credible, verifiable, transparent. FOR A JUST WORLD

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1 credible, verifiable, transparent. SETTING STANDARDS FOR A JUST WORLD

2 people care the growing demand for responsibility Consumers are more demanding than ever. They have high expectations when it comes to price, quality and convenience. And today they also care about workers rights and the environment. But it s not just consumers. Investors, governments and students care too. They are asking: Was this shirt made in a sweatshop? Did a child give up school to make this ball? Were the workers who harvested this banana exposed to toxic pesticides? Does the company that made this shoe enforce its code of conduct? How employers address these concerns affects working conditions, the environment and the bottom line. Surveys show that a high percentage of consumers and investors worldwide are influenced by social and environmental practices. Meeting the rising demand for responsible social and environmental performance requires a systematic approach that combines ideals and implementation. photo: David Parker; cover: Prem Durai factory in Tirupur, India SOCIAL ACCOUNTABILITY INTERNATIONAL setting standards for a just world Social Accountability International (SAI) is a charitable human rights organization dedicated to improving workplaces and communities by developing and implementing socially responsible standards. To fulfill its mission, SAI convenes key stakeholders to develop consensus-based voluntary standards accredits qualified organizations to verify compliance promotes understanding and implementation of such standards worldwide. SAI s social accountability system approach is based on credibility, verification and transparency. In 1996 SAI convened an international multistakeholder Advisory Board to develop Social Accountability 8000 (SA8000 ), a voluntary standard for workplaces based on ILO (International Labour Organization) and other human rights conventions. Its independent verification method draws many key elements from the widely accepted quality management system certification in the ISO programs. SA8000 is currently in use by businesses and governments around the world and is broadly recognized by trade unions and non-governmental organizations (NGOs) as one of the strongest workplace standards. Certification of compliance to SA8000 promotes management systems that upgrade working conditions. SA8000 is a powerful tool for creating environments in which both workers and management benefit. SAI works to continuously improve this system through research, impact assessments, training, evaluation of auditors, and learning from diverse stakeholders around the world. Stakeholders include workers, manufacturers, retailers, human rights experts, investors, scholars, governments and consumers. SA8000, a truly global standard, is today the best management tool available to ensure social accountability. Neil Kearney, General Secretary, The International Textile, Garment and Leather Workers Federation

3 SA8000 around the world NORTH AMERICA USA Mexico CENTRAL & SOUTH AMERICA Brazil Chile Costa Rica Ecuador Honduras Peru KEY Outreach via training, conferences, workshops Headquarters for SA8000 corporate commitment program companies Certified facilities EUROPE Belgium Finland France Germany Greece Hungary Italy The Netherlands Poland Slovenia Spain Sweden Switzerland Turkey UK AFRICA Ghana Lesotho Mauritius South Africa ASIA Bangladesh China India Indonesia Japan Malaysia Pakistan The Philippines Singapore Sri Lanka Thailand Vietnam address 220 East 23rd Street Suite 605 New York, NY phone fax website Social Accountability International is a tax-exempt charitable organization under Section 501(c)(3) of the US Internal Revenue Code. Donations are fully tax deductible as allowed by law. SA8000 is a registered trademark of Social Accountability International.

