September 2009


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In This Issue
SAI to Develop Case Studies for UNGC Leaders Summit
Notes from the Field: Human Rights at Work in India
Gap Inc.'s Journey Toward Corporate Social Responsibility
Field Auditor Training in Egypt with the IMC
SAI Tailors Course for Disney Internal Auditors
Utilizing the Supplier Tiered Rating System
ISEAL Alliance Develops Impacts Code with Online Webinar
News & Publications
Meet SAI's New Intern
Announcements & Upcoming Events
SAI and SAAS Seek Interns for the Fall and Spring Semester

SAI to Develop Case Studies for
UN Global Compact Leaders Summit


SAI is pleased to announce a collaboration with the UN Global Compact (UNGC) and the Center for International Private Enterprise (CIPE) to develop case studies on the work of the UNGC, and how SAI's SA8000 standard can be a tool for implementation of the labor rights commitments in the UNGC principles. These case studies will profile seven international companies, and will be jointly presented at the UNGC Leaders Summit meeting in June 2010 in New York.
 
SAI, CIPE, and the UNGC are reaching out to a diverse array of companies around the world to survey and interview senior company managers to learn how their participation in the UNGC is put into practice, and explore how the SA8000 standard has helped companies to carry out labor rights commitments and become better corporate citizens. These case studies will also highlight key lessons learned, including the paths and the results of implementations; any obstacles along the way; benefits to the company; gains from the synergy between SA8000 and UNGC. These case studies will be a tremendous opportunity for the companies interviewed to present how they are fulfilling their commitment to the four labor standards principles in the UNGC, and to promote greater action among industry peers to move from commitments to implementation.
 
The case studies will be published by the UNGC, and they will be promoted as a useful tool for sharing and information learning.

The UNGC is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption. For more information, go to http://www.unglobalcompact.org
 
The Center for International Private Enterprise (CIPE) strengthens democracy around the globe through private enterprise and market-oriented reform. CIPE works with business leaders, policymakers, and journalists to build the civic institutions vital to a democratic society. For more information, go to http://www.cipe.org

Notes from the Field:
Human Rights at Work in India


How Bangalore-based non-profit, Prakruthi, utilizes the SA8000 standard to advance labor rights in the garment industry

Prakruthi is a not- for- profit organization based in Bangalore, India that works to develop poor and marginalized communities in various sectors of the economy by building alliances with the corporate world. Some of Prakruthi's inspiring thematic areas include community-centered corporate social responsibility (CSR) and community development for plantation workers, small farmers, women, youth, and children. Through their CSR initiatives, Prakruthi aims to bring together multistakeholder groups in various forums. These forums are to educate and empower the diverse groups to work together for common goals such as establishing collective bargaining, fair trade, and environmentally sound practices in the tea, coffee, sugar cane, and cotton farming areas. 

In India, Prakruthi is carrying out activities within the 'Made-By' knitwear supply chain to build a flagship chain of suppliers for optimal achievement of fair trade objectives. 'Made-By' is a multistakeholder initiative of Solidaridad in the Netherlands in association with producers, civil society organizations and companies. Similarly, SAI's 'Made-By China' project, with Solidaridad, is carrying out activities with organic fair trade cotton cultivated in China.

Based on extensive research conducted in Tirupur in 2004, Prakruthi convened the diverse groups in a Steering Group in 2006.  The Tirupur Steering Group (TSG) is composed of seven trade unions and four NGOs-including CARE, an organization represented on SAI's Advisory Board. The Tirupur area is the source of 75% of the total production of cotton knitwear exported from India, an industry which constitutes about 14% of industrial production in India. The TSG works together to make social audits in the garment sector more effective in addressing labor and environmental issues. As the majority of the garment companies in Tirupur have adopted SA8000 standards, TSG works with SA8000 codes, and two members of Prakruthi's team are certified SA8000 auditors.

With this background in SA8000, Prakruthi has helped to assist members of the garment industry achieve SA8000 certification. Domestic factories such as Kolkata, at Rajlakshimi Cottom Mills Ltd. (see picture) and international factories such as Kathmandu, at Katmandu Star Fashion Ltd. have benefited from the guidance of Prakruthi and received SA8000 certification for decent work.
 

(The certificate was handed over to Mr. Rajat, Managing Director of RCML, by Mr. Pramod John, Executive Director of Prakruthi. Mr. Arun Ambatipudi (right) represented COFA and Mr. Shatadru Chattopadhayay, (left) represented Solidaridad.

For more information, please visit http://www.prakruthi.org

A Look Inside SA8000: The Next Decade

Book excerpt:  SA8000: The First Decade. Implementation, Influence, and Impact, edited by Deborah Leipziger.
 
