July 2009


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In This Issue
SA8000- Estimating a Living Wage
A Glimpse into Italy's Groundbreaking Approach to SA8000 Certification
Scaling Up Voluntary Standards- June Meetings
A Look Inside "SA8000:The Next Decade"
Upcoming 2009 Training Schedule
SAI to Develop Social Compliance Handbook for IFC
Central America Team Grows
News & Publications
Meet SAI's New Interns
Announcements & Upcoming Events

SA8000- Estimating a Living Wage


SAI Featured in "Wages-Working for a Living" Article

In the July 2009 edition of Ethical Corporation, SAI Program Director, Judy Gearhart, SAI European Representative, Sean Ansett, and the SA8000 standard were featured in the article entitled, "Wages- Working for a living." 

In this article, the challenge of determining a living wage was explained by experts in the industry, and the challenges outlined, such as determining the number of dependents, if the framework is auditable, and alignment with national policy.
 
"Everyone agrees that paying a living wage will increase the cost of production to some extent. But who should bear the cost?" said Mr. Ansett. "Three questions must be answered before brands commit to a living wage- Will suppliers take smaller margins? Will retailers either take a smaller profit or be prepared to pass on higher costs to consumers? And will consumers be prepared to pay for a more expensive, "ethical" product?"
 
As remuneration is one of the nine essential elements of the SA8000 standard, it is crucial for companies that seek certification to adhere to the principles, as they are structurally interdependent.
 
"Living wage is integral to a social audit," said Ms. Gearhart. "If factory auditors want to understand why workers are working excessive overtime, for example, they need to know whether or not workers are able to live decently on the wage they earn for just the regular hours."

Ms. Gearhart explained that "failing to pay workers enough to live can have a number of negative consequences. There could be child labour because parents, who are not earning enough, send their children to work. There could be bonded labour because workers who do not earn a living wage have to take loans, which they may struggle to repay. There could be health and safety issues when even sick workers want extra overtime hours because their normal wage is not a living wage."

Also featured in this article were representatives from Adidas, the Centre for Reflection, Education and Action (CREA), Ethical Trading Initiative, Fair Labour Association (FLA), ILO Better Factories Cambodia, ILO Cambodia Worker Education Project, and the Joint Initiative on Corporate Accountability and Worker Rights.

To access the full article, click here

SAI Europe


A Glimpse into Italy's Groundbreaking Approach to SA8000 Certification

In April 2009, SAI proudly announced that over one million workers are employed in SA8000 certified facilities. The adoption of the SA8000 standard has taken place in factories, offices and plantations around the world, with the largest number of workers in certified facilities in India and China. Italy continues to lead in the number of certified sites, encompassing over 88% of certifications in Europe and 45% of the world's certified organizations. 

With the combined efforts of the regional governments, business, NGOs, and the public, the number of certifications continues to grow. SA8000 has been a useful tool for Italy's innovative public procurement system to advance human rights goals.  The central regions of Umbria and Tuscany, among others (see below), are leading proponents and actors of this innovative policy.
 
"What we have found is that companies who apply for certification can use the verification process to review and revise their own internal practices," said SAI Advisory Board member, Marisa Parmigiani, Director of Social Policies at Coop, ACCDA, "and should a company not meet requirements in the first round of verification we are there to assist them in making a plan on how they can improve their production practices to meet the SA8000 criteria in the future."
 
Below are some examples of how Regiones in Italy promote and integrate social responsibility in their economies:

Abruzzo:
The government in Abruzzo favors socially certified companies when bidding for public contracts. It has also created a system in which administrative and financial incentives are offered to certified companies once they have been awarded the contract.
 
Campania:
Starting in 2006, the government has been looking into the tool of certification and investigating local and national CSR patterns and best practices.

Emilia Romagna:
The government encourages the application of the Lavoro Etico Social Quality Label, which integrates SA8000 and other well-known standards such as ISO14000 and VISION 2000. In order for its products to assume labels with regional ties, a company must demonstrate that its practices correspond to CSR as outlined.

Lazio:
In 2004, the regional government in the capital city of Rome instituted a "sponsor etici" policy in which all businesses that want to have their name associated with Rome must prove responsible production.
 
Marche:
Marche partnered with the Training Center of Marche (CFM)- a consortium of Marche's training companies- to establish an information system on CSR. In 2005, Marche adopted Regional Law 11 to promote initiatives of CSR and launched the Responsible Business System of Marche.

