supply chain issues in develpoing countries and the ungc
DESCRIPTION
Chris Harrop, Chairman of the UN Global Compact UK Network, Director of Sustainability at Marshalls plc and Non Executive Director of the Ethical Trade Initiative : My Presentation at the Rathbones Greenbank Investments Annual Investors Day 2014 on Supply Chain issues in the Develoing World and UN Global Compact Solutions with Marshalls plc examples. Focuing on Sustainability, Ethical Sourcing and Sustainable Development through business success and sustainable job creation.TRANSCRIPT
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Chris HarropMay 2014May 2014
Supply Chain Issuesin the Developing World
&UNGC Solutions ...
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Me
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Everone Walks ( and probably sits ) on Marshalls( and probably sits ) on Marshalls
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Why are we here ?( today )( today )
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Why are we here ?( today )( today )
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Marshalls Sustainability StrategySustainability Strategy
• Hygiene Factors
• Legality• Staying in
Business
• Competitive Advantage
• Brand Premium
• New Products
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Operating in a Changing World
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Significant Supply Chain Challenges ExistChallenges Exist
168m11%
30m14
1.3Bn400m 99bn
14th6\10
66 10%11%13%
14m5k
400m137m13%
14th1%
66:10%13%
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Very Significant Supply Chain Risk existSupply Chain Risk exist
• 60% of the worst countries60% of the worst countries worldwide for Labour Rights are in Africa
• 45% of the worst countries45% of the worst countries worldwide for Human Rights are in Africa
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The United NationsGlobal CompactGlobal Compact
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The UN Global Compact
• The Worlds largest corporate citizenship initiative• There are over 12,000 participants spread across 145 countries
and 101 local networks• The UNGC wants participants to be agents for change and to
i titi d t l d hi t dgain competitive advantage, assume a leadership stance andexperience accelerated business success in return.
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Marshall UNGCCommunication on ProgressCommunication on Progress
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UNGC Signatories Financial PerformanceFinancial Performance
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Explicit link between Sustainability and TSRSustainability and TSR
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The UNGC Framework
Pillars of Engagement
Platforms & Principles Global Working Groups Sister Initiatives
• Caring for Climate• CEO Water Mandate• Water Action Hub
• Human Rights • Labour• Anti-Corruption
• Principles for Responsible Investment (PRI)
• Women’s Empowerment Principles
• Children’s Rights and Business Principle
• Supply Chain Sustainability• Business & Investment in
High-Risk Areas
• Principles for Responsible Management Education (PRME)
Business Principle • LEAD
• Land, Real Estate and Construction
RecentlyL h d
• Sustainable Agriculture Business Principles• Social Enterprise Hub
B i 4 P I iti tiLaunched • Business 4 Peace Initiative• Business Engagement in Education Platform
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A New Approach toBusiness & Human RightsBusiness & Human Rights
• Professor John Ruggie• The Chief Architect of the
Global Compact• Started the process in 2005• Started the process in 2005• Endorsed in June 2011• September 2013 the UK Gov’tp
became the first country to publish its strategy in response
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Protect
• The state has a duty to protect against human rights abuses by third parties, including business enterprises, through appropriate policies, regulation, and adjudication.
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Respect
• An independent corporate responsibility to respect human rights, which means that the business enterprises should act with due diligence to avoid infringing on the rights of others and address adverse impact which they are involved
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Remedy
• The need for greater access by victims to effective remedy, both judicial and non judicial
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The Guiding PrinciplesOverall Implications for BusinessOverall Implications for Business
1. A policy commitment by enterprises to meet the responsibility to human rights
2. A human rights due diligence process to identify, prevent mitigate and account for the way they addressprevent, mitigate and account for the way they address their impacts on human rights
3. A process to enable the remediation of any adverse human rights impact they cause or to which they g p y ycontribute
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Marshalls Response ...
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Understanding Human Rights Impacts in Supply ChainsImpacts in Supply Chains
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Fairstone®
®• Marshalls Fairstone® is an ethically sourced range of Natural Stone that hasNatural Stone that has been quarried and produced in line with a l t f thi l lclear set of ethical values
and commitments that Marshalls strongly believe g yin.
• These commitments are b d th UNGCbased on the UNGC principles.
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Marshalls Fairstone
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Children’s RightsImpact AssessmentImpact Assessment
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Understanding Impacts ... Explicit Link to SalesExplicit Link to Sales
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UN Global CompactFrameworksFrameworks
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What's Next ?
Sustainable Development Goalsp
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UNGC A Framework for Sustainable
Growth
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To Sustain ... to Endure