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Review of SA8000 2008 SA8000:2008 Review of SA8000 2008 © Social Accountability Accreditation Services June 2010 © SAAS 2010 Social Accountability International • Convenes key stakeholders to develop consensus-based voluntary global social standards. • Created the SA8000 Standard. • Delivers training & technical assistance. • Contracts with SAAS to license qualified organizations to verify compliance with SA8000. www.sa-intl.org © SAAS 2010 Social Accountability Accreditation Services • Formerly Accreditation Department of SAI (since 1997). • Incorporated as own organization in 2007 • Primary activities: To accredit and monitor organizations seeking to act as certifiers of compliance with SA8000; To provide confidence to all stakeholders in SAAS accreditation decisions and in the certification decisions of its accredited CBs; To continually improve the SAAS accreditation function activities and systems, in compliance with ISO/IEC Guide 17011 and SAAS Procedures. www.saasaccreditation.org © SAAS 2010 Perspective: Impact of Economic Globalization • Greater expansion of markets • Greater mobility of capital • Shifts in balance of trade • Changes in balance of purchase power (currencies) • Job shifts from developed to developing countries • Competition between countries to be low-cost producers and attract investors • Corporations growing in power and influence (Walmart 288 billion in revenues (2005) vs. Switzerland 251 billion GDP or Ireland 156 billion GDP) © SAAS 2010 Market Pressures: The Business Risk Factors • Increased influence and power of MNCs in the new globalized economy raise expectations both morally and legally • High profile cases of abuse or malfeasance can damage a brand name and reduce market share • Consumers becoming increasingly proactive and demonstrative about companies’ labor practices • Demands that companies operate in a more transparent fashion (consumers and stakeholders) • Realization that it makes a better business © SAAS 2010 A Better Business Model? • Compliance with national and international law avoids legal challenges • Concern for human rights addresses consumers’ concerns • Concerns for human rights addresses investors’ interests • Providing a work place which promotes worker rights reduces employee turnover and its associated costs as well as achieves higher productivity © SAAS 2010 Strategies for Business Success • Express ongoing support for human rights principles and social responsibility both in and outside the organization • Include worker rights considerations in strategic planning and daily business operations • Conduct systematic assessments of worker rights within their operations and those of their business partners and suppliers • Ensure compliance with core labor standards © SAAS 2010 SA8000 • The SA8000 Standard is an auditable certification standard based on international workplace norms of International Labor Organization (ILO) conventions, the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. • Those seeking to comply with SA8000 have adopted policies and procedures that protect the basic human rights of workers. © SAAS 2010 SA8000 Normative Documents • Universal Declaration of Human Rights • Universal Convention on the Rights of the Child • Various ILO Conventions Human Rights at Work © SAAS 2010 SA8000 Core Elements • No Child Labor • No Forced Labor • Health & Safety • Freedom of Association • Freedom from Discrimination • Disciplinary Practices Restricted • Work Hours • Compensation to Meet Basic Needs • Management System for Continuous Improvement. See standard at www.SA8000.org Human Rights at Work © SAAS 2010 SA8000: Benefits for Employers • Gains in quality & productivity. • Higher employee retention. • Better relations with workers, trade unions, NGOs, customers. • Effective management systems. • Enhanced brand & reputation. • Increased attractiveness to global buyers. © SAAS 2010 SA8000: Benefits to Workers • Fewer injuries & accidents. • Adherence to labor laws. • More awareness of labor rights. • Enhanced opportunities to organize. • Higher compensation. • Better communications with management. Human Rights at Work © SAAS 2010 AUDITING • Audit : systematic, independent and documented process for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled (ISO19011: 2002) © SAAS 2010 TYPES OF ASSESSMENTS Open System 3rd Party Independent Verification Audit Company Company © SAAS 2010 SHADES OF GRAY Auditors must interpret situations in proper context in order to assign the correct level of non conformity and base their decisions on: SA8000 standard requirements Laws and international norms Input from external and internal sources Industry/sector knowledge Experience Personal values and bias Facts © SAAS 