The World Bank Group • Corporate Social Responsibility Practice The CSR Practice advises developing country governments on public policy roles and instruments they can most usefully deploy to encourage corporate social responsibility.

COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON

PART I OF II: Apparel, Footwear and Light Manufacturing Agribusiness Tourism

The CSR Practice is part of the Private Sector Development Vice Presidency, jointly operated by the International Finance October 2003 Corporation and the World Bank. Telephone: 202 473 7646 Facsimile: 202 522 2138 2121 Pennsylvania Avenue, NW E-mail : [email protected] Washington, DC 20433 USA Internet: www.worldbank.org/privatesector/csr COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON

PART I OF II: Apparel, Footwear and Light Manufacturing Agribusiness Tourism

Gare Smith, Partner and Chairperson, Corporate Social Responsibility Practice Group, Foley Hoag LLP Dan Feldman, Attorney, Corporate Social Responsibility Practice Group, Foley Hoag LLP

October 2003

TABLE OF CONTENTS i This report is a product of the staff of the World Bank. The findings, interpretations and conclusions expressed herein do not necessarily re- flect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guaran- tee the accuracy of the data included in this work.

Printed on Acid-Free Recycled Paper. Table of Contents

1.0 Introduction ...... 1 2.3 Findings Regarding Environmental Standards ...... 12 1.1 Overview ...... 1 2.3.1 General Policy Statement...... 12 1.2 World Bank Group Project Overview ...... 2 2.3.2 Materials ...... 13 2.3.3 Emissions ...... 13 2.0 Apparel, Footwear and Light 2.3.4 Pollution Control and Manufacturing Sector ...... 5 Hazardous Substances ...... 14 2.3.5 Waste Management ...... 14 2.1 Scope and Methodology ...... 5 2.3.6 Packaging and Transport ...... 14 2.2 Findings Regarding Human Rights and Labor Rights ...... 6 3.0 Agribusiness Sector ...... 17 2.2.1 Forced Labor ...... 6 2.2.2 Child Labor ...... 7 3.1 Scope and Methodology ...... 17 2.2.3 Wages, Benefits, and Terms of 3.2 Findings Regarding Human Rights Employment...... 8 and Labor Rights ...... 18 2.2.4 Hours of Work ...... 9 3.2.1 Forced Labor ...... 18 2.2.5 Discrimination ...... 9 3.2.2 Child Labor ...... 19 2.2.6 Harassment, Abuse, and 3.2.3 Wages, Benefits, and Terms Disciplinary Action ...... 10 of Employment...... 20 2.2.7 Freedom of Association and Collective 3.2.4 Hours of Work ...... 21 Bargaining ...... 11 3.2.5 Discrimination ...... 21 2.2.8 Health and Safety Policies ...... 11 3.2.6 Harassment, Abuse, and Disciplinary Action ...... 22

iii 3.2.7 Freedom of Association and Collective Annex A Apparel, Footwear and Bargaining ...... 22 Light Manufacturing Sector 3.2.8 Health and Safety Policies ...... 23 Labor and Human Rights Standards ...... 35 3.3 Findings Regarding Environmental Standards ...... 24 3.3.1 General Environmental Policy Statements . . . 24 Annex B Apparel, Footwear and 3.3.2 Energy ...... 24 Light Manufacturing Sector 3.3.3 Water ...... 25 Environmental Standards ...... 87 3.3.4 Emissions, Effluents and Waste...... 25 3.3.5 Biodiversity ...... 26 Annex C Agribusiness Sector Labor and Human Rights Standards ...... 123 4.0 Tourism Sector ...... 27 4.1 Scope and Methodology ...... 27 Annex D Agribusiness Sector 4.2 Findings Regarding CSR Practices ...... 28 Environmental Standards ...... 151 4.2.1 Human Rights and Labor Rights ...... 28 4.2.2 Health and Safety Issues ...... 29 Annex E Tourism Sector 4.2.3 Environmental Issues...... 29 Labor, Human Rights and 4.2.4 Specific Programs and Initiatives...... 30 Environmental Standards ...... 179

iv TABLE OF CONTENTS COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON

1 Introduction

1.1 Overview attacks on corporate property, divestment campaigns, hostile share- Globalization is the cornerstone of business in the new millennium, holder resolutions, and the enactment of sanctions laws. and the media focus on corporate globalization has led to increasing During the past few years, corporate leaders have recognized that the scrutiny of multinational conduct during the past decade. External success of their brands is tied to whether their business is conducted stakeholders, including students; human rights organizations, orga- in a manner acceptable to those affected by it. In an effort to respond nized labor, religious institutions, consumer advocates, universities, to the growing number of social and environmental concerns and to representatives of local, state, and federal governments around the protect their brands, firms have adopted programs that reflect support world, and the Secretary General of the United Nations have de- for international norms and promote sustainability. In fact, the con- manded greater transparency and accountability by corporate institu- tinuing success of these firms suggests that there have been business tions with respect to business decisions that have a social and benefits from adopting these programs. It is becoming clear that ap- environmental impact. plication of these standards can bring benefits to suppliers, in addition Pressure from this wide array of stakeholders has led consumers and to the benefit of a continuing contract with their multinational buyer. employees to hold businesses to higher and broader social and envi- These benefits can derive from suppliers distinguishing themselves ronmental standards than in the past. On today’s media stage, firms within the local marketplace as responsible firms to do business with, are judged not only by their own behavior, but also by the behavior of and they can also relate to productivity and quality gains. those with whom they are associated, including sourcing facilities, li- This practice has come to be known as corporate social responsibility censees, agents, partners, and host governments. Moreover, firms are (CSR), and focuses on a wide range of issues, including worker’s no longer simply accountable under local law, but to international rights (particularly child labor, freedom of association, forced labor, norms and standards, such as those promulgated by the International and freedom from discrimination), health and safety issues, environ- Labor Organization (ILO), the Universal Declaration of Human mental concerns, compensation, migrant labor issues, human rights, Rights (UDHR), and corporate best practices. security arrangements, community engagement, ethical conduct, Firms can face not only reputational damage from their corporate good governance, and rule of law. To address these CSR issues ef- practices and monitoring mechanisms (as many apparel and footwear fectively, firms are adopting a series of new tools. These include firms discovered when they first confronted serious legal and reputa- human rights and environmental risk assessments, monitoring sys- tional challenges in the 1990s related to allegations of labor abuses in tems, management standards, and the engagement of external stake- foreign sourcing facilities), but they can also face protests, boycotts, holders in dialogue and decision-making processes. The tools that

1 have been most widespread, however, are the adoption by many firms flected on the attached matrices, which were drawn from similarly of CSR codes of conduct, as well as the compliance and monitoring themed sub-categories developed by the Global Reporting Initiative schemes used to implement and enforce those codes once they have (GRI) in the GRI Sustainability Reporting Guidelines. been established. Foley Hoag LLP has been engaged to research the codes of conduct Codes of conduct stipulate the human rights, environmental, social of roughly 100 firms, as well as the codes of conduct of other, non-cor- and ethical requirements for suppliers. The World Bank estimates that porate entities, including non-governmental organizations (NGOs), there may now be an estimated 1,000 codes in existence today, devel- multi-stakeholder groups, and trade unions. Originally, firms were oped by individual multinational firms on a voluntary basis, depend- chosen for participation in the project that were in an industry sector ing on firms’ business needs. They play a complementary role to with a direct nexus to a particular geographic region that supported the national legislation, helping firms implement standards beyond those World Bank’s technical assistance program. Therefore, the initial that are typically enforced locally. The most significant and system- firms that were chosen for inclusion in this project had direct opera- atic contact that most people in low-income countries have with the tions in Vietnam, El Salvador, the Philippines, and Angola. However, rule of law is in the workplace. Helping ensure an effective compli- given the increasingly globalized nature of many of the multinational ance regime thus has national governance implications and has public enterprises (MNEs) examined, and the fact that some codes needed to good justification beyond the firm or industry level. be included in the project to give the most comprehensive portrait of the state of the industry, even though they did not have the relevant nexus to one of the four geographic areas targeted, the regional focus 1.2 World Bank Group Project Overview of this project is not dominant. A significant number of firms have started formulating and imple- The industry sectors which were analyzed were: menting CSR codes of conduct in the past decade, but there has been little research conducted to compare and contrast these various codes. Apparel, footwear and light manufacturing; It is critical to gather this information and build a database of codes of Agribusiness (and in particular, banana, coffee, sugar, and cut conduct, and to begin determining the areas of similarity and differ- flower industries); ence between the various codes, in order to identify any potential Tourism; emerging “trends” in the various codes. Mining; and Oil and gas. In an effort to support ongoing technical assistance, the World Bank Group’s Investment Climate Department has commissioned a series For each of these five broad industry sectors, key corporate and non- of research analyses to determine the content of CSR codes of conduct corporate players were identified, researched, and their codes of con- in targeted industry sectors, and the extent to which code content de- duct summarized. Brief summary statements about each of these codes rives from internationally agreed standards. Once codes were identi- has then been input into a series of comparative matrices, which di- fied and researched, they were assessed to determine whether there are vides the CSR information into broad CSR categories, including any emerging trends in these industry sectors with regard to broad human rights, labor rights, environmental standards, and social and CSR categories such as human rights, labor rights, environmental community impacts. At the end of each set of matrices, international standards, and social and community impacts. Each of these broader standards or benchmarks for each category have been listed, with data categories was then broken down to a number of “sub-categories” re- primarily drawn from such instruments as the UDHR, the ILO Con-

2 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON ventions and Recommendations, and the UN Norms on the Responsi- short and focused on the areas being examined, to provide the best bilities of Transnational Corporations and Other Business Enterprises possible comparative analysis. It is recognized that the attached ma- with Regard to Human Rights (UN Norms). The World Bank has also trices are by no means comprehensive or exhaustive in their analyses commissioned additional analyses, not reflected in these matrices, of the codes of conduct examined. Most codes go into far more depth which integrate the national laws of key countries into these standards. in these issues than could be included in the matrices, and many had This is important because some provisions in codes of conduct (e.g., provisions in their codes for issues that were not examined. Official wages for work) defer almost exclusively to local applicable law, consents were received from all the corporate and non-corporate par- rather than to international instruments. ticipants reflected in the attached matrices. This narrative is the first of a two-part publication, and is an accom- In the process of analyzing numerous codes of conduct, a decision was paniment only to the matrices that were created for the first three made to review only the actual policies of MNEs and non-corporate industry sectors (apparel, footwear, and light manufacturing; agribusi- entities, and not their practices. However, at the completion of this ness; and tourism). The second part of the publication consists of the analysis, and in recognition of this gap, follow-up work was commis- matrices and accompanying narrative for the final two industry sectors sioned to examine the implementation practices of these codes. That examined (mining; and oil and gas). report is a briefer and less comprehensive assessment of trends in im- In seeking the information on each of these codes of conduct, only plementation mechanisms, through an examination of developments publicly available information was reviewed, drawn primarily from within sector-specific industries, rather than the practices of any par- the websites and annual reports of participating firms. A significant ef- ticular firm. That follow-up assessment will also be published by the fort was made to keep the summaries of the information exceptionally World Bank Group.

INTRODUCTION 3

2 Apparel, Footwear and Light Manufacturing Sector

2.1 Scope and Methodology allow their summarized information about their codes of conduct to be published in the attached matrices, with the exception of Wal- The first set of matrices was constructed for the codes of conduct of Mart Stores and Payless (which has no individual code of conduct, apparel, footwear, and light manufacturing firms, as well as other non- but uses the code developed by the Footwear Distributors and Re- corporate actors. Initially, firms were selected with a particular nexus tailers of America (FDRA)). There is also no separate entry for K- either to Vietnam (primarily apparel and footwear firms) or to Central Swiss on the matrices because it utilizes the policy of SA8000, America (apparel firms and plastics firms). Later, however, the scope which is listed separately. was expanded to include corporations without regard to the location of their geographic operations. In addition to the codes of conduct from these MNEs, key non- The firms that were selected for participation in this analysis were pri- corporate entities engaged in the apparel, footwear and light manu- marily large multi-national enterprises with well-developed CSR ac- facturing industries were also identified, and codes of conduct from tivities. Due to the nature of this analysis, it was futile to attempt to these multi-stakeholder groups, unions, and non-governmental orga- select a true cross-sampling of all types of apparel, footwear and light nizations, were also analyzed and compared to the others. These non- manufacturing firms, because many of them do not have codes of con- corporate entities include: Clean Clothes Campaign, Ethical Trading duct. Rather, a decision was made to examine the largest, most pro- Initiative (ETI), Fair Labor Association (FLA), International Con- gressive, and most important firms, in an effort to determine areas of federation of Free Trade Unions (ICFTU), Organization for Eco- overlap amongst this “leadership” cadre. Any “emerging trends” that nomic Cooperation and Development (OECD) Guidelines for were then identified helped to ascertain and define “industry prac- MNEs, Social Accountability International (SA8000), Worker tices,” and how they compare to international standards. Rights Consortium (WRC), World Federation of the Sporting Goods Industry (WFSGI), and World Responsible Apparel Production The firms that were identified and from which information was (WRAP). All of these entities provided consent for the publication of collected were: adidas-Salomon AG, Gap Inc., H&M Hennes & summary information about their codes of conduct in the attached Mauritz AB, IKEA Services AB, K-Swiss, Inc., LEGO Company, matrices. Levi Strauss & Co., Liz Claiborne, Inc., Marks & Spencer p.l.c., New Balance Athletic Shoe, Inc., NIKE, Inc., Payless ShoeSource, All of the codes of conduct were then analyzed, and their key provi- Inc., Pentland Group p.l.c., Phillips-Van Heusen Corporation, Pou sions were summarized in two matrices—one devoted to human Yuen Vietnam Enterprise, Ltd., Reebok International, Ltd., The rights and labor rights issues, and the other devoted to environmental Timberland Company, and Wal-Mart Stores, Inc. All consented to standards. For the human rights and labor rights analysis, the exami-

5 nation focused on provisions in each code of conduct that dealt with 2.2 Findings Regarding Human Rights and the following “core” issues: forced labor, child labor, wages and ben- Labor Rights efits, hours of work, discrimination, harassment and abuse, freedom of association and collective bargaining, and health and safety issues. 2.2.1 Forced Labor An overview of the “philosophy” of each code of conduct is also pro- Perhaps the greatest point of conformity on every code of conduct ex- vided in an initial category titled “general policy statement,” and the amined was the prohibition against the use of forced labor. Every firm final category on the matrix summarizes the “monitoring and compli- and non-corporate code prohibited its use, although policies varied ance framework.” Neither of these categories, however, are described with respect to how they described forced labor, with references to in any greater detail in this narrative. “prison,” “indentured,” “bonded,” “forced,” “slave,” “convict,” and “involuntary” labor. In an effort to be comprehensive, many codes of For the environmental analysis, the matrix was broken down into conduct included several of these references in their policies. categories modeled on the categories in the GRI’s Sustainability Re- porting Guidelines. Thus, there are separate categories in the environ- As an example, the FLA’s code provides that “there will be no use of mental matrix to include summaries from the codes of the following forced labor, whether in the form of prison labor, indentured labor, topics: materials, energy, water, emissions, pollution control and haz- bonded labor or otherwise.” Though not stated in its code, the FLA ardous substances, waste management, and packaging and transport. looks for a number of specific benchmarks in determining whether In a complement to the material provided in the human rights and business partners are in compliance with the prohibition on using labor matrix, a preliminary category was also included to provide the forced labor. These include: employers not binding workers to em- code’s “general policy statement” on environmental issues, as well as ployment as a condition of fulfilling terms of a debt to a third party; any statement it may have had on Environmental Management Sys- advances not exceeding three months pay or legal limits, whichever is tems (EMS). less; workers being compensated for their work directly through the provision of cash or its equivalent (in-kind compensation is permissi- At the end of each of the matrices, international standards are pre- ble, if local law permits, so long as legal limits are complied with and sented for each of the categories, so that analyses can be made to receipt of in-kind compensation is voluntary); workers not being en- determine how any emerging trends compare to international bench- gaged to work in a factory by a family member, associate or friend marks. For the human rights and labor rights categories, the most fre- such that the non-employee receives continuing remuneration, con- quently referenced international standards are drawn from the UDHR, sideration, or other return from the employer; employers maintaining ILO Conventions and Recommendations, the UN Norms, and other sufficient hiring and employment records to demonstrate and verify international instruments. compliance; workers not being required to live in employer-owned or Due to the relative lack of any international “standard” for environ- controlled residences; and all workers having the right to enter into mental issues, comparable to the role played by the ILO Conventions and to terminate their employment freely. and Recommendations for human rights and labor issues, standards Some firms, like Pentland, as well as some multi-party organizations, from the IFC/World Bank “Pollution Prevention and Abatement including SA8000 and ETI, stipulate that workers not be required to Handbook” have been included in the final row of the environmental lodge “deposits” or other identity papers with employers. The codes matrix. The standards presented from that Handbook include both of Reebok and Timberland indicate that workers have the right to enter generally applicable standards distilled from the guidelines, as well as into and terminate their employment freely, and guarantee workers more specific standards particularly tailored to the textile industry. right to freedom of movement during the course of employment.

6 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON Reebok’s code also mandates that the firm maintain hiring and em- cation. Both SA8000 and ETI stipulate that the minimum age for em- ployment records to verify compliance with its prohibition on forced ployees is 15, or 14 if the country of manufacture allows, unless the labor. The New Balance code emphasizes that workers may not be local minimum age or the age for completion of mandatory schooling locked inside factory premises for any reason. is older than 15. SA8000 calls for the establishment of procedures “for the promotion of education” for children and young workers, as well The prohibition against the use of forced labor was the subject of one as protections for “children against workplace hazards.” ETI mandates of the first global human rights campaigns. The ILO passed the Forced providing “for transition of child laborers to educational programs Labor Convention (No. 29) in 1930, and augmented it several years until they are no longer children,” and that “children under 18 . . . not later with the Abolition of Forced Labor Convention (No. 105) in be employed at night or in hazardous conditions.” FLA defines child 1957, both of which prohibit the use of any type of forced labor. Sim- labor as the employment of any person under the age of 15, “or 14 ilarly, the UN Global Compact mandates the elimination of “all forms where the law of the country of manufacture allows.” of compulsory labor” as does the newly passed UN Norms. Among firms, some accept a minimum age of 14 or the legally estab- lished minimum working age—whichever is higher. New Balance 2.2.2 Child Labor uses a minimum age of 16, or 15 if the domestic law in the country of Among the “leadership” firms examined, there appears to be an manufacture allows for it. Timberland accepts the minimum age of emerging trend that the minimum age for child labor must be at least 16 or the age for completion of compulsory education, whichever is 15, or the age for completing compulsory education, whichever is higher. NIKE sets a minimum age of 16 for the production of apparel, greater. Although there is no discrepancy in the commitment of all the and the minimum age of 18 for the production of footwear. It allows codes of conduct to eradicate the use of child labor, there are variances contractors who legally used 15 year-olds at the start of their produc- among codes, which set the minimum age for child labor at anywhere tion for NIKE, however, to continue to use such employees. Similarly, between 14 and 18. Although some of the firm and multi-party codes Pentland sets the minimum age at 18 for any nighttime or hazardous of conduct permit child labor at 14, if permitted under local law, many work conditions. Pou Yuen is unique in setting an across-the-board codes prohibit the employment of children younger than the minimum policy of not hiring anyone under the age of 18. age established by law or younger than the age for completing com- New Balance and Reebok require that official documentation verify pulsory schooling in the country of manufacture. Some also provide each worker’s date of birth, or that if documentation is unavailable, for an older minimum age for the handling of hazardous materials, that age be confirmed by a reliable assessment measure. Reebok aug- which is more likely to occur in the production of footwear than of ments this policy by requiring sourcing facilities to track all workers apparel. between the minimum working age and the age of 18. Pentland main- Many codes also provide standards with regard to child labor in addi- tains procedures governing the remediation of child laborers found in tion to guidelines regarding age, though there is a divergence among violation of their standards — including the provision of adequate sup- codes in terms of the remediation efforts that are offered to combat port to enable such children to attend and remain in school. child labor, such as the provision of education and training programs. In terms of the strict limitations of age, the emerging trends in child WRAP provides one of the lowest age thresholds, requiring sourcing labor conform to ILO Minimum Age Convention (No. 138) and the facilities to accept the stricter of the 14-year standard, the minimum Worst Forms of Child Labor Convention (No. 182), in that minimum age established by law, and the age for completing compulsory edu- age is the greater of 15 (or 14 in certain countries), or the age for com-

APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR 7 pleting local compulsory education. The ILO provides for far more ex- New Balance, NIKE, Pentland, Reebok, and Timberland all stipulate tensive protections for children than those mandated in most codes, that wage deductions not be made for disciplinary purposes and that however, such as protecting children from work that is hazardous or compensation be rendered either in cash or check through a clear ac- would “harm health.” Additionally, few firms comply with such rec- counting procedure. Timberland also proscribes pre-employment fees, ommendations as ILO Recommendation No. 146, which provides that deposits, and other practices that lower an employee’s pay below the for any child found performing labor, the firm must enable them to at- legal minimum wage. New Balance, NIKE and Timberland tend school, and will not hire them during school hours, although both maintain specific proscriptions against the use of “home work” and ETI and SA8000 have similar provisions. “false apprenticeship” schemes. Virtually all codes comply with the spirit of the UN Global Compact On the issue of overtime, there are discrepancies between codes re- (to “effectively abolish child labor”) or the UN Norms (to “respect the garding compensation. At a minimum, all overtime wages must be rights of children to be protected from economic exploitation”). compensated “subject to domestic law” and “at least equal to regular hourly wages” though some codes commit to compensating overtime at the “industry standard,” or, at the most progressive end of the spec- 2.2.3 Wages, Benefits, and Terms of Employment trum, at a “premium” rate. Adidas-Salomon, Pentland, Reebok, and Because the level of compensation for minimum and overtime wages Timberland require that overtime wages exceed hourly compensation is dependent on the location of the country of manufacture, most firms if there is no premium rate legally required in the country of manu- and multi-party organizations maintain similar policies which allow facture. NIKE, Pentland, Reebok, and Timberland stipulate that all for local laws to set monetary guidelines. Some codes also take in- overtime must be voluntary, and that employees must be informed at dustry practice into consideration as a factor in setting wages. All firm the time they are hired if mandatory overtime is a condition of em- codes provide that minimum wage must be at least equal to the local ployment. New Balance and Timberland codes provide that there be minimum wage and most state that it should be the greater of local no penalties for declining overtime, workers must be paid annual leave minimum wage or prevailing industry standard. and holidays as required by law, and wage statements include days SA8000, FLA, and ETI require that minimum wages be at least the worked, overtime, bonuses and deductions. The Worker Rights Con- legal or industry minimum, and WRAP requires factories to provide sortium demands that in countries where overtime compensation is not no less than local minimum wages. SA8000 and ETI also stipulate that covered by domestic law, it shall be covered at a rate at least one and wages meet the basic needs of employees and provide discretionary a half times the regular hourly compensation. income. On the issue of overtime, SA8000, ETI, and FLA all require Inasmuch as this “emerging” trend provides that minimum wage and that overtime be remunerated at a premium rate as legally required. benefits are to be at least the prevailing industry standard, it conforms While ETI, WRAP and FLA require legally mandated benefits, SA8000 with ILO Recommendation No. 116 on the Reduction of Hours of is silent on the topic. Work. One issue to highlight, however, is the distinction and potential A series of benchmark criteria have emerged to determine whether discrepancy between the requirements of “minimum wages” and those factories are in compliance with compensation requirements, includ- of “livable wages.” In contrast to a “minimum” wage—which is tied ing whether workers have access to understandable information about to legal standards, “livable” wages ensure that wages not only meet at their wages and benefits, and whether legally mandated benefits are least national legal or industry benchmark standards, but that they are paid in full and in a timely manner. also sufficient to meet basic needs. The ICFTU defines such needs as

8 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON housing, energy, nutrition, clothing, health care, education, potable 10 hours per day, whereas Pou Yuen and Timberland mandate that it water, and childcare costs, as well as the provision of reasonable dis- be no more than 12 hours per day. Reebok also stipulates that work- cretionary income. The WRC has a similar definition, but adds that a ing hours must include reasonable meal and rest breaks, and that a fac- “living wage” is a “take home” or “net” wage, earned working a coun- tory’s overtime schedule “should not significantly exceed that of other try’s legal maximum work week, that provides for the basic needs “of factories producing similar goods.” an average family unit of employees in the garment manufacturing All firms in this survey provided for at least one day off in every seven employment sector of the country, divided by the average number of worked, though some codes require only that “reasonable” days off be adult wage earners in the family unit of employees in the garment permitted. Similarly, although none of the firms which consented to manufacturing employment sector of the country.” the use of their information did so, some codes of conduct set no spe- cific number for hours worked, stating only that the hours of work are 2.2.4 Hours of Work tied to domestic law and “local standards,” and stipulating that they Virtually all peer industries and multi-party organizations cap the must be “reasonable.” combined work and overtime hours at 60 hours per week and stipulate The emerging trend of a 48-hour regular work week, with a cap of that employees must be given at least one day off in every seven. 60 hours per week including overtime, may meet some of the chief de- “Regular” working hours are almost always the lesser of 48 hours per mands inherent in ILO Recommendation No. 116 on Reduction of week or domestic legal limits, and overtime is typically no more than Hours of Work, which states that hours of work should be at least the 12 hours per week, and must be voluntary and not demanded on a reg- prevailing industry standard. The emerging trend in the codes of con- ular bases. Most codes also provide for exceptions to work over duct, however, is still far from the much more comprehensive rights 60 hours per week only in “extraordinary circumstances” (adidas- espoused in the ILO Recommendation. Salomon), though NIKE allows for hours in excess of 60 hours per week as long as they are voluntary. There is little discrepancy among the code on the issue of overtime 2.2.5 Discrimination hours, though a few codes, like WRAP, require only that work and The codes of conduct for virtually all firms and multi-party organiza- overtime hours be restricted to legal limits and that employees be tions give some non-discrimination guarantees. These guarantees given at least one day off in every seven. In contrast, SA8000, ETI, vary, however, in coverage (e.g., whether solely for hiring and em- and FLA cap working hours at 48 hours per week or the legal limit, ployment practices or also for such practices as advancement and re- whichever is less, and that at least one day off be given in every seven. tirement), and comprehensiveness (e.g., governing solely “core” NIKE and Timberland stipulate that workers must be informed at the personal characteristics such as age, race, and gender, or also includ- time of hire if mandatory overtime is a condition of employment. Pent- ing less traditional characteristics such as sexual orientation and po- land states that overtime must be voluntary and “not . . . on a regular litical opinion). basis.” Though WRAP provides only a very general guarantee that there be Many codes of conduct choose not to specify how the 48-hour or no discrimination on the basis of personal characteristics or beliefs, 60-hour work week is divided up, though a few elaborate on the stan- SA8000, ETI and the FLA provide that there be no discrimination with dard and break it down into daily amounts. For instance, Reebok man- respect to hiring, compensation, advancement, termination or retire- dates that regular working hours, including overtime, be no more than ment. The codes of virtually all firms, including adidas-Salomon, New

APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR 9 Balance, NIKE, and Reebok, provide for non-discrimination in hiring Equal Remuneration, concerning equal pay for equal work, regardless and employment practices, and many of these firms define “employ- of gender. ment practices” to include wages, benefits, training, advancement, and Many of the provisions match commitments in the UN Norms, which retirement. states that transnational corporations shall “ensure equality of oppor- In addition to proscribing discrimination on the basis of such “core” tunity and treatment, for the purpose of elimination discrimination characteristics as gender, race, religion, age, disability, nationality, based on race, color, sex, religion, political opinion, nationality, social and social or ethnic origin, the various codes of conduct also give origin, indigenous status, disability, age or other status of the individ- varying coverage to other basic personal characteristics or beliefs. ual unrelated to the individual’s ability to perform his/her job.” For instance, FLA, SA8000 and ETI provide that there will be no discrimination with respect to sexual orientation or political affilia- tion, and Timberland prohibits discrimination on the basis of in- 2.2.6 Harassment, Abuse, and Disciplinary Action digenous heritage, social status, and genetic features. With respect Although the codes of virtually all of the firms and multi-party orga- to the issue of pregnancy, the New Balance code prohibits any pre- nizations prohibit employee abuse, many are not specific about the employment or during-employment screening for pregnancy, NIKE kind of behavior that they will not tolerate—such as sexually abusive prohibits discrimination based on maternity status, and Timberland or exploitative behavior. Instead, the codes offer general comments prohibits discrimination regarding “capacity to bear children, or regarding the fundamental “dignity” of employees. pregnancy.” WRAP, SA8000, FLA, and ETI prohibit employee abuse, though Some firms, not among those that consented to participation, provide SA8000 more specifically stipulates no “sexually coercive, abusive, only general safeguards, such as no “unlawful discrimination,” or or exploitative behavior,” and FLA provides that against “any physi- that non-discrimination guarantees be “in conformance with local cal, sexual, psychological or verbal harassment or abuse.” and national law.” These codes would appear to allow in forms of discrimination in other countries that would be prohibited in the Adidas-Salomon, New Balance, Pentland, Reebok and Timberland all United States. offer comprehensive statements that explicitly prohibit physical, psy- chological, sexual or verbal harassment or abuse. NIKE simply states There is no dearth of law proscribing racial and ethnic discrimination. that “no harassment or abuse” is allowed. Firms are somewhat split on Pursuant to the UDHR, “Everyone is entitled to all the rights and free- use of corporal punishment, with New Balance, Pentland, Reebok, and doms set forth in this Declaration, without distinction of any kind, Timberland specifically banning any use of corporal punishment. such as race, color, sex, language, religion, political or other opinion, Reebok’s code is particularly comprehensive, stipulating that in addi- national or social origin, property, birth or other status.” Many of these tion to no physical, sexual, psychological, or verbal harassment or codes conform in some part to ILO Convention No. 111 on Discrimi- abuse, there must be “no condoning, creating, or contributing to an in- nation in Employment and Occupation, in that the Convention also timidating, hostile, or offensive work environment.” prohibits discrimination in access to employment, training, and work- ing conditions on grounds of race color, gender, religion, national ori- With regard to non-retaliation clauses, Timberland specifically pro- gin, social origin, or political opinions. The ILO standards, however, vides that “employees must have the opportunity to notify us anony- are significantly more extensive than any particular code of conduct, mously of any violations of standards at a workplace, and they must including the commitment expressed in ILO Convention No. 100, not receive retribution for this action.”

10 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON 2.2.7 Freedom of Association and Collective Bargaining Pursuant to the Universal Declaration of Human Rights, “Everyone The issues of freedom of association and collective bargaining are has the right to freedom of peaceful assembly and association.” Art. among the thorniest in codes of conduct, in large part because national 20(1), and “the right to form and join trade unions. . . .” Art. 23(4). ILO laws differ dramatically regarding the protection of these guarantees. Convention No. 87, concerning Freedom of Association and the Right The People’s Republic of China, for example, in which many apparel to Organize, establishes the right of all workers and employers to join industry members source product, does not allow for freedom of as- organizations of their own choosing and lays down a series of guar- sociation or collective bargaining under its national laws. antees for the free functioning of such organizations. ILO Convention No. 98 provides for the Right to Organize and Collective Bargaining. Some codes of conduct reflect the inherent difficulty of enforcing Though most codes of conduct do not begin to provide the rights in- these rights by stipulating that they are allowed to the extent possible herent in the ILO Conventions with regard to freedom of association, under local law. As a result, many firm and multi-party codes refer the emerging trend is closer to fulfilling the mandate of the UN Global generally to “recognizing and respecting lawful rights” of freedom of Compact, which provides that, “Businesses should uphold the free- association and collective bargaining. dom of association and the effective recognition of the right to collec- For instance, WRAP, SA8000, FLA, and ETI all “recognize and re- tive bargaining.” spect” lawful rights of freedom of association and collective bargain- ing. In addition, SA8000 and ETI state that where rights are restricted under law, the firm should facilitate a parallel means of organizing. Both organizations also seek to ensure that union representatives are not 2.2.8 Health and Safety Policies subject to discrimination and have access to members in the workplace. Occupational safety and health issues are of increasing concern to both firms and multi-party organizations. Very few codes of conduct in the Adidas-Salomon, NIKE, Pentland, Pou Yuen, Reebok, and Timber- apparel and footwear industry, however, go beyond levels of general- land all recognize and respect the right of workers to organize and join ity to detail specific health or safety requirements for workplaces. associations of their own choosing and to bargain collectively. Reebok maintains the most progressive policy regarding freedom of associa- Most codes, including those of the FLA, WRAP, SA8000, and ETI, tion and collective bargaining. In addition to recognizing these rights, require “safe and healthy working environments.” SA8000 and ETI the firm ensures that workers are represented on safety committees, provide more specific health and safety guidelines than WRAP, by in- problem-solving committees, and planning committees, and they are dicating that steps should be taken to prevent accidents and injury, reg- allowed to elect worker representatives. Reebok also mandates a sys- ular health and safety training should be conducted for workers, access tem for resolving workplace disputes. should be given to clean toilet facilities and potable water, sanitary food storage should be provided, and a senior manager should be re- Where local law limits the right to freedom of association, adidas- sponsible for health and safety. In conducting audits of member firms Salomon, Pentland, and Timberland state that employers must not ob- to determine compliance on health-related issues, the FLA provides a struct or interfere with alternative, parallel, and legal means for checklist of health and safety elements to look for during visual in- independent free association and collective bargaining. Some firms spections, which includes: fire safety mechanisms, evacuation plans, which did not give their consent to be used in this survey had no state- fire extinguishers, electrical wiring, medical facilities and first aid kits, ments in their codes regarding freedom of association or collective personal protective equipment, and guidelines for hazardous and com- bargaining rights. bustible materials use, storage, and control.

APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR 11 All the firms reviewed, including adidas-Salomon, Gap, Levi’s, Liz ronmental policies. The FLA, ETI, SA8000, WRAP, Clean Clothes Claiborne, New Balance, NIKE, Pentland, Phillips-Van Heusen, Campaign, Worker Rights Consortium, ICFTU, and WFSGI have no Reebok, and Timberland, require a “safe and healthy working envi- specifically articulated policy, though they each provide general state- ronment” in their codes of conduct. Some of these firms also list some ments supporting a “safe and healthy working environment” and com- health and safety practices that are specifically required, usually with pliance with all applicable laws. The general policy statements with respect to housing facilities, toilets, dining facilities, and occupational regard to environmental issues are provided for all codes in the first practices. column of the environmental matrix. New Balance and Reebok have a particularly rigorous approach to Many of the corporate codes of conduct, however, have some state- health and safety issues. New Balance stipulates that a “safe and san- ments specifically tailored to environmental issues, which were sum- itary working environment using OSHA standards as a benchmark” marized on the matrix in the appropriate categories, as inspired by the be provided to “avoid preventable work-related accidents and in- GRI Guidelines. Some of these categories, such as those on “energy” juries.” Reebok similarly states that “quantitative requirements are or “water,” are not particularly applicable to the apparel, footwear and based on common practice, regulatory requirements, consultation with light manufacturing industries. As a result, though the “international local or regional occupational health experts, and the recommenda- standard” for these categories was still included in the final row of the tions of public and private bodies and other national standard-setting matrix, there was not enough information from the various codes to bodies (e.g. OSHA in the U.S.).” determine whether there were any emerging trends in these categories. In the following environmental areas, however, enough relevant in- Pentland, Reebok, and Timberland codes provide that all personnel re- formation was gleaned from the codes reviewed to attempt to highlight ceive regular and recorded health and safety training; systems are es- key practices, as well as emerging trends in those categories. tablished to detect and avoid potential threats to the health and safety of employees; and adequate steps are taken to prevent accidents and 2.3.1 General Policy Statement injury to health arising out of workplace hazards. Gap, Pentland, and The difference in this category between apparel and footwear firms Reebok also require that employers ensure reasonable access to and true “light manufacturing” firms that develop plastics and fur- potable water, fire safety, and adequate lighting and ventilation, in ad- nishings is quite significant. Apparel and footwear firms typically have dition to sanitary facilities. no specifically articulated policy for environmental issues, and it is Though most corporate codes do not specifically reference interna- more commonly subsumed under the general “health and safety” stip- tional benchmarks, Timberland ties its health and safety requirements ulations. The plastics and furnishings firms, however, typically have to “the recognized standards of the ILO and national laws”. The key very comprehensive and specific environmental policies. ILO standards include Convention No. 155 on Occupational Safety For instance, the two firms with the most comprehensive environ- and Health and Recommendation No. 164, also on Occupational mental policies examined were IKEA and LEGO. The “IKEA Way Safety and Health. Standard” lists minimum requirements for the environment and wooden merchandise, and provides very comprehensive statements 2.3 Findings Regarding Environmental Standards regarding the reduction of emissions to air, discharges to ground and water, noise, hazardous and non-hazardous waste, and the use of nat- In the apparel, footwear and light manufacturing sector, many of the ural resources. IKEA’s broad statement strives to “minimize any pos- non-corporate codes of conduct have no specifically articulated envi- sible damaging effects to the environment” and “reduce the environmental impacts of its operations.”

