Responsible Supply Chains in the Garment and Footwear Sector
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RESPONSIBLE BUSINESS CONDUCT OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city, or area. Please cite this publication as: OECD (2017), OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector. © OECD 2017 FOREWORD Foreword The OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector (hereafter “Guidance”) aims to help enterprises to implement the due diligence recommendations contained in the OECD Guidelines for Multinational Enterprises along the garment and footwear supply chain in order to avoid and address the potential negative impacts of their activities and supply chains. It seeks to support the aims of the OECD Guidelines to ensure that the operations of enterprises in the garment and footwear sector are in harmony with government policies to strengthen the basis of mutual confidence between enterprises and the societies in which they operate. This Guidance will also support enterprises to implement the due diligence recommendations contained in the UN Guiding Principles on Business and Human Rights. The Guidance is aligned with the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, relevant ILO Conventions and Recommendations and the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy. Together with its modules on due diligence for specific risk areas, this Guidance provides enterprises with a complete package to operate and source responsibly in the garment and footwear sector. This Guidance was developed through a multi-stakeholder process with in-depth engagement from OECD and non-OECD countries, representatives from business, trade unions and civil society and was overseen by the Working Party on Responsible Business Conduct. A multi-stakeholder Advisory Group, chaired by Germany, was established in March 2015 to support the development of this Guidance. This Guidance benefited from regular input from members of the Advisory Group and other experts, including during a Roundtable on Due Diligence in the Garment and Footwear Supply Chain, held on 1-2 October2015, as well as during a public consultation held in February-March 2016. As a result, this Guidance is intended to be practically-oriented, with an emphasis on collaborative constructive approaches to complex challenges. This Guidance builds on the in-depth reports of the National Contact Points (NCPs) of France and Italy on the implementation of the OECD OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR 3 FOREWORD Guidelines in the textile and garment sector and the leading initiatives of Belgium, Canada, Denmark, the European Union, Germany, the Netherlands, Sweden, the United Kingdom and the United States. It seeks to respond to statements made in June 2013 and 2014 by NCPs following the tragic collapse of Rana Plaza. The Guidance was also developed in response to the Ministerial Communiqué on Responsible Business Conduct adopted on 26 June 2014 and the G7 Leaders’ Declaration adopted on 7-8 June 2015 in Schloss Elmau, which welcomed international efforts to promulgate industry-wide due diligence standards in the textile and ready-made garment sector. This Guidance was approved by the OECD Working Party on Responsible Business Conduct on 24 October 2016 and the OECD Investment Committee on 14 January 2017. An OECD Recommendation on the Guidance was adopted by the Council on 17 May 2017. While not legally binding, the Recommendation reflects the common position and political commitment of OECD Members and non-OECD Member Adherents to the OECD Guidelines for Multinational Enterprises. The OECD has also developed tailored guidance to help enterprises build responsible supply chains in other sectors, specifically: minerals from conflict-affected and high-risk areas; extractive; agriculture; and finance. 4 OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR TABLE OF CONTENTS Table of contents Recommendation of the Council on the Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector ...................... 9 Terms used in the Guidance ......................................................................................... 13 Overview of the Guidance ............................................................................................ 17 Background ................................................................................................................. 17 Purpose of this Guidance ............................................................................................. 17 Target audience ........................................................................................................... 17 Basis for this Guidance ................................................................................................ 19 Legal compliance ......................................................................................................... 19 Benefits ........................................................................................................................ 20 Structure of the Guidance ............................................................................................ 21 Introduction to due diligence under the OECD Guidelines and key concepts for implementing due diligence .................................................................................... 23 Due Diligence under the OECD Guidelines ................................................................ 25 Meaningful stakeholder engagement ........................................................................... 27 Collaboration on due diligence .................................................................................... 28 Gender considerations when applying due diligence .................................................. 32 Section I Core Due Diligence Guidance for the Garment and Footwear Sector 1. Embed responsible business conduct in enterprise policy and management systems ........................................................................................ 37 2. Identify actual and potential harms in the enterprise’s own operations and in its supply chain ............................................................................................. 46 3. Cease, prevent or mitigate harm in the enterprise’s own operations and in its supply chain ............................................................................................. 68 4. Track ......................................................................................................................... 83 5. Communicate ........................................................................................................... 89 6. Provide for or co-operate in remediation when appropriate .............................. 93 OECD DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR 5 TABLE OF CONTENTS Section II Modules on sector risks Module 1. Child labour .............................................................................................. 105 Module 2. Sexual harassment and sexual and gender-based violence (SGBV) in the workplace ........................................................................................ 116 Module 3. Forced labour ............................................................................................ 126 Module 4. Working time ............................................................................................ 134 Module 5. Occupational health and safety ............................................................... 138 Module 6. Trade unions and collective bargaining ................................................. 146 Module 7. Wages ......................................................................................................... 152 Introduction to environmental modules .................................................................... 159 Module 8. Hazardous chemicals ................................................................................ 161 Module 9. Water ......................................................................................................... 166 Module 10. Greenhouse gas emissions ........................................................................ 171 Module 11. Bribery and corruption ............................................................................ 176 Module 12. Responsible sourcing from homeworkers .............................................. 184 Tables 1. Information to be collected and stored for the purposes of conducting due diligence ................................................................................... 45 2. Sector risks in the garment and footwear sector .................................................... 48 3.