Sicily:
Funded by the European Commission, Sicily carried out the CSR- Vaderegio Project, which aimed to locally understand and promote CSR. The Regione supports the Etiqualitas Project which is a continent wide initiative at social responsibility.
 
Tuscany:
Tuscany is the most prominent  when it comes to adopting SA8000, accounting for 14% of the world's certified companies. In 2001, a policy was instituted requiring a company show that it is a responsible producer in order to do business with the government. SA8000 certified companies are also given preference in public procurement contracts, and the government pays half of the costs of a company's certification. Additionally, training services to help create an integrated system that can provide CSR assurance have been made available. These efforts have been managed, since 2002, by a multi-stakeholder Regional Ethical Committee, encouraging CSR by controlling its process, and providing tools for those in the process of certification. 
 
Umbria:
Seven years ago, Umbria introduced measures to promote "widespread knowledge of the importance of the social responsibilities of companies and consumers." Among these measures are Laws 20 and 21 (2002), which give SA8000 certified companies priority when bidding for public contracts, as long as they pass quality specifications. The government also vowed to cover half of the certification costs of any company wishing to apply for certification.

Scaling Up Voluntary Standards- June Meetings


SAI Participation in Scaling Up Events

                               ISEAL Annual General Meeting 2009

On 22-24 June at Royal Holloway University, Egham, England, the International Social and Environmental Accreditation and Labelling Alliance (ISEAL) convened its annual meeting. The meeting's 60-plus participants represented ISEAL member organizations as diverse as the Marine Aquarium Council (MAC), the RugMark Foundation, and the International Federation of Organic Agriculture Movements (IFOAM). These participants arrived from destinations as diverse as Nepal, Australia, Germany and Costa Rica.  

The meeting was a combination of plenary sessions and workshops that discussed topics of scaling up, governance, policy, and communication. During a plenary session on scaling up, SAI President, Alice Tepper Marlin spoke on a panel with Karin Kreider, Deputy Director, Rainforest Alliance, and Jason Morrison, Globalization Program Director at the Pacific Institute. They discussed their visions of what scaling up means to their organizations, and why setting common targets and collecting common data sets is critical for the standards movement as a whole to achieve and measure collective progress.

Also participating in the meeting were Social Accountability Accreditation Services (SAAS) Executive Director, Rochelle Zaid, and SAI Development Associate, Joleen Ong. This meeting was the first meeting for SAAS to attend as a newly accredited full member of the ISEAL Alliance. At the meeting, Ms. Zaid was elected to serve on ISEAL's Executive Committee.


Rochelle Zaid, Executive Director,
SAAS

To access the full meeting report, click here

Code of Good Practice for Assessing the Impacts of Social and Environmental Standards Systems

In addition, the week before the ISEAL AGM, SAI Executive Director, Eileen Kaufman attended the two-day meeting of the steering committee for ISEAL's code for good practice in impact assessment. Later this summer, a draft code will be posted for public comment. There is already a monthly newsletter, wiki and blog supporting involvement in this project.  

Scaling Up Voluntary Standards for Human Rights-
The Challenge of Measuring Impact

On 30 June in Bonn, Germany, the Institute for Development and Peace (INEF) convened an expert workshop entitled "Scaling Up Voluntary Standards for Human Rights- The Challenge of Measuring Impact." This workshop focused on the potential of voluntary standards to ensure the protection of human rights.

Sean Ansett, SAI's European Representative, represented SAI at this meeting and gave a presentation that explored the challenges for scaling up voluntary standards related to gender, the informal sector, and supply chains.  His co-panelists spoke on behalf of SUDWIND, ETI, and the Deutsche Kommission Justitia et Pax. Also speaking was SAI's Executive Director, Eileen Kaufman, who participated as a representative from the ISEAL Alliance, on a panel with representatives of the World Bank, the GTZ, and Global CSR.

The INEF is part of the University of Duisburg-Essen, and this workshop was organized by the Human Rights, Corporate Responsibility, and Sustainable Development project. This project is funded by the German Federal Ministry for Economic Cooperation and Development.

For more information, click here

A Look Inside SA8000: The Next Decade

Book excerpt:  SA8000: The First Decade. Implementation, Influence, and Impact, edited by Deborah Leipziger.
 Chapter 2: SA8000 in Tata Steel

"With a history of pioneering practices in employee welfare, what new vistas lie before Tata Steel in continuously improving the quality of life of its stakeholders as it journeys onwards to a global frontier? Searching for best practices and structural approaches, it was clear that 'the challenging SA8000 standard provides opportunity both for improving and demonstrating our commitment to best practices in the manufacture and supply of goods we sell and procure.

