Transcript Responsible Supply Chain Management

Responsible Supply Chain
Management
Kristin Holter
Ethical Trading Initiative, Norway
BI 13 April 2005
Ethical Trading Initiative
(ETI-N)
• Founded in year 2000
• Membership organisation and
• Multi Stakeholder Partnership:
Commercial enterprices, Employers’
organisations, Unions and NGOs
ETI Core Concepts
Vision:
Contribute to international trade that
promotes development, human rights and the
environment.
“Business” idea:
Enable members to meet challenges related to
ethical trade.
Ethical trade defined
Trade in which the retailer or
merchandiser (i.e sourcing or buying
company) assume some measure of
responsibility for labour practices and
environmental issues at all levels of the
products supply chain.
ETI Ethical Standards
Based on internationally recognised ILO and UN
conventions
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No slavery or forced labour
Right to join union/collective bargaining
No child labour
No discrimination
Occupational Health and Safety (OHS)
Wages/Working hours
Disciplinary practices
Regular employment
Environment
Local community
Step by Step Approach
Verification
- Internal
- External
- Sertification
Internal
systems
-Develop Code
-Plan of Action
Risk
Assessment
-Map status
-Improvement
strategy
Corrective
Action
- Customer
leverage
- Resources
Challenges
 Small business:
 Little or no customer leverage
 Small resources
 Long, complex and non-transparent
supply chain
 Agent is handling contact with
producer(s)
Dilemma: Size matters
 You are a small (2 pst) customer at a
large production unit. You have
presented your Code of Conduct. Apart
from that – how should you contribute
to improvements?
Dilemma: Allocation of
resources
 You are responsible for your firms
ethical supply chain management. You
have a budget. Should you prioritize
expenses to documentation - inspection
and control or contributing to
improvements at production unit level?
Dilemma: Empowering the
workers
 You want the workers involved in
improving the working conditions at the
factory you are buying from. There is no
union. What do you do?
Conclutions
 No easy answers
 Individual solutions to code
implementation can only have limited
impact. Collaboration between
companies, suppliers, governments,
trade unions and NGOs is essential.
www.etiskhandel.no