Chapter
5: Gap Inc.'s Journey Toward Corporate Social Responsibility

"The benefits of SA8000 for a supplier's apparel manufacturing operations can perhaps be best illustrated by the experience of one factory, Apparel Avenue, the first factory in Thailand to receive SA8000 certification. Building on previous ISO certifications in 1998 and 1999, the factory found the SA8000 process relatively easy to implement in 2000.

By organizing an internal SA8000 working group under the leadership of the human resource manager, the factory was able to deal creatively with the thorny issue of overtime. Under Thai law at that time, a worker could not exceed 48 hours on a regular basis, with a maximum of two hours of overtime per week. Working with the production engineer, the factory team was able to redesign work stations and work processes so that, after a three-month implementation period, overtime was reduced to the required level with a simultaneous increase in worker productivity. SA8000 and the changes it necessitated led to a mutually beneficial solution for managers and workers. The work environment was improved, the company reduced its overtime costs, and the workers made the same amount of money working fewer hours."

This chapter was written by Mr. Dan Henkle, Senior Vice President of Global Responsibility, Gap Inc. For more information or to order a copy of this book, click here

Corporate Programs and Training Update


SAI Conducts Field Audits in Egypt with IMC

On August 24, Jane Hwang, Manager of Corporate Programs and Training, was on-site in Egypt with Badri Gulur, SAI Lead Trainer, to carry out an auditor field training and technical assistance program. This program was implemented with the support of Egypt's Industrial Modernization Center (IMC), and brought trainees on-site for mock SA8000 audits.

(Photo left- Consultant trainee teams does mock Stage 1 Audit in a potato processing facility) 
        
The  two  goals of the programs were: build local capacity for social auditing, training, and technical assistance services; and, support the social compliance of Egyptian industry. Three principal activities were carried out to support  the goals: 1] benchmark a representative sample of companies' social performance status and pinpoint the major compliance issues specific to the local environment; 2] provide technical assistance to three selected companies to improve their management systems and implementation of international labor standards and to prepare for SA8000 certification; and 3] provide field training in SA8000 auditing and technical assistance, to develop the on-site experience and skills for a select group of consultants.

"This was just one visit out of a multi-phase project," said Jane Hwang. "It's not just about auditing, it's about local capacity building-- learning to audit is a starting point for both these trainees and for the companies in the program. We emphasize that it's just not about finding out what is wrong with the company, but about developing a continual improvement project."

(Photo right- Workers at a rug factory show off their finished product to the consultant trainee team)

The three diverse companies selected to receive this custom training were a potato processing company, a custom tufted rug manufacturer, and an appliance manufacturer. All three companies received custom training and technical assistance which included  a] an introduction of auditor training, b] an introduction to manager training, c] how to build an internal compliance team, and d] how to initiate the facility gap analysis.

SAI Tailors Course for Disney Internal Auditors

SAI has teamed up with Disney's International Labor Standards (ILS) Group to carry out an auditor training program in Guangzhou, China for Disney's entire internal auditor team. This course was customized for Disney, recognizing their team's existing experience and building on their skill sets around conducting management system-based social audits.

This 5-day custom auditor training program combines elements of both SAI's basic and advanced auditor training course, the SAI Handbook, and elements from previous Professional Development Series topics such as management systems for social compliance, control of sub-contractors, and building internal compliance teams in suppliers.  

SAI offers numerous 5-Day Basic Auditor Training courses every month in diverse international locations. To see a complete schedule, click here

SAI's Supplier Tiered Rating System: Taking Steps Towards
Achieving a Socially Responsible Supply Chain 

In last month's newsletter, we featured a description of the Vendor Capacity Building Program, which features the use of SAI's Supplier Tiered Rating System. SAI's Supplier Tiered Rating System that was introduced last year in the SAI Handbook: Implementing a Socially Responsible Supply Chain.

It was created as a way to drive continual improvement of social performance in a company's supply chain.  Built on the management system philosophy of the SA8000 Standard, the Supplier Rating System uses a Measure and Improve approach. This approach has several positive elements. Most important, it is pragmatic. It recognizes that a company has to keep buying products and services. It recognizes that not all of a company's suppliers are going to be fully compliant. It allows a company to engage with suppliers and use their leverage to drive improvement.  

The Supplier Tiered Rating System takes a new approach to analyzing a company's social compliance. Instead of focusing on the individual elements of social compliance, it focuses on the processes and capabilities that allow a company to perform at a high social compliance level. It can be used as a development tool with any corporate code, industry code or standard.  

The system rates a company on nine areas (pillars) on a scale of 1 to 5. The nine pillars were selected to focus on the systems and processes that a company has in place for high-level labor performance.  This provides a useful tool for measuring a supplier's current performance and identifying specific areas for improvement through training or technical assistance.  In many ways the nine pillars are similar to the processes you would look at to see how well any business function is managed inside a company.

