia mapostol@verite.org