2010 Accreditation and Certification Process 16 © SAAS 2010 Certification Bodies Accredited by SAAS • SGS • Bureau Veritas • Det Norske Veritas • Intertek • TUV Nord • TUV Rheinland • CISE • RINA • STR • Eurocert • ALGI • BSI • TUV Sud • ABS • APCER • LSQA • LRQA • IQNet • HKQAA © SAAS 2010 SA 8000 ELEMENTS 1. Child Labor 2. Forced Labor 3. Health and Safety 4. Freedom of Association & Right to Collective Bargaining 5. Discrimination 6. Disciplinary Practices 7. Working Hours 8. Compensation 9. Management Systems © SAAS 2010 Themes Behind the Standard Redrafting Process • SA8000:2001 was redrafted and released in 2008 for implementation by 2010. • Idea was not to weaken the standard, but to clarify and strengthen it. • Attempt to make the language of the standard conform to ILO conventions, and other codes, such as the ETI base code and the JO-IN common code. © SAAS 2010 I. Purpose & Scope • New language clearly sets forth the standard’s larger purpose: “to…protect and empower all personnel within a company’s scope of control and influence” • This language leaves no doubt that everyone employed by the company – within their scope of control and influence – direct-hires, suppliers & subcontractors, sub-suppliers, and home workers, are covered by the standard. © SAAS 2010 II. Normative Elements • Under SA8000 2008, industry standards must be complied with, in addition to national laws. • Some of the newly added international instruments that the revised standard cites include: o ILO Conventions 131 (Minimum Wage Fixing), 169 (Indigenous & Tribal Peoples); 183 (Maternity Protection); the ICESCR; and, the ICCPR. © SAAS 2010 MANAGEMENT SYSTEMS • SA 8000 policies • Control of Suppliers • Management Review Homeworkers • Company Representatives • Response to concerns of Worker Representative employees and corrective Health and safety action system • Management Outside Communication representative • Record maintenance • Planning/Implementation Training Monitoring activities (audits ) © SAAS 2010 III. Definitions - Personnel • The term personnel is used throughout the standard, and therefore warrants a definition. Personnel covers all employees and contract workers of a company, including: • All levels of management, directly- hired workers, home workers, and workers hired through employment agencies. © SAAS 2010 III. Definitions - Worker • Workers are distinguished from the more expansive definition of personnel. • Workers only include non-management personnel. © SAAS 2010 CHILD LABOR Guiding principles • No child labor (under 15) should be employed with following exception Children above age of 14* attending school may do “light work” under specific conditions: Two hours per day maximum No night work No exposure to hazardous conditions Total hours not to exceed ten per day from door to door No work on Sundays or holidays • Young workers must also be protected from harm *ILO Convention 138 Article 7 © SAAS 2010 III. Definitions – Child • The developing-country exceptions under ILO Convention 138 that are cited in the 2001 SA8000 are eliminated in the 2008 standard. • This was due to the fact that very few countries have taken the ILO exception. © SAAS 2010 IV. Social Accountability Requirements Child Labor – 1.2 • 1.2 Unlike the 2001 standard, SA8000 2008 requires companies to have written procedures for the remediation of child laborers. This was done in order to clarify and improve auditability. • Companies must also provide financial support to enable children to attend and remain in school © SAAS 2010 Child Labor 1.3 • SA8000 2008 is clearer that young workers may be employed, but only outside school hours when subject to compulsory education laws. • Young workers cannot work more than 8 hours per day, and never during night hours. • Light work for children no longer permitted. © SAAS 2010 Child Labor 1.4 • SA8000 2008 adds further detail to the situations a company cannot expose children or young workers to: • Situations that are hazardous or unsafe to their physical and mental health and development. © SAAS 2010 CHILD LABOR Compliance Issues • Company must effectively communicate child labor policy to workers and interested parties • Company must have procedures to verify age such as: • National ID card • School records • Birth certificate • “Family book” • Medical records • Company must have a remediation plan in place • Should child labor be used the company must have specific procedures to control use of children and assure proper protection within allowable guidelines © SAAS 2010 CHILD LABOR Verification* • Interviews Children Cambodia Workers Trade Unions and NGOs • Policy • Visual • Pay records • Medical records • Birth certificate or ID • Schooling effectiveness
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