The nine pillars are: management systems; internal compliance team; control of sub-contractors; worker communications; compliant management and resolution; stakeholder engagement/external verification; training and capacity building; level and type of non-conformances, progressive on corrective actions.

The first two pillars - the development of management systems and the development of an internal compliance team - tie directly into the management systems component of the SA8000 standard.

Positive results for SAI corporate members from using this tiered rating system derive from the fact that as a step-by-step approach, it goes deeper than typical pass-fail or "snap-shot" audits. It sets clear targets for making improvements. The system's 9 categories allow corporate members to think through the elements of SA8000 or their code, encouraging a systematic, comprehensive approach to social performance, rather than solely focusing on non-conformances. Other key aspects of this rating system are measuring of both baseline and interim performance levels, and enabling comparison and benchmarking amongst other companies.

For more information on SAI's Supplier Tiered Rating System, contact Jane Hwang, Manager of Corporate Programs and Training, [email protected]

ISEAL Alliance Develops Impacts Code
with Online Webinar


On Tuesday, September 8, an ISEAL Alliance online webinar, "Assessing Impacts of Standards Systems Code Development" discussed specific aspects of the Code of Good Practice for Assessing the Impacts of Standards Systems (Impacts Code). The Impacts Code will be the latest in ISEAL's suite of credibility tools, designed as international references for credible social and environmental standards systems. This one-hour webinar was presented by Paddy Doherty, Credibility Tools Manager at ISEAL.
 
The Impacts Code is posted for public consultation until October 31. As a full member of the ISEAL Alliance, SAI recognizes the Impact Code as an important tool for learning and improving the SA8000 standard systems' effectiveness in achieving our goals. After the public consultation input, and all elements are agreed to, the Steering Committee will ensure consistency and completeness of the guidance before making a formal recommendation for approval to the ISEAL Stakeholder Council, in Spring 2010. SAI Executive Director, Eileen Kaufman, is a member of the Steering Committee.

The ISEAL Alliance is the global hub for social and environmental standard systems. ISEAL develops guidance and facilitates coordinated efforts to ensure effectiveness and credibility and scale up their impacts.  SAI is a founding member with full ISEAL membership.
 
For more information, click here

News and Publications

Social Accountability: No Longer Just a Risk-Mitigation Strategy
SAI Director of Corporate Programs and Training, Craig Moss, was recently interviewed by the International Society of Sustainability Professionals (ISSP) about his work with SAI, pointing out how Corporate Social Responsibility and the SA8000 standard are not a risk mitigation strategy, but a competitive advantage. The interview was featured in ISSP's September 2009 newsletter and address various important topics: capacity building; the SA8000 social assessment; empowerment and community development; future market for jobs in the CSR field; and how companies can go beyond compliance and identify continual improvement.

To read the full interview, click here

LEAF Launches Public Review Process for Apparel Industry
Eco-Label Program


Labeling Ecologically Approved Fabrics (LEAF) is a new program that will appeal to conscious consumers and companies by creating a comprehensive eco-label that identifies a range of environmental and social achievements.  In conformance with the guidelines of the Global Eco-Labeling Network, LEAF has entered into its public review process, and is inviting stakeholders from the apparel industry and the general public to submit comments in an effort to build consensus. LEAF will be collecting and responding to comments until November 24th.

SAI is one of several standards organizations that is in talks with LEAF about collaborating in the labeling program. LEAF will not perform certifications, but through this program will verify whether a garment has been certified by any of some 15 or more third-party certification organizations. This project focuses in three elements of the supply chain: sustainable and/or organic source materials, environmentally responsible manufacturing and fair labor practices in associated manufacturing facilities. LEAF hopes to expand this program to include issues such as fair trade for farmers, packaging and distribution practices and humane animal treatment.
 
For more information, and to take part in the public review process, go to http://www.leafcertified.org/

SAI Advisory Board member and President of the Akatu Institute in Brazil, Mr. Helio Mattar, was involved in a number of fascinating activities this month-
 
On September 16-18 in Cartagena, Colombia, he was a speaker at the 5th Regional Meeting for Latin America on Sustainable Consumption and Production, promoted by the United Nations Environment Programme (UNEP) on the framework of the Marrakech Process of Sustainable Consumption and Production.  Mr. Mattar is the coordinator in Brazil of the UNEP Global Survey on Sustainable Lifestyles, which is also promoted in the framework of the Marrakech Process.  The results of this Global Survey will be released late this year.   
 
Additionally, Mr. Mattar was recently invited to be a member of two important initiatives: 1] the group of experts of the Global Agenda Council on Sustainable Consumption, an initiative of the World Economic Forum (WEF), and 2] the Advisory Board of the WEF Initiative: Sustainability for Tomorrow's Consumer.

