verité humanizing the global workplace the views expressed in this presentation are the views of...
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Verité
Humanizing the Global Workplace
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.
Verité
Verité• Established in 1995, with a mission to ensure
that people worldwide work under safe, fair and legal conditions
• Non-profit headquartered in Amherst, MA, working through a network of local partners
• Operates in 65 countries• Works with private companies including Fortune
500 brands, local and international NGOs, trade unions, multi-stakeholder groups, and governments
Verité
Verité• Works to improve performance in meeting social, labor
and environmental standards in corporate supply chains• Programs include :
– Standards monitoring– Factory-based management systems training – Worker-focused programs– In-depth research on labor issues– Corporate compliance program assessment and
development– Auditor assessment and training
• Funding: fee for service, grants, and individual donations
Verité
Codes of Conduct and Social, Labor and Environmental
Compliance Programs in the Private Sector
Marie ApostolExecutive Director, Verité Southeast Asia
Verité
Code of Conduct
• ILO definition: Policy statements that define ethical, social and environmental standards of corporate behavior
• Always voluntary, complement government legislation
• Various types: – company codes, trade association codes,
multi-stakeholder codes, model codes, inter-governmental codes
Verité
Why Codes of Conduct
• Globalization - increasing deregulation, national efforts to attract FDIs
• Growth of “the brand” and global value chains• Speed and availability of IT• Changes in stakeholder definitions of liability
(legal and moral, Sarbanes Oxley)• Stakeholders’ need for visibility of social, labor
and environmental practices in the workplace
Verité
On Wall Street, a Rise in Dismissals Over Ethics
New York TimesPublished: March 29, 2005
By LANDON THOMAS Jr.
“With regulatory scrutiny heightened, there has been a wave of firings as
corporations move to stop perceived breaches of ethics.”
Verité
‘Business case’
The literature shows systematic evidence of multinational companies exposed by so-called
anti-sweatshop campaigns being subsequently punished by the market through
sharp decreases in share prices.
Responsibility Breeds Success, Development Outreach, Nigel Twose and Ziba Cranmer, World Bank
Verité
Groups Influencing Social Compliance
Trade Unions Consumers Media NGOs Students
Investors (owners) International
Organizations Church/religious
groups Business partners
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Scope of Codes of Conduct
• Child Labor
• Forced Labor
• Non-Discrimination
• Freedom of Association
• Fair wages, hours and benefits
• OHS
• EHS
• Discipline and Termination Practices
• Ethics and governance
• Supplier engagement
Verité
Key Differentiator: Implementation and Enforcement of Codes
• Approach – punitive vs. rewards based• Who does the monitoring?• How is it being monitored (methodology, sources
of information)?• What is the scope and depth of coverage of the
supply chain being monitored?• How is the information from monitoring used? • How and to whom is information reported?• How is performance measured?
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How Social Compliance Programs Are Evolving
• Brand-driven multi-stakeholder• Top-down participatory & collaborative• Monitoring-focused problem-solving• Perceived as ‘policing’ integral to business• Program strategy integrated into biz strategy• Reactive proactive• Expensive cost-effective
Verité
Towards Effectiveness: Some Lessons (Verite)
• A purely punitive approach has not led to significant change• Transparency should be the basis of engagement• Accountability is key: no one should get a free ride• More voices in the dialogue enhance both process and
outcomes – local voices are essential, and workers’ voices are critical
• Focus on intent and desired outcomes improves collaboration
• The best solutions consider and promote the interests of all stakeholders
• Culture and language differences can make or break an engagement
• There should always be space for workers to organize• The business case has to be made
Verité
Greater integration with business & relation to
social development.
Social Benefit
Accountability
Worker Empowerment
Enforcement of Codes of Conduct
Transparency
Verité
http://www.verite.orgSocial Entrepreneur: Dan Viederman
Grant Amount: $1,015,000 over three yearsAward Year: 2007
Dan Viederman's experience in leading nongovernmental organizations (NGOs) in rapidly growing countries like China convinced him of the need to improve workplace conditions globally. When he came to Verité in 2001, he took the organization beyond its factory audit roots and engaged workers in a solutions-driven, participatory model that improved working conditions for 200,000 workers by 2005. Verité's reputation for credibility and impact has prompted international firms such as Gap, Levi's and Starbucks to seek its help for major restructurings. With support from Skoll, Verité will strengthen partnerships with NGOs in dozens of countries and will train 1,500 practitioners to replicate its model by the end of 2009.
Verité
Verité