12 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON Similarly in terms of its comprehensiveness, LEGO outlines “seven duct business in a manner that utilizes natural resources efficiently and important environmental questions” to which it attaches “particularly seeks to reduce the use of such resources. great importance: plastics, semi-manufactured goods, packaging, Provisions in particular codes of conduct that support this are provided printed materials, the logistics chain, recycling, and waste.” LEGO’s by H&M, IKEA, and Marks & Spencer. H&M’s code states that busi- “fundamental principle” is that “we wish to assume a total view— ness should be conducted in a manner that utilizes natural resources as from cradle to grave—in which we take all environmental aspects into efficiently as possible. IKEA provides that a supplier can not utilize account. We give a high priority to environmental considerations in wood from “intact natural forests” or nationally or regionally recog- our choice of materials and manufacturing processes. Environmental nized and geographically identified High Conservation Value Forests. responsibility is a natural and integrated part of our value base.” Marks & Spencer’s code states that where there is the potential to im- Among the footwear and apparel firms, Marks and Spencer has a very prove significant environmental impacts, it will use raw materials only detailed environmental policy regarding suppliers, operations, and from known sources, and where the use of raw material is not sus- customers, and Levi Strauss has drafted and put in place a policy on tainable (e.g., based on fossil fuels), it will support the development “Environmental Philosophy and Guiding Principles.” Adidas- of innovative and more sustainable alternatives. Salomon has a Guide to Environmental Practice “which covers such Though the IFC provides no specific policy in its Guidelines for the issues as building, energy, waste, water, and emissions. NIKE has use of materials, non-hazardous materials are urged over the use of worked with its Asian footwear contractors to implement management hazardous materials. systems to allow them to achieve specific environmental, health and safety goals, beginning with its MESH (Management, Environment, Safety and Health) program. Timberland specifically “favors partners” 2.3.3 Emissions who have an EMS that ensures compliance with environmental laws, As with the use of materials, although no specific standard is emerg- increases energy efficiency and adopts clearer sources of energy, min- ing with regard to actual emissions levels, there is now a generally per- imizes toxic and hazardous substances, reduces use of natural re- vasive philosophy to adopt pollution prevention measures, and to sources including raw materials and water, and takes responsibility for strive for improvements in the reduction of air emissions. proper waste management by recycling all waste streams. Particularly comprehensive policies were put forth in the codes of One clear trend apparent in all these codes is that many firms increas- NIKE, Timberland, and adidas-Salomon. This is perhaps not surpris- ingly use and implement Environmental Management Systems. As the ing, since footwear manufacturers use hazardous chemicals more sys- IFC states in its Handbook, EMSs such as ISO 14000 are seen as tematically than apparel manufacturers. NIKE prohibits the use of mechanisms for achieving improvements in environmental perfor- CFCs which “could contribute to the depletion of the ozone layer,” mance and for supporting the trade prospects of “clean” firms. Addi- and instead it calculates an annual baseline emission of greenhouse tionally, manufacturers almost uniformly mandate compliance with gases and establishes goals for the reduction of such gases. Timber- any applicable environmental regulations and laws, and also almost land has reduced Volatile Organic Compound (VOC) emissions by uniformly provide a safe and healthy working environment. 100 tons a year every year since 1995, and its reduction in carbon diox- ide emissions has led to improved energy efficiency. Adidas-Salomon also seeks to reduce VOCs in its footwear factories. 2.3.2 Materials Although there is no specific measurement in the use of materials that The World Bank and IFC Guidelines support “a number of efforts to is emerging as a trend, there is an evolving general philosophy to con- help its client countries reduce emissions of greenhouse gases through

APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR 13 measures such as promoting energy efficiency and increasing the use HCFCs and HBFCs. For textiles, in particular, the IFC Guidelines of renewable energy.” Specific guidelines for the textile industry in- indicate that the use of pesticides and other chemicals “that are banned clude a recommendation to reduce VOC emissions by implementing in OECD countries . . . is not acceptable.” measures such as routing the extracted air a certain way. 2.3.5 Waste Management 2.3.4 Pollution Control and Hazardous Substances With respect to waste management, there is wide support for the gen- There appears to be an emerging industry consensus within codes of eral practice of “reduce, reuse and recycle” programs to limit waste, conduct to encourage the adoption of pollution prevention measures although few firms have established specific goals to implement or and limit the use of hazardous substances, although few firms have es- monitor such programs. tablished specific goals that would bind them to particular actions. An Firm practices of note in waste management include LEGO’s pro- increasing number of firms restrict the use of specific substances, al- grams to recycle and re-use some of its forms of plastics. In 1998, the though these substances are typically very industry-specific (e.g., sub- plastics waste which could not be re-used by the firm was less than 1% stances particularly used for dying clothing, or making plastics). There of LEGO’s total raw material consumption. LEGO factories also used is a clear consensus among the codes that workers must be protected specially designed moulds to generate minimum waste. Among from hazardous and combustible materials through health, safety and footwear firms, Timberland has a preference for factories that reduce environmental restrictions. leather waste by reselling unused leather, as well as factories that man- Examples abound within the codes of conduct of firms seeking to con- ufacture smaller products by using scrap cuttings. In apparel manu- trol their pollution and hazardous substances. In the plastics industry, facturing, Gap “encourages [its] employees and business partners to LEGO states that printing must use non-toxic ink that is resistant to reduce waste, recycle and close the recycling loop by purchasing prod- saliva and perspiration. In the footwear industry, Reebok has numer- ucts that contain high percentages of post-consumer recycled mater- ous specific requirements on the management of hazardous and com- ial.” bustible materials, including for its chemical management system, World Bank and IFC Guidelines stipulate that project sponsors must chemical storage, chemical use in production, disposal of chemical recycle or reclaim materials (e.g., solid wastes generated in the course and hazardous waste, and controlling chemical exposure. Also in the of operating the facility) where possible. If this is not practical, waste footwear industry, NIKE has committed to phasing out PVC from its must be disposed of in an environmentally acceptable manner and in products. In the apparel industry, Marks & Spencer has stated that compliance with local laws and regulations. where potentially hazardous substances are used, it will set perfor- mance standards to carefully control their use, and where science or 2.3.6 Packaging and Transport stakeholder concern demands it, the firm will phase out the use of par- Packaging and transport initiatives are also particularly industry-spe- ticularly hazardous substances. cific, and lend themselves much more to plastics and footwear manu- The World Bank and IFC Guidelines provide that whenever possible, facturing than to apparel manufacturing. Among codes of conduct that non-hazardous materials should be used instead of hazardous ones. address this issue, however, there appears to be an emerging trend Several chemicals classified as ozone-depleting substances are sched- toward limiting waste in the packaging of materials. There are no spe- uled for phase-out under the Montreal Protocol, including CFCs, cific IFC or World Bank Guidelines regarding packaging and trans- port, independent of general waste management guidelines.

14 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON In the plastics industry, LEGO attaches “particular importance” to through recycling. Well over half of the cardboard packaging used by packaging, and stipulates that for it to be environmentally-friendly, Danish and Swiss LEGO factories today is comprised of recycled ma- packaging must use minimum resources in its manufacture, efficiently terials. Similarly, in the footwear industry, Timberland provides that protect its contents to prevent waste, provide easy handling during shoes now are transported in recycled boxes made from 100% post- storage and transit, and lend itself to efficient disposal, preferably consumer recycled products and printed vegetable-based inks.

APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR 15

3 Agribusiness Sector

3.1 Scope and Methodology For the cut flower and sugar industries, it was more difficult to find major multinational corporate codes of conduct, since most of the firms The second set of matrices was constructed for the codes of conduct in those industries are small, local firms without codes of conduct. In of agribusiness firms, as well as other non-corporate actors in the fact, for the cut flower industry, no satisfactory corporate code of con- agribusiness sector. Initially, firms were selected that had a particu- duct was ever identified, and instead the codes of three non-corporate lar nexus to Central America, and to El Salvador in particular. entities were summarized: the Flower Label Program (FLP), Though the scope of the project was expanded to include corpora- Florverde, and the International Code of Conduct for Production of tions without regard to the location of their geographic operations, Cut-Flowers. Likewise, research revealed that though there are a num- the codes of conduct analyzed for these matrices were all from MNEs ber of sugar mills active in El Salvador, most of the sugar industry or non-corporate actors engaged in four different agribusiness prod- there is almost exclusively owned by local firms. Therefore, only one ucts that have particularly strong ties to Central America: bananas, corporate code of conduct was summarized in the sugar industry, for coffee, sugar, and cut flowers. Tate & Lyle p.l.c., and one non-corporate code, produced by the mem- For the production of bananas, the corporate codes of conduct exam- bers of European Sugar Manufacturers’ Committee (or CEFS, for the ined were from Chiquita Brands International, Inc., Dole Food Com- Comité Europeén des Fabricants de Sucre) and European Federation pany, Inc., and Fresh Del Monte Produce, Inc., and the non-corporate of Trade Unions in the Food, Agriculture and Tourism Trade Unions codes were from the UK Banana Industry Code of Best Practice and (EFFAT), entitled “Corporate Social Responsibility in the European the Better Banana Project (a joint operation of the Sustainable Agri- Sugar Industry.” Consent was received to publish summaries of all culture Network and the Rainforest Alliance). For the production of these codes of conduct, with the exception of Florverde, which is coffee, the corporate codes of conduct examined were from Starbucks Colombia’s national social and environmental program for its flower Coffee Company, Nestle S.A. (which produces the Hills Brothers, sector, and which has no specific labor or human rights provisions. Taster’s Choice, and Nescafe brands), The Procter & Gamble Com- As with the codes of conduct in the apparel, footwear, and light man- pany (which produces the Folgers brand), and McDonald’s Corpora- ufacturing industry, each of the agribusiness codes of conduct was an- tion (one of the largest distributors of coffee in the U.S.), in addition to alyzed, and summaries of key provisions of the codes were entered the non-corporate codes developed by the Fairtrade Labelling Organ- into two matrices—one devoted to human rights and labor rights is- isation (FLO) (entitled “Fair Trade Standards for Hired Labor”) and sues, and the other devoted to environmental standards. The human the Rainforest Alliance (entitled “Generic Coffee Standards”). Con- rights and labor rights matrix has separate categories to assess poli- sent was received to publish summaries of all these codes of conduct. cies on forced labor, child labor, wages and benefits, hours of work,

17 discrimination, harassment and abuse, freedom of association and 3.2 Findings Regarding Human Rights and Labor Rights collective bargaining, and health and safety mechanisms. Additionally, an introductory category provides the code’s “general policy statement” 3.2.1 Forced Labor on CSR issues, and the final category is devoted to monitoring and com- As with the codes of conduct in the apparel, footwear and light man- pliance frameworks. The final row on the human rights and labor rights ufacturing industries, perhaps the greatest point of conformity on matrix is a comparison to international standards, which includes spe- every code of conduct examined is the prohibition against the use of cific references to key ILO Conventions and Recommendations, as well forced labor. Virtually every code of conduct explicitly prohibits its as other relevant passages from international treaties and agreements, use, including Chiquita, Procter & Gamble, McDonald’s, the Rain- including the UDHR, the UN Global Compact, and the UN Norms. forest Alliance’s Generic Coffee Standards, the International Code of Conduct for Production of Cut Flowers, the Flower Label Program, For the environmental analysis, the matrix was again broken into cat- and the code for CSR in the European Sugar Industry. Tate & Lyle egories modeled on the categories in the GRI’s Sustainability Report- “recognizes fundamental human rights” and Starbucks “does not con- ing Guidelines. Thus, separate categories have been provided which done” forced labor of any type. include summaries from the codes regarding the following topics: materials, energy, water, emissions, agrichemicals, waste, ecosystem/ Only Dole, Del Monte, the UK Banana Industry Code, the Better biodiversity, soil/erosion control, and monitoring and compliance Banana Project, and Tate & Lyle have no specific statement about the frameworks. In a complement to the material provided in the human use of forced labor. Dole does comply, however, “with all applicable rights and labor matrix, a preliminary category has also been provided laws and regulations,” in its business practices, and Del Monte, which to detail the code’s “general policy statement” on environmental is- is a signatory of the UK Banana Industry Code, subscribes to a gen- sues, as well as any statement it may have regarding EMS. eral statement of improving “working conditions” in those countries in which it is active. The Better Banana Project also provides that it is As was the case in the environmental matrix for the light manufactur- in compliance with ILO Conventions, which means that the Forced ing industry, because of the relative lack of an international “standard” Labor Convention (No. 29) and the Abolition of Forced Labor Con- for environmental issues, comparable to the role played by the ILO vention (No. 105) are both applicable to its practices. Both, of course, Conventions and Recommendations for labor standards, the standards prohibit the use of any type of forced labor. from the IFC/World Bank “Pollution Prevention and Abatement Handbook” have been provided in the final row of the environmental As in the apparel and footwear codes of conduct, the policies vary matrix. When there are guidelines for a specific agricultural product, with respect to how they define forced labor, with references to such as the Handbook’s Guidelines on Sugar Manufacturing, these “prison” (Chiquita, Flower Label Program), “indentured servitude” have been included as a separate row on the matrix. However, in an (McDonald’s), “bonded” or “involuntary” (International Code of effort to be more generally applicable, environmental standards that Conduct for Production of Cut Flowers) labor. Many codes of con- might be applied to any agribusiness product have also been distilled duct include several of these references in their policies, however, in and provided in the final row of the matrix. The difficulty in this ex- an effort to have comprehensive proscriptions. ercise, however, is that many environmental guidelines are applicable only at the domestic level rather than the international one, such as Chiquita appears to be unique among the agribusiness firms in stipu- suggested regulations for wildlife conservation and soil conservation; lating that workers not be required to lodge “deposits” or other iden- thus, it is quite difficult to try to determine an “international consen- tity papers with employers, as Pentland and several of the apparel sus” for most of the environmental standards. firms similarly provide.

18 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON 3.2.2 Child Labor In a recognition of the role that ILO standards play in setting the in- Due to the differences in the industries and the differing demands of ternational standard, many codes tie their conduct to the enforcement workers, there is a similar but slightly different emerging standard re- of ILO standards. For child labor, this means applying ILO Conven- garding child labor in the agribusiness industry, compared to that in tion 138, which provides for a minimum age of 15, or 14 in certain in- the apparel and footwear sector. Although virtually all of the codes sufficiently developed countries, or the minimum age for completion condemn the use of child labor, they define the acceptable age any- of compulsory education. Convention 138 also stipulates that the min- where between 14 and 18 years of age. imum age should be 18 for “physically or morally hazardous” work. Perhaps more importantly, given the hazardous chemicals that For instance, the Better Banana Project sets a minimum age of 14, but agribusiness workers use, a few firms have set a higher age thresh- complies with relevant ILO Conventions. Nestlé stipulates that there old for workers exposed to such hazardous conditions. This is occa- is to be “no form of exploitation of children,” and no employment of sionally the case for firms in the footwear industry (which subjects children before they complete their compulsory education, but it also workers to greater exposure to hazardous chemicals than does the specifically complies with ILO Convention 138. The “Generic Coffee apparel sector), but it is less widely done than within the agribusi- Standards” developed by the Rainforest Alliance provide that national ness sector. child labor laws for agriculture be enforced, but also states that the policies must comply with applicable ILO Conventions, as well as On the less specific end of the spectrum is Dole, which observes all other international instruments. The European Sugar Manufacturers’ applicable laws and regulations, but has no specific statement about Committee also specifically cites its adherence to ILO Convention 138 child labor, other than it does not knowingly purchase products from with regard to minimum age. commercial producers who violate applicable child labor laws. Proc- ter & Gamble provides for “no child labor” in any of its global opera- Similarly, both the International Code of Conduct for the Production tions or facilities. Tate & Lyle “recognizes fundamental human rights of Cut-Flowers and the Flower Label Program provide for a minimum and freedoms and strives to reflect these in its businesses.” age the greater of 15 or compulsory school-leaving age, but also the observance of “core ILO standards” and “the universal human rights Del Monte, and the UK Banana Industry Code, to which Del Monte is standards.” Both codes also provide that children under 18 shall not a signatory, set the minimum age at 15. McDonald’s provides for the work in hazardous conditions. greater of 15 (or 14 if domestic law allows it), or the legal minimum age. McDonald’s also specifies that minors between the ages of 14 and Perhaps the most stringent code for child labor is that of Chiquita, 16 may only be employed during periods of time when they are not re- which sets a flat minimum hiring age of 18 for all of its banana divi- quired by law to attend school. sions. Chiquita’s 2001 CSR Report explains that its assessors noted in 2000 and 2001 that 16- and 17-year olds were exceeding the maxi- Starbucks’ policy provides that “children should not be unlawfully mum allowable working hours, in violation of the SA8000 standard, employed as laborers,” and that farm owners abide by local laws. Star- and to avoid such problems in the future, the Guatemala division bucks also sells Fair Trade Certified coffee, which has been certified raised its minimum age to 18. Later, after finding that the Guatemala by a licensing organization under the Fairtrade Labelling Organiza- and Honduras divisions had not implemented effective systems to pre- tion, and in accordance with their standards. The FLO establishes a vent independent suppliers from using child labor, Chiquita met with minimum age of 15 for most work, but a higher age of 18 for work its suppliers and raised the minimum age for all of its banana divisions “likely to jeopardize the health, safety or morals of young people.” to 18, exceeding the minimum age required by the SA8000 standard.

AGRIBUSINESS SECTOR 19 Additionally, Chiquita maintains procedures for remediation of any With regard to overtime, McDonald’s states that it must be “appro- child laborers identified, including providing adequate support to en- priately compensated as required by applicable national and local able such children to attend and remain in school. In a similar vein, the laws,” but that if there is no legal standard for overtime premiums, International Code of Conduct for Production of Cut-Flowers and the then it must be at least equal to regular hourly rates. The Flower Label Flower Label Program provide that adequate transitional economic as- Program and the International Code of Conduct for Production of Cut- sistance and appropriate educational opportunities shall be provided Flowers provides that overtime is voluntary, and must be compensated to any replaced child workers. at “a premium rate.” The Fair Trade Standards, developed by the Fairtrade Labelling 3.2.3 Wages, Benefits, and Terms of Employment Organisation, provide that salaries should be in line with or exceed re- As with the codes of conduct in the apparel, footwear and light man- gional average and official minimum wages for similar occupations, ufacturing sectors, because the level of compensation for minimum but that they are gradually increased to levels above the regional av- and overtime wages is dependent on the country of manufacture, most erage and official minimum. The Fair Trade Standards also seek to firms and non-corporate entities maintain similar policies which allow progressively diminish the wage differences and employment condi- for local laws to set monetary guidelines. Some codes also take in- tions among casual, seasonal and permanent workers. This references dustry practice into consideration as a factor in setting wages. All firm the differing labor needs of the agribusiness sector, unlike the more codes provide that minimum wage must be at least equal to the local seasonally-constant work in the apparel, footwear and light manufac- minimum wage and most state that it should be the greater of local turing industry. Starbucks, which sells Fair Trade Certified coffee, minimum wage or prevailing industry standard. provides that coffee farms should “conform to local laws and applic- Many of the codes recognize the discrepancy between minimum able international conventions related to workers’ rights and benefits, wages and “living wages” and seek to make special reference to the and are in a process of continual improvement over time.” need for livable wages. Dole will pay “wages and benefits that are The seasonal nature and needs of agribusiness are also reflected in the competitive within the industry and allow workers and their families code of the Flower Label Program, which provides that workers that to have a good standard of living within the society where the work- are not seasonal or temporary shall have permanent contracts, and pro- ers live.” Starbucks and the Flower Labor Programme state that their visions for non-permanent or seasonal workers should not be less fa- “wage and benefit levels should address the basic needs of workers vorable than for permanent workers. and their families,” and Starbucks specifically provides that part-time workers who work at least 240 hours per quarter receive a benefits Uniquely, Chiquita stipulates that wage deductions not be made for package. disciplinary purposes and that compensation be rendered either in cash or check through a clear accounting procedure. It also maintains spe- Nestlé and Procter & Gamble benchmark their wages against other cific proscriptions against the use of labor-only contracting arrange- firms, and pay its employees a “competitive wage” compared to those ments and “false apprenticeship” schemes. offered by other leading firms. Similarly, Tate & Lyle commits itself to implementing human resource policies that “compare with those of The most applicable ILO standards regarding the issues of minimum other reputable employers in the country and industry concerned, wage and benefits are Convention No. 100 on Equal Remuneration, while complying with or exceeding local laws and regulations, in- Convention No. 131 on Minimum Wage Fixing, and Recommenda- cluding any minimum wage requirements.” tion No. 116 regarding Reduction of Hours of Work. The European

20 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON Sugar Manufacturers’ Committee referenced some of the key interna- Although virtually every code provides that employees must have at tional standards in its provision that if no agreement or pay scale ex- least one day off in every seven, the Flower Label Program also gives ists for minimum wage, then such wages should be enough to ensure holiday rules. that workers and their families have a decent standard of living as The first ILO Convention addresses Hours of Work, and stipulates that “defined by the Universal Declaration of Human Rights and the ILO maximum regular working hours should be eight hours per day and Tripartite Declaration.” 48 hours per week. An exception is made, however, of 56 hours per week for processing that needs continuous successive shifts. Conven- 3.2.4 Hours of Work tion No. 1 also stipulates that overtime pay should be at least one and As in the apparel and footwear industry, the emerging trend among a quarter times the regular rate. Subsequent applicable ILO Conven- codes in the agribusiness sector is to cap the combined work and over- tions regarding hours of work include Conventions No. 47 (Forty Hour time hours at 60 hours per week and stipulate that employees must be Work Week), No. 147 (Night Work), and No. 175 (Part-Time Work). given at least one day off in every seven. Many codes in the agribusi- ness sector also make an explicit reference to the unique time demands of agribusiness firms. 3.2.5 Discrimination As with codes of conduct in the apparel and footwear industries, the Chiquita, for instance, provides for the lesser of a 60 hour week (bro- agribusiness codes of conduct for virtually all firms and non-corporate ken down into 48 hours per week of regular hours and 12 hours per entities provide some non-discrimination guarantees. These guaran- week of overtime), or the domestic legal limits for regular and over- tees vary, however, in coverage (e.g., whether solely for hiring and time hours. It also guarantees at least one day off in seven. Due to “the employment practices or also for such practices as advancement and seasonal and perishable nature of the food products it produces,” Chiq- retirement), and comprehensiveness (e.g., governing solely “core” uita also “requires all of its salaried workers and hourly employees to personal characteristics such as age, race, and gender, or also includ- work overtime hours as required to staff its production facilities dur- ing less traditional characteristics such as sexual orientation and po- ing its seasonal peaks.” This requirement is a condition of employ- litical opinion). ment, and Chiquita will “develop and maintain systems to ensure that all employees knowingly and voluntarily undertake this commitment Chiquita’s anti-discrimination code is particularly progressive and at the time of hiring.” comprehensive, and includes protections for such personal character- istics or beliefs as caste, union membership, veteran status, sexual ori- Most codes provide that the firms are not this specific and, as in the entation or “age of older employees” in addition to the more “typical” case of Dole, Nestlé, and Procter & Gamble, will comply with the ap- protections for race, national origin, gender, and religion. Starbucks plicable laws and regulations where they operate. The UK Banana also “embraces diversity as one of [its] core values,” and, since 1996, Industry Code and the Flower Label Program provide that normal has “engaged in supplier diversity efforts.” Additionally, diversity working hours must not exceed the lesser of local legal limits or training courses are offered (which are mandatory for managers and 48 hours per week, and overtime must be voluntary. McDonald’s stip- senior executives), and benefits are offered to domestic partners. ulates that regular working hours, including overtime, are the lesser of 60 hours per week or domestic legal limits, but it does not seek to sep- Most codes, including those of the Better Banana Project, Nestlé, arate out overtime hours. The Better Banana Project similarly provides Procter & Gamble, McDonald’s, the Flower Label Program, and Tate for a maximum of eight hours per day, but caps the total hours per & Lyle, forbid discrimination based on such “core” factors as race, week worked at 42 if laborers are between the ages of 15–18. gender, religion, or national origin and, frequently, any other “applic-

AGRIBUSINESS SECTOR 21 able prohibited basis.” McDonald’s, however, specifies that non-dis- Starbucks has a more general statement that “each human should be crimination guarantees be “in conformance with local and national accorded the opportunity to meet his/her basic needs,” and Nestlé en- law,” which would appear to permit forms of discrimination in other sures that its firms are “not complicit in human rights abuses.” countries that would be prohibited in the United States. Dole states merely that it “practices non-discriminatory policies” and is an “equal 3.2.7 Freedom of Association and Collective Bargaining opportunity employer.” As noted previously, the issues of freedom of association and collec- Several codes also single out gender-related issues for comment. For tive bargaining are among the most difficult in codes of conduct, in instance, the European Sugar Manufacturers’ Committee seeks to large part because national laws differ dramatically regarding the pro- “guarantee and promote equal opportunities and equal treatment” for tection of these guarantees. Many codes of conduct reflect the inher- men and women, and the Flower Label Program prohibits pregnancy ent difficulty of enforcing these rights by stipulating that they are tests as a base of staff recruitment. allowed to the extent possible under local law. As a result, the codes Chiquita, Nestlé, and McDonald’s make clear that discrimination is of many firm and non-corporate entities refer generally to “recogniz- prohibited in a range of hiring and employment processes, including ing and respecting lawful rights” of freedom of association and col- compensation, training, promotion, and termination. lective bargaining. Although the principal international standard with regard to discrimi- Some of the codes in the agribusiness sector, however, appear to give nation is ILO Convention No. 111 on Discrimination, the Fairtrade more definitive rights with regard to freedom of association and col- Labelling Organisation is one of the very few codes, in its “Fair Trade lective bargaining than the equivalent codes in the apparel and Standards for Hired Labor,” that specifically references this standard. footwear industries. Dole “respects the freedom of workers to join” a union of his or her choice, or to “refrain from such membership;” Star- 3.2.6 Harassment, Abuse, and Disciplinary Action bucks provides that “people have the right to freely associate with There is no emerging “trend” with regard to harassment, abuse, or dis- whichever organizations or individuals they choose;” Nestlé upholds ciplinary action in the agribusiness codes of conduct because far fewer freedom of association and the effective recognition of the right to col- codes in this representative sample have specific references to these lective bargaining; and Chiquita recognizes and respects the right of issues compared to the codes in the apparel and footwear sector. There workers to organize and join associations of their own choosing, as are also few international standards with regard to the issues of ha- well as the corollary right of employees to refrain from such activities. rassment, abuse, and disciplinary action. As might be expected, many of the codes of the non-corporate entities Chiquita is one of the few firms that has a specific statement in its code provide more specific statements on freedom of association than forbidding mental or physical coercion, as well as the use of corporal merely recognizing the rights of collective bargaining. For instance, punishment or verbal abuse. McDonald’s provides that there will be the International Code of Conduct for the Production of Cut-Flowers no physical punishment or confinement, threats of violence, or other provides that workers’ representatives shall not be subject to discrim- forms of physical, sexual, psychological or verbal harassment or abuse ination and shall have access to all workplaces, and that workers and as a method of discipline or control. The International Code of Con- their organizations must be consulted, trained and allowed to investi- duct for the Production of Cut-Flowers, and the code of the Flower gate safety issues. The European Sugar Manufacturers’ Committee Label Program, state that “physical harassment or psychological op- similarly recognizes the right for worker representatives to gain entry pression, particularly of women, must not be tolerated.” to facilities in order to carry out their functions promptly, and it also

22 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON confirms that exercising these rights will not cause any person or pro- dustry Code, ensures that employees have safe working conditions by fessional damage to the workers and their representatives. providing equipment and facilities to protect personnel, as well as training programs on the protection of workers and handling of agri- The Better Banana Project and the Rainforest Alliance’s “Generic cultural chemicals. The non-corporate codes in the banana industry— Coffee Standards” provide that workers must have the right to orga- the Better Banana Project and the UK Banana Industry Code of Best nize and negotiate freely with their superiors, and that the firm must Practice—similarly provide that workers have special safety equip- also inform employees about planned farm management or organiza- ment and regular check-ups to constantly monitor the potential haz- tional changes and associated social, environmental, and economic ardous effects of the chemicals used in the industry. impacts. Procter & Gamble, McDonald’s, and Tate & Lyle have no stated policy on freedom of association and collective bargaining. The Fairtrade Labelling Organisation, which has standards that apply to both bananas and coffee, follows ILO Convention No. 155. The As stated in the previous section with regard to freedom of associa- Organisation’s Fair Trade Standards for Hired Labor provide that reg- tion, most codes of conduct only minimally comply with the main ILO ular risk assessments are conducted, adequate training and equipment Conventions on the subject, namely Convention No. 87, on the Free- is provided to employees who work with hazardous chemicals, and dom of Association and the Right to Organize, and No. 98, on the those younger than 18 do not work with hazardous materials. For ba- Right to Organize and Collective Bargaining, which provide for far nanas, the Standards stipulate that workers are not allowed to bring greater and more comprehensive rights on this subject. clothes or protective equipment used for spraying to their homes, and that those persons in charge of washing clothes and protective equip- 3.2.8 Health and Safety Policies ment use gloves and boots. Occupational safety and health issues are of concern to both corporate and non-corporate entities. Increasingly, codes of conduct go beyond Among coffee-producing firms, McDonald’s and Starbucks require levels of generality to detail specific health or safety requirements for that employers ensure reasonable access to potable water, adequate workplaces. Many major firms, like Chiquita, McDonald’s, Nestlé, lighting and ventilation, sanitary facilities and, if it is provided, hous- Procter & Gamble, and Starbucks generally require a “safe and healthy ing. Starbucks stipulates that working conditions should “meet or ex- working environment” free from “hazardous conditions” in their ceed” applicable regulations related to the health and safety of codes of conduct, but they also increasingly provide more detailed workers, and Procter & Gamble states that “compliance with the law” health and safety standards. is the highest priority for the firm’s health, safety, and environment programs. For instance, with respect to the production of bananas, Chiquita re- quires workers to wear protective clothing and an activated carbon In the cut-flower industry, the International Code of Conduct for Cut- mask when applying chlorpyrifos-infused bags to the banana fruit, and Flowers states that firms must similarly comply with internationally workers applying the bags must undergo routine blood tests to evalu- recognized health and safety standards, provide free and appropriate ate exposure. All workers must shower before going home and leave protective clothing and equipment, and supply drinking water, clean their clothing at the farms, and all personnel must receive regular toilets, and shower and washing facilities. Highly toxic or carcino- health and safety training. Dole also requires the use of personal pro- genic pesticides or chemicals are banned, pesticide and fertilizer use tective clothing, performs periodic medical tests on workers who use is to be recorded and reduced, and the spraying, handling, and storing crop protection products, and trains workers regarding the safe appli- pesticides and chemicals is to be done by specially trained people with cation of such products. Del Monte, a signatory to the UK Banana In- suitable equipment. The Flower Label Program maintains that firms

AGRIBUSINESS SECTOR 23 must comply with all the health and safety standards of the Interna- integrates environmental considerations into business decisions and tional Code, as well as a number of other specific provisions calibrated planning activities. to the use of pesticides. These include provisions that spray operators not be allowed to spray for more than four hours per week, post-har- In the coffee industry, Starbucks has an environmental affairs team vest treatment of flowers only be permitted with non-toxic chemicals, which seeks to develop environmentally responsible policies and pro- and spray equipment be properly calibrated for application of pesti- cedures, and Nestlé has an EMS developed to efficiently manage the cides. environmental aspects of its activities, including achieving compati- bility with international voluntary standards such as IS 14001. Proc- Within the sugar sector, the health and safety provisions of the codes ter & Gamble has an Environmental Quality Policy, and operating in this survey were relatively general. Tate & Lyle provides only that standards, programs and resources in place to implement it. McDon- it is committed to providing safe and healthy conditions for its em- ald’s goal for 2002 was to develop an EMS that would work in every ployees and visitors, and continuous improvement of its health and country in which it operates. safety procedures. The code of the European Sugar Manufacturers’ Committee provides for the implementation of specific training pro- The Flower Label Program provides that a firm must develop a pro- grams, safety procedures, and policies tailored to the sugar industry, gram for conserving the environment and sustainable use of natural re- taking into account the specific hazards linked to the manufacturing sources, and prevent pollution of soil, water, and air wherever process. possible. Tate & Lyle requires each operating unit to “assess its par- ticular environmental impacts and develop an improvement program based on identified areas of priority” and that each unit have an EMS. 3.3 Findings Regarding Environmental Standards The IFC Guidelines state that “EMSs such as ISO 14000 are seen as As occurred with the environmental standards included in the apparel, mechanisms for achieving improvements in environmental perfor- footwear, and light manufacturing codes of conduct, the agribusiness mance and for supporting the trade prospects of ‘clean’ firms.” codes of conduct are also specifically tailored to the particular indus- try. Thus, there are differing emerging environmental standards 3.3.2 Energy among the four agribusinesses examined. Most of the codes of conduct for firms, particularly those engaged in the bananas and cut flowers industries, do not address energy issues 3.3.1 General Environmental Policy Statements specifically. The coffee industry does, however, and the trend within There is an emerging trend among the codes of conduct analyzed that the coffee-related codes of conduct is to aim to reduce, or at least mon- for those firms with an EMS, the system should at least allow the firm itor, their energy consumption. For instance, Procter & Gamble and to incorporate environmental matters into its business decisions. Vir- Nestlé optimize their shipments in order to reduce energy use and limit tually all codes also state in their environmental policies their inten- environmental effects. Tate & Lyle recognizes its impact on energy tion to comply with all relevant and applicable laws and regulations. use, and has set a target of reducing group energy consumption per unit of production by 3% per year. Among the corporate codes of conduct, Chiquita requires each busi- ness unit to have an EMS in place to properly identify priorities, Dole The IFC Guidelines provide that where feasible, firms should choose ensures that its EMS programs conform with developing international energy-efficient and environmentally sound processes. The IFC also standards, and Del Monte monitors environmental performance and states that with respect to sugar manufacturing particularly, waste

24 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON should be collected for use in other industries—such as cogeneration subject, the narratives for these three categories will be provided systems for large sugar mills which can generate electricity for sale. together. The emerging “trend” with regard to emissions is to seek ways to re- 3.3.3 Water duce the contribution to climate change, as well as other air emissions, For the firms that had specific policies about the use of water, the over- although this is not applicable to the banana industry. Coffee codes of all trend was to seek ways to reduce consumption and/or contamina- conduct have sought to do this: Starbucks, Nestlé, and Procter & Gam- tion or, at a minimum, track water use. ble all state that they aim to reduce their air emissions by reducing With regard to bananas, both the Better Banana Project and the Fair- their energy consumption. Tate & Lyle stipulates that emissions are trade Labelling Organisation provide for the establishment of buffer reported locally as required by local and national regulations. The IFC zones along water bodies to control sedimentation and contamination, Guidelines state that pollution control systems may be required to but prohibit altering the natural hydrology of the waterways. Chiquita meet specified emissions limits. is exploring ways to reduce the amount of water during the washing There is no emerging trend with regard to the use of agrichemicals, process in packing stations, and Dole is developing wastewater treat- since the codes are so variable on this topic. Some firms have detailed ment options for packing operations. standards, but even for those that do not, codes at a minimum strive to Regarding the production of coffee, Nestlé provides that fresh water limit the use of agrichemicals, and train workers that handle them. use be reduced as much as possible and wherever feasible, and Chiquita and Dole use groundcover to reduce the need to use herbi- McDonald’s has organized a Global Water Team to better coordinate cides, and the Better Banana Project suggests that farms limit the use policies about water treatment and use. As in banana production, the of agrichemicals to benefit workers, local communities, soil quality, Rainforest Alliance’s Generic Coffee Standards seek to establish water resources, and natural ecosystems. buffer zones along water bodies and prohibit the altering of natural hydrology. Among the coffee industries, Starbucks offers rewards to farmers who minimize or eliminate agrichemical inputs, and Nestlé has an inte- The Flower Label Program’s code has provisions for recording and grated pest management system using “environmentally compatible documenting the consumption of water, with special measures to be techniques for controlling pests at levels below those that cause eco- taken to protect drinking water and ground water sources. A water nomically unacceptable damage or loss.” The Rainforest Alliance sim- management system for the supply of irrigation water is to be used to ilarly employs integrated pest management techniques but, more minimize water consumption and conserve ground and surface waters. importantly, requires pesticides to be registered for use on crops and In the sugar industry, Tate & Lyle has set a target of reducing water approved by the EPA and other national agencies. In the flower in- use per unit of production on an annual basis. dustry, the Cut-Flower code and the Flower Label Program code state The IFC and World Bank Guidelines specify that when using water, that firms shall record and reduce pesticide and fertilizer use. The IFC processed wastewater, domestic sewage, and contaminated storm- provides a series of guidelines regarding agrichemicals, including one water must meet certain guidelines. guideline that all hazardous materials be stored indoors. It also notes that several chemicals classified as ozone-depleting substances are scheduled for phase-out under the Montreal Protocol. 3.3.4 Emissions, Effluents and Waste Since there is considerable overlap between these three categories, as Lastly, with regard to waste, the emerging trend among codes of con- demonstrated in part by the fact that the GRI refers to them as a single duct is that firms should strive to recycle whenever possible and dis-

AGRIBUSINESS SECTOR 25 pose of materials with the most minimal environmental impact possi- Among banana firms, Del Monte reforests areas along major river- ble. In the banana sector, Del Monte has implemented recycling mech- banks, Chiquita plants groundcover to protect against soil erosion, and anisms for the plastic bags used to protect the fruit stalks, and the FLO Dole preserves and protects rainforest resources and provides training requires firms to return unused agrichemicals and other reusable ma- for communities on reforestation. The UK Banana Industry Code terials to suppliers. states that virgin forests must not be exploited to establish new banana Among coffee firms, Starbucks’ waste reduction tactics include store plantations and production must be designed to maintain soil fertility. recycling and use of commuter mugs in place of paper. In addition, it offers coffee grounds as compost. Nestlé promotes integrated waste FLO provides for a number of specific mechanisms to conserve and management, including packaging source reduction, reuse, recycling, improve soil structure to sustain long term productivity, including that and energy recovery. McDonald’s has implemented waste manage- within three months, no banana should grow on slopes of more than ment, energy efficiency, and litter control programs, and uses recycled 60 degrees and cover crops should be planted for bananas growing on materials. slopes between 30 and 60 degrees. The Flower Label Program ensures that waste and pollution reduc- Starbucks rewards farmers whose coffee growing and processing sys- tion be given high priority. Tate & Lyle recognizes that it has a sig- tems contribute to conservation of soil, water, and biological diversity. nificant impact on non-hazardous solid waste production and has set Nestlé promotes contour planning as a good solution for reducing ero- a target of reducing solid waste production per unit of production sion when planting in hilly locations. The Rainforest Alliance’s every year. Generic Coffee Standards provide that agriculture must be located on The IFC Guidelines provide that project sponsors must recycle or re- lands suitable for the proposed crop and conservation plans must be claim materials where possible and, if not practical, wastes must be implemented to minimize erosion. disposed of in an environmentally acceptable manner. The Flower Label Program states that trees and bushes should be 3.3.5 Biodiversity planted at a farm’s boundaries to protect the surroundings and con- Biodiversity issues—whether “Ecosystem/Biodiversity” or “Soil/ structed wetlands should be established to protect the soil and water Erosion Control”, as categorized in the matrices—only arise sporadi- resources. cally in the agribusiness codes of conduct. For those codes that address ecosystems, firms at a minimum attempt to maintain existing ecosys- The IFC Handbook has no stated policies for issues specific to bio- tems and protect biodiversity. Some codes, however, go further, and diversity, since virtually all legal rules and regulations that pertain to seek affirmative efforts to improve the ecosystem. With regard to soil wildlife conservation are formulated at the domestic, rather than at the erosion, those codes that grapple with the issue seek to prevent it. international, level.