Meet SAI's New Intern

Interns play an important role here at SAI. This Fall, we are pleased to have an intern join us in our New York office all the way from Spain. We are happy to welcome Hugo Rodriguez de Prada, and to introduce him, in his own words:

I am a recent graduate of the ESIC Business and Marketing School in Madrid, Spain, where I studied advertising and marketing. Sean Ansett, SAI's European Representative, introduced me to SAI's work in corporate social responsibility. From there, I became interested in how organizations such as SAI carry out CSR programs to help companies do more that just improve their image, and make social changes. Upon finishing my studies I wanted to intern at SAI to learn more about the organization and the SA8000 standard.     
    
At SAI, I am working in the programs department with their projects in Central America, as well as with helping Sean Ansett remotely on some projects. On my free time I love to travel and learn about new cultures, and I hope to be able to improve my English at SAI in New York in addition to learning more about this organization, and the United States.  

SAI and SAAS are seeking new interns for the Fall and Spring semester! See below for more information, or click here

Announcements and Upcoming Events

Cotton Made in Africa: Call for Expression of Interest
Deadline: October 5, 2009

Cotton Made in Africa (CmiA) is looking to engage with verification organizations in order to conduct CmiA verifications of the participating farmer groups and ginning operations in Sub-Sahara Africa. Interested parties are asked to hand in their expression of interest in writing no later than October 5, 2009. For further details on this opportunity and its requirements, please contact [email protected]m
 
CmiA is a baseline sustainability concept with the aim to improve the livelihoods of African cotton smallholders and their families and to work for a more sustainable cotton production in African countries. The concept focuses on the supply and value chain in the participating African countries with regard to the growing and ginning of cotton. Further information is available at www.cotton-made-in-africa.com 

CIPE: Democracy that Delivers
October 27, 2009, Washington D.C.
8:00AM-5:00PM

The Center for International Private Enterprise (CIPE) is hosting a conference on improving the quality of democratic governance and economic growth. At the conference, participants will understand that building market economies and building democracies are not mutually exclusive-- they are mutually reinforcing. Participants will discuss how and why resilient democracies need resilient markets, and vice versa, with renowned international scholars, practitioners, and reformers from around the world.
For more information, and to register, click here


Ethical Trading Initiative Training Programme:
Putting Learning into Practice
Autumn/Winter Schedule Starting
The ETI training programme comprises four one-day workshops, which are designed to build the necessary skills and understanding to manage, monitor and improve conditions for workers in global supply chains. The next series of workshops will run from September to November. Workshops 1 and 2 will each run twice.
  • Workshop 1 The essentials of ethical trade: Building the foundations of ethical trade policies and practices 7 September or 30 September
  • Workshop 2 Managing an ethical trade programme: Tools and mechanisms for implementation 7 October or 23 October
  • Workshop 3 Improving working conditions: A partnership approach to managing change in the supply chain 5 November
  • Workshop 4 Making change sustainable: Taking a leadership approach to ethical trade 17 November
For more information, click here or contact Caroline Russell[email protected]

Implementing Core Labour Principles in Global Supply Chains: 
A Training Course for Social Auditors

October 12-14 2009, Turin Italy
The International Training Centre of the ILO (ITC ILO) in Turin is administering a new training course for social auditors. The course enhances the capacity of third-party and in-house auditors to make use of the ILO's international system in assessing compliance with labour principles, especially in areas that are less observable such as freedom of association or discrimination. The course aims at inspiring the daily practices of those conducting social audits, from the preparation of the audits to the actual assessment exercise, by providing practical and factual information on the core labour principles and their use in social auditing schemes and methodologies.

For more information, click here or contact Maria João Vasquez or Sophie Ouine

New Models of Social Responsibility: A Global Virtual Summit
November 5 & 9, 2009
Communitelligence & Cisco present their annual virtual (and green) summit for large, mid-size and small businesses, government agencies, universities, or non-profits that want to learn more about managing, communicating and making sure your organization's social responsibility efforts produce win/win results in a tough economic environment.  This summit is on November 5 and 9, and are 4 hours each day via WebEx or at 10 TelePresence locations around the world.

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 NGOs 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

Internships with SAI and SAAS

SAI and Social Accountability Accreditation Services (SAAS) seek highly motivated interns interested in research, management procedures, and the elimination of sweatshops worldwide.  These positions require interest in how businesses implement standards for respecting labor rights and addressing overall workplace issues. 

Applicants should possess initiative, work independently, and be a strong organizer who can multitask and meet deadlines effectively.  Excellent computer skills required, including knowledge of Excel, Access, Web development and Outlook.  Candidates should have a commitment to human rights, labor rights, and development issues. Internship positions are unpaid and based in our New York office.

For more information about internships with SAI, and to apply click here

For more information about internships with SAAS, and to apply 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.

SAI
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New York, NY 10036
(212) 684-1414

Website: http://www.sa-intl.org

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Joleen Ong
[email protected]