"The metaphor for SA8000 management system implementation system in Tata Steel Works is similar to creating a ripple with enlightened partners, employees, vendors, suppliers, and non-governmental organizations, among others, to generate a wider social impact through stewardship.

"Frameworks offering system-wide review, compliance, and verification, irrespective of a company's location, size, stage, growth, can help in identifying and addressing risks, at the very least. For the aspiration-driven enterprise, such frameworks can further support continual improvement and benchmarking critical to the attainment of long term sustainability and 'differentiating' business leadership."

This chapter was written by Priyadarshini Sharma, Senior Manager, Tata Steel. For more information or to order a copy of this book, click here

Upcoming SAI Training Courses


July


5-Day Basic Auditor Training
July 20-24: São Paulo, Brazil Enroll Now

3-Day Advanced Auditor Training
July 20-22: Athens, Greece Enroll Now

SA8000: 2008 Standard Training Revision Course
Online Webinar

July-September 2009: Web-Based Training Enroll Now

August

5-Day Basic Auditor Training
August 10-14: Tokyo, Japan  Enroll Now
August 17-21: Istanbul, Turkey Enroll Now
August 17-21: Ho Chi Minh City, Vietnam Enroll Now
August 17-21: Guangzhou, China Enroll Now
 
3-Day Advanced Auditor Training 
August 24-26: Guangzhou, China Enroll Now

Professional Development Series
August 27-28: Guangzhou, China
Enroll Now
Topics: Management Systems, Control of Sub-Contractors, Internal Compliance Teams, Overtime & Wages

SA8000: 2008 Standard Training Revision Course- Online Webinar
July-September 2009: Web-Based Training Enroll Now

September


5-Day Basic Auditor Training
September 7-11: Kampala, Uganda Enroll Now

3-Day Advanced Auditor Training

September 23-25: Milan, Italy Enroll Now

Professional Development Series
September 22-23: San Jose, Costa Rica Enroll Now
Topics: Freedom of Association, Overtime & Wages
September 29-30: Karachi, Pakistan Enroll Now
Topics: Freedom of Association, Overtime & Wages
September 29-30: California, USA Enroll Now
Topics: Management Systems, Control of Sub-Contractors, Internal Compliance Teams, Integrating Sourcing & Compliance

SA8000: 2008 Standard
Training Revision Course-Online Webinar
July-September 2009: Web-Based Training Enroll Now
Click here to view the entire 2009 training schedule

For more information, contact Jane Hwang- Manager, Corporate Programs and Training at [email protected]

Corporate Programs Update


SAI to Develop Social Compliance Handbook for IFC (World Bank)

SAI is pleased to announce a work contract with the World Bank's International Finance Corporation (IFC) to provide the IFC with a Handbook and Toolkit for improving the social compliance of the companies in which IFC invests as measured against its Performance Standard 2 (PS2). PS2 addresses Labor and Working Conditions, and is one of eight performance standards defined by the IFC.
 
The Handbook and Toolkit will specifically provide an understanding of the fundamental management systems and internal staff capabilities required for improving social performance. The Handbook will provide a step-by-step guide to assist company management to develop or improve social compliance management systems.
 
The management systems, and related policies and procedures, will be targeted to the requirements of PS2 standard. The primary focus will be on management systems for improving social compliance in the company itself. The secondary focus will be on improving social compliance in the company's supply chain.
 
IFC, with 181 member countries, is a member of the World Bank group, and aims to promote sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives.

For information on how to become an SAI Corporate Programs member, click here

Central America Team Grows


SAI Program Department Welcomes Yolanda Brenes
and announces Matt Fischer-Daly's return to Headquarters


The SAI Programs Department is pleased to announce the addition of staff, Yolanda Brenes, Project Manager, and the transfer to headquarters of Matt Fischer-Daly, Project Manager, in SAI's team working to increase labor compliance in Central America.

SAI is currently working in three projects in the region, the first two funded by the U.S. Department of Labor and the third by the U.S. Agency for International Development. Project Cultivar, managed by SAI, is aimed at improving labor law compliance in agriculture in Honduras, Nicaragua and the Dominican Republic. Comply & Win, coordinated by FUNPADEM and Abt Asssociates, seeks to improve labor inspection capacities in the Central American countries. Finally, the USAID Environment and Labor Excellence for CAFTA-DR, coordinated by Chemonics, will build alliances among international buyers, agricultural producers and promoters of labor and environmental standards in the six countries.