26 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON 4 Tourism Sector

4.1 Scope and Methodology cialists in eco-tourism, but did not appear to have any actual codes of Of all the industry sectors examined in this project, the tourism in- conduct). dustry was the least “developed” both in terms of CSR initiatives and As a result, many CSR initiatives in the tourism industry tend to be codes of conduct. Very few codes of conduct were identified akin to informal when they exist at all, such as small tour operators with pub- those used in the light manufacturing and textiles industry, the lished descriptions of their efforts to protect the local ecology, though agribusiness sector, or the “principles” used in lieu of codes of con- without any formal codes. Some major MNEs, however, publicize duct in the extractive industries. Although some firms have carved out their key practices in such areas as human rights, labor rights, and en- a specific niche in providing tourism services with a focus on envi- vironmental standards, despite not having formal codes. ronmental conservation, and other MNEs have put in place specific practices and programs which are socially or environmentally re- Initially, this project sought to identify and summarize the codes of sponsible, the use of codes of conduct is far from widespread in the conduct of roughly ten MNEs in the tourism-related sector, with a par- tourism sector. ticular nexus to Central America. When that proved impossible, the search was broadened beyond that regional area, and five specific Since the tourism sector appears to be only in the beginning stages of firms with significant international scope were identified, all of which developing operating principles and “formal” codes of conduct, ma- are in the forefront of CSR initiatives in the tourism sector. These trices could not be constructed for this sector that identified core poli- firms are: British Airways p.l.c., the Hilton Group p.l.c. (“brands” in- cies for human rights, labor rights, environmental standards, and clude Hilton, Scandic, Livingwell, Conrad and Ladbrokes), Inter- social impacts, as was done for the other industry sectors. It was also Continental Hotels Group p.l.c. (“brands” include InterContinental therefore impossible to ascertain any “emerging trends” or to compare Hotels, Crowne Plaza, and Holiday Inn, and Britivic Soft Drinks), such trends with international standards. Lindblad Expeditions, Inc., and Royal Caribbean Cruises Ltd. By and large, the tourism industry appears to be virtually unmonitored In the realm of non-corporate CSR initiatives, the country-specific with regard to CSR initiatives, and claims of eco-friendly practices, tourism standards produced by Australia (the Australian National while perhaps legitimate, appear to be more marketing schemes than Ecotourism Strategy), the Government of Brazil (Guidelines for an actual policies. For instance, many tour operators market themselves Ecotourism Policy), and the Government of Costa Rica (Certification as providers of eco-tourism and/or sustainable tourism, without any for Sustainable Development, or CST) were analyzed and summa- agreement or definition as to what these terms actually mean (e.g., re- rized. Additionally, the policies of the World Tourism Organiza- sponsibletravel.com or Adventure Life marketed themselves as spe- tion’s (WTO) Global Code of Ethics for Tourism, the International

27 Ecotourism Standard, GREEN GLOBE 21 (which has the license for British Airways and the Hilton Group, did specifically endorse or ex- distribution and management of the International Ecotourism Stan- press support for the UDHR. dard), the Blue Flag Campaign, and the CERES Principles (Coalition British Airways is unique in its specific support of the Convention on for Environmentally Responsible Economies) were also researched the Rights of the Child (and its commitment not to employ anyone and summarized. under the age of 16), as well as formally promoting “equality of op- Other tourism-related CSR initiatives reviewed in the course of this portunity,” “encourag[ing] diversity,” and maintaining “clear disci- project, but not summarized, include the Quebec Declaration on Eco- plinary and grievance procedures.” The goal of its equal opportunity tourism; the World Travel and Tourism Council (WTTC) reports, in- practice is “to employ and promote people regardless of gender, eth- cluding reports on “Corporate Social Leadership in Travel and nicity, national origin, disability, religious or cultural background,” Tourism” and “Industry as a Partner for Sustainable Development;” and it “aim[s] to uphold and support human rights wherever [it] oper- the Tour Operators Initiative’s “Statement of Commitment to Sus- ate[s], respecting local laws.” tainable Tourism Development;” the International Hotel & Restaurant Many of the other firms made specific reference to complying with all Association’s “Green Hotelier: Environmental Good Practice in applicable laws and regulations, particularly with regard to labor stan- Hotels;” and the Business Enterprises for Sustainable Development dards, including the Hilton Group (“aim[s] to comply with all applic- (BEST) goals for hotels, airlines, tour operators, cruise lines, and able laws and regulations in respect of wages and hours”) and the restaurants. Of all these corporate and non-corporate entities, only InterContinental Hotels Group (“comply with the labor laws of all BEST chose not to participate in this project, on the ground that, rather countries” in which it operates). than maintaining a CSR code, it focuses instead on industry best prac- tices. Summarized material from all the other entities is referenced on Lindblad Expeditions is the only firm examined which references the attached matrix. “working with indigenous peoples.” However, InterContinental Hotels references respecting “the preservation of cultural diversity wherever we conduct our business” and British Airways’ policy seeks 4.2 Findings Regarding CSR Practices to “respect local cultural and religious needs and consider them in de- Due to the absence of more “formal” codes of conduct, the publicly termining our local conditions of employment and product offerings.” available CSR material for each of these firms or non-corporate enti- Royal Caribbean’s public statement emphasizes that the company has ties was divided and then summarized into the following topics and “developed policies, standards and practices to foster a positive and themes: human rights and labor rights issues, health and safety issues, rewarding work environment for our employees.” It does not, how- environmental issues, specific programs and initiatives, and monitor- ever, release any specific standards or policies. ing and compliance mechanisms. Among the policies and strategies developed by sovereign nations (Australia, Brazil, and Costa Rica), each emphasizes a participatory 4.2.1 Human Rights and Labor Rights public planning or consultative process which engages local stake- Among the corporate materials and other principles reviewed, there holders and communities, and contributes to cultural development. were very few specific human rights or labor rights standards akin to those in the other industry sectors (e.g., statements on forced or child The WTO has produced what appears to be the closest to an industry- labor standards, discrimination, harassment, hours of work or wages wide code in its “Global Code of Ethics for Tourism,” which is in- paid, freedom of association, etc.). Some firms, however, including tended to serve as a “frame of reference for the responsible and

28 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON sustainable development of world tourism.” This code was approved 4.2.2 Health and Safety Issues by member states at the WTO General Assembly in 1999, but it does A separate category was established for health and safety issues was not appear to have been adopted or implemented by private sector created primarily because many of the tourism principles contained firms. In fact, the UN Commission on Sustainable Development en- specific statements about health and safety matters that were consid- dorsed the concept of the code, but then required the WTO to seek fur- erably more detailed than statements about human rights and labor is- ther input on it from the private sector. sues. As a baseline, some firms (such as British Airways and the Hilton Group) made clear their commitment to abide by the law and The WTO Code does, however, reference not only the UDHR (and in ensure their practices complied with relevant local legislation and reg- particular Article 24, guaranteeing reasonable limitation of working ulations. British Airways also sets targets for reporting and reductions hours and periodic holidays with pay), but also the International in lost-time injuries, and the Hilton Group offers a statement to “sup- Covenant on Economic, Social and Cultural Rights. It also seeks “an port a proactive culture of risk management to ensure accidents and attitude of tolerance and respect for the diversity of religious, philo- incidents remain as low as is reasonably practicable.” Royal Carib- sophical and moral beliefs,” and to combat “the exploitation of human bean also publishes a general statement that the “health and welfare of beings in any form, particularly sexual, especially when applied to our employees, our communities and our environment are critical to children.” The WTO Code specifically states that tourism activities our success.” should not only “respect the equality of men and women” but also “should promote human rights and, more particularly, the individual Among the governmental codes, Costa Rica’s Certification for Sus- rights of the most vulnerable groups, notably children, the elderly, the tainable Development commits to participate fully in public health handicapped, ethnic minorities and indigenous peoples.” programs and support programs which increase tourist safety. The WTO Global Code of Ethics suggests that both tourists and tourism Other principles examined for this survey, such as GREEN GLOBE professionals should be aware of health and security risks, and that the 21, CERES, and the Blue Flag Campaign, focus almost exclusively on professionals, in cooperation with public authorities, “show concern” environmental matters, and do not have any statements regarding for the “security and safety, accident prevention, health protection and human rights or labor rights matters (although CERES incorporates a food safety of those who seek their services.” number of health and safety matters into its principles). The Blue Flag Campaign provides a series of regulations to protect safety, including requiring beach guards to be on duty with lifesaving Special note should also be made of the Quebec Declaration on Eco- equipment, the provision of adequate drinking water, and access tourism, which is not included in this survey because it was still in a ramps on the beach for disabled persons. CERES strives “to minimize relatively formative stage. Notably, in May 2002, under the aegis of the environmental, health and safety risk to our employees and the the UN Environmental Program and the WTO, over 1,000 partici- communities in which we operate through safe technologies, facilities pants from 132 countries met to set a preliminary agenda and formu- and operating procedures, and by being prepared for emergencies.” late a set of recommendations for the development of ecotourism activities in the context of sustainable development. These were then provided to national, regional, and local governments, the private sec- 4.2.3 Environmental Issues tor, NGOs, inter-governmental organizations, international financial Since the impetus of many firms in the tourism sector is to promote the institutions, development assistance agencies, and local and indige- natural environment, a number of these firms maintain codes and prin- nous communities. ciples with specific guidelines and standards for environmental issues.

TOURISM SECTOR 29 Many of these statements and principles also reference corporate EMS ecologically sustainable practices and improving natural resource programs, which the firms apparently use as a mechanism to help them management. Brazil commits itself to reviewing transportation corri- adhere to their environmental policies. Lindblad Expeditions and dors, trail systems, small-scale non-commercial river transportation Royal Caribbean Cruises each have an EMS, and British Airways has systems, small aircraft access and other infrastructure necessary to de- a commitment to introduce one in the coming months. velop ecotourism. Costa Rica’s CST offers guidelines on emissions and wastes, gardens, protection of flora and fauna, water conservation, Although compliance with the relevant laws and legislation is a base- management of solid wastes, and customer room conditioning. line, some firms seek to exceed them, such as the Hilton Group’s com- mitment to not only comply with relevant environmental legislation in The WTO’s Code stipulates that “all the stakeholders in tourism de- the countries in which it operates, but seek to “measure its perfor- velopment should safeguard the natural environment with a view to mance and work towards setting improvement targets for all business achieving sound, continuous and sustainable economic growth geared units,” “work with employees, suppliers, contractors and partners to to satisfying equitably the needs and aspirations of present and future minimize our impacts,” and “encourage environmentally-friendly and, generations.” where possible, local sources of products and services.” Similarly, Blue Flag Campaign offers a number of specific environmental regu- Lindblad Expeditions not only commits itself to “compliance with all lations, including prohibitions on industrial or sewage-related dis- international, federal, state, and local environmental laws and regula- charges that may affect the beach area, and compliance with tions applicable to the areas in which [it] operates,” but “in places requirements and standards such as those of the EU Bathing Water Di- without existing legislation, we will set our own corporate standards rective. The International Ecotourism Standard provides a set of core to meet our overall objective of continual improvement of our envi- principles for ecotourism products. ronmental performance.” GREEN GLOBE 21 markets itself as the “only global system de- In an effort to use similar categories as those taken from the GRI signed to support firms, communities and consumers seeking sustain- Guidelines to organize the data in the other environmental matrices, able tourism.” Its principles are based on those of Agenda 21 and it the three overriding environmental issues that the principles address requires compliance with all relevant environmental legislation and are: energy consumption, water consumption, and pollution abate- regulations. It highlights its support for “state of the art” EMS, “clear ment. Hilton Group states that “energy consumption, and the associ- standards based on ISO and Article 21,” and “quality alliances for ated CO2 emissions, is our biggest environmental issue,” and “using global coverage and local implementation.” The CERES Principles in- water efficiently is a key aspect of our program.” Lindblad states that clude protection of the biosphere, sustainable use of natural resources, on its ships, it “endeavors to reduce emissions, solid waste, and efflu- reduction and disposal of wastes, energy conservation, and environ- ent by the most economically viable application of the best available mental restoration. technology, and by adopting the principles of pollution prevention.” Likewise, Royal Caribbean states that the three basic tenets of its EMS 4.2.4 Specific Programs and Initiatives are reducing the creation or generation of waste, recycling or reusing Though the entries in this category speak for themselves, this category materials, and properly disposing of remaining waste. is included solely in the tourism sector because virtually all the par- Of the governmental policies, the Australian National Ecotourism ticipating firms and non-corporate entities in this sector highlighted Strategy claims to be the first “natural ecotourism plan” in the world, their specific programs and initiatives rather than any broad CSR poli- and it seeks to develop a national strategy which includes facilitating cies. Also, since many of the tourism participants included in this sur-

30 COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON vey are among the industry leaders, this category also showcases some water and 46,920 gallons of detergent every month by washing sheets of the most innovative and progressive policies in the tourism sector. and towels every three days instead of daily. Particular highlights in the matrices include specific initiatives in the In the tourism shipping industry, Royal Caribbean launched six ships areas of reduction of energy consumption and water use, emissions between 2000 and 2002 equipped with “the cruise industry’s first abatement, and waste reduction. smokeless gas turbine engines,” which it claims will lower emissions of NO by 85% and sulfur oxides by more than 90%. Lindblad has es- British Airways states that “climate change is a major concern,” and tablished the Galapagos Conservation Fund to channel donations from that it has continued “to pursue efficiency improvements to reduce our guests to priority conservation projects in the Galapagos. overall impact,” including by reducing aircraft CO2 and nitrous ox- ides (NO) emissions over the past year. Fuel efficiency and noise re- The Brazilian Guidelines were tested in nine Amazon states due to duction initiatives have also been undertaken, and “re-use and their high biodiversity values and a technical cooperation program was recycling” is actively encouraged. developed for the region pursuant to which the Inter-American De- velopment Bank loaned the regional states $13.8 million to establish Hilton International “reduced the overall energy consumption of its a framework to implement the necessary investments. hotels by 16% over the last 4 years.” In addition, its Scandic hotels have reduced energy usage by 24% since 1996, reduced the amount of The International Ecotourism Standard also provides for “best prac- waste being sent for disposal by 40%, and introduced the “eco-room” tice innovation” and best practices are used for the construction new concept. The “Scandic in Society” program was launched to “estab- buildings, rehabilitation of degraded lands, conservation of water, and lish a dialogue on the issues surrounding social responsibility.” Simi- noise and air quality. Green Globe 21 states that its three stages for larly, InterContinental’s “Conserving for Tomorrow” program, now sustainable travel and tourism are: finding “affiliates,” “benchmark- operational in 1100 participating hotels, saves 7 million gallons of ing” firms, and “certifying” participants.

TOURISM SECTOR 31

Code of Conduct Comparison

Apparel, Footwear and Light Manufacturing Sector ANNEX A Labor and Human Rights Standards ...... 35 Apparel, Footwear and Light Manufacturing Sector ANNEX B Environmental Standards ...... 87 Agribusiness Sector ANNEX C Labor and Human Rights Standards ...... 123 Agribusiness Sector ANNEX D Environmental Standards ...... 151 Tourism Sector ANNEX E Labor, Human Rights and Environmental Standards ...... 179 ANNEX A Apparel, Footwear and Light Manufacturing Sector Labor and Human Rights Standards

Companies/Organizations: Issues Examined: adidas-Salomon AG General Policy Statement ...... 36–42 Clean Clothes Campaign Forced Labor ...... 36–42 Ethical Trading Initiative Fair Labor Association Child Labor...... 43–49 Gap Inc. Wages and Benefits, Terms of Employment ...... 50–56 H&M Hennes & Mauritz AB IKEA Services AB Hours of Work...... 50–56 International Confederation of Free Trade Unions Freedom of Association, Collective Bargaining ...... 57–63 LEGO Company Levi Strauss & Co. Health and Safety ...... 64–70 Liz Claiborne Inc. Discrimination ...... 71–77 Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. Harassment, Abuse, and Disciplinary Action ...... 71–77 NIKE, Inc. Monitoring and Compliance Framework ...... 78–84 Organization for Economic Cooperation and Development— Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. Social Accountability International—SA8000 Timberland Company (The) Worker Rights Consortium World Federation of the Sporting Goods Industry World Responsible Apparel Production International Standards

35 adidas-Salomon AG Clean Clothes Campaign1 Ethical Trading Initiative (ETI)2

General Policy Ⅲ “‘We are dedicated to socially responsible, Ⅲ “The code is meant to be accompanied by a Statement safe and environmentally sustainable practices commitment by the companies adopting it to take in the company and its supply chain.” positive actions in applying it. Companies are Ⅲ “We adhere to social and environmental laws, expected to insist on compliance with the code by directives and guidelines while continually any of their contractors, subcontractors, suppliers improving our own contribution to a sustain- and licensees organizing production that would able society.” fall under the scope of the code.” Ⅲ “These are minimum standards that are meant to apply throughout the industry and in all countries.” Ⅲ “The code is not meant to be a substitute for inter- national intergovernmental cooperation nor for international legislation . . . it does not seek to become a substitute for national laws or the national labor inspectorate.”

Forced Labor Ⅲ No forced labor of any type (“whether in form Ⅲ No use of forced, including bonded or prison, labor Ⅲ No forced labor of any type of prison labor, indentured labor, bonded labor (per ILO Conventions 29 and 105) Ⅲ Workers not required to lodge “deposits” of or otherwise”) Ⅲ No requirements to lodge “deposits” or identity money or identity papers with employer Ⅲ No employee compelled to work through force papers with employers Ⅲ Work is freely chosen or intimidation of any form Ⅲ Free to leave employer following reasonable notice

36 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA)3 Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ “[C]onsumers can have confidence Ⅲ “Factories that produce goods for Gap Ⅲ “We have a responsibility towards all the Ⅲ “We believe that our daily business has that products that are manufactured in shall operate in full compliance with the thousands of people taking part in the pro- an impact on Environmental and Human compliance with these standards are laws of their respective countries and duction of our garments. We have to make Rights issues, in particular, in relation to not produced under exploitative or with all other applicable laws, rules and sure that nobody whose work is contribut- people’s working and living conditions.” inhumane conditions.” regulations.” ing to our success is deprived of his or her Ⅲ Code of Conduct is “based on the eight Ⅲ “Any Company that determines to Ⅲ “While Gap Inc. recognizes that there human rights, or suffers mental or bodily core conventions defined in the adopt the Workplace Code of Conduct are different legal and cultural environ- harm.” Fundamental Principles of Rights at shall, in addition to complying with all ments in which factories operate Ⅲ “Suppliers must, in all their activities, fol- Work, ILO Declaration June 1998 and the applicable laws of the country of man- throughout the world, this Code sets low the national laws in the countries Rio Declaration on Sustainable ufacture, comply with and support the forth the basic requirements that all where they are operating. Should any of Development 1992.” Workplace Code of Conduct in accor- factories must meet in order to do the requirements by H&M, be in violation Ⅲ “Suppliers must comply with national dance with the. . . . Principles of business with the Gap Inc.” of the national law in any country or terri- laws and regulations and with interna- Monitoring and shall apply the higher tory, the law should always be followed. tional conventions concerning social standard in cases of differences or In such a case, the supplier must always and working conditions, child labor and conflicts.” inform H&M immediately upon receiving the protection of the environment.” this Code. It is however important to Ⅲ IKEA shall communicate the IWAY re- understand that H&M’s requirements may quirements to the IKEA supplier. The not be limited to the requirements of the supplier shall effectively communicate national law.” to all its sub-suppliers, as well as to its own co-workers, the content of the IWAY Standard, and ensure that all measures required are implemented accordingly.

Ⅲ No forced labor of any type (including Ⅲ No forced labor of any type (no Ⅲ No forced labor of any type, including Ⅲ No forced labor of any kind, including prison labor, indentured labor, bonded “prison, indentured or forced labor” bonded, prison, indentured or illegal labor prison, bonded, indentured, or involun- labor or otherwise) and “no involuntary labor, including tary labor (each of which is defined in debt bondage or forced labor by the Code) governments”) Ⅲ Employees may freely leave factory Ⅲ “If the factory recruits foreign contract premises when shift ends workers, the factory pays agency Ⅲ Suppliers must sign agreement re- recruitment commissions and does not garding forced and bonded labor require any worker to remain in requirements employment for any period of time Ⅲ Prior to starting up business relation- against his or her will” ships with IKEA, potential suppliers must fulfill requirements, including no forced or bonded labour

LABOR AND HUMAN RIGHTS STANDARDS 37 International Confederation of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

General Policy Ⅲ Purpose is to “promote the primacy of interna- Ⅲ “It is of great importance to LEGO Company that Ⅲ “Levi Strauss & Co. seeks to conduct its bus- Statement tional labor standards and the inclusion of the men and women who manufacture LEGO iness in a responsible manner. In 1991, Levi (Continued) trade union rights in codes of conduct covering products, in our own companies as well as at the Strauss & Co. was the first multinational com- labor practices.” suppliers to LEGO Company, are treated in a fair pany to establish comprehensive Global and respectful way.” Sourcing & Operating Guidelines. Our Global Ⅲ “[P]rovide a safe and healthy working environment Sourcing and Operating Guidelines help us to in compliance with all applicable laws and regu- selected business partners who follow work- lations.” place standards and business practices that are consistent with our company’s values.” Ⅲ “We expect our business partners to be law abiding as individuals and to comply with legal requirements relevant to the conduct of all their businesses.”

Forced Labor Ⅲ No forced labor of any type Ⅲ No forced labor of any type, including involuntary, Ⅲ No prison or forced labor of any type (Continued) Ⅲ May not require workers to put down prison, bonded, or indentured “deposits” of money or identity papers with employer Ⅲ References ILO Conventions 29 (Forced Labor Convention) and 105 (Abolition of Forced Labor Convention)

38 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ “Our products must be made under fair Ⅲ Ⅲ Ⅲ and decent working conditions. In “As well as providing the right “We expect our suppliers to ensure that “Nike designs, manufactures, and today’s world, where companies do products, a sustainable retail busi- no exploitative conditions or unsafe markets products for sports and fit- business with more contractors, both ness needs the support of healthy working conditions exist at the facilities ness consumers. At every step in that in the U.S. and abroad, then ever communities and a high quality envi- where our merchandise is manufac- process, we are driven to do not only before, it requires a serious commit- ronment. . . . . We aim to be the most tured. This Supplier Code of Conduct what is required by law, but what is ment to improve working conditions.” trusted retailer wherever we trade by expresses the commitment of New expected of a leader. We expect our Ⅲ “Suppliers must observe all applicable demonstrating a clear sense of social Balance to do business only with those business partners to do the same. laws of their country, including those responsibility and consistency in our manufacturers and suppliers that share Nike partners with contractors who concerning employment, discrimina- decision making and behavior.” its commitment to fair and safe labor share our commitment to the best Ⅲ tion, the environment, safety and Follows the guidelines of the Ethical practices.” practices and continuous improve- Ⅲ apparel or apparel-related fields. . . . If Trading Initiative (“ETI”). “All Standards set forth in this Code of ment in: management practices that local or industry practices exceed local Conduct are subject to compliance with respect the rights of all employee . . . legal requirements, the higher standard applicable national and local laws. All minimizing our impact on the environ- applies.” vendors shall operate in full compliance ment, providing a safe and healthy Ⅲ If there is any difference in a category with laws of their respective country of work place; and promoting the heath between the company’s standards and manufacture.” and well-being of all employees.” Ⅲ local law, the higher standard prevails. “Contractor maintains on file all doc- umentation needed to demonstrate compliance with this Code of Conduct and required laws.”

Ⅲ No forced labor of any type (including Ⅲ No forced labor of any type Ⅲ No forced labor of any type (whether in Ⅲ No forced labor, including prison, indentured labor) Ⅲ Workers not required to lodge form of prison labor, indentured labor, indentured, bonded or otherwise Ⅲ Hours of work are voluntary and not “deposits” of money or identity papers bonded labor, or otherwise) compulsory with employer Ⅲ Workers may not be locked inside factory Ⅲ Work is freely chosen premises for any reason Ⅲ Free to leave employer following reasonable notice

LABOR AND HUMAN RIGHTS STANDARDS 39 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

General Policy Ⅲ “[R]ecommendations for responsible business Ⅲ “The Company and its shareholders believe that Ⅲ “While respecting cultural differences and Statement conduct addressed by governments to multina- business should be conducted honestly, fairly and economic variances that reflect the particular (Continued) tional enterprises operating in or from the 33 with respect for people, their dignity and their countries where we and our vendors do busi- adhering countries.” rights.” ness, our goal is to create, and encourage the Ⅲ “The Guidelines are not a substitute for, nor do Ⅲ “This Code provides minimum standards that creation of, model facilities that not only they override, applicable law. They represent should be exceeded where possible. In applying provide good jobs at fair wages, but which standards of behavior supplemental to applica- it, suppliers must comply with national and other also improve conditions in the community at ble law and, as such, do not create conflicting applicable laws and, where the provisions of the large.” requirements.” law and this Code address the same subject, apply Ⅲ “We expect our vendors to be law abiding the provision that gives workers the greater pro- citizens and to comply with any and all legal tection.” requirement relevant to the conduct of their Ⅲ “We strive to comply with all relevant employment business.” laws and regulations in each country in which we operate.”

Forced Labor Ⅲ No forced labor of any type (“contribute to the Ⅲ No forced labor of any type (including bonded or Ⅲ No forced labor of any type, including prison, (Continued) elimination of all forms of forced or compulsory involuntary prison labor) indentured, or bonded labor”) Ⅲ May not require workers to lodge “deposits” of money or identity papers with employer Ⅲ Employees free to leave upon reasonable notice

40 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000 Timberland Company (The)

Ⅲ “We comply fully with all legal require- Ⅲ “Reebok’s devotion to human rights Ⅲ “This standard specifies requirements for Ⅲ “Timberland strives to provide the ments and prevailing standards rele- worldwide is a hallmark of our corpo- social accountability to enable a com- opportunity for all employees to work in vant to the conduct of rate culture. We believe that the incor- pany to develop, maintain, and enforce fair, safe and non-discriminatory envi- our business.” poration of internationally recognized policies and procedures in order to man- ronments, and we define ‘employee’ Ⅲ “We treat our employees fairly and human rights standards into our busi- age those issues which it can control or as any individual working in an legally with regard to wages, benefits ness practice improves worker morale influence.” enterprise.” and working conditions.” and results in a higher quality working Ⅲ “The company shall comply with national Ⅲ “We seek to apply both the letter and environment and higher quality and other applicable law, other require- the spirit of all applicable local laws products.” ments to which the company subscribes, and to promote continuous improve- Ⅲ “Factory complies with all applicable and this standard. When national and ment in our operations. We hold our laws and regulations regarding struc- other applicable law, other requirements business partners to these same stan- tural safety and working conditions, to which the company subscribes, and dards and actively seek partners who including worker health and safety, this standard address the same issue, share our beliefs.” sanitation, risk protection, fire safety that provision which is most stringent and electrical and mechanical safety.” applies.”

Ⅲ No forced labor of any type (includ- Ⅲ No forced labor of any type Ⅲ No engagement in or use of forced labor Ⅲ No forced labor of any type, including ing prison, indentured, bonded or Ⅲ Workers have right to enter into and Ⅲ May not require workers to put down prison, indentured, slave, or “any other otherwise) terminate employment freely “deposits” of money or identity papers form of compulsory labor” Ⅲ Company must maintain hiring and with employer Ⅲ Employees’ presence must be volun- employment records to verify compli- Ⅲ No debt bondage tary; employees retain option to leave ance with this Ⅲ No purchase of materials produced by any form of compulsory labor Ⅲ Freedom of movement guaranteed dur- ing employment

LABOR AND HUMAN RIGHTS STANDARDS 41 World Federation of the Sporting Goods World Responsible Apparel Worker Rights Consortium (WRC)4 Industry (WFSGI) Production (WRAP) International Standards5

General Policy Ⅲ “The Universities participating are each com- Ⅲ “The Program’s objective is to inde- Statement mitted to conducting their business affairs in pendently monitor and certify com- (Continued) a socially responsible and ethical manner pliance with these socially consistent with their respective educational, responsible global standards for research and/or service missions, and to manufacturing, and ensure that protecting and preserving the global sewn products are produced environment.” under lawful, humane and ethical Ⅲ “Licensees must comply with all applicable conditions.” legal requirements of the country(ies) of man- Ⅲ “Manufacturers of sewn products ufacture in conducting business related to or will comply with laws and regula- involving the production or sale of Licensed tions in all locations where they Articles.” conduct business.”

Forced Labor Ⅲ No use of forced labor of any type, including Ⅲ No forced labor of Ⅲ No forced labor, including inden- Ⅲ ILO Forced Labor Convention, (Continued) prison, indentured, or bonded labor any type tured, bonded or otherwise No. 29 Ⅲ ILO Forced Labor Convention, No. 29 Ⅲ ILO Abolition of Forced Labor Convention, No. 105 Ⅲ UN Global Compact (“eliminate all forms of compulsory labor”) Ⅲ UN Norms (transnational corpora- tions shall not “use forced or com- pulsory labor as forbidden by the relevant international instruments and national legislation as well as international human rights law”) )

42 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Child Labor Ⅲ Minimum age is the greater of: Ⅲ No use of child labor Ⅲ Minimum age is the greatest of: ● 15; or Ⅲ Minimum age: ● 15 (or 14 if domestic law in country of man- ● age for completing local compulsory edu- ● 15; or ufacture allows); or cation in country of manufacture, if over 15 ● age for completing local compulsory education ● age for completing local compulsory educa- Ⅲ Provides any replaced child workers with ade- tion, if over 15; or quate transitional economic assistance and edu- ● legally established minimum working age cational opportunities (per ILO Convention 138) Ⅲ 18 for work at night or in hazardous conditions Ⅲ “Younger workers shall be given the opportunity to Ⅲ No new recruitment of child labor participate in education and training programs.” Ⅲ Provide transition of child laborers to quality education programs until no longer children, and promote child education

LABOR AND HUMAN RIGHTS STANDARDS 43 Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB

Child Labor Ⅲ No person shall be employed at an age: Ⅲ Minimum age is the greater of: Ⅲ Minimum age is: (Continued) ● younger than 15 (or 14 where the law and ● 14; or ● 15; or regulations of the country of manufacture ● legally established minimum working age ● 14, as an exception covered by Art. 2.4 in allow); or Ⅲ Support the development of legitimate workplace ILO Convention No. 138 ● younger than the age for completing com- apprenticeship programs for the educational Ⅲ If a child is found working, factories must act in pulsory education in country of manufacture benefit of younger people child’s best interest considering a range of fac- where such an age is higher than 15 Ⅲ Factories must comply with applicable child labor tors; do not ask factory to dismiss a child with- laws, including work schedules, labor intensity, out a discussion about child’s future; any costs wages, and working conditions for education must be paid for by factory; “any Ⅲ Official documentation to verify each worker’s measures taken should aim to improve, not date of birth is required, or factory must confirm worsen, child’s situation” age with reliable assessment method if docu- Ⅲ Recommend that factories with predominantly mentation unavailable female workers arrange day care for children below school age Ⅲ “Policy is based” on the UN Convention on the Rights of the Child, Article 32:1, as well as all relevant laws Ⅲ Where country permits apprenticeship pro- grams for children between 12-15, will accept that child to work a “few hours a day”, and total number of hours spent in school and on light work must not exceed 7 Ⅲ Employees between ages of 15-18 should be treated as children, and limits for working hours and overtime should be set with special consideration as to age

44 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR International Confederation IKEA Services AB of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Ⅲ Minimum age is the greater of: Ⅲ Minimum age: Ⅲ Minimum age is the greatest of: Ⅲ Minimum age is the greater of: ● 15; or ● 15; or ● 16; or ● 15; or ● legally established minimum working ● age for completing local compulsory ● local minimum age; or ● age for completing compulsory age; or education, if it is higher than 15 ● age for completing compulsory education ● age for completing mandatory Ⅲ Provides any replaced child workers education Ⅲ Support the development of legitimate education with adequate transitional economic Ⅲ “Encourage the creation of apprentice- workplace apprenticeship programs Ⅲ Until young workers are 18, they must assistance and educational opportuni- ship programs” for the educational benefit of younger be protected from any type of employ- ties (per ILO Convention 138) people ment which is likely to “jeopardize their Ⅲ Will not utilize partners who use child health, safety or morals” labor in any of their facilities Ⅲ Employment of young workers must be avoided during school hours Ⅲ Adopts standard of ILO Convention No. 138), and suppliers must abide by the UN Convention on the Rights of the Child, as well as all relevant laws Ⅲ Prior to starting up business relation- ships with IKEA, potential suppliers must fulfill requirements, including no child labour Ⅲ Suppliers must take “appropriate mea- sures” to ensure no child labor occurs at their place of production or that of their sub-suppliers Ⅲ Supplier must maintain a labor force register including date of birth for all workers Ⅲ If child labor is found in any production, supplier must implement a corrective plan, and if repeated violations occur, business with the supplier will be ter- minated Ⅲ National laws or regulations may per- mit the employment of work of persons 13 to 15 years of age on light work, which is: ● Not likely to be harmful to their health and development; and ● Not such as to prejudice their atten- dance at school, etc.

LABOR AND HUMAN RIGHTS STANDARDS 45 Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc.

Child Labor Ⅲ Minimum age is the greater of: Ⅲ Minimum age is the greater of: Ⅲ Minimum age is the greater of: (Continued) ● 15; or ● 15 (or 14 if domestic law in country of manufac- ● 16 (or 15 if domestic law in country of man- ● age for completing compulsory education in ture allows); or ufacture allows); or countries of manufacture ● age for completing local compulsory education, ● age for completing local compulsory if over 15; or education ● legally established minimum working age Ⅲ Official documentation must be maintained to Ⅲ 18 for work at night or in hazardous conditions verify each worker’s date of birth Ⅲ No new recruitment of child labor Ⅲ Facilities must comply with domestic laws Ⅲ Provide transition of child laborers to quality regarding employment of young workers, education programs until no longer children, and including types of work, work schedules, and promote child education labor intensity

46 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Organization for Economic Cooperation and Development (OECD), Guidelines NIKE, Inc. for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Ⅲ Minimum age is: Ⅲ “Contribute to” the effective abolition of Ⅲ Minimum age is the greater of: Ⅲ Minimum age is the greater of: ● 18 to produce footwear; or child labor ● 15; or ● 14; or ● 16 to produce apparel, accessories ● age for completing local compulsory ● age for completing compulsory edu- or equipment education in country of manufacture, if cation in the country of manufacture Ⅲ If contractor legally uses 15 year olds over 15; or Ⅲ Must observe all legal requirements for at start of Nike production, those ● legal established minimum working age the work of authorized minors, particu- employees are grandfathered, but Ⅲ 18 minimum age for any nighttime or haz- larly: hours of work, wages, minimum employer may not hire any new ardous work conditions education and working conditions employee younger than Nike age limit Ⅲ No recruitment of child labor Ⅲ Encourage vendors to support night or domestic legal age limit (whichever Ⅲ If child labor is identified in the supplier’s classes and work-study programs, is higher) industry and region, supplier must trans- especially for younger workers fer children into quality education until they are no longer children

LABOR AND HUMAN RIGHTS STANDARDS 47 Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000

Child Labor Ⅲ Minimum age is 18 Ⅲ Minimum age is the greater of: Ⅲ Minimum age: (Continued) ● 15; or ● 15 (or 14 for developing countries if meet ● legally established minimum working age ILO 138 exemption); or Ⅲ Documentation for proof of age required for all ● age for work or mandatory schooling pro- Ⅲ Factory to track all workers, and respect applica- vided by local law if it is higher than 15 ble laws, for workers between minimum working Ⅲ Correction for the use of children subject to age and 18 child labor by providing adequate support to Ⅲ Apprentices or vocational students must be at enable them to attend and remain in school least minimum working age until they are no longer a child Ⅲ No informal arrangements allowing school age Ⅲ No hiring of children and young workers during students to work in factory school hours Ⅲ Must identify jobs which put workers under 18 at Ⅲ No exposing children and young workers to developmental risks hazardous, unsafe, or unhealthy conditions

48 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR World Federation World Responsible Worker Rights Consortium of the Sporting Goods Apparel Production Timberland Company (The) (WRC)4 Industry (WFSGI) (WRAP) International Standards

Ⅲ Minimum age is the greater Ⅲ Minimum age is the greater Ⅲ Minimum age is the greater Ⅲ Minimum age: Ⅲ ILO Minimum Age Convention, of: of: of: ● 14; or No. 138 ● 16; or ● 15 (or 14, where, consistent ● 15 (or 14 if domestic law in ● age for completing local Ⅲ ILO Worst Forms of Child Labor ● age for completing local with ILO practices, the law country of manufacture compulsory education; or Convention, No. 182 compulsory education in of the country of manufac- allows); or ● legally established mini- Ⅲ ILO Minimum Age country of manufacture ture allows); or Ⅲ age for completing local com- mum age, whichever is Recommendation, No. 146 Ⅲ “The labor of children cannot ● age for completing local pulsory education, if over 15 greater Ⅲ UN Convention on the Rights of be used” compulsory education in the Child, Article 32:1 country of manufacture, if Ⅲ UN Global Compact (“effec- over 15 tively abolish child labor”) Ⅲ “Licensees agree to consult Ⅲ UN Norms (transnational cor- with governmental, human porations shall “respect the rights, and nongovernmental rights of children to be pro- organizations, and to t tected from economic exploita- ake reasonable steps as eval- tion as forbidden by the uated by the University to relevant international instru- minimize the negative impact ments and national legislation, on children released from as well as international human employment as a result of rights law”) implementation or enforce- ment of the Code.”

LABOR AND HUMAN RIGHTS STANDARDS 49 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Wages and Benefits, Ⅲ Minimum wage is the greater of: Ⅲ Living wages are paid Ⅲ Minimum wage is whichever is higher Terms of Employment ● local minimum wage; or Ⅲ “Wages and benefits paid for a standard working between: ● prevailing industry standard week shall meet at least legal or industry minimum ● local minimum wage; or Ⅲ Overtime wages must be: standards and always be sufficient to meet basic ● prevailing industry standard ● premium rate legally required in country of needs of workers and their families and to provide Ⅲ Minimum wages must meet basic needs of manufacture, or some discretionary income.” employees and provide some discretionary ● if no such laws, at a rate exceeding hourly Ⅲ Deductions from wages for disciplinary measures income compensation shall not be permitted Ⅲ Overtime compensated at premium rate Ⅲ Legally mandated benefits Ⅲ Workers provided with written and understand- Ⅲ No labor-only contracting or false apprentice- Ⅲ Paid annual leave able information about the conditions in respect of ship schemes Ⅲ Remuneration by cash or check paid directly to wages Ⅲ No disciplinary wage deductions except as employee Ⅲ No false apprenticeship schemes provided for under local law and with worker’s Ⅲ Wage information provided regularly to Ⅲ “Obligations to employees under labor or social express consent employees security laws and regulations arising from the Ⅲ Wage composition regularly and clearly Ⅲ Advances and deductions from wages care- regular employment relationship shall not be detailed, and provided in written and under- fully monitored avoided through use of labor-only contracting standable form prior to employment arrangements.”

