Peter Williams ETI NGO Caucus Co-ordinator

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Respect for workers worldwide

• Peter WilliamsETI NGO Caucus Co-ordinator

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ETI is a three-way alliance ofcompanies, NGOs
and trade unions, predominantly involved in
retail supply chains ( some procurement
agencies)
what is ETI?
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ETI membership
WWW
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ETI member companies agree to implement the ETI
base code
ETI base code
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Expectations on members (obligations)

• 6 principles of implementation
• commitment
• purchasing practices
• capacity building
• identifying problems in the supply chain
• improvement actions
• transparency
• companies must make progress
• implementation is monitored annually

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Implementation principle 2 core business
practices

• 2.1 The company selects suppliers with good
  labour practices/likely to observe the Base Code.
  
• 2.2 The company recognises that stable business
  relationships contribute to good labour practices
  and endeavours to establish long term
  relationships with its suppliers.
• 2.3 The company ensures that the terms of
  agreements with its suppliers (prices, lead times
  etc) are consistent with the ability of the
  supplier to observe the Base Code.
• 2.4 Buying staff and other personnel whose
  decisions may affect working conditions and
  labour practices in the supply chain are made
  aware of the potential impact of such decisions.
• They are provided with training and guidelines
  that enable them to carry out company ethical
  trading policy and their performance is assessed
  and managed accordingly

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how company performance is measured

Leader Demonstrable impact tackles root causes
collaborates with stakeholders impact across
supply chains
Achiever Sustainable solutions revising
commercial practices support to suppliers
impact in pilots
Improver Embedding policies and approach
Beginner/Foundation basic policy, resources
process to begin ethical trade programme with
suppliers
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Measuring company performance
Management Indicators Beginner   Improver   Achiever   Leader  
Principle 1 Commitment The company is in the early stages of establishing an ethical trade programme   Commitment is being translated into action   The company is actively managing its ethical trading issues.  CN The company is a leader in the field of ethical trade  
Principle 2 Monitoring, Independent Verification Reporting The company has begun to review report the issues in its supply chain.   Developing a monitoring programme produces outline reports on progress.   Produces comprehensive credible reports on its supply chain.  CN In depth reports supported by independent assessments.  
Principle 3 Awareness Raising Training The company has begun the process of identifying training awareness raising needs.   The company is addressing the needs for training initiating awareness raising.   Provides training to all involved in ethical trade is improving awareness of suppliers their workers.  CN High quality internal training long term engagement with suppliers their workers representatives.  
Principle 4 Corrective Actions Addresses the need for corrective actions as they come to light.   Has developed systems for recording following up necessary corrective actions.   Has well established systems for identifying following up corrective actions to ensure improvements are being made.  CN Achieves sustained improvements by working with suppliers to identify persistent problems, identify solutions to share learning.  
Principle 5 Management Procedures, Pricing Incentives The company has identified the key personnel responsible for ethical trade is considering the wider commercial issues   The company has clearly defined the role of staff involved in ethical trade is developing performance indicators for both staff suppliers.   The company has a well established systematic approach to ethical trading with clear responsibilities incentives for staff suppliers.  CN The companys management of ethical issues is fully integrated into its commercial management with robust procedures incentives.  
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Overall performance
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ETI priorities learning from impact assessment

• promoting good workplaces
• payment of living wages
• integrating ethical trade into core business
  practices
• tackling discrimination in the workplace
• focusing improvements on the most vulnerable
  workers
• moving beyond audit

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Progress on critical implementation issues!
Impact assessment Company reports 2006 Company reports 2007 Company reports 2008
Communication to workers
Vulnerable workers
Freedom of association
Discrimination/gender
Living wage
Complex chains 2nd/3rd tier
Capacity building
Better audits
Core business practices
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Progress on critical implementation issues!
Impact assessment Company reports 2006 Company reports 2007 Company reports 2008
Communication to workers
Vulnerable workers
Freedom of association
Discrimination/gender
Living wage
Complex chains 2nd/3rd tier
Capacity building
Better audits
Core business practices
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Progress on critical implementation issues!
Impact assessment Company reports 2006 Company reports 2007 Company reports 2008
Communication to workers
Vulnerable workers
Freedom of association
Discrimination/gender
Living wage
Complex chains 2nd/3rd tier
Capacity building
Better audits
Core business practices
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Progress on critical implementation issues!
Impact assessment Company reports 2006 Company reports 2007 Company reports 2008
Communication to workers
Vulnerable workers
Freedom of association
Discrimination/gender
Living wage
Complex chains 2nd/3rd tier
Capacity building
Better audits
Core business practices
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Any questions?
Ethical Trading Initiative?8 Coldbath Square
?London EC1R 5HL ?UK T 44 (0) 20 7841
4350?F 44 (0) 20 7833 1569?eti_at_eti.org.uk ethic
altrade.org