Yolanda Brenes has over 10 years experience working to promote labor and environmental standards compliance in the agriculture sector of Central America and the Dominican Republic. She is a SA8000 auditor trainer and has worked with SAI to train labor inspectors throughout the region. Prior to working with SAI, Yolanda founded and continues to run the independent consulting firm R.S.E. Consultores S.A. and worked for Chiquita Brands International as Regional Manager for Social
 Accountability projects in Costa Rica.
 
Matt Fischer-Daly has worked with SAI since 2006.  Matt most recently worked as Project Associate for Project Cultivar, coordinating SAI's local partners on the training, multi-stakeholder dialogue activities of the project. He holds an M.A. in International Economic Policy from American University, with an undergraduate degree from the University of Michigan in Political Science and Spanish Language Literature.

SAI continues to carry out its mission to improve labor conditions worldwide through the work of its Programs department, as it promotes a culture of labor rights compliance in Central America, through multi-stakeholder social dialogue.

News and Publications

SAI-Europe Update

Last month, Sean Ansett, SAI's European Representative, published an article regarding responsible public procurement citing the Tuscany example of using SA8000, in Spain's premier purchasing professionals magazine "Gestion de Compras". The Spanish government, like some other EU members, is currently developing guidelines for responsible procurement.
 
Mr. Ansett also taught a class last month in the Corporate Social Responsibility Masters degree program at the Universidad de Alcala regarding SAI's work and development of  a responsible purchasing program.
 
For more information, please contact Sean Ansett at [email protected]

MFA Forum Inaugurates the Sustainable Apparel and Footwear Initiative (SAFI)-- Industry Response to the Economic Crisis by
Investing in the Future


The Multi Fiber Arrangement (MFA) Forum recently launched the Sustainable Apparel and Footwear Initiative (SAFI) at an IFC-hosted meeting in Washington, D.C. in May. SAFI is a coordinated set of initiatives designed to promote rapid responses to the urgent needs presented by the current economic crisis and to orient stakeholders around solutions that will drive long-term positive impacts and value for the industry. In order to have an integrated and coordinated response, SAFI is focused on the following three work streams:
 
1.     Promoting Responsible Trade Finance
2.     Global Advocacy and Country execution of social protection programs.
3.     Shape the development of a new model of competitiveness 
 
SAI has been a member of the MFA Forum since its inception in 2004, and currently serves as the representative of the Multi-Stakeholder Initiatives (MSI) on the Forum's Executive Committee and as co-chair of the Dominican Republic working group. The MFA Forum is an open network of companies, trade unions, non-governmental organizations, and international institutions promoting and working toward responsible competitiveness in the textile and garments industry.

For more information on SAFI or the MFA Forum, please contact Sasha Radovich, Senior Manager, at [email protected]
Website:
http://www.mfa-forum.net

Ethical Sourcing- Show Us the Money

 
In the July 2009 edition of Ethical Corporation, the SA8000 standard was cited in an article entitled, "Ethical Sourcing- Show us the money." The article recommended that brands disclose more data about wages in their supply chain, and examined the steps taken by major brands to determine payment of living wages in their international factories.

"For a start, brands have access to suppliers' salary data. And auditing standards such as the SA8000 certification already include a living wage test, using a formula that can be tailored to different countries and regions. Brands should report on how wages paid in their supply chains match up to a series of wage benchmarks: the legal minimum, industry average and a number of living wage standards."

To read the full article, click here

Ethical Corporation's Report "Guide to Industry Initiatives in CSR"

The Ethical Corporation Institute recently published the report, "The Guide to Industry Initiatives in CSR," which examines leading global initiatives across a range of industries. This report covers 31 initiatives across various sectors, including agriculture, manufacturing, mining and natural resources, services, retail and cross-sector initiatives. The SA8000 standard is featured among other initiatives such as the Forest Stewardship Council (FSC), Fair Labour Association (FLA), International Council of Toy Industries CARE Process (ICTI CARE), and the Business for Social Compliance Initiative (BSCI).  The research presented in this report will give updates on impact of the initiatives, provide insight from companies that are involved, and help one select an initiative to choose in order to communicate your brand values to consumers and improve ethical brand awareness.

For more information, and to order a copy click here

The Slave Next Door: Human Trafficking and Slavery in America Today

"The Slave Next Door: Human Trafficking and Slavery in America Today," published by UC Press last May was written by Ron Soodalter and Kevin Bales, and examines current slave trafficking in America and the horrific experiences from the perspectives of former slaves. In addition to shedding light on the conditions of the slavery that exists in the United States, the authors examine the actions being taken at local, state, and federal levels to address the issue. The authors turn to the readers to recognize slavery in their own neighborhoods.