Hours of Work Ⅲ Regular working hours, including overtime, are Ⅲ “Hours of work are not excessive” Ⅲ Regular working hours are the least of: the lesser of: Ⅲ “Hours shall comply with applicable laws and ● 48 hours per week maximum; or ● 60 hours per week (though an exception cre- industry standards” ● domestic legal limits; or ated for “extraordinary circumstances”); or Ⅲ Regular working hours: ● industry standards ● domestic legal limits ● 48 hours per week Ⅲ Overtime 12 hours per week maximum Ⅲ Days off: at least 1 day in 7 Ⅲ Overtime shall be: ● Overtime must be voluntary and on an irreg- ● voluntary; and ular basis ● not to exceed 12 hours per week; and Ⅲ Days off: at least 1 day in 7, on average ● not be demanded on a regular basis; and ● shall always be compensated at a premium rate Ⅲ Days off: At least 1 day in every 7

50 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ Employers recognize that wages are Ⅲ Minimum wage is the greater of: Ⅲ Minimum wage must be at least legal Ⅲ Minimum wage must be at least legal essential to meeting employees’ basic ● local minimum wage; or minimum wage minimum wage needs ● prevailing local industry standard Ⅲ Workers should be granted their stipu- Ⅲ Wages shall be paid at regular intervals Ⅲ As a floor, employers must pay at least: Ⅲ Overtime wage is the greater of: lated annual leave and sick leave without and on time with respect to work per- ● the minimum wage required by local ● legal requirements; or any form of repercussions formed, according to local legislation law; or ● prevailing local industry standard Ⅲ Female workers should be given their Ⅲ Wages must be paid at least monthly ● the prevailing industry standard, Ⅲ No penalties, punishment or threat of stipulated maternity leave in case of Ⅲ Prior to employment, supplier must pro- whichever is higher dismissal for declining overtime pregnancy vide written information to employee Ⅲ Employers must pay the legally man- Ⅲ Workers must have paid annual leave Ⅲ “In developing countries, we recommend regarding wages dated benefits and holidays as required by law or, if suppliers provide workers with at least Ⅲ Overtime wage must be at least in Ⅲ Overtime wages must compensate greater, the local industry standard one free meal daily” accordance with local requirements Ⅲ overtime hours: Ⅲ Wage statements must include days Supplier must maintain payroll records ● at a premium rate as legally required; worked, wage, overtime, bonuses, and pertaining to wages and working hours for every employee, including piece- or any deductions rate and temporary employees ● in countries where such laws do not Ⅲ Benefits: All legally mandated benefits exist, at a rate at least equal to regu- required, including medical insurance, lar hourly compensation rate social insurance, and pensions Ⅲ All workers must have an individual written contract, including all contract workers on site Ⅲ Contracts must contain as a minimum: employer, name of worker, birth date, position, salary, benefits, and notice time

Ⅲ Regular working hours: Ⅲ Regular working hours, including Ⅲ Regular working hours must not exceed Ⅲ Regular working hours, including over- ● the lesser of: overtime: the legal limit time, must be: (a) 48 hours per week; or ● 60 hours per week maximum on a Ⅲ Overtime work should always be volun- ● 60 hours per week maximum, unless (b) domestic legal limits; or regular regularly scheduled basis tary and properly compensated fewer hours are stipulated in local work week hours, if no legal limit Ⅲ Days off: at least 1 day in 7 law exists ● Appropriate time off must be given Ⅲ Overtime: for meals and breaks, at least one ● The lesser of: 30 minutes break/day of work (a) 12 hours per week; or ● Any overtime hours must be (b) domestic legal limit, voluntary Ⅲ Except in extraordinary business cir- Ⅲ Extraordinary business conditions cumstances, employees exception to temporarily waive limit on ● shall not be required to work more maximum overtime hours than a regular work week with over- Ⅲ Days off: at least 1 day in 7 time, in accordance with the guide- Ⅲ Time off from job must also be given lines outlined above; and according to local legislation, local ● are entitled to at least one day off in traditions, and standards every seven day period

LABOR AND HUMAN RIGHTS STANDARDS 51 International Confederation of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Wages and Benefits, Ⅲ Overtime compensated at premium rate Ⅲ Minimum wages must comply with all local Ⅲ Minimum wages and benefits must: Terms of Employment Ⅲ No labor-only contracting or false apprentice- legislation ● comply with any applicable law; and (Continued) ship schemes Ⅲ Overtime wages must be compensated consistent Ⅲ Match the prevailing local manufacturing or Ⅲ Provide education and training program oppor- with local law finishing industry practices tunities to younger workers Ⅲ All legally mandated benefits must be provided Ⅲ Overtime must be appropriately compensated

Hours of Work Ⅲ Regular working hours are the least of: Ⅲ Regular working hours are the least of: Ⅲ Regular working hours, including overtime, (Continued) ● 48 hours per week; or ● 48 hours per week ; or must: ● domestic legal limits; or ● domestic legal limits; or ● not exceed 60 hours per week on a regular ● prevailing industry standards ● “regular work week” basis (though partners are “favored” for Ⅲ Overtime is: Ⅲ Overtime is the lesser of: utilizing less than 60 hours per week ) ● no more than 12 hours per week; and ● 12 hours per week ; or ● not exceed local legal limits, except for ● voluntary and on an irregular basis ● domestic legal limits appropriately compensated overtime Ⅲ Days off: at least 1 day in 7 Ⅲ Hours in excess of 60 hours per week must be vol- Ⅲ Days off: at least 1 day in 7 untary and be planned in a way “that ensures safe and humane working conditions” Ⅲ Days off: at least 1 day in 7

52 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ Minimum wage must be at “regular Ⅲ Minimum wage is the greater of: Ⅲ Minimum wage is the greater of: Ⅲ Minimum wage is the greater of: hourly compensation” rate ● local minimum wage; or ● local minimum wage; or ● local minimum wage; or Ⅲ Overtime wages must be: ● prevailing industry standard ● prevailing industry standard, consistent ● prevailing industry standard ● compensated at premium rate legally Ⅲ Minimum wages must meet basic with local area statistics Ⅲ Provide clear accounting for pay period required in the country of manufac- needs of employees and provide some Ⅲ No deductions for disciplinary purposes Ⅲ No deductions from wages for discipli- turing; or discretionary income Ⅲ No false apprenticeship practices to nary infractions ● if no laws exist, at a rate at least Ⅲ Overtime compensated at premium rate avoid compensation Ⅲ Provide all legally mandated benefits equal to regular hourly compensa- Ⅲ No labor-only contracting or false Ⅲ Overtime wages must be: Ⅲ Overtime must be compensated tion rate apprenticeship schemes ● subject to domestic law regarding according to domestic law Ⅲ Legally mandated benefits Ⅲ No disciplinary wage deductions payment; Ⅲ Must inform employee at hiring if except as provided for under local law ● if no legal standard for overtime mandatory overtime is condition of and worker’s express consent premiums, then industry standards employment Ⅲ Wage composition regularly and prevail; and Ⅲ No use of home work clearly detailed, and provided in written ● at least equal to regular hourly rates and understandable form prior to Ⅲ No penalties or fines for declining employment overtime Ⅲ Overtime should be limited to a humane and protective level

Ⅲ Regular working hours, including over- Ⅲ Regular working hours are the least of: Ⅲ Regular working hours, including over- Ⅲ Contractors should not require employ- time, are the lesser of: ● 48 hours per week maximum; or time, are the lesser of: ees to work more than: ● 60 hours per week ; or ● domestic legal limits; or ● 60 hours per week; or ● 60 hours per week; or ● legal limits in country of manufacture ● industry standards ● domestic legal limits ● the domestic limits, whichever is less Ⅲ Days off: at least 1 day in 7 Ⅲ Overtime is: Ⅲ Overtime hours are the lesser of: Ⅲ Hours worked in excess of the 60 ● 12 hours per week maximum; and ● any work in excess of 48 hours per should be voluntary ● Voluntary and on an irregular basis week; or Ⅲ Employee must be informed at time of Ⅲ Days off: at least 1 day in 7 ● any work in excess of the local official hiring if mandatory overtime is a con- workweek, dition of employment Ⅲ No home work Ⅲ Days off: at least 1 day in 7, on a “regu- Ⅲ All hours documented and made avail- larly scheduled basis” able to workers Ⅲ Days off: at least 1 day in 7

LABOR AND HUMAN RIGHTS STANDARDS 53 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Wages and Benefits, Ⅲ Provide reasonable notice to workers of signifi- Ⅲ Minimum wage and benefits are greater of: Ⅲ Minimum wage must be: Terms of Employment cant changes in operations, including closure, ● local minimum wage; or ● at least the minimum wage required by local (Continued) collective lay-offs, or dismissals ● prevailing industry standards law; or Ⅲ Attempt to mitigate adverse effects to maxi- Ⅲ Wages must meet basic needs of employees and ● prevailing industry wage mum extent practicable provide some discretionary income Ⅲ Legally mandated benefits Ⅲ “Observe standards of employment and indus- Ⅲ Overtime wages must be paid at a premium rate Ⅲ Overtime compensation at either: trial relations not less favorable than those Ⅲ Overtime must be voluntary ● the rate established by law; or observed by comparable employers in the host Ⅲ Wage and benefit composition regularly provided ● where such rates do not exist, a rate at least country” to workers in written and understandable format equal to the regular hourly compensation rate Ⅲ No deductions from wages as disciplinary mea- sure, or without employee’s permission Ⅲ No “labor-only contracting, sub-contracting, home-working, apprenticeship schemes with no real intent to impart skills or provide regular employment, or excessive use of fixed-term con- tracts of employment”

Hours of Work Ⅲ No specific mention, but “observe standards of Ⅲ Regular working hours are the least of: Ⅲ Regular working hours: (Continued) employment and industrial relations not less ● 48 hours per week ; or ● no more than prevailing local work hours favorable than those observed by comparable ● domestic legal limits; or ● no more than 60 hours per week, with employers in the host country” ● “benchmark industry standard” preference for vendors who utilize less than Ⅲ Overtime hours the least of: 60 hours ● 12 hours per week ; or Ⅲ Days off: at least 1 day in 7 ● domestic legal limits; or ● “benchmark industry standard” Ⅲ Regular and overtime hours must not be excessive Ⅲ Days off: at least 1 day in 7

54 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000 Timberland Company (The)

Ⅲ Minimum wage according to domestic Ⅲ Minimum wage is the greater of: Ⅲ Minimum wage must at least meet legal Ⅲ Wages and benefits must at least meet law ● local minimum wage; or or industry minimum standards all applicable local minimum wage laws Ⅲ Overtime wages are paid at the pre- ● prevailing industry standard Ⅲ Minimum wage must meet basic needs of and laws regarding mandated benefits mium legal rates Ⅲ Upon hire, disclosure of regular hours workers, plus some discretionary income Ⅲ Overtime compensated at a premium to be worked per day, applicable wage Ⅲ Overtime compensated at premium rate rate, and no lower than domestic law rate, policies regarding overtime hours, Ⅲ No labor-only contracting or false Ⅲ Overtime is optional and voluntary and overtime rates apprenticeship schemes Ⅲ All wages paid on regular schedule Ⅲ Maintain accurate and reliable payroll Ⅲ No disciplinary wage deductions Ⅲ Wage slips must be understandable records and time cards to verify actual Ⅲ Remuneration by cash, check, or any and demonstrate how wages calcu- hours worked, and provide such other form convenient for employees lated records to workers Ⅲ Wage and benefit composition regularly Ⅲ Minimum wage required for any Ⅲ Compliance with all applicable laws re- and clearly detailed apprenticeship or training programs stricting work hours and overtime hours Ⅲ No pre-employment fees, deposits, or Ⅲ Overtime wages must: other practices that effectively lower ● exceed regular working wages; and an employee’s pay below the legal min- ● be greater of applicable domestic imum wage laws or prevailing industry standard Ⅲ Overtime must be voluntary; no nega- tive or punitive incentives for overtime Ⅲ Legally mandated benefits Ⅲ Paid leave and holidays the greater of applicable domestic law or local indus- try practice

Ⅲ Regular working hours, including over- Ⅲ Regular working hours, including over- Ⅲ Regular working hours: Ⅲ Regular working hours are no greater time, are no greater than: time, are no more than 10 hours per day ● 48 hours; or than: ● 60 hours per week maximum; or Ⅲ Working hours include reasonable meal ● legal limit which is not more than ● 48 hours per 6 day period ● 12 hours per day and rest breaks 48 hours; or Ⅲ Regular working hours, including over- Ⅲ Overtime the lesser of: ● more than 48 hours per week if it is not time, are no greater than: ● 60 hours per week (though an excep- applied on a regular basis ● 60 hours per week maximum; or tion created for extraordinary cir- Ⅲ Maximum overtime 12 hours per week ● 12 hours per day maximum cumstances, defined as natural Ⅲ Overtime is voluntary except as agreed Ⅲ Days off: 1 day off after working 6 con- disasters, political upheaval, or with a majority of workers in collective secutive days mechanical failures); or bargaining ● local legal limits Ⅲ Days off: at least 1 day in every 7 day Ⅲ Days off: at least 1 day in 7 period

LABOR AND HUMAN RIGHTS STANDARDS 55 World Federation World Responsible of the Sporting Goods Apparel Production Worker Rights Consortium (WRC) Industry (WFSGI) (WRAP) International Standards

Wages and Benefits, Ⅲ Recognition that “wages are essential Ⅲ Minimum wage is the greater of: Ⅲ Minimum Ⅲ ILO Equal Remuneration Convention, No. 100 Terms of Employment to meeting employees’ basic needs” ● local minimum wage; or wages as pro- Ⅲ ILO Minimum Wage Fixing Convention, No. (Continued) Ⅲ Shall pay employees, “as a floor,” ● prevailing industry standard vided under 131 wages which comply with “all applica- Ⅲ Wage must at least meet employees’ local law Ⅲ ILO Holidays with Pay Convention ble laws and regulations, and which “basic living needs” Ⅲ Overtime (Revised), No. 132 provide for essential needs and estab- Ⅲ Wages must fully compensate for all wages as pro- Ⅲ ILO Home Work Convention, No. 177 lish a dignified living wage for workers time worked vided under Ⅲ ILO Reduction of Hours of Work and their families” Ⅲ Overtime wages must: local law Recommendation, No. 116 Ⅲ “Living wage” defined as ““take ● compensate at a premium rate Ⅲ Legally man- Ⅲ ILO Tripartite Declaration (“Wages, bene- home” or “net” wage, earned doing a legally required in country of man- dated benefits fits and conditions of work offered by multi- country’s legal maximum work week, ufacture; or national enterprises should not be less but not more than 48 hours. A living ● if no domestic legal laws, then at a favorable to the workers than those offered wage provides for the basic needs rate exceeding the regular hourly by comparable employers in the country (housing, energy, nutrition, clothing, compensation rate concerned.”) health care, education, potable water, Ⅲ Legally mandated benefits (e.g., Ⅲ Universal Declaration of Human Rights, Art. childcare, transportation and savings) “meals or meal subsidies; transporta- 23 (“everyone who works has the right to of an average family unit of employees tion or transportation subsidies; other just and favorable remuneration ensuring in the garment manufacturing employ- cash allowances; health care; child for himself and his family an existence wor- ment sector of the country divided by care; emergency, pregnancy or sick thy of human dignity”) the average number of adult wage leave; religious, or bereavement leave; Ⅲ UN Norms (transnational corporations earners in the family unit of employees and contributions for social security “shall compensate workers with remunera- in the garment manufacturing employ- and other insurance, including life, tion that ensures an adequate standard of ment sector of the country.” health and employees compensation”) living for them and their families”)

Hours of Work Ⅲ Regular working hours are the lesser Ⅲ Regular working hours are the lesser Ⅲ Regular work- Ⅲ ILO Hours of Work (Industry), Convention (Continued) of: of: ing hours as No. 1 ● 48 hours per week; or ● 60 hours per week (including over- provided Ⅲ ILO Reduction of Hours of Work ● limits on hours by law of country of time); or under local Recommendation, No. 116 manufacture ● domestic legal limits law Ⅲ ILO Forty-Hour Work Week Convention, Ⅲ Overtime shall be: Ⅲ Overtime not more than 60 hours per Ⅲ Days off: at No. 47 ● voluntary; and week total or the domestic legal limit least 1 day in Ⅲ ILO Night Work Convention, No. 147 ● always compensated at a premium Ⅲ In excess of 60 hours per week only in 7, except to Ⅲ ILO Part Time Work Convention, No. 175 rate as is legally required in country “extraordinary business circum- meet urgent of manufacture; or stances” business ● in countries where such laws do not Ⅲ Days off: at least 1 day in 7 needs exist, at a rate at least one and one half the regular hourly compensa- tion. Ⅲ Days off: At least 1 day in every 7

56 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Freedom of Ⅲ Recognize and respect the right of workers to Ⅲ Recognize right of “all workers to form and join Ⅲ Recognize and respect workers’ rights to join Association, organize and join associations of their own trade unions and to bargain collectively.” (per ILO and form trade unions of their choice and to Collective choosing and bargain collectively Conventions 87 and 98) bargain collectively Bargaining Ⅲ Where local law limits rights to associate, must Ⅲ “Workers’ representatives shall not be the subject Ⅲ Where rights are restricted under law, com- not obstruct alternative and legal means for of discrimination and shall have access to all pany should facilitate parallel means of orga- independent free association and bargaining workplaces necessary to enable them to carry out nizing Ⅲ Implement systems to ensure good communi- their representation functions.” (per ILO Ⅲ Ensure trade union representatives are not cations with employees Convention 135 and Recommendation 143) subject to discrimination and have access to Ⅲ “Employers shall adopt a positive approach members in workplace (provide necessary towards the activities of trade unions and an open facilities for activities; employer must have attitude towards their organizational activities.” open attitudes towards activities)

LABOR AND HUMAN RIGHTS STANDARDS 57 Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB

Freedom of Ⅲ Employers must recognize and Ⅲ Workers are free to join associations of their Ⅲ Workers should be free to join associations of their own choos- Association, respect workers’ rights to freely own choosing ing, and have the right to bargain collectively Collective associate and bargain collectively Ⅲ Must not threaten, penalize, restrict or inter- Ⅲ No disciplinary action allowed against workers for choosing to Bargaining fere with workers’ lawful efforts to join peacefully and lawfully organize or join an association (Continued) associations

58 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR International Confederation IKEA Services AB of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Ⅲ Employees are not prevented from Ⅲ Recognize and respect all workers’ Ⅲ Every employee has the “right to choose Ⅲ Respect the right of workers to form associating freely with any lawful orga- rights to form and join trade unions and to be a member of a trade union and to and join organizations of their choice nization that represents the best inter- to bargain collectively (per ILO bargain collectively” without “fear of and to bargain collectively ests of such Conventions 87 and 98) interference or restriction” Ⅲ Expect suppliers to respect the right to Ⅲ Supplier shall not prevent employees Ⅲ No discrimination against workers’ Ⅲ This right must be “consistent with free association and right to organize from exercising collective bargaining representatives (references ILO applicable laws” and bargain collectively without unlaw- Convention 135 and Recommendation ful interference 143) Ⅲ Representatives of organizations must Ⅲ Positive approach to union activities have access to their members under and open attitude towards their organi- local legal conditions zational activities Ⅲ Business partners should ensure that workers who make decisions or partici- pate in collective bargaining associa- tions are “not the object of discrimination or punitive disciplinary actions”

LABOR AND HUMAN RIGHTS STANDARDS 59 Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc.

Freedom of Ⅲ Recognize and respect the right of employees Ⅲ Recognize and respect workers’ rights to join and Ⅲ No discrimination against workers based on Association, to freedom of association and collective form trade unions of their choice and to bargain political affiliation or union membership Collective bargaining collectively Ⅲ No stated policy on collective bargaining Bargaining Ⅲ Where rights are restricted under law, company (Continued) should facilitate parallel means of organizing Ⅲ Ensure trade union representatives are not subject to discrimination and have access to members in workplace (provide necessary facilities for activi- ties; employer must have open attitudes towards activities)

60 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Organization for Economic Cooperation and Development (OECD), Guidelines NIKE, Inc. for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Ⅲ Right to free association Ⅲ Recognize and respect all workers’ Ⅲ Right to join, or not join, trade unions of Ⅲ Employees free to join organizations of Ⅲ Right to collective bargaining rights to freely associate, bargain col- their own choosing their choice lectively, and negotiate with employer Ⅲ Right to bargain collectively Ⅲ Recognize right to freedom of associa- Ⅲ No threats of partial or complete Ⅲ Where rights are restricted under law, tion and collective bargaining relocation to weaken bona fide company should facilitate parallel means negotiations of organizing Ⅲ Provide facilities necessary for trade Ⅲ No discrimination based on union mem- union activities bership or political affiliation Ⅲ Provide company information neces- sary for employment conditions negoti- ation and to give fair view of the entity’s performance Ⅲ Promote employer/employee communication

LABOR AND HUMAN RIGHTS STANDARDS 61 Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000

Freedom of Ⅲ Right to freely associate Ⅲ Right of employees to establish and join organiza- Ⅲ Recognize and respect all workers’ rights “to Association, Ⅲ ·We recognise and respect the right of employ- tions of their own choosing form and join trade unions of their choice and Collective ees to join and organize trade unions of their Ⅲ Right of all employees to organize and bargain to bargain collectively” Bargaining own choice and to bargain collectively. collectively Ⅲ Where rights are restricted under law, com- (Continued) Ⅲ No refusal of employment, or dismissal, to quali- pany should facilitate parallel means to attain fied workers because of union membership or goals participation Ⅲ No discrimination against workers’ representa- Ⅲ Workers represented on safety committees, tives, and provide representatives access to problem-solving committees, and committees that workers plan activities Ⅲ Workers elect worker representatives Ⅲ Provision of system for resolving workplace disputes

62 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR World Federation World Responsible Worker Rights Consortium of the Sporting Goods Apparel Production Timberland Company (The) (WRC) Industry (WFSGI) (WRAP) International Standards

Ⅲ Rights to freely associate and Ⅲ “Recognize and respect right Ⅲ Recognize and respect work- Ⅲ Recognize and respect work- Ⅲ ILO Freedom of Association bargain collectively of employees to freedom of ers’ rights to join workers’ ers’ rights to freely associate and the Protection of the Right Ⅲ Where rights to freedom of association and collective organizations of their own and to bargain collectively to Organize Convention, No. 87 association are restricted bargaining” choosing and to bargain Ⅲ ILO Right to Organize and under law, must be “an equiv- Ⅲ “No employee shall be sub- collectively Collective Bargaining alent means of independent ject to harassment, intimida- Ⅲ Where rights are restricted Convention, No. 98 representation” tion or retaliation in their under law, provide parallel Ⅲ ILO Workers’ Representatives efforts to freely associate or means of independent and Convention, No. 135 bargain collectively” free association Ⅲ UN Global Compact Ⅲ No cooperation “with govern- (“Businesses should uphold the mental agencies and other freedom of association and the organizations that use the effective recognition of the power of the State to prevent right to collective bargaining”) workers from organizing a Ⅲ UN Norms (transnational cor- union of their choice” porations shall “ensure the Ⅲ “Allow union organizers free freedom of association and access to employees” effective recognition of the Ⅲ “Recognize the union of the right to collective bargaining by employees’ choice” protecting the right to establish and, subject only to the rules of the organization concerned, to join organization of their own choosing without distinction”)

LABOR AND HUMAN RIGHTS STANDARDS 63 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Health and Safety Ⅲ Require a safe and healthy working Ⅲ “A safe and hygienic working environment shall be Ⅲ Provide safe and hygienic workplace environment provided.” Ⅲ Workers receive regular and recorded health Ⅲ Occupational health and safety practices pro- Ⅲ Best occupational health and safety practice shall and safety training moted (including protection from fire, accidents be promoted. Ⅲ Access to clean toilet facilities and potable and toxic substances) water Ⅲ Lighting, heating and ventilation systems Ⅲ Accommodations, where provided, shall be should be adequate and clean clean, safe, and meet workers’ basic needs Ⅲ Employees must have access to sanitary Ⅲ A senior management representative shall facilities have responsibility for health and safety Ⅲ Factory must clearly communicate health and safety policies to employees Ⅲ Applicable to employee residential facilities, where provided by employers Ⅲ “Guidelines for Health, Safety, and Environment” cover such areas as: manage- ment, architectural considerations, alarm sys- tems, first aid, storage of chemicals, chemicals in production, threshold limit values, color coding, compressed gas, house keeping, machinery, waste management, waste water treatment, emission control, and sanitation and hygiene

64 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ Employers must provide a safe and Ⅲ Provide a safe working environment for Ⅲ Workers’ safety should “be a priority” at Ⅲ Supplier to comply with all relevant and healthy working environment to pre- employees all times applicable laws, legislation and regula- vent accidents and injury to health Ⅲ Facilities must comply with all applica- Ⅲ No hazardous equipment or unsafe tions pertaining to internal air quality, arising out or, linked with, or occurring ble laws regarding sanitation and risk buildings noise levels, lighting levels and temper- in the course of work or as a result of protection Ⅲ Factories must have clearly marked exits, ature levels in the workplace the operation of employer facilities Ⅲ Factories should be well lit and venti- that are unblocked and well-lit Ⅲ Supplier shall provide appropriate per- lated Ⅲ Workers should be aware of safety sonnel protective equipment to employ- Ⅲ Aisles should be easily accessible, and arrangements in the factory ees working in harmful or potentially buildings should have clearly-marked Ⅲ First aid equipment should be available, risky work areas emergency exits clear of obstacles, and and at least one person trained in it Ⅲ Machines and other equipment used in doors are accessible and unlocked Ⅲ Employer should pay non-reimbursed production to be equipped with neces- Ⅲ Machinery should be properly main- medical costs incurred by a worker sary safety devices tained and equipped with operational following an injury during work in the Ⅲ Warning signs must be posted, and safety devices factory safety training must be given Ⅲ Hazardous materials should be sensibly Ⅲ Temperature should be tolerable, and Ⅲ Adequate number of washing and toilet stored and disposed of; appropriate ventilation should be adequate facilities available and maintained for protective clothing is available to Ⅲ Sufficient lighting men and women employees at no cost Ⅲ Sanitary facilities clean, and workers to Ⅲ Clean drinking water must be provided, Ⅲ Workers have access to potable water have access without restrictions; sepa- free of charge, to all employees and sanitary toilet areas throughout the rate for men and women Ⅲ First aid equipment must be available to workday Ⅲ If a facility provides housing for its staff, it all workers, at least one box in each must be safe and clean; workers must building and at each floor, and at least have their own beds; separate dormito- one employee to be trained and present ries, toilets and showers provided for during working hours, during all work men and women; importance of fire shifts safety precautions in dorms Ⅲ If provide housing facilities, must ensure reasonable cleanliness, privacy, personal hygiene, and quietness; if pro- vided, employees must be given individ- ual bed/mattress; separate toilet and shower accommodations available for men and women Ⅲ Compliance with all fire prevention and safety rules, including fire fighting equipment, evacuation alarm, evacua- tion plan, emergency exits, and training and maintenance Ⅲ Factory itself must also comply with all fire prevention and safety rules.

LABOR AND HUMAN RIGHTS STANDARDS 65 International Confederation of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Health and Safety Ⅲ Provide a safe and hygienic working Ⅲ Provide a “safe and healthy working environment” Ⅲ Will only utilize business partners who (Continued) environment in compliance with all applicable laws and regula- provide workers with safe and healthy work Ⅲ Best occupational health and safety practices tions, including: environment shall be promoted, bearing in mind the pre- Ⅲ Fire code rules and building safety Ⅲ Business partners who provide residential vailing knowledge of the industry and of Ⅲ Proper lighting and ventilation facilities for their workers must provide safe specific hazards Ⅲ Aisles and exits accessible and healthy facilities Ⅲ Properly maintain and service all machinery Ⅲ Provide safe storing and responsible disposal of hazardous materials Ⅲ Well-known emergency, medical and evacuation plan for employees Ⅲ Dormitories, where applicable, must be safe and clean and located separately from working facilities

66 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ Employers must provide safe and Ⅲ “Committed to ensure the health, safety Ⅲ “Employers shall provide a safe and sani- Commitment to “providing a safe and healthy working environment to pre- and well-being of all its employees” tary working environment using OSHA healthy work place” and “promoting vent accidents and injury to health Ⅲ An active program to protect the health standards as a benchmark, in order to the health and well-being of all and safety of employees, supported by avoid preventable work-related acci- employees” safety officers in each store and annual dents and injuries.” Ⅲ “Worked with our Asian partners to audits carried out by an independent implement management systems to specialist achieve specific environmental, health Ⅲ Provide a comprehensive range of and safety goals, beginning with a occupational health services such as program called MESH (Management, access to occupational health advisers, Environment, Safety and Health)” breast screening, private medical insur- Ⅲ Subcontractor/supplier “certifies ance, and cash back health plan compliance with all applicable local Ⅲ Trained Health & Safety officer in every government regulations regarding location; 45% reduction in accidents in occupational health and safety” first six months of 2002

LABOR AND HUMAN RIGHTS STANDARDS 67 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Health and Safety Ⅲ “Take adequate steps to ensure occupational Ⅲ “A safe and hygienic working environment is pro- Ⅲ Provide a safe and healthy work environment (Continued) health and safety in their operations” vided, subject to any specific hazards intrinsic to to prevent accident and injury to health the job.” Ⅲ Vendors should make a responsible contri- Ⅲ “Adequate steps are taken to prevent accidents bution to the health care needs of their and damage to health arising out of, associated employees with, or occurring in the course of, work, by mini- mizing, so far as is reasonably practicable, the causes of hazards in the working environment.” Ⅲ Workers receive health and safety training on recruitment and subsequently at regular intervals Ⅲ Workers provided with access to clean toilet facil- ities and potable water. Hygienic facilities for food storage are provided, if appropriate Ⅲ If accommodation is provided, it is clear and safe and meets the basic needs of workers Ⅲ Senior Manager responsible for health and safety

68 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000 Timberland Company (The)

Ⅲ Complies with all regulations for work- Ⅲ “Reebok will seek business partners Ⅲ Company provides a safe and healthy Ⅲ Workplace must be safe and healthy ers’ social security and health benefits, that strive to assure employees a safe work environment and takes adequate based on the recognized standards of including medical care, life and other and healthy workplace and that do not steps to prevent accidents and injury the ILO and national laws compensations expose workers to hazardous condi- Ⅲ A senior manager is to be responsible for Ⅲ This requirement applicable to any resi- Ⅲ Maintains a clinic at the factory tions.” the health and safety of all personnel dential facilities provided Ⅲ Standards articulated for ventilation, Ⅲ “The specific and quantitative require- Ⅲ Regular health and safety training Ⅲ Employees must receive training on canteen, toilet facilities, potable water, ments of the Reebok Standard are Ⅲ All workers have access to clean bath- workplace safety practices workplace safety, stairs and aisles, based on common practice, regulatory rooms, potable water, and, if appropriate, emergency exits, machinery safety, fire requirements, consultation with local or sanitary facilities for food storage prevention, and noise control regional occupational health experts, Ⅲ Dormitory facilities are clean and safe Ⅲ Requires use of personal protective and the recommendations of public and equipment management private bodies and other national stan- Ⅲ Education management suggestions on dard-setting bodies around the world labor practices and safety, health, and (for example, the United States environmental factors Occupational Safety and Health Administration).” Ⅲ In-depth implementation guide provided to factories, outlining specific require- ments for: ● management of hazardous and com- bustible materials ● fire safety ● general factory conditions ● operational safety ● emergency medical care ● worker health and hygiene ● dormitory conditions

LABOR AND HUMAN RIGHTS STANDARDS 69 World Federation World Responsible of the Sporting Goods Apparel Production Worker Rights Consortium (WRC) Industry (WFSGI) (WRAP) International Standards

Health and Safety Ⅲ “Provide a safe and healthy working Ⅲ Provide a safe and healthy work Ⅲ Provide a safe Ⅲ ILO Occupational Safety and Health (Continued) environment to prevent accidents and environment and healthy Convention, No. 155 injury to health arising out of, linked Ⅲ Comply with all applicable laws gov- work Ⅲ ILO Occupational Safety and Health with, or occurring in the course of erning health and safety environment. Recommendation, No. 164 work” Ⅲ Workers should have access to sani- Ⅲ Where resi- Ⅲ ILO Occupational Health Services Ⅲ Direct operations and those of any tary facilities dential hous- Convention, No. 161 subcontractor must comply with the Ⅲ Standards and procedures should be ing is provided Ⅲ ILO Protection of Workers’ Health, more rigorous of either: all national elaborated to protect workers from for workers, Recommendation No. 97 laws on workplace safety and health fire, accidents and toxic substances. provide safe Ⅲ ILO Occupational Health Services regulations, or Title 29 CFR of the Ⅲ Lighting, heating and ventilation should and healthy Recommendation, No. 112 Federal Code of Regulations, enforced be adequate housing Ⅲ ILO Occupational Safety and Health by OSHA (Occupational Safety and Protocol, No. 155 Health Administration), whichever reg- Ⅲ UN Norms (transnational corporations ulation is more health protective for a shall “provide a safe and healthy working given hazard environment as provided by the relevant Ⅲ Direct operations and those of any international instruments and national subcontractor must also comply with legislation as well as international human all health and safety conventions of the rights law”) ILO ratified and adopted by the country in which the production facility is located Ⅲ No exposure of workers to hazards, including glues and solvents, that may endanger their safety, “including their reproductive health”

70 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Discrimination Ⅲ No discrimination based on personal charac- Ⅲ No discrimination based on personal characteris- Ⅲ No discrimination based on personal charac- teristics or beliefs (race, national origin, gen- tics or beliefs (race, color, sex, religion, political teristics or beliefs (race, caste, national origin, der, religion, age, disability, marital status, opinion, nationality, social origin, or other distin- religion, disability, gender, marital status, sex- membership of associations, sexual orienta- guishing characteristics) (per ILO Conventions 100 ual orientation, union membership, or political tion, or political opinion) and 111) affiliation) Ⅲ No discrimination in hiring and employment Ⅲ No discrimination in hiring, compensation, practices access to training, promotion, termination, retirement

Harassment, Abuse, Ⅲ No physical, sexual, psychological, or verbal Ⅲ No physical abuse, threats of physical abuse, Ⅲ No physical or verbal abuse or intimidation of and Disciplinary harassment or abuse unusual punishments or discipline any kind for any purpose Action Ⅲ No sexual or other harassment Ⅲ All disciplinary measures must be recorded Ⅲ Intimidation by employer is strictly prohibited

LABOR AND HUMAN RIGHTS STANDARDS 71 Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB

Discrimination Ⅲ No person shall be subject to any discrimina- Ⅲ No discrimination on basis of personal character- Ⅲ No discrimination on basis of personal charac- (Continued) tion in hiring, salary, benefits, advancement, istics or beliefs (race, color, gender, nationality, teristics or beliefs (race, gender, religion, or discipline, termination, retirement religion, age, maternity, or marital status) ethnic background) ● No discrimination based on personal charac- Ⅲ No discrimination in wages and benefits Ⅲ “Workers with same experience and qualifica- teristics or beliefs (gender, race, religion, tions should receive equal pay for equal work” age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin)

Harassment, Abuse, Ⅲ Every employee will be treated with respect Ⅲ No physical or psychological coercion Ⅲ No form of mental or physical disciplinary and Disciplinary and dignity Ⅲ No corporal punishment actions Action Ⅲ No employee will be subject to any physical, Ⅲ No corporal punishment (Continued) sexual, psychological, or verbal harassment or Ⅲ No sexual harassment abuse Ⅲ Dismissal of pregnant female workers is unacceptable

72 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR International Confederation IKEA Services AB of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Ⅲ No discrimination on basis of personal Ⅲ No discrimination based on personal Ⅲ No discrimination on the basis of per- Ⅲ No discrimination on the basis of per- characteristics or beliefs (race, creed, characteristics or beliefs (race, color, sonal characteristics or beliefs (race, sonal characteristics or beliefs. sex, marital or maternal status, age, gender, religion, political opinion, religion, age, national origin, sexual ori- “Characteristics that should not be national origin, sexual orientation, or nationality, social origin, or other distin- entation, or gender) used to determine the terms and condi- any other basis prohibited by law) guishing characteristics) Ⅲ No discrimination in hiring and employ- tions of employment include gender, Ⅲ No discrimination in hiring, salary, Ⅲ References to ILO Conventions 100 ment practices ethnicity, age, religion, physical disabil- fringe benefits, promotion, termination, (Equal Remuneration, 1951) and 111 ity, political opinion, social status, or and retirement (Discrimination, Employment and sexual orientation.” [Assessment Ⅲ “Respect for local culture and religions Occupation, 1958) Guidebook] shall be taken into consideration when Ⅲ No discrimination in employment evaluating the prevailing situation” practices Ⅲ “Favor” business partners who share this value

Ⅲ No physical or mental coercion Ⅲ No stated policy Ⅲ No mental or physical coercion, abuse, or Ⅲ No mental or physical coercion Ⅲ No corporal punishment threats of violence Ⅲ No corporal punishment Ⅲ No threats of violence, disciplinary Ⅲ No corporal punishment actions, or sexual harassment Ⅲ No engagement in, or tolerance of, sex- Ⅲ No use of public warning and punish- ual harassment ment systems. “Reprimands for breach of duty or misconduct shall be a private matter between the employer and employee.” Ⅲ Employee has right to appeal repri- mands, disciplinary actions, and dis- missal, and these appeals are recorded

LABOR AND HUMAN RIGHTS STANDARDS 73 Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc.

Discrimination Ⅲ No discrimination on basis of personal charac- Ⅲ No discrimination based on personal characteris- Ⅲ No discrimination on basis of personal charac- (Continued)) teristics or beliefs (gender, race, religion, age, tics or beliefs (race, caste, national origin, religion, teristics or beliefs (gender, race, caste, sexual disability, sexual orientation, nationality, politi- disability, gender, marital status, sexual orienta- orientation, religious or cultural beliefs) cal opinion, or social or ethnic origin) tion, union membership, or political affiliation) Ⅲ No discrimination in employment, promotion, Ⅲ No discrimination in employment, hiring, salary, Ⅲ No discrimination in hiring, compensation, access and compensation practices benefits, advancement, discipline, termination to training, promotion, termination, retirement Ⅲ No pre-employment or during-employment or retirement screening for pregnancy

Harassment, Abuse, Ⅲ No physical, sexual, psychological or verbal Ⅲ No physical or verbal abuse or intimidation of any Ⅲ No physical, verbal, sexual, or psychological and Disciplinary harassment or abuse kind for any purpose harassment or abuse Action Ⅲ All disciplinary measures must be recorded Ⅲ No corporal punishment (Continued)

74 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Organization for Economic Cooperation and Development (OECD), Guidelines NIKE, Inc. for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Ⅲ No discrimination on basis of personal Ⅲ No discrimination based on personal Ⅲ No discrimination on basis of personal Ⅲ No discrimination on basis of personal characteristics or beliefs (race, creed, characteristics or beliefs (race, color, characteristics or beliefs (race, caste, characteristics or beliefs (gender, race, gender, marital or maternity status, gender, religion, political opinion, national origin, religion, age, disability, religion, age, disability, sexual orien- religious or political beliefs, age, or national extraction, social origin) sex, marital status, union membership, or tation, nationality, or social or ethnic sexual orientation) Ⅲ Exceptions to non-discrimination when political affiliation) origin) Ⅲ No discrimination in hiring, compensa- employee’s characteristics further gov- Ⅲ No discrimination in recruitment, wages, Ⅲ No discrimination in hiring, salary, tion, benefits, advancement, termina- ernmental policies to promote equal access to training, promotion, termination benefits, advancement, discipline, tion, or retirement practices opportunity; or if meets specific job or retirement practices termination or retirement requirements

Ⅲ No harassment or abuse Ⅲ No specific mention, but “observe stan- Ⅲ No physical abuse or discipline, and no Ⅲ No physical, sexual, psychological, or Ⅲ No corporal punishment dards of employment and industrial threat of physical abuse verbal harassment and/or abuse relations not less favorable than those Ⅲ No verbal abuse Ⅲ No form of mental or physical coercion observed by comparable employers in Ⅲ No sexual or other forms of harassment the host country” Ⅲ No other forms of intimidation

LABOR AND HUMAN RIGHTS STANDARDS 75 Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000

Discrimination Ⅲ No discrimination on basis of personal charac- Ⅲ No discrimination on basis of personal character- Ⅲ No discrimination based on personal charac- (Continued) teristics or beliefs (gender, race, religion, age, istics or beliefs (gender, race, religion, age, dis- teristics or beliefs (race, caste, national origin, sexual orientation, nationality, political opinion, ability, sexual orientation, nationality, political religion, disability, gender, sexual orientation, or social or ethnic origin) opinion, caste, or social or ethnic origin) union membership, political affiliation, or age) Ⅲ No discrimination in hiring, salary, benefits, train- Ⅲ No discrimination in hiring, remuneration, ing opportunities, work assignments, advance- access to training, promotion, termination, or ment, discipline, termination or retirement retirement practices Ⅲ No interference with the workers’ observance of tenets or practices of their beliefs

Harassment, Abuse, Ⅲ Employees are treated with respect and dig- Ⅲ No physical, sexual, psychological, or verbal Ⅲ No physical, mental, or sexual abuse or coer- and Disciplinary nity. No employees may be subject to physical, harassment or abuse cion of any kind for any purpose Action sexual, psychological or verbal harassment or Ⅲ No condoning, creating, or contributing to an Ⅲ No corporal punishment (Continued) abuse. All disciplinary practices comply with intimidating, hostile, or offensive work Ⅲ No sexually coercive, threatening, abusive, or local law and are fully documented. environment exploitative behavior (e.g., gesture, language, Ⅲ Suggestion boxes established in the production Ⅲ Standard reporting and disciplinary procedures for physical contact) areas of the factories “for employees to implementing non-harassment policy express their opinion, concerns or comments” Ⅲ Non-retaliation policy permits workers to express Ⅲ Set up an employees counseling center as concerns without fear of retribution another tool for workers’ grievance and Ⅲ No monetary fines or threats suggestions

76 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR World Federation World Responsible Worker Rights Consortium of the Sporting Goods Apparel Production Timberland Company (The) (WRC) Industry (WFSGI) (WRAP) International Standards

Ⅲ No discrimination on basis of Ⅲ No discrimination based on Ⅲ No discrimination based on Ⅲ No discrimination based on Ⅲ ILO Discrimination personal characteristics or personal characteristics or personal characteristics or personal characteristics or (Employment and Occupation) beliefs “unrelated to the abil- beliefs (gender, race, religion, beliefs (gender, race, religion, beliefs Convention, No. 111 ity to perform the job” (race, age, disability, sexual orienta- age, disability, sexual orienta- Ⅲ No discrimination in employ- Ⅲ ILO Equal Remuneration color, sex, religion, political tion, nationality, political opin- tion, nationality, political opin- ment, compensation, promo- Convention, No. 100 opinion, nationality, social ori- ion, or social or ethnic origin) ion, social or ethnic origin) tion, and termination Ⅲ ILO Vocational Rehabilitation gin, social status, indigenous Ⅲ No discrimination in employ- Ⅲ No discrimination in employ- and Employment (Disabled heritage, disability, age, mari- ment practices, including ment, hiring, salary, benefits, Persons) Convention, No. 159 tal status, capacity to bear hiring, salary, benefits, advancement, disciplines, Ⅲ UN Global Compact (“eliminate children, pregnancy, sexual advancement, discipline, termination, or retirement discrimination in respect of orientation, genetic features) termination or retirement employment and occupation” Ⅲ UN Norms (transnational corporations shall “ensure equality of opportunity and treatment, for the purpose of eliminating discrimination based on race, color, sex, reli- gion, political opinion, national- ity, social origin, indigenous status, disability, age, or other status of the individual unre- lated to the individual’s ability to perform his/her job”)