4 the benefits of SA8000 gains for workers, employers and consumers Worker benefits Fewer accidents Enhanced opportunities to organize trade unions and bargain collectively A way to address and improve the conditions where people work Increased worker awareness about core labor rights An opportunity to work directly with employers on labor rights issues Evidence that labor rights are good for society and business Improved business practices lead to economic growth and new job opportunities Employer benefits A credible and effective way to put social responsibility into action Enhanced company and brand reputation Improved employee recruitment, retention and performance Gains in quality and productivity Savings from fewer workdays lost and lower insurance bills Less expensive than an internal compliance program Better relationships among workers, trade unions, companies, customers, NGOs and government implementation SAI tools for social accountability Consumer and investor benefits Clear, credible information for those who want to make ethical purchasing decisions Useful data for socially responsible investors Identification of products made under humane conditions Identification of companies making progress toward humane conditions Broad coverage of product categories and production geography SAI develops and uses various tools to implement social accountability systems. Research and development SAI coordinates the drafting and revising of auditable social accountability standards, provides guidelines for the independent verification of compliance and gives examples of good practices. SAI also tracks the impact of SA8000, including the costs and benefits of certification. Accreditation SAI licenses qualified auditing firms and individual auditors to certify facility compliance with social accountability standards. Certified facilities are entitled to use the SA8000 certification mark. SAI regularly audits the auditors. It does not audit factories or farms. SAI and other similar NGOs work through ISEAL (International Social and Environmental Accreditation and Labeling Alliance) to ensure high quality social standard setting and accreditation. Improving auditing effectiveness SAI provides oversight and review of the auditing process, which includes an open complaints and appeals system. SAI hosts regional roundtables on four continents to review auditing challenges and share best practices. SAI also works to foster greater involvement by NGOs and trade unions through joint research and training. Training and technical assistance SAI partners with local groups in the training of auditors, workers and their representatives and owners and managers in using the SA8000 system. Also, an international project Improving Worker s Rights Through Voluntary Workplace Standards, jointly coordinated by SAI and the ITGLWF, uses SA8000 as an example of workplace codes of conduct. In addition, SAI helps companies in the implementation process by providing training and information. Outreach and alliance building The organization also seeks to harmonize various social, environmental and ethical standards by researching avenues for mutual acceptance and frameworks for integrated audits. Work is currently underway with FLO (Fairtrade Labeling Organization), IFOAM (International Federation of Organic Agriculture Movements), CAN (Conservation Agriculture Network) and others. SAI participates in the work of the Global Reporting Initiative (GRI) and The Global Compact. Corporate commitment is a tool for companies and other organizations to explore SA8000 and implement it in their own facilities and those of their suppliers. Level One: Evaluate SA8000 as an ethical sourcing tool via pilot audits Level Two: Implement SA8000 over time in some or all of the supply chain Communicate implementation progress to stakeholders via SAI-verified public reporting Corporate commitment program benefits include SA8000 training courses for managers, suppliers and workers, technical assistance in implementing SA8000 from SAI staff and other participating organizations, access to a shared database of suppliers, and the right to use the SAI and SA8000 logos to communicate with stakeholders.

5 setting standards SA8000: a system for assuring humane workplaces SA8000 is used around the world to assure just and decent working conditions by protecting widely-accepted labor rights: Child Labor No workers under the age of 15; minimum lowered to 14 for countries operating under the developing-country exception (ILO Convention 138); children found to be working go into a remediation program, enabling them to attend school. Forced Labor No forced or bonded labor; no withholding of deposits or identity papers by employers or outside recruiters. Health and Safety A safe and healthy work environment; regular health and safety worker training; ready access to clean bathrooms and potable water. Freedom of Association and Right to Collective Bargaining The right to form and join trade unions and bargain collectively; where law restricts these freedoms, parallel means of association are required. Discrimination No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, age, union or political affiliation; no sexual harassment. Discipline No corporal punishment, mental or physical coercion or verbal abuse. Working Hours Comply with applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime must be voluntary unless a collective bargaining agreement permits short-term exceptions. Remuneration Wages paid for a standard work week must meet the legal or industry standards and be sufficient to meet the basic needs of workers and their families, plus some discretionary income; no disciplinary deductions. SA8000 is the current benchmark in the field of corporate social accountability. Morton Winston, Amnesty International USA Toys R Us clearly sees the value in using SA8000 and working with suppliers to implement this system Tom DeLuca, Vice President, Product Development, Toys R Us Management Systems This element requires that facilities go beyond simple compliance to integrate the intent and elements of the standard in their operations. It also requires responsibility for the practices of their suppliers. Since SA8000 became fully operational in 1998, facilities in over 20 nations and more than 15 industries have been certified to the standard. Numerous training courses have been given in Asia, Latin America, Europe and North America. Retailers, brand companies and other employers around the world with annual sales representing over USD100 billion are currently using SA8000. Among these are Amana SA, Avon, Carrefour, Chiquita, Coop Italia, Cutter & Buck, Dole,.. Eileen Fisher, Kesko, Otto Versand, Tex Line, Toys R Us, UNOPS, Voegele Mode and WE Europe.

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