Kevin Bales is an expert in modern slavery and the president of Free the Slaves, an international NGO and lobby group that works to end slavery worldwide. Ron Soodalter is a professional writer, and a featured columnist for "America's Civil War."
  
For more information, click here

Meet SAI's New Interns

Interns play an important role here at SAI. This summer, more than half a dozen have joined us from Columbia University's SIPA, New York University's Wagner, and Wellesley College. We are pleased to welcome Elisa Lee and Olinda Hassan, and to introduce them, in their own words:  

Elisa Lee
I am a rising senior at Wellesley College, majoring in economics, arriving at SAI after studying abroad for a year in England.  Two years ago, I spent a summer in Seoul, South Korea and learned about the pragmatic importance and relevance, through doctrine and theory, of promoting human rights for workers in my Management and International Human Rights Law courses. This summer, I will be working with Lisa Bernstein, the Program Manager of Social Accountability Accreditation Services (SAAS). Through this experience I hope to better understand the benefits of accrediting certification bodies and certifying facilities, challenges faced in the process, and what measures are taken to resolve conflicts and issues brought up by workers, various levels of management, and certification bodies.

Olinda Hassan
I am a rising senior majoring in political science and South Asian studies at Wellesley College, with particular focus on international labor and migration. I was recently abroad in Cairo, Egypt where among my subjects I studied the conditions of migrant laborers in the Middle East. I have applied this academic interest to various areas, including a consulting internship in Delhi, India and PR work in an NGO promoting micro-businesses in Tucson, Arizona. My concern with international development led me to SAI where I have started to look at social compliance issues in Brazil, India, and Italy. I hope to gain a better understanding of corporate social responsibility and its role in our fast paced global market, and am excited to be part of the SAI team in New York.

We are always welcoming new interns, for opportunities click here

Announcements and Upcoming Events

The One World Trust Interactive Civil Society Organizations Map         
This month, the One World Trust organization launched a database of Civil Society Organizations (CSO) and voluntary initiatives, along with an interactive map. This new resource provides information on the 309 initiatives that have been identified worldwide, examining the various types of initiatives that exist and the patterns they follow at the national, regional, and international levels. In addition to the interactive world map, the portal contains a briefing paper, a project summary, and FAQs about CSO self-regulation and the project.

To access this map, click here

International Labor Standards, Rights and Beyond, Conference
14-15 August 2009, Stanford Law School, California
The conference will focus on the development of international labor standards and rights, beginning with a keynote address by Judge Rosemary Barkett of the United States Court of Appeals for the Eleventh Circuit.  Speakers will address topics including country-specific labor programs linking trade and labor rights, and the roles of the World Trade Organization and the International Labor Organization. Dan Henkle, SAI Advisory Board Member and Senior Vice President of Social Responsibility at Gap, Inc. is a featured speaker.

For more information, click here

Ethical Corporation's 3rd Annual Corporate Responsibility
Reporting and Communications Summit

25-26 November 2009, Regent's Park Marriott Hotel, London
Ethical Corporation reports that its summit will provide companies and NGO's with a benchmark against the best, and demonstrate how to communicate positive sustainability messages. Tools will be given to create a readable, transparent and precise corporate responsibility report based on strategy, innovation, transparency, and readability. Attending this summit will provide: innovative and practical agenda of concrete best practices; advice from the experts; topical and relevant programs; focus on interactivity; extension of networks and improvement of support system.

For more information, click here

We invite you to continually send any updates for us to publish in our monthly newsletters!

Social Accountability International (SAI) is an international non-governmental organization that promotes workers rights through multi stakeholder collaboration including companies, trade unions and NGOs. It assists partners in the development and use of practical tools, particularly the SA8000 standard, for safe and decent workplace conditions.
 
SAI and the SA8000 standard focus on the human elements of the workplace and the supply chain. SA8000 is the standard that considers the importance of each job and strives to recognize the equal dignity of each person involved in the supply chain - from the worker to the retailer to the consumer. Today SA8000 certification covers over 1830 facilities in 68 countries, across 67 industries, and over one million employees.
 
SAI is one of the world's leading social compliance training organizations, having provided training to over 15,000 people. SAI courses integrate compliance with management systems issues.
 
SAI is headquartered in the United States with representations in Brazil, China, India, the Netherlands, Nicaragua, Spain, and Vietnam.

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[email protected]