Ⅲ No intolerance, harassment Ⅲ No physical, sexual, psycho- Ⅲ No physical, sexual, psycho- Ⅲ No harassment or abuse of Ⅲ UN Global Compact (“busi- or abuse logical, or verbal harassment logical, or verbal abuse or any kind nesses should support and Ⅲ Whistle-blowing protections, or abuse harassment Ⅲ No corporal punishment respect the protection of inter- and no “retribution for Ⅲ No use, or toleration of, any Ⅲ All workers should be treated nationally proclaimed human grievances” form of corporal punishment with respect and dignity rights within their sphere of Ⅲ No corporal punishment Ⅲ Every employee shall be influence’ and “make sure they treated with dignity and are not complicit in any human respect rights abuses”)

LABOR AND HUMAN RIGHTS STANDARDS 77 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Monitoring and Ⅲ FLA membership provides framework for exter- Ⅲ “Companies adopting the code will be expected to Ⅲ Alliance of companies, NGOs and trade unions Compliance nal and independent monitoring of factories in engage an independent institution established for seeking to identify and promote good practice Framework supply chain the purpose of monitoring compliance with the in implementation of codes Ⅲ Targets 10% of suppliers for monitoring by FLA code, in assisting companies in implementing the Ⅲ Companies adopt ETI’s “Base Code” of labor accredited monitors code, and in providing consumers with information practice, or draw up their own based on it, concerning the labor practices in the industry.” then work with selected suppliers worldwide to move towards these standards Ⅲ ETI will not publicly endorse any product or company, or any member or non-member organization Ⅲ Companies engage with other ETI members to design, implement and analyze pilot schemes to identify good practice in monitoring Ⅲ Administered by ETI Secretariat Ⅲ ETI does not accredit independent monitors Ⅲ Costs borne by company

78 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ Voluntary company-based monitoring Ⅲ Voluntary, company-based monitoring Ⅲ H&M reserves right to make unan- Ⅲ IKEA Trading Service Offices has the and certification program program in place since mid 1990s nounced visits to all factories producing direct responsibility to support and Ⅲ Companies/brands seek certification Ⅲ Close to 100% of audits done internally; goods at any time monitor suppliers that internal monitoring is consistent independent monitoring performed in Ⅲ Reserve right to let an independent third Ⅲ To ensure compliance, IKEA has also with FLA principles addition to internal auditing in several party (e.g., NGO) of our choice make formed a global compliance and moni- Ⅲ FLA independent external monitoring countries inspections to ensure compliance toring group system is used to verify companies’ Ⅲ Conduct audits of 100% of apparel Ⅲ If corrective measures not taken, or Ⅲ Reserves the right to check suppliers internal systems sourcing facilities every year repeated violations occur, relationship “with the help of independent Ⅲ For enhanced independence of moni- Ⅲ Use a system of “Risk Based Audit” will be terminated organizations” toring, independent external monitors protocol, where more visits are con- Ⅲ IKEA conducts an “IKEA Way” audit of are accredited, selected, and paid by ducted at facilities with more risk, and suppliers on premises; it reserves the the FLA (not companies) fewer when the risk is less right to perform unannounced audits or Ⅲ FLA independent external monitoring Ⅲ No licensees used by company inspections to verify requirements; visits are unannounced suppliers must allow for confidential Ⅲ Reports from independent external employee interviews and access to all monitoring visits are posted on FLA documentation and records website within 60 days of visit Ⅲ After initial implementation period (2 or 3 years), certification granted to com- panies/brands found to be in compli- ance with FLA principles; reviewed annually Ⅲ Administered by independent Fair Labor Association, governed by 16 member Board of Directors Ⅲ Accredits monitors Ⅲ Funded by university and company annual dues; government and foun- dation grants

LABOR AND HUMAN RIGHTS STANDARDS 79 International Confederation of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

Monitoring and Ⅲ No stated policy Ⅲ Lego will “monitor relevant suppliers and their Ⅲ Voluntary company-based monitoring program Compliance facilities to ensure compliance with Code of utilizing compliance audits Framework Conduct” Ⅲ Thorough audits conducted annually and inter- (Continued) Ⅲ Results of the monitoring will be documented in a nally for 100% of facilities (any external audits monitoring report conducted in addition to internal audits) Ⅲ Suppliers must maintain and provide access to all Ⅲ Beginning in 2001, 100% of licensees were also documentation on site monitored, in addition to the other facilities Ⅲ On-site inspections, including unannounced visits, Ⅲ Dropped FLA membership for 2003. Instead, by Lego and/or assigned representatives Verite, the Edinburgh Resource Center and the Ⅲ Access to employees for confidential visits during Environmental Resource Management group monitoring trips conduct external monitoring for 5% of sourcing Ⅲ If improvements do not occur, Lego will terminate base relationship

80 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ FLA Member Ⅲ Audits through membership in Ethical Ⅲ Internal Steering Committee, consisting Ⅲ As a FLA Member, regularly scheduled Ⅲ Voluntary company-based monitoring Trading Initiative (“ETI”) of company executives, set policy and internal and external audits program utilizing compliance audits Ⅲ Company adopts ETI’s “Base Code” of standards and review factory audits Ⅲ Voluntary company-based monitoring Ⅲ Seek to monitor 50% of factory base in labor practice, or draw up their own Ⅲ Professional staff located in each factory program utilizing compliance audits 2003 under FLA; monitored 30% of facil- based on it, then work with selected every day to work with factory manage- Ⅲ Outside of FLA, both extensive internal ities in 2002 suppliers worldwide to move towards ment and workers toward continuous and external monitoring Ⅲ Also used COVERCO, ITS, Cotchna and these standards improvement in accomplishing goals in Ⅲ Significant CSR audit material available MTL for independent monitoring Ⅲ Company engages with other ETI mem- all areas for public on web site, including pub- bers to design, implement and analyze Ⅲ Retain Verite to conduct independent lishing the scores of factory audits pilot schemes to identify good practices third-party audits of factories under “Transparency 101,” including in monitoring Ⅲ All audits include interviews with work- internal “SHAPE” audits (Safety, Ⅲ Costs borne by company ers both on- and off-site Health, Attitude of Management, Ⅲ Sponsor a Mobile Training program with Treatment of People, Environment), Verite to provide education and training which are targeted to be conducted in a number of areas for workers at fac- 4 times per year for footwear facilities tories in PRC and 2 times per year for apparel and equipment facilities. Ⅲ Founding member of the Global Alliance for Workers and Communities, which has conducted workplace assessments in four countries (Thailand, Vietnam, Indonesia and India) and interviewed more than 10,000 workers. Results of those interviews (which include both issues of compliance as well as aspira- tional goals) have been made public by the GA, and Nike has posted those results on its web site.

LABOR AND HUMAN RIGHTS STANDARDS 81 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Monitoring and Ⅲ For implementation and reporting purposes: Ⅲ Member of, and reflects, Base Code of Ethical Ⅲ FLA Member Compliance ● Adhering countries to set up National Contact Trading Initiative (ETI) Ⅲ Voluntary company-based monitoring program Framework Points to undertake promotional activities and Ⅲ Each Group company is responsible for imple- utilizing compliance audits (Continued) to consider instances where companies are menting the policy in respect of its own suppliers Ⅲ Works with ILO believed not to have observed the Guidelines Ⅲ A “small central team of specialists provides Ⅲ “PVH has been committed to the enforcement ● Oversight responsibility given to Committee on advice, training and assistance”, helps coordinate of these standards and has an on-going International Investment and Multinational programs across the Group and arranges partici- approval and monitoring system. Our goal is to Enterprises (CIME). The CIME periodically pation in cooperative projects with other organiza- engage our suppliers, contractors and busi- holds exchanges of views on matters covered tions. It also monitors the progress of Group ness partners in the implementation of these by the Guidelines companies and reports back to the Board.” standards.”

82 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability International, Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. SA8000 Timberland Company (The)

Ⅲ Regulations for daily safety, health, and Ⅲ Implements and monitors standards Ⅲ Voluntary factory-based monitoring and Ⅲ “Explorer” category of the SA8000 environment inspections through on-site inspection of facilities, 3rd party certification system standard Ⅲ Provisions for testing of workplace for off-site interviews, and regular Ⅲ Companies seek to certify owned/ Ⅲ Uses both internal and external solvents, noise, light, and a variety of reporting requirements for factory operated facilities or contractors’ facilities; resources to evaluate factories, and other health, safety, and environmental management contractors seek certification to secure conduct ongoing audits and reviews factors Ⅲ Provides an in-depth, 47-page, imple- contract; development/multilateral organi- Ⅲ Require full and open access to facil- mentation guide to the Reebok zations seek to certify suppliers ities and operations for audits Standards for specific direction to Ⅲ Requires on-site inspection by approved Ⅲ Started working with Verite in 1998 to factory managers for incorporating external monitor audit factories, including all footwear basic human rights principles into Ⅲ Requires management system and apparel vendors, and some daily operations Ⅲ Certification granted to companies/ licensees’ facilities contractors/ suppliers in compliance Ⅲ In 2000-2001, all facilities making with standard Timberland products, including tan- Ⅲ SAI accredits monitors, including certifi- neries and major component suppliers, cation agencies, accounting firms, and were audited NGOs Ⅲ Also have compliance monitors that Ⅲ Costs borne by company/contractor/ visit factories every 5 months supplier being certified Ⅲ Employees must have opportunity to Ⅲ Certified facilities have obligation to notify company anonymously of any monitor and control their own suppliers/ violations of standards, and must not subcontractors and have obligation to receive any retribution for action offer similar protection to home workers Ⅲ “Will make information on our compli- ance program available publicly” Ⅲ Not a member of FLA or WRAP

LABOR AND HUMAN RIGHTS STANDARDS 83 World Federation World Responsible of the Sporting Goods Apparel Production Worker Rights Consortium (WRC) Industry (WFSGI) (WRAP) International Standards

Monitoring and Ⅲ Compliance, Disclosure, Verification, and Ⅲ Members should Ⅲ Voluntary factory-based monitoring Ⅲ ILO Labor Inspection Convention, Compliance Remediation programs take steps to and certification program No. 81 Framework ensure compliance Ⅲ Apparel manufacturing facilities (Continued) with these stan- seek certification or compliance dards in their own with the WRAP principles operations and Ⅲ Requires on-site inspection by those who supply approved external monitor them Ⅲ Certification granted to factories Ⅲ Members should meeting the WRAP principles consider requiring Ⅲ Administered by independent suppliers to pro- certification agency with 9 member vide legally binding Board of Directors contractual assur- Ⅲ Costs borne by manufacturing ances of their com- facilities pliance with these standards and develop mecha- nisms to monitor their own perfor- mance and that of their suppliers

84 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Endnotes

1. Established in 1998, the code is “intended for retailers as well as manufacturers 4. Created by college and university administrations, students and labor rights and all companies positioned in between those in the apparel and sportswear experts. More than 100 colleges and universities are affiliated with the WRC. supply chain.” Code specifically applies to: knitting industry, manufacture of 5. This material has been drawn from the ILO Conventions and Recommendations, mass-produced footwear, production of hand-made footwear, manufacture of as well as the 1977 ILO Tripartite Declaration of Principles, but does not purport ready-made clothing and accessories, bespoke tailoring, dressmaking and to be an exhaustive survey of all ILO materials. Other documents referenced hatmaking, and manufacture of furs and fur goods. Provides for observance of include the UN Global Compact and the UN Norms on the Responsibilities of all core International Labour Organizations (ILO) standards. “The code applies Transnational Corporations and Other Business Enterprises with Regard to to all of the companies’ contractors, subcontractors, suppliers and licensees Human Rights (UN Norms), which provides that transnational corporations world-wide.” “shall recognize and respect applicable norms of international law; national 2. The ETI is an alliance of companies, non-governmental organizations, and trade laws; regulations; administrative practices; the rule of law; development union organizations committed to working together to identify and promote objectives; social, economic, and cultural policies.” ethical trade - good practice in the implementation of a code of conduct for good labor standards, including the monitoring and independent verification of the observance of ethics code provisions, as standards for ethical sourcing. 3. The FLA is a non-profit organization combining the efforts of industry, non- governmental organizations, colleges and universities to promote adherence to international labor standards and improve working conditions worldwide. The FLA enforces an industry-wide Workplace Code of Conduct, which is based on the core labor standards of the ILO.

LABOR AND HUMAN RIGHTS STANDARDS 85

ANNEX B Apparel, Footwear and Light Manufacturing Sector Environmental Standards

Companies/Organizations: Issues Examined: adidas-Salomon AG General Policy Statement and Environmental Management Systems ...... 88–94 Clean Clothes Campaign Materials ...... 95–101 Ethical Trading Initiative Fair Labor Association Energy ...... 95–101 Gap Inc. Water ...... 95–101 H&M Hennes & Mauritz AB IKEA Services AB Emissions...... 102–108 International Confederation of Free Trade Unions Pollution Control and Hazardous Substances...... 102–108 LEGO Company Levi Strauss & Co. Waste Management ...... 109–115 Liz Claiborne Inc. Packaging and Transport ...... 109–115 Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. Monitoring and Compliance Framework ...... 116–122 NIKE, Inc. Organization for Economic Cooperation and Development— Guidelines for Multinational Enterprises Pentland Group plc Phillips-Van Heusen Corporation Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. Social Accountability International—SA8000 Timberland Company (The) Worker Rights Consortium World Federation of the Sporting Goods Industry World Responsible Apparel Production International Standards

87 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

General Policy Ⅲ “Business partners should aim for progressive Ⅲ “A safe and hygienic working environment shall be Ⅲ “A safe and hygienic working environment shall Statement and improvement in their environmental perfor- provided, and best occupational health and safety be provided, bearing in mind the prevailing Environmental mance, not only in their own operations, but practice shall be promoted, bearing in mind the knowledge of the industry and of any specific Management also in their operations with partners, suppliers prevailing knowledge of the industry and of any hazards. Adequate steps shall be taken to pre- Systems and subcontractors. This includes: integrating specific hazards.” vent accidents and injury to health arising out principles of sustainability into business deci- Ⅲ No specifically articulated environmental policy of, associated with, or occurring in the course sions; responsible use of natural resources; Ⅲ Comply with all applicable legal requirements for of work, by minimising, so far as is reasonably adoption of cleaner production and pollution hours of work, and wages and benefits practicable, the causes of hazards inherent in prevention measures; and designing and devel- the working environment.” oping products, materials and technologies Ⅲ No specifically articulated environmental according to the principles of sustainability.” policy (labor and human rights-focused Ⅲ “We adhere to social and environmental laws, initiative) directives and guidelines while continually improving our own contribution to a sustain- able society.” Ⅲ EMS’s in place for some suppliers; seeking to improve the environmental performance of factories Ⅲ Certified EMS (EMAS/ISO 14.001) in place at majority of own sites Ⅲ “Guide to Best Environmental Practice” covers building, energy, waste, water, emissions, soil and ground water, and management systems

88 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ “Employers shall provide a safe and Ⅲ “We believe that business profitability Ⅲ “We shall always consider the health Ⅲ “We always strive to minimize any possible healthy working environment to pre- and environmental responsibility go and safety of our employees. By damaging effects to the environment, which vent accidents and injury to health hand in hand. We strive to keep this in adopting the precautionary principle, may result as a consequence of our activities. arising out of, linked with, or occurring mind in both principle and practice and we will continually update our restric- Therefore, IKEA and its suppliers shall contin- in the course of work or as a result of have developed two basic tenets to tions against the use of environmen- uously reduce the environmental impacts of the operation of employer facilities.” guide us in our efforts: tally and health hazardous chemicals operations.” Ⅲ “Any Company that determines to ● wherever we do business, we will in the production of our garments and Ⅲ Supplier shall always comply with the most adopt the Workplace Code of Conduct operate with respect and sensitivity other products.” demanding requirements whether it is relevant shall, in addition to complying with all to the environment; Ⅲ “The environment is of increasing applicable laws or IKEA specific requirements. applicable laws of the country of ● we will encourage our employees to concern globally and H&M expects its Ⅲ “IKEA Way Standard,” listing minimum require- manufacture, comply with and support take individual steps to protect and suppliers to act responsibly in this ments for Environment, Social and Working the Workplace Code of Conduct in restore the environment, and respect.” Conditions and Wooden Merchandise, is a very accordance with the...Principles of empower them to ensure that com- Ⅲ “Suppliers must comply with all comprehensive environmental statement. Monitoring and shall apply the higher pany activity is consistent with our applicable laws and regulations in the Ⅲ If required by law, the supplier shall conduct standard in cases of differences or environmental practices.” country of operation.” an Environmental Assessment and obtain conflicts.” Ⅲ “Factories must comply with all applica- Ⅲ Will continually update ourselves on approval from authorities prior to changes in Ⅲ No specifically articulated environ- ble environmental laws and regulations. environmental news and legislation production, processes and buildings. mental policy (labor and human rights- Where such requirements are less Ⅲ Will not be content to follow existing Ⅲ Potential suppliers - prior to starting a business focused organization) stringent than Gap’s own, factories are environmental legislation, but will in relationship with IKEA - must fulfill certain encouraged to meet the standards out- certain areas do more than the law requirements first, including lined in Gap’s statement of environmen- requires no use of wood from intact natural forests or high tal principles.” conservation value forests. Ⅲ Factories must have an environmental Ⅲ Supplier shall ensure and demonstrate continu- management system or plan. ous environmental improvements, relative to increases in production, in various areas (e.g., reduction of emissions to air, discharges to ground and water, noise, hazardous and non- hazardous waste, the use of natural resources, and continuously working to replace hazardous substances with less hazardous). Ⅲ Supplier shall establish a list of relevant legis- lation and regulations in order to remain in compliance with the requirements; supplier shall have a basic factory registration/license to operate, if required by law; and supplier shall appoint one or several persons who shall have defined responsibilities for Environmental, Social and Working conditions.

ENVIRONMENTAL STANDARDS 89 International Confederation of Free Trade Unions (ICFTU) LEGO Company Levi Strauss & Co.

General Policy Ⅲ “A safe and hygienic working environment Ⅲ “Our environmental concern is linked both to Lego Ⅲ “We will only do business with partners who Statement and shall be provided, and best occupational health play materials and to the way in which they are share our commitment to the environment and Environmental and safety practices shall be promoted, bearing manufactured. Our fundamental principle is that who conduct their business in a way that is Management in mind the prevailing knowledge of the indus- we wish to assume a total view—from cradle to consistent with Levi Strauss & Co.’s Systems try and of specific hazards.” grave—in which we take all environmental aspects Environmental Philosophy and Guiding (Continued) Ⅲ No specifically articulated environmental into account. We give a high priority to environmen- Principles.” policy tal considerations in our choice of materials and Ⅲ “We will only utilize business partners who manufacturing processes. Environmental responsi- provide workers with a safe and healthy work bility is a natural and integrated part of our value environment.” base. It is thus also an important component of our Ⅲ Educate and assist factories in building their image, and we wish to be seen as an environmen- own environmental management system tally conscious and responsible company.” Ⅲ Must comply with all legal requirements rele- Ⅲ “At Lego, there are seven important environmental vant to the conduct of businesses questions to which we attach particularly great importance: plastics, semi-manufactured goods, packaging, printed materials, the logistics chain, recycling, and waste.” Ⅲ “All suppliers must provide a safe and healthy working environment in compliance with all applicable laws and regulations.” Ⅲ “[C]omply with existing legislation and regulations regarding the protection of the environment”

90 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ “We favor suppliers who practice Ⅲ “Like the world around us, our under- Ⅲ “Employers shall provide a safe and sani- Ⅲ “The contractor has written environ- environmental protection.” standing of environmental issues is con- tary working environment using OSHA mental, safety and health policies and Ⅲ “Employers shall provide a safe and tinually changing. There are few perfect standards as a benchmark, in order to standards, and implements a system to healthy working environment to prevent solutions to the challenges we face, avoid preventable work-related accidents minimize negative impacts on the envi- accidents and injury to health arising out only responsible steps we can take. We and injuries.” ronment, reduce work-related injury of the operation of employer facilities.” are committed to keeping you regularly Ⅲ No specifically articulated environmental and illness, and promote the general Ⅲ “Suppliers must observe all applicable updated on our progress and to devel- policy health of employees.” laws of their country, including those oping the measurements we publish.” Ⅲ “All facilities shall comply with all local Ⅲ “We’ve worked with our key Asian concerning employment, discrimination, Ⅲ “We care about the well-being of all our environmental laws. Manufacturers, sub- footwear contractors to implement the environment, safety and apparel or people and are committed to maintain- contractors and suppliers must certify management systems to allow them to apparel-related fields.” ing the quality of our health and safety compliance with all applicable environ- achieve specific environmental, health Ⅲ If there is any difference in a category at work.” mental regulations in their country.” and safety goals, beginning with a pro- between the company’s standards and Ⅲ Detailed Environmental Policy regarding gram called MESH (Management, local law, the higher standard prevails. Suppliers, Operations, and Customers Environment, Safety and Health).” Ⅲ Ensure compliance with legislation Ⅲ Subcontractor/supplier “certifies Ⅲ “Introduce an Environmental compliance with all applicable local Management System to improve effi- environmental regulations.” ciencies, reduce the risks of pollution and ensure compliance with legislation”

ENVIRONMENTAL STANDARDS 91 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

General Policy Ⅲ “Enterprises should, within the framework of Ⅲ We “consider environmental issues to be an influ- Ⅲ “We are committed to the environment and will Statement and laws, regulations and administrative practices in ential factor in our drive for world class standards favor vendors who share this commitment. We Environmental the countries in which they operate, and in con- and sustainable development.” require our vendors to meet all applicable envi- Management sideration of relevant international agreements, Ⅲ “We recognise that our business activities affect ronmental laws in their countries and to nur- Systems principles, objectives, and standards, take due the natural environment in a number of ways. We ture a better environment - at their facilities (Continued) account of the need to protect the environment, aim, through continuing improvement, to minimise and in the communities in which they operate.” public health and safety, and generally to con- the adverse effects on the environment and the Ⅲ “Employers shall provide a safe and healthy duct their activities in a manner contributing to earth’s natural resources, whilst safeguarding the work environment to prevent accident and the wider goal of sustainable development.” health & safety of our employees and the public.” injury to health.” Ⅲ “The Guidelines are not a substitute for, nor do Ⅲ “We will strive to: Ⅲ Compliance with all applicable environmental they override, applicable law. They represent ● comply with or exceed relevant legislative laws standards of behavior supplemental to applica- requirements ble law and, as such, do not create conflicting ● develop and implement a set of procedures to requirements.” monitor, control and review our significant envi- Ⅲ Enterprises should “establish and maintain a ronmental impacts (and environmental manage- system of environmental management appro- ment system) and update it as necessary priate to the enterprise” ● encourage manufacturing suppliers to recognise Ⅲ Where proposed activities of the enterprise their environmental responsibilities may “have significant environmental, health, or ● provide safe working conditions safety impacts, and where they are subject to a ● design and manufacture our products with decision of a competent authority, prepare an consideration of the environment appropriate environmental impact assessment” ● reduce progressively the environmental impact caused by our products and activities ● protect local and wider communities from environmental damage or nuisance resulting from our activities”

92 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. International, SA8000 Timberland Company (The)

Ⅲ We manage our business operations with Ⅲ “Around the world, leading manufactur- Ⅲ “Company shall provide a safe and Ⅲ “We expect a strong environmental spirit to strive for continual improvement in ers have found that environmental, healthy work environment and takes ade- commitment and aggressive efforts to minimising/eliminating all pollution sources safety and health programs can improve quate steps to prevent accidents and protect and restore the natural environ- to achieve business goal of sustainability business operations and reduce costs, injury to health.” ment. We will favor partners who: and maintain a good environment while creating safer working conditions, Ⅲ “The company shall comply with national ● have an environmental management Ⅲ We comply with all relevant and applica- eliminating environmental hazards to and other applicable law, other require- system that ensures compliance with ble local laws, legislation and regulations workers and achieving more efficient ments to which the company subscribes, environmental laws and demon- pertaining to environment, social & work- use of natural resources.” and this standard. When national and strates environmental commitment ing conditions, fire, as well as health & Ⅲ “Factory complies with all applicable other applicable law, other requirements through clear programs, procedures safety laws and regulations regarding struc- to which the company subscribes, and and management accountability tural safety and working conditions, this standard address the same issue, ● disclose environmental impacts, pro- including worker health and safety, san- that provision which is most stringent grams and goals through regular itation, risk protection, fire safety and applies.” reporting electrical and mechanical safety.” Ⅲ No specifically articulated environmental ● increase energy efficiency and adopt Ⅲ “Strive to assure employees a safe and policy cleaner sources of energy healthy workplace” and one that does ● minimize toxic and hazardous “not expose workers to hazardous substances used in products and conditions” operations Ⅲ “The specific and quantitative require- ● reduce use of natural resources ments of the Reebok Standard are including raw materials and water based on common practice, regulatory ● take responsibility for proper waste requirements, consultation with local or management by recycling all re- regional occupational health experts, cyclable waste streams and dispos- and the recommendations of public and ing properly of all non-recyclable private bodies and other national stan- waste streams dard-setting bodies around the world Ⅲ “We require a continuous effort to (for example, the United States improve environmental performance Occupational Safety and Health along a defined path towards clean Administration).” production.” Ⅲ “The workplace must be safe and healthy based on the recognized stan- dards of the ILO and national laws.” Ⅲ Compliance with national health and safety laws Ⅲ Preference for factories that have an environmental management plan

ENVIRONMENTAL STANDARDS 93 Worker Rights World Federation of the Sporting World Responsible Apparel Consortium (WRC) Goods Industry (WFSGI) Production (WRAP) International Standards1

General Policy Ⅲ “The Universities participating are Ⅲ “Member companies shall comply Ⅲ “Manufacturers of sewn products Ⅲ “EMSs such as ISO 14000 are seen Statement and each committed to conducting with all relevant laws and regula- will comply with environmental as mechanisms for achieving Environmental their business affairs in a socially tions regarding the protection and rules, regulations and standards improvements in environmental Management responsible and ethical manner preservation of the environment. applicable to their observations, performance and for supporting Systems consistent with their respective In particular, members should and will observe environmentally the trade prospects of “clean” (Continued) educational, research and/or ser- carefully monitor discharges and conscious practices in all loca- firms. The potential advantages of vice missions, and to protecting waste which could pollute the tions where they operate.” EMSs are clear, but the adoption of and preserving the global local environment.” Ⅲ “Provide a safe and healthy work ISO 14000 is very recent, and prac- environment.” Ⅲ No specifically articulated envi- environment” tical issues are emerging, among Ⅲ Comply with all applicable legal ronmental policy Ⅲ Compliance with all applicable them the need for an emphasis on requirements of the countries of rules and regulations performance improvement and for manufacture in conducting busi- simplification of certification; the ness related to or involving the potential for regulatory streamlin- production or sale of Licensed ing; and the trade consequences.” Articles Ⅲ ISO (International Standard Ⅲ Direct operations and those of Organization) 14001 specifies the any subcontractor must comply actual requirements for an with the more rigorous of either: Environmental Management all national laws on workplace System that can be audited and safety and health regulations, or certified; a company may seek Title 29 CFR of the Federal Code of certification of its EMS by an Regulations, enforced by OSHA external third party organization (Occupational Safety and Health Ⅲ UN Global Compact provides: Administration), whichever regu- “Businesses should support a pre- lation is more health protective cautionary approach to environ- for a given hazard mental challenges; undertake Ⅲ Direct operations and those of initiatives to promote greater envi- any subcontractor must also com- ronmental responsibility; and ply with all health and safety con- encourage the development and ventions of the ILO ratified and diffusion of environmentally- adopted by the country in which friendly technologies” the production facility is located

94 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Materials

Energy Ⅲ Specific recommendations listed in “Guide to Best Environmental Practice”

Water Ⅲ Specific recommendations listed in “Guideline for Health, Safety & Environment” as well as “Guide to Best Environmental Practice”

ENVIRONMENTAL STANDARDS 95 Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB

Materials Ⅲ Company policy developed and implemented; Ⅲ Conduct business in a manner that (Continued) not publicly available utilizes natural resources as efficiently Ⅲ Company expects to make policy available to as possible the public within the next year

Energy Ⅲ Company policy developed and implemented; Ⅲ Caution in decision-making out of respect for nature (Continued) not publicly available Ⅲ Conduct business in a manner that utilizes natural Ⅲ Company expects to make policy available to resources as efficiently as possible the public within the next year

Water Ⅲ Company policy developed and implemented; Ⅲ Conduct business in a manner that utilizes natural (Continued) not publicly available resources as efficiently as possible Ⅲ Company expects to make policy available to Ⅲ “. . . the use of water is a significant [environmental] the public within the next year aspect in the production of the garment and in the use of the garment”

96 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR International Confederation of Free IKEA Services AB Trade Unions (“ICFTU”) LEGO Company Levi Strauss & Co.

Ⅲ Supplier must ensure and demonstrate Ⅲ To be environmentally-friendly, pack- Ⅲ The facility should know whether or not continuous improvements to reduce use aging must have minimum use of asbestos and/or PCBs are present at the site of natural resources resources (raw materials, water and and, if so, educate their employees in the proper Ⅲ Supplier must not use wood originating energy) in manufacture; efficient pro- handling of these materials from national parks, nature reserves, tection of contents, to prevent waste; intact natural forests or any areas with easy handling during storage and official declared high conservation transit; and efficient disposal, prefer- values, unless certified ably through recycling

Ⅲ Supplier shall ensure and demon- strate continuous environmental improvements—relative to increases in production—by reducing the use of energy

Ⅲ Supplier shall ensure and demon- Ⅲ Finishing facilities must meet LS&CO. Global strate continuous environmental Waste-water Effluent Guide-lines improvements—relative to increases in production—by reducing discharges to ground and water

ENVIRONMENTAL STANDARDS 97 Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc.

Materials Ⅲ “Sourcing—Where there is the potential to (Continued) improve significant environmental impacts we will use raw materials from known sources” Ⅲ “Sustainable use—for important raw materials we will work towards defined sustainability performance standards based on recognized best practice” Ⅲ “Where the use of raw material is not sustain- able (e.g., fossil fuel based) we will support the development of innovative, more sustainable alternatives”

Energy Ⅲ Suppliers expected to minimize (Continued) consumption of energy by operating efficiently

Water Ⅲ Suppliers expected to minimize consumption of (Continued) raw materials like water by operating efficiently Ⅲ “Stores, warehouses, and offices use modest amounts of water”

98 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Organization for Economic Cooperation and Development (OECD), Guidelines for NIKE, Inc. Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Ⅲ Enterprises should seek to develop prod- Ⅲ Reduce site energy consumption by ucts that are “efficient in their consumption 20% by 2012, which will be calculated of energy and natural resources” relative to square meters of space Ⅲ Systems and procedures in place to reduce energy consumption Ⅲ Launch energy awareness campaign, which includes posters relevant to energy reduction

ENVIRONMENTAL STANDARDS 99 Pou Yuen Vietnam Social Accountability Enterprise, Ltd. Reebok International, Ltd. International, SA8000 Timberland Company (The)

Materials Ⅲ Choose environmentally Ⅲ Seek to reduce use of natural (Continued) friendly materials and apply resources including raw materials the best production process to utilize materials most effectively

Energy Ⅲ Promote energy/resources Ⅲ Seek to reduce use of natural (Continued) saving and waste reduction. resources including energy Ⅲ Adopt cleaner sources of energy as possible

Water Ⅲ Waste water is being treated Ⅲ Seek to reduce use of natural (Continued) to meet the standard of local resources including water regulation before discharging

100 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR World Federation of the Sporting World Responsible Apparel Worker Rights Consortium (WRC) Goods Industry (WFSGI) Production (WRAP) International Standards

Ⅲ No specific policy in IFC/World Bank Guidelines Ⅲ Whenever possible, use non-hazardous instead of hazardous materials

Ⅲ “Where feasible, choose energy- efficient and environmentally sound processes.” Ⅲ “Efficient use of energy is one of the main strategic measures not only for the conservation of fossil energy sources, but also abatement of air pollution”

Ⅲ Process wastewater, domestic sewage, and contaminated stormwater must meet certain maximum limits before being discharged to surface water. Ⅲ Textiles: Process wastewater is a major source of pollutants. Wastewater also contains solids, oil, and possibly toxic organs from dying and bleaching. Wastewater should be checked for pesticides like DDT and PCP.

ENVIRONMENTAL STANDARDS 101 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Emissions Ⅲ Suppliers encouraged to adopt pollution prevention measures Ⅲ Reducing Volatile Organic Compounds in footwear factories

Pollution Control Ⅲ No use of restricted substances in product and Hazardous production Substances Ⅲ Suppliers must regularly submit test reports for all hazardous substances Ⅲ Restricted substances include: ● heavy metals such as arsenic, antimony, cadmium, chrome VI, lead, copper, nickel, cobalt ● penta-chlorphenole, stri- and tetrachlophenoles ● pesticides ● formaldehyde ● allergic dyes; and ● flame retardants Ⅲ Reduce PVC-containing materials by the end of 2002, except where appropriate alternatives do not exist. 2003 model shoes expected to be 100% PVC free

102 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ Conduct business in a manner that uti- Ⅲ Supplier shall, if required, obtain the lizes natural resources as efficiently as necessary permits - pertaining to emis- possible sions to the air, discharges to ground and water, as well as noise pollution

Ⅲ Store hazardous and combustible Ⅲ Will update restrictions against the use Ⅲ Must abide by legislation regarding materials in secure and ventilated areas of environmentally and health hazardous contaminated areas on site and within Ⅲ Factories have procedures for notifying chemicals in the production of our gar- confines of facility authorities of accidental discharge ments and other products Ⅲ Compliance with applicable laws per- or release or other environmental taining to the use, storage and import of emergencies all chemicals

ENVIRONMENTAL STANDARDS 103 International Confederation of Free Trade Unions (“ICFTU”) LEGO Company Levi Strauss & Co.

Emissions (Continued)

Pollution Control Ⅲ Printing must use non-toxic ink that is resistant to Ⅲ Chemicals required to be stored, labeled and and Hazardous saliva and perspiration disposed of appropriately Substances (Continued)

104 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ “Gases used in our refrigeration systems Ⅲ “Prohibition of the use of CFCs” which can have significant environmental “could contribute to the depletion of impacts if allowed to escape” ozone layer” Ⅲ Calculate an annual baseline emission of Greenhouse Gases and establish goals for reduction

Ⅲ Where potentially hazardous sub- Ⅲ Researching gas and barrier film alter- stances are used, will set performance natives with proven performance that standards to carefully control their use. allow substitution of a benign cushion- Where science or stakeholder concern ing gas demands it, will phase out the use of Ⅲ Pursuing phase-out of PVC from Nike particularly hazardous substances products Ⅲ Ensure potentially hazardous sub- Ⅲ Reduced the use of petroleum solvents stances in equipment are reduced in footwear manufacturing by more than Ⅲ Banned a number of specific, named, 90% since 1995 chemicals, including ozone-depleting chemicals

ENVIRONMENTAL STANDARDS 105 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Emissions Ⅲ Will work to substantially reduce emissions (Continued) caused by travel to work or in work time, calcu- lated relative to the number of people employed

Pollution Control Ⅲ Enterprises should seek to “provide adequate Ⅲ Conduct asbestos surveys as necessary and Hazardous education and training to employees in envi- Ⅲ Emergency procedures for environmental incidents Substances ronmental health and safety matters, including at each site (Continued) the handling of hazardous material and the pre- vention of environmental accidents”

106 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. International, SA8000 Timberland Company (The)

Ⅲ Recommendations for air quality Ⅲ Significant reduction in VOC emissions Ⅲ Recommendations for workplace noise through improved efficiency and substi- tution of lower solvent alternatives Ⅲ Reduction in carbon-dioxide emissions and improved energy efficiency

Ⅲ Workplace is supplied with Material Ⅲ Numerous specific requirements on Ⅲ Preference for factories that increase Safety Data Sheet for organic solvents management of hazardous and com- efficiency and minimize and pollution Ⅲ Chemical storage rooms are located sep- bustible materials, including: Ⅲ Expanding use of water-based cements arately from products, raw materials, ● chemical management system excessive heat, etc. and having the fire ● chemical storage suppression, adequate secondary con- ● chemical use in production tainment, sufficient ventilation, and being ● disposal of chemical and hazardous free of obstructions waste Ⅲ Before purchasing hazardous materials, ● controlling chemical exposure the material purchasing department must ask vendors to provide labels on the con- tainers to describe the primary chemical ingredients, precautionary measures, warning statement, manufacturer’s and supplier’s information

ENVIRONMENTAL STANDARDS 107 Worker Rights World Federation of the Sporting World Responsible Apparel Consortium (WRC) Goods Industry (WFSGI) Production (WRAP) International Standards

Emissions Ⅲ “The World Bank Group supports a number of (Continued) efforts to help its client countries reduce emis- sions of greenhouse gases through measures such as promoting energy efficiency and increasing the use of renewable energy.” Ⅲ Pollution control systems may be required in order to meet specified emissions limits. These systems must be well maintained and operated and must not be fitted with overflow or bypass devices, unless required for emergencies. Ⅲ Most of the air emissions from commercial and general industrial facilities originate with the fuel used for heating purposes or for generating steam for process purposes. Particular emis- sions that may originate in the process are addressed case by case. Ⅲ Textiles: Air emissions include dust, oil mists, acid vapors, odors, and boiler exhausts. Ⅲ Textiles: VOC emissions should be reduced to less than 1 kg carbon per metric ton of fabric by implementing measures such as routing the extracted air from the solvent usage areas through a combustion system

Pollution Control Ⅲ No exposure of workers to Ⅲ Whenever possible, use nonhazardous instead and Hazardous hazards, including glues and of hazardous materials Substances solvents, that may endanger Ⅲ All hazardous materials must be stored in (Continued) their safety, “including their clearly labeled containers or vessels, and stor- reproductive health” age and handling must be in accordance with local regulations Ⅲ Several chemicals classified as ozone-depleting substances are scheduled for phase out under the Montreal Protocol, including CFCs, halons, HCFCs and HBFCs. Ⅲ Textiles: “The use of pesticides and other chem- icals (used for mothproofing, flame retardants, etc.) that are banned in OECD countries is dis- couraged and in general, is not acceptable.” Ⅲ Textiles: Pollution prevention programs should focus on reduction of water use and on more efficient use of process chemicals.

108 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Waste Management Ⅲ Specific recommendations listed in “Guideline for Health, Safety & Environment” as well as “Guide to Best Environmental Practice”

Packaging and Ⅲ Reducing the impact of transporting products Transport

ENVIRONMENTAL STANDARDS 109 Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB

Waste Management Ⅲ Dispose of hazardous and combustible Ⅲ Resource conservation, recycling and reduction of (Continued) materials in a safe and legal manner waste Ⅲ “Paper, packaging material, garbage—Gap Ⅲ “...solid waste is a significant [environmental] aspect in works hard to reduce these side effects of busi- our stores and at our DC’s” ness operations. We encourage our employees and business partners to reduce waste, recycle and close the recycling loop by purchasing products that contain high percentages of post- consumer recycled material.” Ⅲ Recycling programs in stores, distribution cen- ters and headquarters buildings Ⅲ To further minimize paper waste, increasingly manage information electronically

Packaging and Ⅲ Employees are empowered to find re-uses for Transport fixtures, electronic equipment, packing material (Continued) and paper products

110 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR International Confederation of Free IKEA Services AB Trade Unions (“ICFTU”) LEGO Company Levi Strauss & Co.

Ⅲ Supplier must ensure proper compliance Ⅲ Moulds used in Lego factories are Ⅲ Ensure that “no hazardous wastes are being pertaining to the handling, storage, uti- designed to generate minimum waste improperly used, stored, transported or disposed lization, transporting and disposing of Ⅲ Programs in place to recycle and re- of from the facility” hazardous and non-hazardous wastes use some forms of plastic Ⅲ Hazardous and non-hazardous waste Ⅲ To be environmentally-friendly, pack- must be kept separate aging must have minimum use of Ⅲ If waste is disposed of on-site, all rele- resources (raw materials, water and vant legal requirements must be fulfilled energy) in manufacture; efficient pro- ● No allowance of hazardous waste in tection of contents, to prevent waste; land-fills or incinerated on-site easy handling during storage and transit; and efficient disposal, prefer- ably through recycling Ⅲ In 1998, the plastics waste that Lego could not re-use amounted to less than 1% of the total raw material consumption Ⅲ Quantity of plastics packaging has been reduced by 25-30%

Ⅲ Code of conduct for distribution under Ⅲ Attach “particular importance” to development packaging Ⅲ To be environmentally-friendly, pack- aging must have minimum use of resources (raw materials, water and energy) in manufacture; efficient pro- tection of contents, to prevent waste; easy handling during storage and transit; and efficient disposal, prefer- ably through recycling Ⅲ Over half the cardboard packaging used by the Danish and Swiss facto- ries today comprises recycled materials Ⅲ Plastics that Lego uses for its pack- aging disturb the environment the least—primarily known as PET, or PolyEthyleneTerephthalate

ENVIRONMENTAL STANDARDS 111 Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc.

Waste Management Ⅲ Suppliers will be expected to minimize their (Continued) consumption of raw materials and other resources such as energy and water by operat- ing efficiently Ⅲ Use a range of re-usable transport packaging systems to reduce waste Ⅲ Reduce by operating re-use and recycling schemes for packaging store equipment and unsold foods Ⅲ Ensure that recycled materials in equipment are used wherever practical and other resources are used efficiently Ⅲ Specify the most environmentally efficient com- binations of vehicle types, fuels and technolo- gies for distribution fleets

Packaging and Ⅲ Packaging should “use a range of re-usable Transport transport packaging systems to reduce waste” (Continued) Ⅲ “Distribution—specify the most environmen- tally efficient combinations of vehicle types, fuels and technologies for distribution fleets” Ⅲ “Packaging is used to reduce waste by protect- ing our products from damage during storage and distribution”

112 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Organization for Economic Cooperation and Development (OECD), Guidelines for NIKE, Inc. Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Ⅲ Company is in the process of Ⅲ Enterprises should “continually seek to Ⅲ Reduce waste sent to landfill by 20% setting targets for waste improve environmental performance” by by 2012 (warehouse and office reduc- reduction encouraging “development and provision tion will be calculated relative to Ⅲ Worked with Asian partners to of products and services that have no number of units processed and achieve specific environmental, undue environmental impacts; are safe in people employed) health and safety goals, including their intended use; are efficient in their Ⅲ Significantly increase the proportion factory waste in Asia, which has consumption of energy and natural of waste recycled by 2012 (ware- been disposed of in a number of resources; can be reused, recycled, or house and office reduction will be ways, including incineration disposed of safely” calculated relative to number of units processed and people employed) Ⅲ Launch waste and recycling aware- ness campaign: ● systems and procedures to reduce waste to landfill; ● posters relevant to reduction of waste; ● Green commuter day; ● Pentland Green award or similar incentive

Ⅲ “Make efforts to inform the end users of our products and how to use and dispose of them and their packaging responsibly”

ENVIRONMENTAL STANDARDS 113 Pou Yuen Social Accountability Vietnam Enterprise, Ltd. Reebok International, Ltd. International, SA8000 Timberland Company (The)

Waste Management Ⅲ Establish a standard proce- Ⅲ Preference for factories that take (Continued) dure according to legislation responsibility for waste management for the safe handling, storing, and minimize waste transporting utilisation, and Ⅲ Preference for factories that reduce disposal of waste. leather waste by reselling unused leather Ⅲ Preference for factories that manu- facture smaller products using scrap cuttings

Packaging and Ⅲ Shoe boxes are in recycled boxes Transport made from 100% post-consumer (Continued) recycled products and printed vegetable-based inks

114 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR World Federation of the Sporting World Responsible Apparel Worker Rights Consortium (WRC) Goods Industry (WFSGI) Production (WRAP) International Standards

Ⅲ Project sponsors must recycle or reclaim materials (re solid wastes gen- erated in the course of operating the facility) where possible, and if not prac- tical, wastes must be disposed of in an environmentally acceptable manner and in compliance with local laws and regulations. Ⅲ Textile Industry: “Emissions of volatile organic compounds (VOCs) mainly arise from textile finishing, drying processes, and solvent use.

Ⅲ No specific policy in IFC/World Bank Guidelines

ENVIRONMENTAL STANDARDS 115 adidas-Salomon AG Clean Clothes Campaign Ethical Trading Initiative (ETI)

Monitoring and Ⅲ A number of suppliers are currently pursuing Ⅲ “Companies adopting the code will be expected to Ⅲ Companies adopt ETI’s “Base Code” of labor Compliance independent assessment and certification engage an independent institution established for practice, or draw up their own based on it, then Framework under ISO 14001 the purpose of monitoring compliance with the work with selected suppliers worldwide to Ⅲ As FLA member, regularly scheduled internal code, in assisting companies in implementing the move towards these standards and external audits include assessment of code, and in providing consumers with information Ⅲ To the extent that environmental hazards affect some environmental factors concerning the labor practices in the industry.” workers’ health and well-being, they are part of the ETI framework

116 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Fair Labor Association (FLA) Gap Inc. H&M Hennes & Mauritz AB IKEA Services AB

Ⅲ Companies/brands seek certification that Ⅲ Internal compliance audits include Ⅲ Internal compliance audits include Ⅲ IKEA Trading Service Offices has the compliance program is consistent with assessment of some environmental assessment of some environmental direct responsibility to support and FLA principles factors factors monitor suppliers Ⅲ To the extent that environmental hazards Ⅲ To ensure compliance, IKEA has also affect workers’ health and well-being, formed a global compliance and moni- they are reviewed in the FLA monitoring toring group process Ⅲ Reserves the right to check suppliers “with the help of independent organizations” Ⅲ IKEA conducts an “IWAY” audit of suppliers on premises; it reserves the right to perform unannounced audits or inspections to verify requirements; suppliers must allow for confidential employee interviews and access to all documentation and records

ENVIRONMENTAL STANDARDS 117 International Confederation of Free Trade Unions (“ICFTU”) LEGO Company Levi Strauss & Co.

Monitoring and Ⅲ Internal compliance audits include assessment of Ⅲ Internal and external compliance audits that Compliance some environmental factors are conducted include assessment of some Framework environmental factors (Continued)

118 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Liz Claiborne Inc. Marks & Spencer Group p.l.c. New Balance Athletic Shoe, Inc. NIKE, Inc.

Ⅲ As FLA member, regularly scheduled inter- Ⅲ Participate in, and publish findings of, Ⅲ “Worked with our key Asian footwear nal and external audits include assessment “EIRIS” (Ethical Investment Research contractors to implement management of some environmental factors Service) Environmental Survey 2002 systems to achieve specific environ- Ⅲ “Use energy and water efficiently mental, health and safety goals, begin- supported by regular monitoring and ning with a program called MESH audits” (Management, Environment, Safety Ⅲ “Will encourage and monitor our and Health)” suppliers’ actions to measure and Ⅲ Selections of results of internal communicate their environmental “SHAPE” audits (Safety, Health, performance” Attitudes of Management, Treatment of People, Environment) include evaluation of environmental factors, and have been made public on the Nike web site

ENVIRONMENTAL STANDARDS 119 Organization for Economic Cooperation and Development (OECD), Guidelines for Multinational Enterprises Pentland Group p.l.c. Phillips-Van Heusen Corporation

Monitoring and Ⅲ For implementation and reporting purposes: Ⅲ Management commitment to and endorsement of Ⅲ As FLA member, regularly scheduled internal Compliance ● adhering countries to set up National environmental policy and external audits include assessment of Framework Contact Points to undertake promotional Ⅲ Each site to report progress and requirements four some environmental factors (Continued) activities and to consider instances where times a year Ⅲ “PVH has been committed to the enforcement companies are believed not to have Ⅲ Formation of Health, Safety, and Environmental of these standards and has an on-going observed the Guidelines Committee approval and monitoring system. Our goal is to ● oversight responsibility given to Committee Ⅲ Continuing staff training engage our suppliers, contractors and busi- on International Investment and Multi- Ⅲ Bi-annual meetings ness partners in the implementation of these national Enterprises (CIME), which the CIME Ⅲ Meet with LA21 representative standards.” periodically holds exchanges of views on matters covered by the Guidelines

120 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR Social Accountability Pou Yuen Vietnam Enterprise, Ltd. Reebok International, Ltd. International, SA8000 Timberland Company (The)

Ⅲ Numerous specific suggestions for health Ⅲ Implements and monitors standards Ⅲ Auditing under SA8000 includes monitor- Ⅲ Endorsement of the CERES Principles, and safety regulations, including: through on-site inspection of facilities, ing of environmental factors which includes participating in regular ● “workplace with solvents operation off-site interviews, and regular reporting Ⅲ Voluntary factory-based monitoring and audits and reports, as well as protection should be tested [for] air quality requirements for factory management certification system of the biosphere, sustainable use of nat- biweekly” Ⅲ Provides an in-depth, 47-page, implemen- ural resources, reduction and disposal ● “workplace noise should be tested tation guide to the Reebok Standards for of wastes, energy conservation, risk biweekly” specific direction to factory managers for reduction, safe products and service, Ⅲ Test records should be retained for a incorporating basic principles into daily environmental restoration, informing the minimum of 2 years operations public, and management commitment Ⅲ Internal and external compliance audits that are conducted include assessment of some environmental factors

ENVIRONMENTAL STANDARDS 121 Worker Rights World Federation of the Sporting World Responsible Apparel Consortium (WRC) Goods Industry (WFSGI) Production (WRAP) International Standards

Monitoring and Ⅲ Compliance, disclosure, verifica- Ⅲ Factory-based monitoring and Ⅲ Project sponsor is required to Compliance tion, and remediation programs certification program, including maintain records of air emissions, Framework assessment of some environmen- effluents, and hazardous wastes (Continued) tal factors sent off site, as well as significant environmental events such as spills, fires, and other emergen- cies that may have an impact on the environment. The information should be reviewed and evalu- ated to improve the effectiveness of the environmental protection plan. Ⅲ ISO 14001 is the only International Standard Organization standard against which it is currently possi- ble to be certified by an external certification authority, but it does not itself state specific environ- mental performance criteria Ⅲ CERES Principles provide for par- ticipating in regular audits and reports, as well as protection of the biosphere, sustainable use of natural resources, reduction and disposal of wastes, energy con- servation, risk reduction, safe products and services, environ- mental restoration, informing the public, and management commit- ment

Endnote

1. Unless otherwise noted, standards are from World Bank and International Finance Corporation (“IFC”) Guidelines in the “Pollution Prevention and Abatement Handbook 1998.”

122 APPAREL, FOOTWEAR AND LIGHT MANUFACTURING SECTOR ANNEX C Agribusiness Sector Labor and Human Rights Standards

Companies/Organizations: Issues Examined:

Banana Group (The)—UK Banana Industry Code of Best Practice General Policy Statement ...... 124–128 Chiquita Brands International, Inc. Forced Labor ...... 124–128 Dole Food Company, Inc. Child Labor...... 129–133 European Federation of Food, Agriculture and Tourism Trade Unions/European Wages and Benefits, Terms of Employment ...... 129–133 Sugar Manufacturers’ Committee—Corporate Social Responsibility in the European Sugar Industry Hours of Work...... 134–138 Fairtrade Labelling Organizations International—Fair Trade Standards for Hired Labor Freedom of Association, Collective Bargaining ...... 134–138 Flower Label Program Health and Safety...... 139–143 Fresh Del Monte Produce, Inc. Discrimination...... 139–143 International Code of Conduct for Production of Cut-Flowers Harassment, Abuse, and Disciplinary Action ...... 144–148 McDonald’s Corporation Monitoring and Compliance Framework ...... 144–148 Nestlé S.A. (Brands include Hills Brothers, Taster’s Choice, and Nescafe) Procter & Gamble Company (The) (Brands include Folgers) Rainforest Alliance—Better Banana Project Rainforest Alliance—Generic Coffee Standards Starbucks Coffee Company Tate & Lyle p.l.c. International Standards

123 Banana Group (The), UK Banana Industry Code of Best Practice1 Chiquita Brands International, Inc. Dole Food Company, Inc.2

General Policy Ⅲ “Committed to progressive change in the Ⅲ “The company shall comply with national and Ⅲ “It is Dole’s policy to comply with all applicable Statement industry to improve the environment, and other applicable law, other requirements to which laws and regulations at all times wherever we through increased productivity, improve remu- the company subscribes, and [its social account- operate, to take all practicable steps to pro- neration and working conditions of those in the ability] standard....The provision which is most mote health, safety and environmental protec- industry.” stringent applies.” tion and to continually progress toward Ⅲ “The company shall also respect the principles of attainment of the company’s goals.” the following international instruments:” ILO Conventions 29, 105, 87, 98, 100, 111, 135, 138, 155, 159and 155, and Recommendations 146 and164, the UDHR, and the UN Convention on the Rights of the Child.

Forced Labor Ⅲ No forced labor of any type, including prison Ⅲ Observes all local labor laws Ⅲ No requirement to lodge “deposits” or identity papers upon commencing employment

124 AGRIBUSINESS SECTOR European Federation of Food, Agriculture and Tourism Trade Unions (EFATT)/European Sugar Manufacturers’ Fairtrade Labelling Organisation Committee (CEFS), Corporate Social Responsibility International (FLO), Fair Trade in the European Sugar Industry 3 Standards for Hired Labor4 Flower Label Program (FLP)5 Fresh Del Monte Produce, Inc.6

Ⅲ “Members of CEFS... undertake to com- Ⅲ FLO requires that “producer organiza- Ⅲ “Member farms must comply with ILO Ⅲ “Commitment to conduct all of our busi- ply with the minimum standards set tions and companies always abide by standards for workers’ rights.” ness affairs honestly, ethically and out...and, as appropriate, to promote national legislation. Furthermore legally, and to act always in the best these standards beyond the area of national legislation prevails if it sets interests of our customers, our employ- activities for which the CEFS has a higher standards on a particular issue ees and our shareholders” mandate.” than FLO.” Ⅲ “The respect of these standards shall Ⅲ In “setting its standards,” FLO follows not constitute a valid reason for reduc- “certain internationally recognized ing pre-existing higher standards...” standards and conventions,” especially ILO Conventions 29, 87, 98, 100, 105, 138, 155 and 182

Ⅲ Will not operate with any form of Ⅲ No forced labor of any type Ⅲ No forced labor, including bonded, invol- Signatory to UK Banana Industry Code of forced or compulsory labor Ⅲ Employment not conditioned on untary, or prison Best Practice (refer to that code). employment of spouse (spouses have Ⅲ No worker shall be required to lodge the right to off-farm employment) deposits or their identify papers with their employer

LABOR AND HUMAN RIGHTS STANDARDS 125 International Code of Conduct for Production of Cut-Flowers7 McDonald’s Corporation8 Nestlé S.A.9

General Policy Ⅲ “The code provides a concise statement of Ⅲ “[C]ommitted to a policy of complying with the law Ⅲ “Nestlé’s emphasizes that, as a minimum, its Statement minimum labor, human rights and environmen- wherever it does business, and to maintaining high employees must comply with the laws applica- (Continued) tal standards...the company pledges to observe standards of business conduct.” ble in the countries in which it operates.” core ILO standards, the universal human rights Ⅲ “Nestlé’s continues to maintain its commitment standards and basic environmental standards.” to follow and respect all applicable local laws in each of its markets. If an interpretation of [its Business Principles] is construed as con- trary to local laws, such interpretation should not be followed in that country.” Ⅲ Supports and advocates the UN Global Compact

Forced Labor Ⅲ No forced labor, including bonded or involun- Ⅲ No forced labor of any type, including prison and Ⅲ No forced labor of any type, including involun- (Continued) tary prison labor indentured servitude tary or prison labor Ⅲ No workers shall be required to lodge deposits Ⅲ Suppliers may not contract with subcontractors or their identity papers with their employer who utilize such practices

126 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Procter & Gamble Company (The)10 Better Banana Project11 Generic Coffee Standards12 Starbucks Coffee Company13

Ⅲ “We operate within the spirit and letter Ⅲ “The employer must implement a labor Ⅲ “The employer must implement a labor Ⅲ Six guiding principles include “Provide of the law and maintain high ethical policy that includes compliance with policy that includes compliance with the a great work environment and treat standards wherever we conduct busi- the relevant national legislation, ILO relevant national legislation, ILO conven- each other with respect and dignity” ness. We expect all our vendors to conventions, other international con- tions, other international conventions rat- and “Embrace diversity as an essential conduct their business with the same ventions ratified by the national govern- ified by the national government, and the component in the way we do business.” high standards.” ment, and the Sustainable Agriculture Sustainable Agriculture Network Ⅲ Partnership with Conservation Ⅲ Supports the Global Sullivan Principles. Network standards.” standards.” International, and alliance with CARE Ⅲ “Agriculture should improve the stan- dard of living for workers and their families.”

Ⅲ No forced labor in any of its global Ⅲ No forced labor of any type Ⅲ Company does not condone forced operations or facilities labor of any type Ⅲ Expects suppliers and contractors to uphold the same standards

LABOR AND HUMAN RIGHTS STANDARDS 127 Tate & Lyle p.l.c.14 International Standards15

General Policy Ⅲ Company “strives toward the highest ethical Statement standards in all aspects of its business in all (Continued) parts of the world”

Forced Labor Ⅲ “Recognizes fundamental human rights and Ⅲ ILO Forced Labor Convention, No. 29 (Continued) freedoms and strives to reflect these in its busi- Ⅲ ILO Abolition of Forced Labor Convention, No. 105 ness” Ⅲ UN Global Compact (“eliminate all forms of com- pulsory labor”) Ⅲ UN Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights (“UN Norms”), (transna- tional corporations shall not “use forced or com- pulsory labor as forbidden by the relevant international instruments and national legislation as well as international human rights law”)

128 AGRIBUSINESS SECTOR Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Child Labor Ⅲ Minimum age is the greater of: Ⅲ Minimum age is 18. (“All of our banana divisions Ⅲ Observes all local labor laws ● 15; or now have a minimum hiring age of 18, higher than Ⅲ Does not knowingly purchase products from ● legal minimum age for employment the minimum required by the SA8000 standard.”) commercial producers who violate applicable Ⅲ Procedures for remediation of any child laborers child labor laws found, including providing adequate support to enable such children to attend and remain in school

Wages and Benefits, Ⅲ Wages must respect local legal minimum and Ⅲ Minimum wage is the greater of: Ⅲ Pays wages and benefits that are competitive Terms of Employment will equal or exceed wages in the local ● local minimum wage; or within the industry and allows workers and Agriculture and Food sectors ● prevailing local industry standard their families to have a good standard of living Ⅲ Overtime payment must be in accordance with Ⅲ Overtime wages shall be compensated at a pre- within the society where the workers live local legal requirements mium rate Ⅲ Period of notice for termination of employment Ⅲ Wages must “always be sufficient to meet basic by employers will be equal to that required of needs” of employees and “provide some discre- the employees by employers tionary income” Ⅲ Wage deductions may not be made for disciplinary purposes Ⅲ Compensation rendered either in cash or check form Ⅲ Labor-only contracting arrangements and false apprenticeship schemes not allowed

LABOR AND HUMAN RIGHTS STANDARDS 129 European Federation of Food, Agriculture and Tourism Trade Unions (EFATT)/European Sugar Manufacturers’ Fairtrade Labelling Organisation Committee (CEFS), Corporate Social Responsibility International (FLO), Fair Trade in the European Sugar Industry Standards for Hired Labor Flower Label Program (FLP)

Child Labor Ⅲ Opposed to child labor Ⅲ FLO follows ILO Convention 29 Ⅲ Minimum age is the greater of: (Continued) Ⅲ Meets ILO Convention 138 in relation to the Ⅲ Minimum age is 15 ● 15; or minimum age for employment Ⅲ Minimum age to work which is likely to jeopardize ● compulsory school-leaving age the health, safety or morals of young people, is 18 Ⅲ Children under 18 shall not work in hazardous Ⅲ Working does not jeopardize schooling or the conditions social, moral or physical development of the young Ⅲ Adequate transitional economic assistance person and appropriate educational opportunities shall be provided to any replaced child workers

Wages and Benefits, Ⅲ Pay levels meet or exceed the minimum rates Ⅲ FLO follows ILO Convention 100 on Equal Ⅲ Wages and benefits shall at least meet legal or Terms of Employment provided for by branch or industry collective Remuneration industry minimum standards and always be (Continued) agreements and/or legal provisions Ⅲ Salaries are in line with or exceed regional aver- sufficient to meet basic needs of workers and Ⅲ If no agreement or pay scale exists, wages are age and official minimum wages for similar occu- their families and to provide some discre- enough to ensure that workers and their fami- pations, and are gradually increased to levels tionary income lies have a decent standard of living as defined above regional average and official minimum Ⅲ Pay should be in cash, direct to the workers, by the Universal Declaration of Human Rights Ⅲ Regular payment is in legal tender and properly promptly, and in full and the ILO Tripartite Declaration documented Ⅲ Information about wages shall be available to Ⅲ After two years of certification, all workers workers in an understandable and detailed employed under legally binding labor contracts form Ⅲ Differences in employment conditions among Ⅲ Overtime is voluntary, and compensation at a casual, seasonal, and permanent workers pro- premium rate gressively diminished Ⅲ Workers that are not seasonal or temporary Ⅲ Employers work toward providing provident shall have permanent contracts. Provisions for scheme or pension fund or all permanent workers non-permanent or seasonal workers should Ⅲ Employers provide adequate sick leave not be less favorable than for permanent work- ers. Every worker shall get a copy of his or her contract

130 AGRIBUSINESS SECTOR International Code of Conduct for Fresh Del Monte Produce, Inc. Production of Cut-Flowers McDonald’s Corporation Nestlé S.A.

Signatory to UK Banana Industry Code of Ⅲ Minimum age is the greater of: Ⅲ Minimum age is the greater of: Ⅲ No form of exploitation of children Best Practice (refer to that code). ● 15; or ● 15 (or 14 if domestic law allows); or Ⅲ No employment of children before they ● compulsory school-leaving age ● legal minimum age for employment have reached the age to have com- Ⅲ Children under 18 shall not work in haz- Ⅲ Minors between the ages of 14 and 16 pleted their compulsory education ardous conditions may only be employed during periods of Ⅲ Complies with ILO Convention 138 on Ⅲ Adequate transitional economic assis- time when they are not required by law to the Minimum Age for Employment tance and appropriate educational attend school opportunities shall be provided to any Ⅲ Apprenticeship programs allowed under replaced child workers law are permitted

Signatory to UK Banana Industry Code of Ⅲ Wages and benefits shall at least meet Ⅲ Minimum wage and benefits must comply Ⅲ Wages and overtime pay comply with Best Practice (refer to that code). legal or industry minimum standards with applicable national and local laws applicable local laws and are competi- and always be sufficient to meet basic Ⅲ Overtime and “other premium pay situa- tive with those offered by similar needs of workers and their families and tions” must be appropriately compen- companies to provide some discretionary income sated as required by applicable national Ⅲ Pay should be in cash, direct to the and local laws workers, promptly, and in full Ⅲ Overtime wages must be: Ⅲ Information about wages shall be avail- ● subject to domestic local and national able to workers in an understandable laws; and and detailed form ● if no legal standard for overtime premi- Ⅲ Overtime is voluntary, and compensa- ums, then at least equal to regular hourly tion at a premium rate rates Ⅲ Workers that are not seasonal or tem- porary shall have permanent contracts. Provisions for non-permanent or sea- sonal workers should not be less favor- able than for permanent workers. Every worker shall get a copy of his or her contract

LABOR AND HUMAN RIGHTS STANDARDS 131 Rainforest Alliance, Rainforest Alliance, Procter & Gamble Company (The) Better Banana Project Generic Coffee Standards

Child Labor Ⅲ No child labor in any of its global operations or Ⅲ Minimum age is greater of Ⅲ National child labor laws for agriculture (Continued) facilities ● 14; or enforced Ⅲ Expects suppliers and contractors to uphold ● legal minimum age for employment the same standards

Wages and Benefits, Ⅲ Pays its employees a competitive wage as Ⅲ Minimum wage must be equal to or greater than Ⅲ Wages must be equal to or greater than mini- Terms of Employment benchmarked with other leading companies minimum wage and the average regional salary mum wage and the average regional salary (Continued) Ⅲ “At a minimum we comply with all applicable Ⅲ No demand for payment in exchange for work wage ... laws, rules and regulations, including permits minimum wage” Ⅲ “At a minimum, we expect our vendors to com- ply with all applicable wage and hour laws, and rules and regulations, including minimum wage, overtime and maximum hours.”

132 AGRIBUSINESS SECTOR Starbucks Coffee Company Tate & Lyle p.l.c. International Standards

Ⅲ “Children should not be unlawfully Ⅲ “Recognizes fundamental human rights Ⅲ ILO Minimum Age Convention, No. 138 employed as laborers” and freedoms and strives to reflect Ⅲ ILO Worst Forms of Child Labor Ⅲ “If children work, it should not interfere these in its business” Convention, No. 182 with mandated education” Ⅲ ILO Minimum Age Recommendation, Ⅲ Company’s request for farm owners No. 146 and co-ops to abide by local laws is Ⅲ UN Convention on the Rights of the Child, supported by the company’s Coffee Article 32:1 Sourcing Guidelines Ⅲ UN Global Compact (“effectively abolish child labor”) Ⅲ UN Norms (transnational corporations shall “respect the rights of children to be protected from economic exploitation as forbidden by the relevant international instruments and national legislation, as well as international human rights law”)

Ⅲ “Wage and benefit levels should Ⅲ “Operating Units should seek to imple- Ⅲ ILO Equal Remuneration Convention, address the basic needs of workers ment human resource policies that No. 100 and their families” compare with those of other reputable Ⅲ ILO Minimum Wage Fixing Convention, Ⅲ Starbucks Total Pay package combines employers in the country and industry No. 131 compensation, benefits and stock concerned, while complying with or Ⅲ ILO Holidays with Pay Convention Ⅲ Part time workers who work at least exceeding local laws and regulations, (Revised), No. 132 240 hours per quarter receive benefits including any minimum wage require- Ⅲ ILO Home Work Convention, No. 177 package ments” Ⅲ ILO Reduction of Hours of Work Ⅲ Coffee sourcing guidelines - “Coffee Recommendation, No. 116 farms that employ workers should con- Ⅲ ILO Tripartite Declaration (“Wages, bene- form to local laws and applicable inter- fits and conditions of work offered by national conventions related to multinational enterprises should not be workers’ rights and benefits and are in less favorable to the workers than those a process of continual improvement offered by comparable employers in the over time” country concerned.”) Ⅲ Internal fund dedicated to supporting Ⅲ Universal Declaration of Human Rights, partners in emergency situations Art. 23 (“everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity”) Ⅲ UN Norms (transnational corporations “shall compensate workers with remu- neration that ensures an adequate stan- dard of living for them and their families”)

LABOR AND HUMAN RIGHTS STANDARDS 133 Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Hours of Work Ⅲ Normal working hours must not exceed the Ⅲ Regular working hours, including overtime, are the Ⅲ Complies with the labor codes of the countries lesser of: lesser of: where it operates ● local legal maximum; or ● 60 hours per week (48 hours per week regular ● 48 hours per week hours and 12 hours per week overtime); or Ⅲ Overtime must be voluntary ● domestic legal limits for regular and overtime hours Ⅲ Days off: at least 1 day in 7 Ⅲ “Due to the seasonal and perishable nature of the food products it produces,” the company “requires all of its salaried workers and hourly employees to work overtime hours as required to staff its produc- tion facilities during its seasonal peaks” Ⅲ This requirement is a condition of employment, and the company “will develop and maintain systems to ensure that all employees knowingly and voluntarily undertake this commitment at the time of hiring” Ⅲ Follow ILO 180 regarding hours of work for seafarers

Freedom of Ⅲ Workers must have the right to join any worker Ⅲ Recognize and respect the right of workers to Ⅲ Respects freedom of workers to join unions Association, organization of their choice organize and join associations of their own choos- of their choice or to refrain from such Collective Bargaining ing and bargain collectively, and the right of membership employees to refrain from such activities Ⅲ Employees who choose unions in accordance with applicable local laws and regulations are entitled to bargain collectively through repre- sentatives of their choosing

134 AGRIBUSINESS SECTOR European Federation of Food, Agriculture and Tourism Trade Unions (EFATT)/European Sugar Manufacturers’ Fairtrade Labelling Organisation Committee (CEFS), Corporate Social Responsibility International (FLO), Fair Trade in the European Sugar Industry Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc.

Ⅲ Regulation for hours and overtime in Ⅲ Regular working hours are the least of: Signatory to UK Banana Industry Code of place ● 48 hours per week; or Best Practice (refer to that code). ● domestic legal limits; or ● industry standard Ⅲ Overtime: ● no more than 12 hours per week Ⅲ Days off: ● at least 1 day off in 7 Ⅲ Holiday rules

Ⅲ Respects the freedom of association Ⅲ FLO follows ILO Convention 87 and 98 Ⅲ Recognize the rights of all workers to Signatory to UK Banana Industry Code of and the right for all workers to estab- Ⅲ Management recognizes in writing the form and join trade unions to bargain col- Best Practice (refer to that code). lish trade unions and to affiliate, includ- right of all employees to join an indepen- lectively ing the right of access for workers’ dent trade union free of interference by Ⅲ Workers’ representatives shall not be representatives employer, the right to establish and join subject to discrimination and shall have Ⅲ Recognizes the effective right to col- federations, and the right to collective access to all workplaces to enable them lective bargaining and the right for bargaining to carry out representation functions worker representatives to gain entry to Ⅲ Management allows trade union organiz- facilities in order to carry out their ers to meet all the workers, and allows functions promptly and efficiently workers to hold meetings and organize Ⅲ Confirms that exercising these rights themselves without interference of will not cause any personal or profes- management sional damage to the workers and their Ⅲ No discrimination based on union representatives membership Ⅲ Workers elect a workers’ committee, if no independent and active union exists, to discuss with management and defend workers’ interests Ⅲ If one or more independent and active trade union exists in the sector and region, workers shall be covered by a Collective Bargaining Agreement within one year of certification

LABOR AND HUMAN RIGHTS STANDARDS 135 International Code of Conduct for Production of Cut-Flowers McDonald’s Corporation Nestlé S.A.

Hours of Work Ⅲ Regular working hours are the least of: Ⅲ Regular working hours, including overtime, are the Ⅲ Working hours comply with applicable local (Continued) ● 48 hours per week; or lesser of: laws and limit overtime to a reasonable level ● domestic legal limits; or ● 60 hours per week; or ● industry standard ● domestic legal limits for regular and overtime Ⅲ Overtime: hours ● no more than 12 hours per week Ⅲ Days off: at least 1 day in 7, “except in extra- Ⅲ Days off: ordinary business circumstances” ● at least 1 day off in 7 Ⅲ If a conflict between a statute and a published industry standard pertaining to this issue, compli- ance must be with the one taking precedence under national law

Freedom of Ⅲ Recognize the rights of all workers to form and Ⅲ Upholds freedom of association and the Association, join trade unions to bargain collectively effective recognition of the right to collective Collective Bargaining Ⅲ Workers’ representatives shall not be subject bargaining (Continued) to discrimination and shall have access to all workplaces to enable them to carry out repre- sentation functions Ⅲ Workers and their organizations must be con- sulted, trained and allowed to investigate safety issues

136 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Procter & Gamble Company (The) Better Banana Project Generic Coffee Standards Starbucks Coffee Company

Ⅲ “At a minimum we comply with all Ⅲ Maximum of 8 hours per day; or applicable ... hour laws, rules and regu- Ⅲ if between ages of 15-18, 42 hours per lations, including ... overtime and maxi- week mum hours” Ⅲ “At a minimum, we expect our vendors to comply with all applicable wage and hour laws, and rules and regulations, including minimum wage, overtime and maximum hours”

Ⅲ Workers must have the right to orga- Ⅲ Workers must have the right to organize Ⅲ “People have the right to freely associ- nize and negotiate freely with their and negotiate freely with their superiors ate with whichever organizations or superiors Ⅲ Company must inform employees about individuals they choose” Ⅲ Company must inform employees about planned farm management or organiza- planned farm management or organiza- tional changes and the possible social, tional changes and the possible social, environmental, and economic impacts environmental, and economic impacts Ⅲ No discrimination due to union membership

LABOR AND HUMAN RIGHTS STANDARDS 137 Tate & Lyle p.l.c. International Standards

Hours of Work Ⅲ IILO Hours of Work (Industry), Convention No. 1 (Continued) Ⅲ ILO Reduction of Hours of Work Recommendation, No. 116 Ⅲ ILO Forty-Hour Work Week Convention, No. 47 Ⅲ ILO Night Work Convention, No. 147 Ⅲ ILO Part Time Work Convention, No. 175

Freedom of Ⅲ ILO Freedom of Association and the Protection of Association, the Right to Organize Convention, No. 87 Collective Bargaining Ⅲ ILO Right to Organize and Collective Bargaining (Continued) Convention, No. 98 Ⅲ ILO Workers’ Representatives Convention, No. 135 Ⅲ UN Global Compact (“Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining”) Ⅲ UN Norms (transnational corporations shall “ensure the freedom of association and effective recognition of the right to collective bargaining by protecting the right to establish and, subject only to the rules of the organization concerned, to join organization of their own choosing without distinction”)

138 AGRIBUSINESS SECTOR Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Health and Safety Ⅲ Workers who handle the chemicals must: Ⅲ Must provide a “safe and healthy working Ⅲ Complies with employee safety and crop pro- ● wear safety equipment provided free of environment” tection product regulations charge Ⅲ Take adequate steps to prevent accidents and Ⅲ Trains workers in safe application of crop pro- ● receive adequate safety training injury to health arising out hazards inherent in the tection products ● be over the age of 18 working environment Ⅲ Requires use of and provides to workers per- ● receive a satisfactory medical health check Ⅲ All personnel receive regular and recorded health sonal protective clothing appropriate to their prior to use and safety training activities Ⅲ Workers must be informed of symptoms of agri- Ⅲ Requires workers to wear protective clothing and Ⅲ Performs periodic medical tests on workers chemical contamination and biannual health an activated carbon mask when applying chlor- who use crop protection products checks must be provided pyrifos-infused bags to the banana fruit Ⅲ Safe handling of crop protection products Ⅲ Notification of chemical applications must be ● Workers applying the bags must undergo supervised by occupational safety given to workers and workers must not reenter routine blood tests to evaluate exposure professionals areas sprayed until sufficient time has elapsed Ⅲ All workers must shower before going home and as recommended by the chemical manufac- leave the clothing and safety equipment at the turer or as the Code specifies farms

Discrimination Ⅲ No discrimination on basis of personal character- Ⅲ “Practices non-discriminatory policies” istics or belief (race, caste, national origin, reli- Ⅲ An equal opportunity employer gion, disability, gender, sexual orientation, union membership, political affiliation, veteran status, or age of older employees) Ⅲ No discrimination in hiring, compensation, access to training, promotion, termination or retirement

LABOR AND HUMAN RIGHTS STANDARDS 139 European Federation of Food, Agriculture and Tourism Trade Unions (EFATT)/European Sugar Manufacturers’ Fairtrade Labelling Organisation Committee (CEFS), Corporate Social Responsibility International (FLO), Fair Trade in the European Sugar Industry Standards for Hired Labor Flower Label Program (FLP)

Health and Safety Ⅲ Considers all preventive measures on health Ⅲ FLO follows ILO Convention 155 which aims to “prevent Ⅲ Companies must comply with the standards of (Continued) and safety a priority accidents and injury to health arising out of, linked with the International Code of Conduct for Production Ⅲ Implements specific training programs, safety or occurring in the course of work, by minimizing, so far of Cut-Flowers, as well as the following: procedures and policies, tailored to the sugar as is reasonably practicable, the causes of hazards Ⅲ Post-harvest treatment of flowers only permitted industry by taking into account the specific inherent in the working environment” with non-toxic chemicals hazards linked to the manufacturing process Ⅲ Adequately train and provide equipment to those workers Ⅲ Spray operators are not allowed to spray for Ⅲ Special attention paid to prevention issues who store, apply, and dispose of hazardous chemicals more than 4 hours per day and a job rotation Ⅲ Persons younger than 18, pregnant or nursing women, scheme must be implemented Ⅲ and specified others are not allowed to work with appli- No pesticide application in greenhouses if cation of hazardous materials unprotected workers inside Ⅲ Spray equipment must be properly calibrated for Ⅲ All workers have continuous access to clean drinking application of pesticides and must receive regu- water and clean and proper toilet facilities lar maintenance Ⅲ As a part of ongoing improvement, employers must Ⅲ Spray operators must wear suitable protective establish occupational health and safety committee equipment that is provided free of charge with worker participation Ⅲ Personnel working in spraying, mixing, storing, Ⅲ Conduct regular risk assessments and handling of pesticides must be medically Ⅲ Workers are not allowed to bring clothes or protective examined every three months equipment used for spraying to their homes Ⅲ Workers in the cultivation, harvesting and finish- Ⅲ Persons in charge of washing clothes and protective ing sections should be medically examined once equipment for fumigation must use gloves, boots and a year apron Ⅲ Pesticides and chemicals must be properly Ⅲ Within two years of certification, a separate stored, labeled, and mixed building/section for protective clothes/equipment must Ⅲ All workers must be regularly informed of risks be established and safety measures relating to pesticides and Ⅲ Workplaces, machinery and equipment are safe and chemicals used on the farms without risk to health Ⅲ Safety instructions must be displayed clearly in workplaces

Discrimination Ⅲ No discrimination on basis of ethnic or national Ⅲ FLO follows ILO Convention 111 on Discrimination Ⅲ Workers shall have access to jobs and training (Continued) origin, religion, sex, sexual orientation, affilia- on equal terms, irrespective of gender, age, tion to trade union, age or political affiliation ethnic origin, color, marital status, sexual ori- Ⅲ Seeks to guarantee and promote equal oppor- entation, political opinion, religion, or social tunities and equal treatment for men and origin women Ⅲ Pregnancy tests are prohibited as a basis of staff recruitment (before placements)

140 AGRIBUSINESS SECTOR International Code of Conduct for Fresh Del Monte Produce, Inc. Production of Cut-Flowers McDonald’s Corporation Nestlé S.A.

Ⅲ Provides employees with safe working Ⅲ A safe and hygienic working environment Ⅲ Suppliers shall provide employees with Ⅲ Creates a safe and healthy working conditions by providing equipment and shall be provided safe and healthy working and, where pro- environment for each employee facilities to protect personnel as well Ⅲ Companies must: vided, living conditions as training programs on the protection ● provide free and appropriate protec- Ⅲ At a minimum, potable drinking water, of workers and handling of agricultural tive clothing and equipment adequate, clean restrooms, adequate chemicals ● comply with internationally recognized ventilation, fire exits and essential safety Ⅲ Products handled according to health and safety standards equipment, an emergency aid kit, access accepted industry standards ● supply drinking water, provide clean to emergency medical care, and appro- toilets and offer shower and washing priately lit work stations must be provided facilities Ⅲ Facilities must be constructed and main- Ⅲ Workers and their organizations must be tained in accordance with applicable consulted, trained and allowed to investi- codes and ordinances gate safety issues Ⅲ Must regularly monitor workers’ health and safety Ⅲ Assess the risk of the chemicals used and apply measures to prevent any damage to workers’ health Ⅲ Record and reduce pesticide and fertilizer use by adequate techniques and methods Ⅲ Spraying, handling, and storing pesti- cides and chemicals should be done by specially trained people with suitable equipment Ⅲ No use of banned, highly toxic, or carcino- genic pesticides or chemicals

Ⅲ Workers shall have access to jobs and Ⅲ No discrimination, in conformance with Ⅲ No discrimination in employment training on equal terms, irrespective of local and national law, on basis of per- practices gender, age, ethnic origin, color, marital sonal characteristics (race, color, reli- Ⅲ Offers career opportunities based upon status, sexual orientation, political opin- gion, sex, age, physical ability, national merit, irrespective of color, age, ion, religion, or social origin origin, or any other “applicable prohibited national origin, religion, gender, disabil- basis”) ity, veteran status or any other pro- Ⅲ No discrimination in hiring and employ- tected class as defined by local law ment practices

LABOR AND HUMAN RIGHTS STANDARDS 141 Rainforest Alliance, Rainforest Alliance, Procter & Gamble Company (The) Better Banana Project Generic Coffee Standards

Health and Safety Ⅲ Compliance with the law is a P&G Core Value Ⅲ Work conditions must meet safety and health Ⅲ Companies must provide workers appropriate (Continued) and it is the highest priority for the Company’s requirements training and equipment for the safe use of agri- Health Safety & Environment programs Ⅲ Companies must provide workers appropriate training chemicals, fuels, and equipment Ⅲ Applies a single performance standard to each and equipment for the safe use of agri-chemicals, Ⅲ Must provide workers periodic medical exams of its worldwide manufacturing facilities fuels, and equipment Ⅲ Personnel must have proper training to mini- Ⅲ “Expect vendors to provide a safe work envi- Ⅲ Must provide workers periodic medical exams mize risk of accidents and to contain a spill if ronment, to prevent accidents and injury, and Ⅲ Personnel must have proper training to minimize risk one occurs to minimize exposure to health risks” of accidents and to contain a spill if one occurs Ⅲ Farm must have emergency plan to address Ⅲ Showering and dressing areas and exclusive areas for contamination events and workers must be washing personal protection gear and equipment trained in emergency procedures annually must be available Ⅲ Showering and dressing areas and exclusive Ⅲ Workers must have access to potable water, sanitary areas for washing personal protection gear facilities, and bathing facilities and equipment must be available

Discrimination Ⅲ No discrimination . . . because of race, color, Ⅲ No discrimination based on race, sex, religion, politi- Ⅲ No discrimination in hiring based on race, (Continued) religion, gender, age, national origin, citizen- cal position or national origin color, sex, religion, social status, political ship, sexual orientation or disability beliefs, nationality, affiliation with unions, sex- Ⅲ “We expect our vendors to comply with all ual orientation, or marital status applicable laws of their country, including laws relating to employment, discrimination, envi- ronment, and health and safety. Vendors who knowingly violate laws or have repeated prob- lems conforming to them will not receive our business.”

142 AGRIBUSINESS SECTOR Starbucks Coffee Company Tate & Lyle p.l.c. International Standards

Ⅲ “People should work in safe and Ⅲ Target to reduce accidents to zero Ⅲ ILO Occupational Safety and Health Convention, healthy places that are free from haz- Ⅲ Committed to providing safe and No. 155 ardous conditions” healthy conditions for its employees Ⅲ ILO Occupational Safety and Health Ⅲ People should have access to “safe and visitors Recommendation, No. 164 housing, clean water, and health facili- Ⅲ Committed to continuous improvement Ⅲ ILO Occupational Health Services Convention, ties and services” of its Health and Safety procedures and No. 161 Ⅲ Coffee sourcing guidelines — Working performance Ⅲ ILO Protection of Workers’ Health, conditions should meet or exceed Ⅲ Safety Committee comprised of employ- Recommendation No. 97 applicable laws and regulations related ees, seeks to ensure that safety Ⅲ ILO Occupational Health Services to health and safety of workers remains paramount Recommendation, No. 112 Ⅲ ILO Occupational Safety and Health Protocol, No. 155 Ⅲ UN Norms (transnational corporations shall “pro- vide a safe and healthy working environment as provided by the relevant international instruments and national legislation as well as international human rights law”)

Ⅲ “Starbucks embraces diversity as one Ⅲ “It is vital to recruit, train, promote, and Ⅲ ILO Discrimination (Employment and Occupation) of our core values” retain talented individuals irrespective Convention, No. 111 Ⅲ “Since 1996, we have engaged in sup- of sex, age, marital status, disability, Ⅲ ILO Equal Remuneration Convention, No. 100 plier diversity efforts to actively build a sexual orientation, race, religion, ethnic Ⅲ ILO Vocational Rehabilitation and Employment broad, efficient supplier network of or national origin” (Disabled Persons) Convention, No. 159 businesses owned by minorities and Ⅲ “Committed to a just and robust Ⅲ UN Global Compact (“eliminate discrimination in women” approach to equal opportunities in all respect of employment and occupation”) Ⅲ Offers benefits to domestic partners parts of the business, with people gain- Ⅲ UN Norms (transnational corporations shall “ensure Ⅲ Functioning diversity team ing promotion on merit” equality of opportunity and treatment, for the pur- Ⅲ Diversity training courses offered to pose of eliminating discrimination based on race, partners; mandatory for managers and color, sex, religion, political opinion, nationality, above social origin, indigenous status, disability, age, or other status of the individual unrelated to the individ- ual’s ability to perform his/her job”)

LABOR AND HUMAN RIGHTS STANDARDS 143 Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Harassment, Ⅲ No mental or physical coercion Abuse, and Ⅲ No use of corporal punishment or verbal abuse Disciplinary Action

Monitoring Ⅲ “Committed to independent impartial Ⅲ In 2000, Chiquita adopted Social Accountability Ⅲ Achieved SA8000 certification for two of its and Compliance verification” 8000 as its labor standard and its Costa Rican overseas subsidiaries Framework farms were recently certified by the SA8000 stan- dard. Company conducts internal assessments annually to measure compliance with SA8000 (includes results in its annual Corporate Responsibility Report) Ⅲ In 2000, Chiquita achieved Better Banana Certification for all of its banana farms in Latin America. These farms were re-certified in 2001. (2001 Corporate Responsibility Report) Ⅲ Invited President of Coordinator of Banana and Agroindustrial Unions of Honduras (COSIBAH) to join Chiquita’s internal team conducting social responsibility assessments of compliance with its Code of Conduct Ⅲ Requested Commission for the Verification of Corporate Codes of Conduct (COVERCO) to observe Chiquita’s internal assessments against the SA8000 standards Ⅲ Work with the Grupo del Monitorio de El Salvador

144 AGRIBUSINESS SECTOR European Federation of Food, Agriculture and Tourism Trade Unions (EFATT)/European Sugar Manufacturers’ Fairtrade Labelling Organisation Committee (CEFS), Corporate Social Responsibility International (FLO), Fair Trade in the European Sugar Industry Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc.

Ⅲ “Physical harassment or psychological oppression, particularly of women, must not be tolerated”

Ⅲ European Federation of Food Ⅲ Certification Unit co-ordinates all tasks Ⅲ Independent auditors inspect farms, and Ⅲ “Conduct audits and inspections sys- Agriculture and Tourism (EFAT) and and processes all information related to inspected farms become FLP members, tematically to verify product and facility Comité Européen Des Fabricants De inspection of producers, trade auditing provided they comply with FLP standards compliance with Del Monte quality and Sucre (CEFS) will ensure monitoring of and certification. Ⅲ Human rights groups and trade unions safety objectives and regulatory implementation of Code of Conduct and Ⅲ Operates independently from any other entitled to carry out spot checks requirements” regularly update examples of good Fairtrade interests, follows the ISO Ⅲ Requires specific documents and records practices Standards for Certification Bodies be kept and continuously updated so that Ⅲ Will prepare annual report of assess- (ISO 65) compliance with each provision can be ment of the implementation of the Code demonstrated — E.g., records of: work of Conduct contracts for permanent and seasonal workers; effective working hours and overtime paid for all workers; regular medical checks for all workers; all acci- dents, sicknesses and absences of work; all training programs and names of work- ers attending; etc. Ⅲ Unannounced spot checks organized by FLP Ⅲ Use of local coordinators

LABOR AND HUMAN RIGHTS STANDARDS 145 International Code of Conduct for Production of Cut-Flowers McDonald’s Corporation Nestlé S.A.

Harassment, Ⅲ “Physical harassment or psychological Ⅲ No physical punishment or confinement, threats of Ⅲ Ensures its own companies are not complicit in Abuse, and oppression, particularly of women, must not be violence or other forms of physical, sexual, psy- human rights abuses Disciplinary Action tolerated” chological or verbal harassment or abuse as a Ⅲ Supports and respects the protection of (Continued) method of discipline or control international human rights within its sphere of influence

Monitoring Ⅲ Companies accept that the implementation of Ⅲ Conducts monitoring through external auditors Ⅲ Compliance with its Corporate Business and Compliance the code is subject to independent verification who do on-site inspection, record verification, and Principles monitored by internal auditors on Framework employee interviews the basis of auditing instructions that are certi- (Continued) Ⅲ Uses stakeholder dialogues, training and educa- fied by KPMG and published for all employees tion, self assessment procedures, and benchmark- ing to raise awareness and improve within McDonald’s supplier base Ⅲ Conducts unannounced audits when warranted Ⅲ Uses audit results to support development of cor- rective action plans

146 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Procter & Gamble Company (The) Better Banana Project Generic Coffee Standards Starbucks Coffee Company

Ⅲ No harassment because of race, color, Ⅲ “Each human should be accorded the religion, gender, age, national origin, opportunity to meet his/her basic needs citizenship, sexual orientation or and [that] human rights and values disability should be upheld and promoted” Ⅲ “We expect our vendors to comply with all applicable laws of their coun- try, including laws relating to employ- ment, discrimination, environment, and health and safety. Vendors who know- ingly violate laws or have repeated problems conforming to them will not receive our business.”

Ⅲ Employees are encouraged to bring Ⅲ Certification committee independent of Ⅲ Certification committee independent of Ⅲ Degree of auditing unknown questions or concerns in this area to the auditing committee reviews and the auditing committee reviews and Ⅲ Prepares a Corporate Social their management. Strict disciplinary grants (or denies) a farm’s certification grants (or denies) a farm’s certification Responsibility Annual Report action for violations or this policy will award, thus ensuring no conflict of award, thus ensuring no conflict of inter- Ⅲ 2002 Corporate Social Responsibility be taken, including termination of interest between the group surveying est between the group surveying the farm Annual Report verified by independent employment. the farm and the group grading the and the group grading the farm’s produc- third party Ⅲ “We expect our vendors to comply farm’s production practices tion practices Ⅲ Applications for preferred supplier pro- with all applicable laws of their coun- Ⅲ Trained specialists and partner groups Ⅲ Sustainable Agriculture Network (SAN) gram must be verified by an indepen- try, including laws relating to employ- inspect farms and certify them once staff prepare reports specifying which dent third party and are subject to audit ment, discrimination, environment, and farms have sufficiently improved to changes must be made to achieve health and safety. Vendors who know- meet the standards certification ingly violate laws or have repeated Ⅲ Farms are re-audited annually and cer- Ⅲ A committee of representatives of the problems conforming to them will not tified farms must be committed to con- SAN awards certification once an evalu- receive our business.” stant improvement ation demonstrates the farm has achieved compliance. Ⅲ SAN conducts annual evaluations and reserves the right to conduct random audits of farms

LABOR AND HUMAN RIGHTS STANDARDS 147 Tate & Lyle p.l.c. International Standards

Harassment, Ⅲ UN Global Compact (“businesses should support Abuse, and and respect the protection of internationally pro- Disciplinary Action claimed human rights within their sphere of influ- (Continued) ence’ and “make sure they are not complicit in any human rights abuses”)

Monitoring Ⅲ Each Tate & Lyle business is asked to confirm Ⅲ ILO Labor Inspection Convention, No. 81 and Compliance twice a year that the Group’s Code of Conduct Framework is being communicated to suppliers and must (Continued) report on any contravention Ⅲ Additional policies and compliance require- ments are distributed internally, posted on the intranet and translated into a variety of lan- guages Ⅲ The Board reviews corporate social responsi- bility annually

148 AGRIBUSINESS SECTOR Endnotes

1. Signatories: Bristol Fruit Sales, Del Monte, Fyffes, Geest Bananas, J.P. Fruit using Global Reporting Initiative’s June 2000 Sustainability Reporting Distributors Ltd., Keelings, M.W. Mack, S.H. Pratt. Guidelines). 2. Dole does not have a published code of conduct on its website, but does have 11. Developed by the Rainforest Alliance and the Sustainable Agriculture Network policy statements from which this information is obtained. (SAN) (formerly the Conservation Agriculture Network). SAN certifies the use of 3. Drafted by the European Sugar Manufacturers’ Committee, or the Comité the best management practices that protect water quality, worker health and Européen Des Fabricants De Sucre (CEFS), as well as the European Federation safety and wildlife habitat. (September 1999). of Food, Agriculture and Tourism Trade Unions (EFFAT). Members agree to com- 12. Developed by the Rainforest Alliance and the Sustainable Agriculture Network ply with the minimum standards set out in the Code, which will come into effect (formerly the Conservation Agriculture Network). Salvadoran farms certified by on January 1, 2004. This code exclusively focuses on human rights and labor this program include: Irlanda, La Providencia, Cooperativa Las Lajas, El Carmen, issues and does not cover any environmental standards. It therefore does not Santa Margarita, Fincas Horizontes Lejanos, Nuevos Horizonte, Cooperativa La have an entry in the Annex D, the Agribusiness—Environment matrix. Union, Finas Las Delicias and San Luis, Francisco S.A. (January 2002). 4. Fairtrade Labelling Organisation (FLO) sets forth standards for small farmers’ 13. This analysis is based on Starbucks 2002 Corporate Social Responsibility Annual organizations as well as hired labor setups (like plantations), and small farm Report and “Framework for a code of conduct” developed in 1995. Starbucks organizations and plantations can be certified by FLO if they comply with these sells Fairtrade™ Certified coffee, which has been certified by a licensing orga- standards. FLO also has product specific standards, which are included within nization under the Fairtrade Labelling Organizations. this category as specified. 14. Subscribes to the principles of International Chamber of Commerce’s Business 5. Created in 1998 by flower industry associations in Germany. Over 50 flower Charter for Sustainable Development. Member of Comité Européen Des farms certified in Kenya, Ecuador, Zimbabwe, Tanzania, and Colombia. Fabricants De Sucre (CEFS). Tate & Lyle acts as a bridge into the European mar- 6. Signatory to the UK Banana Industry Code of Best Practice. Currently rewriting ket for cane sugar, predominantly from African, Caribbean and Pacific coun- its Code of Conduct, to be released in 2003. The information in this chart was dis- tries. The EU imports 1.7 million tons of cane sugar annually from Least tilled from Del Monte’s website. Developed and Developing Countries and roughly two-thirds of this total (which 7. Proposed by International Union of Food, Agriculture, Hotel, Restaurant, amounts to just under 10% of total EU sugar consumption) is processed by Tate Catering, Tobacco and Allied Workers’ Association (Geneva), Flower Campaign & Lyle. (Germany), Trade Union for Construction, Agriculture and Environment 15. This material has been drawn from the International Labor Organization (ILO) (Germany), Trade Union Confederation (Netherlands), Organisatie Latigns Conventions and Recommendations, as well as the 1977 ILO Tripartite Amerika Activiteiten (Netherlands), INZET (Netherlands), Fair Trade Center Declaration of Principles, but does not purport to be an exhaustive survey of all (Sweden), Flower Coordination (Switzerland), and Christian Aid (UK). The Code ILO materials. Other documents referenced include the UN Global Compact and is primarily based on ILO Conventions. (August 1998). the UN Norms, which provides that transnational corporations “shall recognize 8. McDonald’s strives to achieve the Global Reporting Initiative (GRI) goals. The and respect applicable norms of international law; national laws; regulations; majority of this information is taken from policies set forth in McDonald’s administrative practices; the rule of law; development objectives; social, eco- Corporation Code of Conduct for Suppliers (1998)—it holds its suppliers to the nomic, and cultural policies.” same standards of social responsibility. (Social Responsibility Report, April 2002). 9. “Key suppliers with which Nestlé has contractual relationships are audited in order to ensure that they comply with Nestlé’s Corporate Business Principles.” (1999 Nestlé Policy on the Environment, Environmental Progress Report, 2000). 10. Brands include Folgers. Procter & Gamble’s Code of Conduct is not coffee spe- cific, but applies to its entire company and products. (2002 Sustainability Report

LABOR AND HUMAN RIGHTS STANDARDS 149

ANNEX D Agribusiness Sector Environmental Standards

Companies/Organizations: Issues Examined:

Banana Group (The)—UK Banana Industry Code of Best Practice General Policy Statement and Environmental Management Systems . . . . . 152–156 Chiquita Brands International, Inc. Materials ...... 152–156 Dole Food Company, Inc. Energy ...... 157–161 Fairtrade Labelling Organizations International—Fair Trade Standards for Hired Labor Water...... 157–161 Flower Label Program Emissions...... 162–166 Fresh Del Monte Produce, Inc. Agrichemicals ...... 162–166 International Code of Conduct for Production of Cut-Flowers McDonald’s Corporation Waste Management ...... 167–171 Nestlé S.A. (Brands include Hills Brothers, Taster’s Choice, and Nescafe) Ecosystem/Biodiversity ...... 167–171 Procter & Gamble Company (The) (Brands include Folgers) Soil/Erosion Control ...... 172–176 Rainforest Alliance—Better Banana Project Monitoring and Compliance Framework ...... 172–176 Rainforest Alliance—Generic Coffee Standards Starbucks Coffee Company Tate & Lyle p.l.c. International Standards—General Agribusiness International Standards—Sugar Manufacturing

151 Banana Group (The), UK Banana Industry Code of Best Practice1 Chiquita Brands International, Inc. Dole Food Company, Inc.2

General Policy Ⅲ “Signatories are committed to the development Ⅲ Will incorporate environmental considerations into Ⅲ Uses “best management practices” that Dole’s Statement and of a safe, financially viable and environmentally purchase decisions for materials and supplies U.S. agriculture operations are required to use Environmental sustainable business.” Ⅲ Requires each business unit to have an environ- Ⅲ Production operations’ environmental manage- Management mental management system in place to properly ment programs conform with developing inter- Systems identify priorities national standards Ⅲ “Will comply with all relevant environmental laws, Ⅲ “Dole strives to take the preventative approach, rules and regulations in every jurisdiction where to identify and address environmental issues we operate, and we will strive to exceed these by and risks before they become concerns for our following international accepted standards where customers, our industry or our company.” they exist” Ⅲ “It is Dole’s policy to comply with all applicable laws and regulations at all times wherever we operate, to take all practicable steps to pro- mote health, safety and environmental pro- tection and to continually progress toward attainment of the company’s goals.”

Materials Ⅲ Seeks to maximize efficient use of natural resources

152 AGRIBUSINESS SECTOR Fairtrade Labelling Organisation International (FLO), Fair Trade International Code of Conduct Standards for Hired Labor3 Flower Label Program (FLP)4 Fresh Del Monte Produce, Inc.5 for Production of Cut-Flowers6

“Generic” Standard: Ⅲ Must conform to requirements of all Ⅲ Monitors environmental performance and Ⅲ “Companies should make every effort to Ⅲ “Producers are expected to protect the local laws. integrates environmental considerations protect the environment and the resi- natural environment and to make environ- Ⅲ Company must develop a program for into business decisions and planning dential areas, avoid pollution and imple- mental protection a part of farm manage- conserving the environment and sus- activities ment sustainable use of natural ment” tainable use of natural resources and to Ⅲ Seeks to “meet or exceed the require- resources” Ⅲ FLO requires that “producer organizations prevent pollution of soil, water and air ments of relevant laws, regulations and and companies always abide by national wherever possible codes of practice regarding responsible legislation. Furthermore national legisla- Ⅲ Specially appointed environmental pro- environmental stewardship” tion prevails if it sets higher standards on a tection officer must evaluate sugges- Ⅲ Regarding waste, complies with state and particular issue than FLO tions for improvements and monitor federal regulations and cooperates with compliance with regulations international authorities to implement Ⅲ Workers must be informed on the envis- environmental management programs in aged measures and instructions developing nations without appropriate Ⅲ Establishment of manuals, and informa- local laws tion material for workers

ENVIRONMENTAL STANDARDS 153 McDonald’s Corporation7 Nestlé S.A.8 Procter & Gamble Company (The)9

General Policy Ⅲ Goal for 2002 to develop Environmental Ⅲ Complies with applicable environmental legislation Ⅲ Strives to improve the environmental quality of Statement and Management System that will work in each and where none exist, Nestlé’s own internal rules its products, packages and operations around Environmental country in which McDonald’s operates are applied the world Management Ⅲ Strives to achieve Global Reporting Initiative Ⅲ Nestlé Environmental Management System Ⅲ Ensures its products, packaging and operations Systems (GRI) Guidelines. (NEMS) developed to efficiently manage the envi- are safe for employees, (Continued) Ⅲ Company’s approach is in transition from a tra- ronmental aspects of its activities consumers and the environment ditional environmental responsibility approach, Ⅲ NEMS objectives include: Ⅲ Provides its consumers, customers, employees, embodied by “reduce, reuse, recycle” to a ● ensuring compliance with Nestlé’s environmen- communities, public interest groups and others broader sustainable framework. tal policy, applicable legislation, and Nestlé’s with relevant and appropriate factual informa- operational standards tion about the environmental quality of its prod- ● ensuring continuous improvement of company’s ucts, packaging and operations environmental performance Ⅲ Ensures its employees understand and are ● achieving compatibility with international volun- accountable for incorporating environmental tary standards such as ISO 14001 and European quality into their business Union Eco-Management and Audit Scheme Ⅲ Has operating standards, programs and ● building mutual trust with consumers, govern- resources in place to implement its mental authorities and business partners Environmental Quality Policy Ⅲ Supports sustainable agricultural practices Ⅲ Ensures Vendors meet all current, applicable Ⅲ Supports and advocates UN Global Compact environmental rules, regulations and laws in their countries Ⅲ Supports Global Sullivan Principles

Materials Ⅲ Minimize use of environmentally critical sub- Ⅲ Reduce or prevent the environmental impact (Continued) stances of products and packaging in design, manu- Ⅲ Respect natural resources by emphasizing effi- facture, distribution, use and disposal when- cient use of raw materials ever possible. Ⅲ Support the sustainable use of resources and actively encourage reuse, recycling and composting Ⅲ Develop and use state-of-the-art science and product life cycle assessment, from raw materials through disposal, to assess envi- ronmental quality

154 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Better Banana Project10 Generic Coffee Standards11 Starbucks Coffee Company12 Tate & Lyle p.l.c.13

Ⅲ Agriculture should be planned, monitored Ⅲ Agriculture should be planned, moni- Ⅲ Environmental mission in place since 1992 Ⅲ “All operations are conducted in recog- and evaluated on its technical, social, tored and evaluated on its technical, Ⅲ Environmental Affairs team seeks to nition of the Group’s responsibility environmental and economic impacts social, environmental and economic develop environmentally responsible poli- towards the natural environment within Ⅲ Producer must present a plan of objec- impacts cies and procedures which we live and work, and the Group tives, goals, responsibilities, and a calen- Ⅲ Certified coffee must be kept segre- Ⅲ Using focus areas to measure and track complies with all relevant local laws, dar of activities by which the social and gated from uncertified coffee through- environmental footprint through The regulations and consents.” environmental conditions will be out the chain of custody Natural Step’s sustainability framework Ⅲ “Each operating unit is required to improved in the short to long term Ⅲ An Environmental Affairs team seeks to assess its particular environmental Ⅲ Producer must implement a system develop environmentally responsible poli- impacts and develop an improvement to monitor environmental and social cies and procedures program based on identified areas of impacts Ⅲ “Preserve and enhance the physical envi- priority” Ⅲ Farm must be able to demonstrate its ronment” Ⅲ Each unit has an environmental man- compliance with the program standards Ⅲ “Demonstrate leadership for environmen- agement system and continual improvement of its social tal practices in countries in which it does Ⅲ “Measurement of key impacts such as and environmental character business” energy and water usage and solid Ⅲ Introduced coffee sourcing guidelines waste emissions underpin our approach that address environmental, economic to reducing overall impact” and social areas Ⅲ Supplier handbook outlines environmen- tal purchasing guidelines

Ⅲ Purchasing paper with higher levels of post-consumer recycled content and unbleached fiber Ⅲ Roasting plants recycle burlap bags used to transport green coffee

ENVIRONMENTAL STANDARDS 155 International Standards— International Standards— General Agribusiness14 Sugar Manufacturing15

General Policy Ⅲ “EMSs such as ISO 14000 are seen as mecha- Statement and nisms for achieving improvements in environ- Environmental mental performance and for supporting the trade Management prospects of “clean” firms. The potential advan- Systems tages of EMSs are clear, but the adoption of ISO (Continued) 14000 is very recent, and practical issues are emerging, among them the need for an emphasis on performance improvement and for simplifica- tion of certification; the potential for regulatory streamlining; and the trade consequences.” Ⅲ ISO (International Standard Organization) 14001 specifies the actual requirements for an Environmental Management System that can be audited and certified; a company may seek certi- fication of its EMS by an external third party organization Ⅲ UN Global Compact provides: “Businesses should support a precautionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility; and encourage the development and diffusion of environmentally-friendly technologies”

Materials Ⅲ Whenever possible, use nonhazardous instead (Continued) of hazardous materials

156 AGRIBUSINESS SECTOR Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Energy

Water Ⅲ Companies must monitor outflow of agrochemi- Ⅲ Exploring ways to reduce the amount of water Ⅲ Developing wastewater treatment options for cals, biannually used during the washing process in packing sta- packing operations Ⅲ Filters must be used to prevent solids from tions Ⅲ Provides training for communities on water entering water courses and companies must Ⅲ Testing the replacement of chlorine with hydrogen conservation monitor biological oxygen demand peroxide to prevent bacterial contamination and remove iron and manganese

ENVIRONMENTAL STANDARDS 157 Fairtrade Labelling Organisation International (FLO), Fair Trade Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc.

Energy (Continued)

Water ”Generic” Standard: Ⅲ Record and document consumption of water (Continued) Ⅲ Water resources should be adequately pro- Ⅲ Special measures must be taken to protect drink- tected from pollution by chemicals, with special ing water sources, ground water, surface water, attention to conservation of drinking water rivers, dikes, and lakes sources Ⅲ Water management system for supply of irrigation water must minimize water consumption and con- Product-Specific Standard for Bananas: serve ground and surface waters Ⅲ Rain water must be collected Ⅲ After one year of certification, no application of pesticides, synthetic fertilizers and uncomposted manure within 2 meters of drainage channels Ⅲ Within two years of certification, packing plant waste water treated in filter system Ⅲ After three months, compliance with preparation and cleaning of pesticides and equipment to limit pollution in wastewater Ⅲ Must not change the natural course of a surface water body including wetland Ⅲ Within one year of certification, establish a 20 meter buffer zone between the growing area and rivers, swamps, and lagoons Ⅲ 100 meter buffer zone along potable water sources

158 AGRIBUSINESS SECTOR International Code of Conduct for Production of Cut-Flowers McDonald’s Corporation Nestlé S.A. Procter & Gamble Company (The)

Ⅲ Built energy-efficient restaurants that Ⅲ “Committed to adapting its products and Ⅲ Reduce or prevent the environmental have reduced energy use processes so that energy resources are impact of products and packaging in Ⅲ Recognizes that energy consumption preserved” design, manufacture, distribution, use practices within a restaurant can Ⅲ Where possible, use renewable fuels and disposal whenever possible reduce energy consumption by up to instead of, or in conjunction with, more Ⅲ Continually assess environmental tech- 10% traditional non-renewable fuels or less nology and programs and monitor Ⅲ Exploring ways to improve distribution polluting fuels, e.g.: progress toward environmental goals. efficiencies ● spent coffee grounds ● co-generation plants ● “Optimizes shipments in order to limit effects on the environment and to reduce its use of energy resources”

Ⅲ Organized Global Water Team that Ⅲ “Nestlé supports the sustainable use of Ⅲ Reduce or prevent the environmental works to understand water treatment water and takes the necessary measures impact of products and packaging in and use and ways for restaurants to to ensure the responsible management of design, manufacture, distribution, use conserve this vital resource” and disposal whenever possible Ⅲ “Without compromise to the safety and Ⅲ Develop and use state-of-the-art sci- quality of its products, fresh water use is ence and product life cycle assessment, reduced as much as possible and wher- from raw ever feasible, water is reused and recy- materials through disposal, to assess cled” environmental quality Ⅲ Used water is treated and returned to the environment according to local legislation

ENVIRONMENTAL STANDARDS 159 Rainforest Alliance, Rainforest Alliance, Better Banana Project Generic Coffee Standards Starbucks Coffee Company

Energy Ⅲ Green Store Task Force conducted a gap (Continued) analysis using the US Green Building Council Leadership in Energy and Environmental Design (LEED) Ⅲ Tracking its energy use by its North American retail stores and “investigating opportunities to improve efficiency” Ⅲ Established a Utility Task Force in 1999 to iden- tify conservation measures

Water Ⅲ Farms should promote conservation and reha- Ⅲ Establish buffer zones along water bodies to con- Ⅲ Tracking its water use by its North American (Continued) bilitation of water resources, e.g.: trol sedimentation and contamination retail stores and expects systematic changes ● Establish buffer zones along water bodies to Ⅲ Prohibit altering the natural hydrology of water to mechanical and equipment design specifica- control sedimentation and contamination ways tions will improve efficiency ● Prohibit altering the natural hydrology of Ⅲ Reuse water wherever possible water ways Ⅲ Eliminate or reduce all sources of pollution and ● Reuse water wherever possible contamination of bodies of water to maintain ● Eliminate sources of pollution and contami- acceptable levels in accordance with national nation or at least reduce to levels accepted laws by national law and the Better Banana Ⅲ Filter waters generated in any on-farm process Project before returning water to nature ● Filter waters generated in any on-farm Ⅲ Monitor physical, chemical and biological charac- process before returning water to nature teristics of drinking and residual waters ● Monitor physical, chemical and biological Ⅲ Farmers exploiting subterranean waters must have characteristics of drinking and residual measures to reduce risk of over-extraction or cont- waters amination

160 AGRIBUSINESS SECTOR International Standards— International Standards— Tate & Lyle p.l.c. General Agribusiness Sugar Manufacturing

Ⅲ Recognizes that it has a significant Ⅲ Where feasible, choose energy-efficient Ⅲ Proposal to collect waste for use in other impact on energy use and environmentally sound processes industries — e.g., cogeneration systems Ⅲ In 2000, set target of reducing Group for large sugar mills generate electricity energy consumption per unit of for sale production by 3% annually

Ⅲ Recognizes that it has a significant Ⅲ Process wastewater, domestic sewage, Ⅲ Minimize storage time for juice and other impact on water consumption and contaminated stormwater must intermediate products to reduce product Ⅲ In 2000, set target of reducing water use meet certain maximum limits (e.g., 6-9 losses and discharge of product into the per unit of production, every year pH; wastewater stream 50 BOD; 250 COD, etc.) before being Ⅲ Recirculate cooling waters discharged to surface water Ⅲ Optimize the use of water Ⅲ Liquid effluent may be discharged to a public or private central wastewater treatment system. Where this is the case, information from the local author- ity or private central wastewater treat- ment company is to be provided to confirm that the treatment system has the capacity and is managed to ade- quately treat the project’s liquid efflu- ents. The World Bank Group may require pretreatment prior to such dis- charge Ⅲ Levels of pesticides, dioxins, furans, and other toxins, such as polynuclear aro- matic hydrocarbons (PAHs), in effluent discharges should not exceed either 100 times the WHO guidelines for drink- ing water or 0.05 mg/l

ENVIRONMENTAL STANDARDS 161 Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Emissions

Agrichemicals Ⅲ Companies must only use chemicals that: man- Ⅲ Applies the least amount of pesticides necessary Ⅲ Uses Integrated Pest Management (IPM), which ufacturer approves for use on bananas, sanc- and only the least toxic agrochemicals that are uses cultural, biological, and when necessary tioned as safe by the EU, UK, USA, and approved by EPA and the EU for use on bananas chemical pest control measures permitted by local authorities for use on Ⅲ Plants groundcover to prevent the growth of Ⅲ Reviews pest control practices for effective- banana plantations weeds and eliminate the need for herbicides ness, efficiency, and environmental impacts Ⅲ Agrichemicals must be applied at the minimum Ⅲ Tests potable water in workers’ residences and rate needed to control disease and maintain company’s compounds production Ⅲ Sets goals of reduction in chemical usage Ⅲ Companies must protect rivers and buildings Ⅲ Uses natural techniques including: biological with a barrier or buffer area controls (predatory wasps), bioantagonists Ⅲ Companies must conduct audits to ensure pro- (micrororganisms that infect specific pests), cedures adequately govern the proper use and and ground cover Ⅲ appropriate levels of agrochemicals Exploring organic farming Ⅲ Ⅲ Plastic bags with insecticide must be labeled Conducts audits, preharvest residue analysis, and only used when necessary and residue monitoring of shipments before delivery to ensure compliance with residue regulations Ⅲ Commissioned the development of a computer software system to help identify and prioritize potential health or environmental risks that may exist under tropical conditions. Helps Dole make better decisions about crop protection chemicals and safe usage.

162 AGRIBUSINESS SECTOR Fairtrade Labelling Organisation International (FLO), Fair Trade International Code of Conduct Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc. for Production of Cut-Flowers

“Generic” Standard: Ⅲ Must document all fertilizer and chemical Ⅲ Balances use of agrochemicals with need Ⅲ Companies shall record and reduce Ⅲ Implement a system of Integrated Crop applications to maintain production pesticide and fertilizer use Management Ⅲ Chemical fertilizers should be applied Ⅲ Uses only agrochemicals approved by only selectively based on careful obser- regulatory agencies in the pricing coun- Product-Specific Standard for Bananas: vation of the crop together with soil and try, Costa Rica, the US, and Europe leaf analysis Ⅲ Use of any chemical must comply with ● Agrichemicals, which constitute risks Ⅲ Minimize losses and drainage of fertilizer human health and environmental impact for humans and the environment, should through leaching into the soil standards of the producing nation be minimized and replaced by organic Ⅲ When possible, low toxic and biodegrad- Ⅲ Maintains pesticide control office to mon- and/or biological methods able chemicals must be used. itor use of agricultural chemicals ● No spraying in buffer zones, open water Formaldehyde and all WHO I prohibited. Ⅲ Dedicates resources to research pro- bodies, and residential areas Ⅲ Support of alternative pest-management grams to reduce reliance on agrochemi- ● Avoid plant resistance to agrochemicals on the farms (e.g., bacteria, earthworms cals and improve application technology ● Separate storage of pesticides at speci- etc.) fied distances from houses, processing facilities, and public roads, rivers, springs, swamps, lagoons, potable water sources, virgin forests, protected areas and areas of high ecological value ● After two years of certification, elimi- nate use of pesticide-impregnated plas- tic bags, unless demonstrated that production is impossible without the bags

ENVIRONMENTAL STANDARDS 163 McDonald’s Corporation Nestlé S.A. Procter & Gamble Company (The)

Emissions Ⅲ Exploring alternative refrigerants because Ⅲ Reduce air emissions (CO2, SOx, NOx) as much as Ⅲ Reduce or prevent the environmental impact of (Continued) hydrocarbons contribute to climate change possible through energy reduction, fuel replace- products and packaging in design, manufacture, ment initiatives, co-generation activities, and the distribution, use and disposal whenever phase-out of ozone-depleting substances possible Ⅲ Developed process to reduce emissions of CO2 and NOx through more precise control at the end of the roasting to slow rate of emissions and avoid high temperature after-burning

Agrichemicals Ⅲ Integrated pest management system using “envi- (Continued) ronmentally compatible techniques for controlling pests at levels below those that cause economi- cally unacceptable damage or loss”

164 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Better Banana Project Generic Coffee Standards Starbucks Coffee Company Tate & Lyle p.l.c.

Ⅲ Focus on improving fuel efficiency for Ⅲ Emissions are reported locally as company’s vehicles in response to required by local and national regula- global warming tions and include: Ⅲ Joined Climate Wise, an EPA program, ● total CO2 emissions; to track and reduce greenhouse gas ● total SO2 emissions; emission ● total Nox emissions; and Ⅲ Transportation options offered to part- ● total particulate ners, including a car-sharing program Ⅲ State-of-the-art emissions control technology in roasting plants

Ⅲ Farms should limit the use of agrochemicals to the Ⅲ Employ Integrated Pest Management Ⅲ “Hazardous materials such as chemi- benefit of workers, local communities, soil quality, Ⅲ Protect workplaces and houses with cals and pesticides should be used water resources and natural ecosystems, for vegetative barrier safely and responsibly, if at all” example: Ⅲ Maintain a monitoring and evaluation Ⅲ Under coffee sourcing guidelines, ● Employ Integrated Pest Management system to control and limit use of agro- Starbucks rewards farmers who mini- ● Maintain a monitoring and evaluation system to chemicals mize or eliminate agrochemical inputs control and limit use of agrochemicals Ⅲ Demonstrate a continual reduction in ● Document continual reduction in toxicity and the toxicity and quantity of chemicals quantity of chemicals used used ● Undertake steps to avoid chemical resistance Ⅲ Rotate products to prevent tolerance in pest populations Ⅲ Pesticides must be registered for use on ● Only use chemicals registered for use on the the crop and approved by US EPA and particular crop and approved by the EPA and national agencies relevant national agencies Ⅲ Agrochemical storage must be located ● Transport, store and apply chemicals according at prescribed distances from water to the Best Management Practices specified sources, protected areas, and storage ● Agrochemical storage must be located at pre- areas for fuels and lubricants scribed distances from water sources, located in protected areas, and include storage areas for fuels and lubricants ● Only qualified persons with the necessary train- ing may apply and transport agrochemicals

ENVIRONMENTAL STANDARDS 165 International Standards— International Standards— General Agribusiness Sugar Manufacturing

Emissions Ⅲ Pollution control systems may be required in order to Ⅲ Give preference to less polluting clarifica- (Continued) meet specified emissions limits. These systems must be tion processes such as those using ben- well maintained and operated and must not be fitted tonite instead of sulfite for the manufacture with overflow or bypass devices, unless required for of white sugar emergencies Ⅲ Particulate matter and sulfur oxide emis- Ⅲ Most of the air emissions from commercial and general sions should be less than 100 milligrams per industrial facilities originate with the fuel used for heat- normal cubic meter (in some cases up to ing purposes or for generating steam for process pur- 150); nitrogen oxide emissions should be poses. Particular emissions that may originate in the less than 260 nanograms per joule process are addressed case by case Ⅲ Following effluent levels should be Ⅲ Concentrations of contaminants emitted from the stacks achieved: maximum of 6-9 pH; 50 BOD; 250 of significant sources with an equivalent heat input of COD; 50 TSS; 10 total nitrogen and 2 total more than 10 million Btu/hr, including boilers, furnaces, phosphorous incinerators, and electrical generating equipment, should not exceed specific suggested limits Ⅲ Several chemicals classified as ozone-depleting sub- stances are scheduled for phaseout under the Montreal Protocol, including CFCs, halons, HCFCs and HBFCs

Agrichemicals Ⅲ All hazardous materials must be stored in clearly Ⅲ Optimize use of cleaning chemicals; procure (Continued) labeled containers or vessels, and storage and handling cane washed in the field; prefer the use of must be in accordance with local regulations dry cleaning methods

166 AGRIBUSINESS SECTOR Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Waste Ⅲ Companies must dispose of all plastic materials Ⅲ Seeks to reduce, reuse and recycle Ⅲ Provides training for communities on recycling Management in a manner that does not contaminate the and composting environment Ⅲ Waste materials should be recycled where feasible

Ecosystem/ Ⅲ Virgin forests must not be exploited to establish Ⅲ Preserves and protects rainforest resources Biodiversity new banana plantations and areas of critical biodiversity Ⅲ Plants trees for reforestation and watershed protection projects Ⅲ Financially supports conservation projects Ⅲ Provides training for communities on reforestation

ENVIRONMENTAL STANDARDS 167 Fairtrade Labelling Organisation International (FLO), Fair Trade Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc.

Waste Product-Specific Standard for Bananas: Ⅲ Waste and pollution reduction must be given high Ⅲ Conserves raw materials and non-renewable Management Ⅲ Within three months of certification,: priority natural resources by eliminating or reducing (Continued) ● the field, packing stations and riverbanks Ⅲ Compost organic waste waste must be free of waste Ⅲ Waste, especially pesticides, fertilizer and chemi- ● recycling and reusing materials including: ● non-reusable and non-recyclable waste dis- cal residues, must not be disposed of into the soil, ● plastic bags used to protect the bananas posed of by burying or other adequate means drains and watercourses ● fruit stalks by using them as organic fertil- ● establish sanitary dumping place for toxic Ⅲ Wetlands should be constructed to protect the izer waste soil/water resources ● rejected fruit by transporting them to spe- Ⅲ Other requirements include: Ⅲ Pesticide and chemical containers must be triple cial deposits for treatment ● Disposal of agrochemicals and pesticide rinsed and perforated, and returned to supplier if Ⅲ Complies with state and federal regulations containers done with minimal environmental possible and cooperates with international authorities to impact Ⅲ Separate and recycle materials when possible implement environmental management pro- ● Return unused agrochemicals to suppliers if grams in developing nations without appropri- possible ate local laws ● Use organic waste as fertilizer when possi- ble ● Within one year, reusable matters are reused or returned to supplier

Ecosystem/ Product-Specific Standard for Bananas: Ⅲ To protect the surroundings and encourage Ⅲ Seeks to protect the biodiversity of sensitive Biodiversity Ⅲ Growing area not to expand into virgin forests, wildlife, trees and bushes should be planted at areas within and near operations (Continued) areas protected by national law, or other areas farms’ boundaries Ⅲ Committed to not exploiting virgin forests when of high ecological value establishing new production areas Ⅲ 20 meter buffer zone within one year of certifi- Ⅲ Developed reforestation projects along major cation between banana growing area and sec- riverbanks ondary forests Ⅲ Observes national regulations regarding forest Ⅲ 100 meter buffer zone along virgin forests preservation Ⅲ Makes efforts to use wood that comes from managed or cultivated woodland for pallets to carry fruit

168 AGRIBUSINESS SECTOR International Code of Conduct for Production of Cut-Flowers McDonald’s Corporation Nestlé S.A. Procter & Gamble Company (The)

Ⅲ Implemented waste management, Ⅲ Promotes integrated waste management Ⅲ Reduce or prevent the environmental energy efficiency and litter control including packaging source reduction, impact of products and packaging in Ⅲ Uses recycled materials where possible reuse, recycling and energy recovery their design, manufacture, distribution, Ⅲ Efforts to reduce litter Ⅲ Educate employees to increase aware- use and disposal whenever possible Ⅲ Composts materials where infrastruc- ness of the benefits of recycling, both Ⅲ Support the sustainable use of ture exists internally and within their local communi- resources and actively encourage ties reuse, recycling and Ⅲ Review and assess its packaging source composting reduction opportunities and new materi- als and processes that reduce impact on environment Ⅲ Seeks packaging solutions that result in lowest possible weight and volume of packages Ⅲ Avoid use of substances that can adversely impact the environment during packaging production and disposal

Ⅲ Initiated a project with the Royal Forestry Department in Thailand to reforest a National Park

ENVIRONMENTAL STANDARDS 169 Rainforest Alliance, Rainforest Alliance, Better Banana Project Generic Coffee Standards Starbucks Coffee Company

Waste Ⅲ Farms must have an integrated plan for man- Ⅲ Program must exist for reduction of residues, Ⅲ Waste reduction tactic includes store recycling Management agement of all waste products. Plan must pro- changing purchasing practices that generate and use of commuter mugs in place of paper (Continued) mote environmentally sound reduction, reuse, waste products that contaminate the environment, Ⅲ Annually offers coffee grounds as compost, recycling and disposal of inputs or threaten health of workers thus reducing solid waste stream Ⅲ All non-biodegradable products should be Ⅲ Implement strategies for reusing wastes Ⅲ Conducted a waste study to better understand recycled Ⅲ Organic wastes must be used to enrich soil where composition and scale of recycling opportuni- Ⅲ Burning trash and open dumps are prohibited possible ties Ⅲ Implement recycling system

Ecosystem/ Ⅲ Agriculture and the expansion of farms should Ⅲ Conserve ecosystems on or near the farm Ⅲ Invests in projects with Conservation Biodiversity promote conservation, recovery of ecosystems, Ⅲ New and expanding farms must not degrade, dam- International: Shade Grown Mexico coffee; (Continued) and protection of biodiversity, for example: age or destroy ecosystems Conservation Colombia; Conservation Peru ● Protect, conserve, and recuperate where Ⅲ Deforestation prohibited possible natural habitats on farms including Ⅲ Reforest areas with native species that are not restoring and protecting vegetation along suitable for cultivation existing water bodies and creating biological Ⅲ Prevent and control fires corridors of native vegetation Ⅲ Protect and enrich critical habitats through ● Prohibit degradation and destruction of biological corridors and other management mea- ecosystems sures ● Prevent establishment of new production Ⅲ Production units cannot be located where they areas in areas with primary forests or would generate negative effects on national parks, advanced stages of secondary forests forest reserves, wildlife refuges, buffer zones, and ● Reforest areas not suitable for cultivation other conservation areas with native species ● Prohibit use of illegally obtained woods to make pallets or for construction, and estab- lish plantations with firewood in countries where this is used as a fuel source ● Create buffer zones around protected areas and other areas as specified Ⅲ Special steps should be taken for the protec- tion and recovery of biodiversity

170 AGRIBUSINESS SECTOR International Standards— International Standards— Tate & Lyle p.l.c. General Agribusiness Sugar Manufacturing

Ⅲ Recognizes that is has a significant Ⅲ Project sponsors must recycle or reclaim Ⅲ Minimize storage time for juice and other impact on non-hazardous solid waste solid wastes generated in the course of intermediate products to reduce product production operating the facility where possible, and losses and discharge of product into the Ⅲ In 2000, set target of reducing annually if not practical, wastes must be disposed wastewater stream the amount of solid waste per unit of pro- of in an environmentally acceptable man- Ⅲ Collect waste product for use in other duction ner and in compliance with local laws industries — e.g., bagasse for use in and regulations paper mills and as fuel; beet chips can be Ⅲ Process wastewater, domestic sewage, used as animal feed and contaminated stormwater must meet Ⅲ Design and operate the production sys- certain maximum limits (e.g., 6-9 pH; tem to achieve recommended waste- 50 BOD; 250 COD, etc.) before being water loads discharged to surface water Ⅲ Discourage spraying of molasses on the Ⅲ All hazardous wastes, process residues, ground for disposal solvents, oils and sludges must be properly disposed of Ⅲ Leachates that contain hazardous pollu- tants must not exceed certain effluent levels

Ⅲ No specific policy in IFC/World Bank Guidelines Ⅲ Virtually all legal rules and regulations for wildlife conservation are at the domestic rather than the international level

ENVIRONMENTAL STANDARDS 171 Banana Group (The), UK Banana Industry Code of Best Practice Chiquita Brands International, Inc. Dole Food Company, Inc.

Soil/Erosion Control Ⅲ Production must be designed to maintain soil Ⅲ Plants groundcover to protect against soil erosion Ⅲ Provides training for communities on erosion fertility, avoid soil erosion, and prevent soil and prevention water contamination

Monitoring and Ⅲ Committed to independent, impartial Ⅲ In 2000, Chiquita adopted Social Accountability Ⅲ Conducts internal audits Compliance verification 8000 as its labor standard and its Costa Rican Ⅲ Obtains certification for its farms under ISO Framework Ⅲ Companies must conduct audits to ensure pro- farms were recently certified by the SA8000 stan- 14001 cedures adequately govern the proper use and dard. Company conducts internal assessments Ⅲ Conducts audits, preharvest residue analysis, appropriate levels of agrochemicals annually to measure compliance with SA8000 and residue monitoring of shipments before (includes results in its annual Corporate delivery to ensure compliance with residue Responsibility Report) regulations Ⅲ In 2000, Chiquita achieved Better Banana Certification for all of its banana farms in Latin America. These farms were re-certified in 2001. (2001 Corporate Responsibility Report) Ⅲ Rainforest Alliance issues certifications on the basis of annual independent farm audits (Chiquita includes the audits in its annual Corporate Responsibility Report) Ⅲ Works with the Grupo del Monitorio de El Salvador

172 AGRIBUSINESS SECTOR Fairtrade Labelling Organisation International (FLO), Fair Trade International Code of Conduct Standards for Hired Labor Flower Label Program (FLP) Fresh Del Monte Produce, Inc. for Production of Cut-Flowers

“Generic” Standard: Ⅲ Organic fertilizer and composted organic waste Ⅲ “Agricultural practices must conserve and improve should be used for improvement and care soil structure, life and fertility in order to sustain of soil long term productivity and to reduce the negative Ⅲ Wetlands should be constructed to protect the environmental impact by silting of rivers and other soil/water resources water bodies” Ⅲ Within three months ● plant cover crops between banana trees when growing on slopes between 30° and 60° ● no banana growing on slopes more than 60° Ⅲ Within one year: ● maintain proper drains and contours in terms of depth, inclination, and mulching or strips of vegetation along each contour Ⅲ For bananas growing on slopes between 30° and 60°, within one year: ● establish proper check drains along contours ● establish barriers of grasses and trees with root systems to stabilize barrier sand counteract erosion ● any replanting bananas must be along contours ● establish a good canopy to protect ground from rain

Ⅲ Certification Unit co-ordinates all tasks and Ⅲ Independent auditors inspect farms, and Ⅲ Since 1997, implementing Ⅲ Companies accept that the implemen- processes all information related to inspection of inspected farms become FLP members pro- ISO 14001 environmental tation of the code is subject to inde- producers, trade auditing and certification vided they comply with FLP standards management systems and pendent verification Ⅲ Operates independently from any other Fairtrade Ⅲ One annual re-inspection ISO 9002 quality manage- interests, it follows the ISO Standards for Ⅲ Requires specific documents and records be ment standards Certification Bodies (ISO 65) kept and continuously updated so that compli- ● Has now achieved ISO ance with each provision can be demonstrated 14001 and ISO 9002 certifi- (e.g. weekly water consumption; disposal of cation at many of its pesticide, chemical and non chemical waste; operations recycled material, etc.) Ⅲ Unannounced spot checks organized by FLP; human rights groups and trade unions entitled to carry out spot checks Ⅲ Use of local coordinators

ENVIRONMENTAL STANDARDS 173 McDonald’s Corporation Nestlé S.A. Procter & Gamble Company (The)

Soil/Erosion Control Ⅲ Promotes contour planting as a good solution for (Continued) reducing erosion when planting in hilly locations

Monitoring and Ⅲ Conducts monitoring through external auditors Ⅲ Compliance with its Corporate Business Principles Ⅲ Meet or exceed the requirements of all envi- Compliance who do on-site inspection, record verification, monitored by internal auditors on the basis of ronmental laws and regulations Framework and employee interviews auditing instructions that are certified by KPMG Ⅲ Use environmentally sound practices, even in (Continued) Ⅲ Uses stakeholder dialogues, training and edu- and published for all employees to consult the absence of governmental standards. cation, self-assessment procedures, and Ⅲ Regularly reviews its Corporate Business Ⅲ Cooperate with governments in analyzing envi- benchmarking to raise and improve awareness Principles ronmental issues and developing cost-effec- within McDonald’s supplier base Ⅲ “Key suppliers with which Nestlé has contractual tive, scientifically-based Ⅲ Conducts unannounced audits when warranted relationships are audited in order to ensure that solutions and standards Ⅲ Uses audit results to support development of they comply with Nestlé’s Corporate Business corrective action plans Principles” Ⅲ Environmental Affairs Officer has responsibility Ⅲ Many of the company’s factories certified by ISO to ensure adherence to environmental princi- 14001 or Eco-Management and audit scheme of ples and reports to board of directors regarding the EU progress toward specific environmental initia- tives Ⅲ Strives to achieve the Global Reporting Initiative (GRI) goals

174 AGRIBUSINESS SECTOR Rainforest Alliance, Rainforest Alliance, Better Banana Project Generic Coffee Standards Starbucks Coffee Company Tate & Lyle p.l.c.

Ⅲ Agriculture should promote conservation Ⅲ Agriculture must be located on lands Ⅲ Under coffee sourcing guidelines, Ⅲ Certified by the Soil Association to UKROFS and recuperation of soils to assure pro- suitable for the proposed crop Starbucks rewards farmers whose coffee for the sale of organic sugars ductivity for the long and short term Ⅲ Implement a soil conservation plan to growing and processing systems con- Ⅲ Reduce negative effects of sedimentation minimize erosion tribute to conservation of soil, water and of waterways Ⅲ Farm management practices must pro- biological diversity Ⅲ Fertilizers must be applied in a manner to mote the conservation and recuperation maximize their incorporation into the soil of the soil’s fertility, quantity of organic and reduce loss from run-off material, biological activity, and structure

Ⅲ Certification committee independent of Ⅲ Certification committee independent of Ⅲ Environmental mission measures and Ⅲ The Board reviews corporate social the auditing committee reviews and the auditing committee reviews and monitors progress for each project responsibility annually grants (or denies) a farm’s certification grants (or denies) a farm’s certification Ⅲ Prepares a Corporate Social Ⅲ “Each Tate & Lyle business is asked to award, thus ensuring no conflict of inter- award, thus ensuring no conflict of Responsibility Annual Report confirm twice a year that the Group’s est between the group surveying the farm interest between the group surveying Ⅲ 2002 Corporate Social Responsibility Code of Conduct is being communicated and the group grading the farm’s produc- the farm and the group grading the Annual Report verified by independent to suppliers and must report on any tion practices farm’s production practices third party contravention” Ⅲ Trained specialists and partner groups Ⅲ Sustainable Agriculture Network (SAN) Ⅲ Applications for preferred supplier pro- Ⅲ “Committed to spreading best practice” in inspect farms and certify them once farm staff prepare report specifying which gram must be veri?ed by an independent supply chain standards and to improving has sufficiently improved to meet the changes must be made to achieve third party and are subject to audit standards amongst suppliers standards certification Ⅲ Americas and European purchasing orga- Ⅲ Re-audit farms annually, and certified Ⅲ A committee of representatives of the nizations attach the Code of Conduct to farms must be committed to constant SAN awards certification once an eval- Purchase Orders and have put suppliers on improvement uation demonstrates the farm has notice to notify the company immediately of achieved compliance any issues they may have with it. Ⅲ SAN conducts annual evaluations and Ⅲ Company representatives have held meet- reserves the right to conduct random ings with NGOs to establish dialogue on a audits of farms variety of social and developmental issues

ENVIRONMENTAL STANDARDS 175 International Standards— International Standards— General Agribusiness Sugar Manufacturing

Soil/Erosion Control Ⅲ No specific policy in IFC/World Bank Guidelines (Continued) Ⅲ Virtually all legal rules and regulations for soil con- servation are at the domestic rather than the inter- national level

Monitoring and Ⅲ Liquid effluents should be sampled and measured Ⅲ Reduce product losses to less than 10% by bet- Compliance weekly for common parameters such as BOD, sus- ter production control; perform sugar auditing Framework pended solids, pH, oils and grease, and flow. World Ⅲ Continuous sampling and measurement of key (Continued) Bank will specify sampling frequencies for project- production parameters allow production losses specific pollutants that are present in the effluent to be identified and reduced, thus reducing Ⅲ Project sponsor is required to maintain records of waste load air emissions, effluents, and hazardous wastes sent off site, as well as significant environmental events such as spills, fires, and other emergencies that may have an impact on the environment. The information should be reviewed and evaluated to improve the effectiveness of the environmental protection plan Ⅲ ISO 14001 is the only International Standard Organization standard against which it is currently possible to be certified by an external certification authority, but it does not itself state specific envi- ronmental performance criteria Ⅲ CERES Principles provide for participating in regu- lar audits and reports, as well as protection of the biosphere, sustainable use of natural resources, reduction and disposal of wastes, energy conser- vation, risk reduction, safe products and services, environmental restoration, informing the public, and management commitment

176 AGRIBUSINESS SECTOR Endnotes

1. Signatories include: Bristol Fruit Sales, Del Monte, Fyffes, Geest Bananas, J.P. 10. Developed by the Rainforest Alliance and the Sustainable Agriculture Network Fruit Distributors Ltd., Keelings, M.W. Mack, S.H. Pratt. (SAN) (formerly the Conservation Agriculture Network). SAN certifies the use of 2. In addition to bananas, Dole also owns a significant amount of flower farms in the best management practices that protect water quality, worker health and Colombia. Dole does not have a published code of conduct on its website, but safety, and wildlife habitat. does have policy statements from which this information is obtained. 11. Developed by the Rainforest Alliance and the Sustainable Agriculture Network 3. Fairtrade Labelling Organisation (“FLO”) sets forth standards for small farmers’ (formerly the Conservation Agriculture Network). Salvadoran farms certified by organizations as well as hired labor setups (like plantations), and small farm this program include: Irlanda, La Providencia, Cooperativa Las Lajas, El Carmen, organizations and plantations can be certified by FLO if they comply with these Santa Margarita, Fincas Horizontes Lejanos, Nuevos Horizonte, Cooperativa La standards. FLO also has product specific standards, which are included within Union, Fincas Las Delicias and San Luis, Francisco S.A. (January 2002). this category as specified. 12. This analysis is based on Starbucks’ 2002 Corporate Social Responsibility 4. Created in 1998 by flower industry associations in Germany. Over 50 flower Annual Report and “Framework for a code of conduct” developed in 1995. farms certified in Kenya, Ecuador, Zimbabwe, Tanzania, and Colombia. (1999). Starbucks sells Fairtrade(tm) Certified coffee, which has been certified by a 5. Participates with the Banana Environmental Commission, a joint government licensing organization under the Fairtrade Labelling Organizations; coffee is in industry forum. Del Monte is a signatory to the UK Banana Industry Code of Best accordance with Fairtrade standards. Practice (see below), and is currently rewriting its Code of Conduct (expected 13. Subscribes to the principles of International Chamber of Commerce’s Business later in 2003). The information in this chart was distilled from Del Monte’s website. Charter for Sustainable Development. Member of Comité Européen Des 6. Proposed by International Union of Food, Agriculture, Hotel, Restaurant, Fabricants De Sucre (CEFS). Tate & Lyle acts as a bridge into the European mar- Catering, Tobacco and Allied Workers’ Association (Switzerland), Flower ket for cane sugar, predominantly from African, Caribbean and Pacific coun- Campaign (Germany), Trade Union for Construction, Agriculture and tries. The EU imports 1.7 million tons of cane sugar annually from Least Environment (Germany), Trade Union Confederation (Netherlands), Organisatie Developed and Developing Countries and roughly two-thirds of this total (which Latigns Amerika Activiteiten (Netherlands), INZET (Netherlands), Fairtrade amounts to just under 10% of total EU sugar consumption) is processed by Tate Center (Sweden), Flower Coordination (Switzerland), and Christian Aid (UK). The & Lyle. Code is primarily based on ILO Conventions. (August 1998). 14. Unless otherwise noted, standards are from World Bank and IFC Guidelines in 7. (Social Responsibility Report, April 2002). the “Pollution Prevention and Abatement Handbook 1998.” 8. Brands include Hills Brothers, Taster’s Choice, and Nescafe. Material taken 15. World Bank and IFC Guidelines specific to the sugar industry, from the from 1999 Nestlé Policy on the Environment, Environmental Progress Report, “Pollution Prevention and Abatement Handbook 1998.” 2000. 9. Brands include Folgers. Procter & Gamble’s Code of Conduct is not coffee-specific, but applies to its entire company and products. (2002 Sustainability Report using Global Reporting Initiative’s June 2000 Sustainability Reporting Guidelines).

177

ANNEX E Tourism Sector Labor, Human Rights and Environmental Standards

Companies/Organizations: Issues Examined:

British Airways p.l.c. Labor and Human Rights Issues ...... 180–183 Coalition for Environmentally Responsible Economies, Inc.—CERES Principles Health and Safety Issues ...... 184–187 Commonwealth of Australia—National Ecotourism Strategy Environmental Issues ...... 188–191 Foundation for Environmental Education—Blue Flag Campaign Specific Programs and Initiatives ...... 192–195 Government of Brazil—Guidelines for an Ecotourism Policy Monitoring and Compliance Framework ...... 196–199 Government of Costa Rica—Certification for Sustainable Development GREEN GLOBE 21 Hilton Group p.l.c. (Brands include Hilton, Scandic, Livingwell, Conrad, and Ladbrokes) InterContinental Hotels Group p.l.c. (Brands include InterContinental, Crowne Plaza, Holiday Inn, and Britivic Soft Drinks) International Ecotourism Standard Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. World Tourism Organization—Global Code of Ethics for Tourism

179 Coalition for Environmentally Responsible Economies, Inc. Commonwealth of Australia, National British Airways p.l.c. (CERES), Principles1 Ecotourism Strategy2

Labor and Human Ⅲ “Treat our employees fairly, respecting their Ⅲ “Will not take any action against employees for Ⅲ Public consultation with local government Rights Issues individual and collective rights” reporting dangerous incidents or conditions to agencies, natural resource managers, tour Ⅲ “Promote equality of opportunity and encour- management or to appropriate authorities” operators, tourism marketers, planners, con- age diversity” servation and community groups, developers Ⅲ “Maintain clear disciplinary and grievance pro- and indigenous Australians cedures with access to advice on fair and con- sistent application” Ⅲ “Support the Rights of the Child, and won’t employ anyone under the age of 16” Ⅲ “Express our support for the Universal Declaration of Human Rights within our domain of influence and consistent with the legitimate role of business” Ⅲ “Will abide by the law and ensure our practices comply with relevant legislation and regulations” Ⅲ “Aim to uphold and support human rights wherever we operate, respecting local laws” Ⅲ “Will monitor, review and measure our performance against this code” Ⅲ “Respect local cultural and religious needs and consider them in determining our local condi- tions of employment and product offerings” Ⅲ Collective Agreements Ⅲ Disciplinary and Grievance Procedures Ⅲ “Dignity at Work — Policies on Equal Opportunities and Diversity, Harassment and Bullying,” but “aim, under equal opportunity practice, to employ and promote people regardless of gender, ethnicity, national origin, disability, religious or cultural background”

180 TOURISM SECTOR Foundation for Environmental Government of Brazil, Government of Costa Rica, Education (FEE), Blue Guidelines for an Certification for Sustainable Flag Campaign3 Ecotourism Policy4 Development (CST)5 GREEN GLOBE 216

Ⅲ Public participation and local involve- Ⅲ Develop a participatory planning Ⅲ Direct Economic Benefits of CST: “In order ment are key factors. program that involves stakeholders that tourism may benefit the direct local Ⅲ Free access for everyone to all Blue from throughout the country economy, one must identify the “local com- Flag beaches or region, including rural and munity” to be benefited; encourage the hir- indigenous communities ing of nationals and locals; establish a clear method of personal advancement within the hotel’s personnel; establish a permanent training program; refrain from hiring illegal persons to work at the hotel; do not maintain labor practices with undesirable results for the local community, such as hiring youth who will then not attend school.” Ⅲ Training: “Inform, empower, incentivize, and remind employees about the environmental plans and goals; have meetings with employees to discuss implementation; invite suggestions for improvement of the plans” Ⅲ Contribution to Cultural Development: “Mention local cultural facts in promotional materials; create a space such as a wall for the posting of materials promoting local cultural activities; if possible, allow local groups to hold meetings at the hotel; develop opportunities for guests to experi- ence cultural activities; eliminate as much as possible the use of the hotel for undesir- able activities such as prostitution and drug use”

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 181 Hilton Group p.l.c.7 InterContinental Hotels Group p.l.c.8 International Ecotourism Standard (IES)9

Labor and Human Ⅲ “Aim to comply with all applicable laws and regula- Ⅲ “Unfair discrimination will not be Ⅲ Standard seeks to provide ongoing contributions to the Rights Issues tions in respect of wages and hours” tolerated and any accusations of local community through employment of local guides and (Continued ) Ⅲ “We rely on our employees to provide the high qual- such behavior will be investigated staff and purchase of sustainable local products. ity of service our guests and customers expect. In speedily, sensitively and in line Ⅲ Cash or in-kind investments are made to local community return we work hard to look after our people. Our with local employment legislation infrastructure and activities. aim is to maximise and develop the skills of our requirements” Ⅲ Local residents are provided with continued access to the staff, provide opportunities for personal develop- Ⅲ “Comply with the labor laws of all area and recognition of cultural values and traditions ment and achieve high rates of employee countries” in which it operates, which take place in the region. satisfaction.” and the Group Company Secretary Ⅲ “Uphold the principle of equal opportunities and is responsible for human rights strive to meet high ethical standards. Our divisions issues across the group abide by the provisions of the Universal Declaration Ⅲ “Respect the preservation of cul- of Human Rights.” tural diversity wherever we con- Ⅲ Ladbrokes, Hilton International and Living Well are duct our business....Wherever we all disabled-friendly operations. operate we seek to maintain an Ⅲ “Internal codes of practice require business profes- apolitical stance and as an ethical sionalism, honesty and integrity in all that we do.” global business organization we Ⅲ Hilton University was launched in 2002. The do not support any political party University is a virtual learning centre supporting the in any country.” development of our employees and currently con- Ⅲ “Global mission to offer the high- sists of 81 courses on a range of topics. est standards of service to all trav- Ⅲ Ladbrokes has been Investors in People accredited elers and customers from all over since 1998 and is continuously monitoring and the world, regardless of their improving its activities. For the second year running, country of origin, political or reli- Ladbrokes has achieved GoodCorporation gious beliefs, race, sex, color or accreditation. creed” Ⅲ “Actively encourage initiatives at the local community level as part of our overall CSR policy” Ⅲ “Provide exceptional standards of hospitality and facilitate the meet- ing of all cultures, and the free intellectual exchange of ideas and cultural expression”

182 TOURISM SECTOR World Tourism Organization (WTO), Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. Global Code of Ethics for Tourism10

Ⅲ “Committed to close involvement with host governments, and Ⅲ “To help our employees do the best job possible, Ⅲ The universal right to tourism must be regarded as the with those who dedicate themselves to conservation and we have developed policies, standards and prac- corollary of the right to rest and leisure, including rea- working with indigenous peoples” tices to foster a positive and rewarding work sonable limitation of working hours and periodic holi- Ⅲ “Our goal is to build long-term relationships that will help environment for our employees.” days with pay, guaranteed by Article 24 of the sustain the places we visit.” Universal Declaration of Human Rights and Article 7.d of the International Covenant on Economic, Social and Cultural Rights. Ⅲ The understanding and promotion of the ethical values common to humanity, with an attitude of tolerance and respect for the diversity of religious, philosophical and moral beliefs, are both the foundation and the conse- quence of responsible tourism; stakeholders in tourism development and tourists themselves should observe the social and cultural traditions and practices of all peoples, including those of minorities and indigenous peoples and to recognize their worth. Ⅲ Tourism activities should respect the equality of men and women; they should promote human rights and, more particularly, the individual rights of the most vulnerable groups, notably children, the elderly, the handicapped, ethnic minorities and indigenous peoples. Ⅲ The exploitation of human beings in any form, particu- larly sexual, especially when applied to children, con- flicts with the fundamental aims of tourism and is the negation of tourism; as such, in accordance with inter- national law, it should be energetically combated. Ⅲ Tourists and visitors should have access to all avail- able forms of communication, internal or external; they should benefit from prompt and easy access to local administrative, legal and health services; they should be free to contact the consular representatives of their countries of origin in compliance with the diplomatic conventions in force. Ⅲ Tourists and visitors should benefit from the same rights as the citizens of the country visited concerning the confidentiality of the personal data and information concerning them, especially when these are stored electronically.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 183 Coalition for Environmentally Responsible Economies, Inc. Commonwealth of Australia, National British Airways p.l.c. (CERES), Principles Ecotourism Strategy

Health and Ⅲ “Safety is of absolute importance to all of us. Ⅲ Risk Reduction: “Will strive to minimize the envi- Safety Issues We will never compromise safety for commer- ronmental, health and safety risk to our employees cial reasons and will maintain policies and and the communities in which we operate through procedures at leading edge standards.” safe technologies, facilities and operating proce- Ⅲ “We will plan for contingencies and if things go dures, and by being prepared for emergencies” wrong we will address them with urgency and Ⅲ Safe Products and Services: “Will reduce and consideration.” where possible eliminate the use, manufacture or Ⅲ “Will respond promptly to complaints, taking sale of products and services that cause environ- action to improve” mental damage or health or safety hazards” Ⅲ “Will abide by the law and ensure our prac- Ⅲ Informing the Public: “Will inform in a timely man- tices comply with relevant legislation and ner everyone who may be affected by conditions regulations” caused by our company that might endanger Ⅲ Produced a Health, Safety, Environment health, safety or the environment” Manual Ⅲ Targets for reporting and reductions in lost-time injuries by 2004 and 2010 Ⅲ “Food safety and environmental health: ● “Our environmental health specialists ensure the safety of food and water served on board our aircraft, and ensure that sewage is handled and disposed of safely.”

184 TOURISM SECTOR Foundation for Environmental Government of Brazil, Government of Costa Rica, Education (FEE), Blue Guidelines for an Certification for Sustainable Flag Campaign Ecotourism Policy Development (CST) GREEN GLOBE 21

Ⅲ Beach guards must be on duty during Ⅲ Contribution to Public Health: “Establish a the bathing season and there must be clear message in the hotel about the impor- adequate safety provisions, including tance of public sanitation and health; partic- lifesaving equipment and directions ipate fully in public health programs offered for their use and immediate access to by the corresponding organizations; main- a telephone. The lifesaving equipment tain a pest control program that does not must be of a type that is approved by endanger human health” national lifesaving/guarding bodies. Ⅲ Infrastructure and Security: “Contribute to Ⅲ Beach guards must be trained and the execution of public works such as road- accredited according to national work and development of aqueducts; offer requirements established by authori- the experience of the hotel’s administration ties or professional associations. in organizing and promoting such projects; Ⅲ First aid must be available on the support programs which increase tourist beach and its location easily safety; do not try to hide security problems identified. from guests but be candid with them; pre- Ⅲ National laws concerning dogs, pare a plan of action for effects of possible horses, and other domestic animals natural disasters” must be strictly enforced on the beach. Ⅲ A shielded source of drinking water must be provided. Ⅲ At least one of the municipality’s beaches must be equipped with access ramps to the beach and toilet facilities for people with disabilities, except where the topography does not allow for it. Ⅲ All buildings and equipment of the beach must be properly maintained.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 185 Hilton Group p.l.c. InterContinental Hotels Group p.l.c. International Ecotourism Standard (IES)

Health and Ⅲ “Committed to providing healthy and safe environ- Ⅲ International Ecotourism Standard Certification encour- Safety Issues ment for its staff, guests, customers, and all ages compliance with relevant Health and Safety (Continued ) visitors” Regulations. Ⅲ “Support a proactive culture of risk management to ensure accidents and incidents remain as low as is reasonably practicable” Ⅲ Commitments to: “understand the health and safety issues associated with all our operations; incorpo- rate health and safety management into everyday business practice; comply with the relevant legisla- tion and codes of practice in the countries in which we operate; measure and review performance and set improvement targets; work our employees, sup- pliers, contractors and partners to maximize health and safety; and communicate with our stakeholders on our health and safety performance” Ⅲ Ladbrokes assisted the UK Health and Safety Executive in the launch of an industry guideline document ‘Upper limb disorders in the workplace’, with the Ladbrokes policy and procedures being included in the document as an example of best practice.

186 TOURISM SECTOR World Tourism Organization (WTO), Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. Global Code of Ethics for Tourism

Ⅲ “The health and welfare of our employees, our Ⅲ It is the task of the public authorities to provide protec- communities and our environment are critical tion for tourists and visitors and their belongings; they to our success.” must pay particular attention to the safety of foreign tourists owing to the particular vulnerability they may have; they should facilitate the introduction of specific means of information, prevention, security, insurance and assistance consistent with their needs; any attacks, assaults, kidnappings or threats against tourists or workers in the tourism industry, as well as the willful destruction of tourism facilities or of ele- ments of cultural or natural heritage should be severely condemned and punished in accordance with their respective national laws. Ⅲ Tourists must be aware of the health and security risks inherent in any travel outside their usual environment and behave in such a way as to minimize those risks. Ⅲ Tourism professionals, insofar as it depends on them, should show concern, in cooperation with the public authorities, for the security and safety, accident pre- vention, health protection and food safety of those who seek their services.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 187 Coalition for Environmentally Responsible Economies, Inc. Commonwealth of Australia, National British Airways p.l.c. (CERES), Principles Ecotourism Strategy

Environmental Issues Ⅲ Publish an annual Social and Environmental Ⅲ Protection of the Biosphere: “Reduce and make Ⅲ Development of national strategy includes: Report; most recent report covered 2001, continual progress toward eliminating the release ● facilitate ecologically sustainable practices and then the company commissioned “csr of any substance that may cause environmental ● integrate regional planning network” to provide independent assurance damage to the air, water or the earth or its ● improve natural resource management on the report inhabitants” (including seeking financial benefits from Ⅲ Commitment to introduce an integrated social Ⅲ Sustainable Use of Natural Resources: “Conserve entrance and permit fees) and environmental management system within non-renewable natural resources through efficient ● improve cooperation between ecotourism 18 months use and careful planning” and natural resource management (including Ⅲ “Will consider and respect the environment, Ⅲ Reduction and Disposal of Wastes: “Will reduce specifying modes of transport, points of seeking to protect it in the course of our and where possible eliminate waste through entry, licensing and permits) activities” source reduction and recycling. All waste will be ● provide proper regulations (including Ⅲ “Seek opportunities for positive impact on handled and disposed of through safe and respon- studying environmental impacts of tourism society and the environment, promoting sible methods.” developments in natural areas) sustainable development” Ⅲ Energy Conservation: “Will conserve energy and ● determine infrastructure needs (including Ⅲ “Will strive to improve its environmental and improve the energy efficiency of internal opera- increasing capability to withstand environ- social performance by: tions and of the goods and services sold. Will mental impacts) ● integrating environmental and social factors make every effort to use environmentally safe and ● monitor visitor impacts (including establish- in our management systems and programs sustainable energy sources.” ing baseline criteria on sites) and in our commercial decisions Ⅲ Environmental Restoration: “Will promptly and ● deliver ethical ecotourism products ● using natural resources efficiently, minimiz- responsibly correct conditions we have caused ing waste and harmful releases to the that endanger health, safety or the environment. environment To the extent feasible, we will redress injuries we ● raising awareness of environmental and have caused to persons or damage we have social issues with staff, partners and caused to the environment and will restore the suppliers, who we will seek to influence to environment.” adopt similar policies ● setting clearly defined objectives and targets addressing our environmental and social issues ● working constructively with organizations concerned for communities, society and the environment ● monitoring, auditing and reviewing our performance”

188 TOURISM SECTOR Foundation for Environmental Government of Brazil, Government of Costa Rica, Education (FEE), Blue Guidelines for an Certification for Sustainable Flag Campaign Ecotourism Policy Development (CST) GREEN GLOBE 21

Ⅲ Requires compliance with require- Ⅲ Establish objectives for a program Ⅲ Policies and Programs: “Develop or partici- Ⅲ “Committed to improved environmental out- ments and standards such as those based on stakeholder input, such pate actively in national or regional pro- comes for the travel and tourism industry” of the EU Bathing Water Directive as increased rural economic grams for environmental protection” and “has targeted the big environmental Ⅲ No industrial or sewage related dis- development, increased budgets Ⅲ Emissions and Wastes: “Have a water qual- issues facing our planet” including: “reducing charges may affect the beach area. for management of protected ity certificate from the Health Ministry; moni- greenhouse gas, improving energy efficiency, Ⅲ Local and/or regional emergency areas, and better management of tor waste waters for composition; install, if protecting air quality, controlling noise, man- plans must be in place to cope with visitors in fragile areas necessary, treatment systems which allow aging waste water, bettering community rela- pollution accidents. Ⅲ Review transportation corridors, the achievement of set standards” tions, respecting cultural heritage, enhancing Ⅲ No algal or other vegetation may trail systems, small-scale non- Ⅲ Gardens: “Utilize native species; have signs social performance, conserving biodiversity, accumulate and be left to decay on commercial river transportation naming and describing important species; and encouraging good land management.”11 the beach. systems, small aircraft access and avoid the use of exotic ornamental plants, or Ⅲ “[T]he only global system designed to support Ⅲ Community must be in compliance other infrastructure necessary to take care to avoid their propagation in the companies, communities and consumers seek- with requirements for sewage treat- develop ecotourism. Develop a environment; use natural gardening methods ing sustainable tourism.” ment and effluent quality such as are transportation plan that facilitates such as organic insecticides and fertilizers” Ⅲ “[S]ignifies better environmental performance, contained in the EU Urban Waste good ecotourism itineraries; Ⅲ Protection of Flora and Fauna: “Comply with improved community interactions, savings Water Directive. stresses low environmental the regulations established in Costa Rican through using fewer resources, and greater Ⅲ Prompt public warning if the beach is impact, low energy use, visitor law regarding Protection of Wildlife” yields from increased consumer demand. It expected to or has become grossly safety and scenic qualities, and Ⅲ Water Conservation: “Monitor and track provides recognition and promotional support polluted or otherwise unsafe provides quality visitor information actual consumption; create and disseminate to a global consumer market.” Ⅲ Information on natural sensitive areas Ⅲ Establish biological and social a water-saving plan to all hotel employees; Ⅲ Requires a commitment to “year on year” in the coastal zone, including its flora carrying capacity benchmarks campaign for and have incentives for water improvement in relevant key performance areas. and fauna must be publicly displayed through research that establishes conservation among employees and guests; Ⅲ Requires compliance with relevant environ- and included in tourist information. long-term monitoring of tourism check for and repair leaks regularly; use mental legislation and regulations. Ⅲ The local community must have a impacts water-saving devices such as low-flow Ⅲ Requires a two-way communication with key land-use and development plan for its Ⅲ Develop finance mechanisms for shower heads and reduced water-use stakeholders including staff, customers, and coastal zone that is in compliance the development of small toilets” key suppliers. with planning regulations and coastal ecolodges, which provide incen- Ⅲ Management of Solid Wastes: “Monitor and Ⅲ “GREEN GLOBE 21 means state of the art zone protection regulations. tives to conserve land and train track actual waste levels; create and dis- Environment Management and Support Ⅲ Litter bins in adequate numbers must local people seminate plan among employees to reduce Systems, clear standards based on ISO and be provided, properly secured and Ⅲ Develop land-use planning capac- waste; reduce, reuse and recycle; imple- Agenda 21, independent certification, and regularly maintained and emptied; ity in local municipalities through ment a reduction program in each area of quality alliances for global coverage and local waste collected at the beach must be exposure to the benefits of zoning the hotel and make someone responsible for implementation.” disposed of in a licensed facility. and regulatory techniques.; limit it; dispose of wastes properly; have a central Ⅲ “The goals of GREEN GLOBE 21 are (1) to Ⅲ A daily beach cleaning must take dense development in buffer zones waste storage area which minimizes odors” achieve environmental and social improvements place during the bathing season when of protected lands and other Ⅲ Customer Room Conditioning: “Guest rooms at the global, national, and local scales; (2) to tar- necessary. important ecotourism attractions should be equipped so as to facilitate get the achievement of significant savings choice. For example, provide waste separa- through an integrated approach to reducing tion receptacles; advertise a towel-re-use energy and water consumption, decreasing option; provide smoking and non-smoking waste generation and overall resource usage; rooms; make it possible for the guest to turn (3) provide a tool that enables travel and tourism off the air conditioning if they so wish.” businesses and communities to measure their annual performance and improvements.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 189 Hilton Group p.l.c. InterContinental Hotels Group p.l.c. International Ecotourism Standard (IES)

Environmental Issues Ⅲ Developed a group-wide Environmental Policy in Ⅲ “For environmental activities, the Ⅲ Principle of International Ecotourism Standard: (Continued ) 2001, which is implemented independently within main focus is to improve on the “Ecologically sustainable tourism with a primary focus on each division quality and quantity of energy experiencing natural areas that foster environmental and Ⅲ “Not only do we wish to comply with the relevant management reporting across all cultural understanding, appreciation and conservation” environmental legislation, laws and codes of prac- operations. This is a prerequisite Ⅲ Core set of principles are that ecotourism product should: tice in the countries in which we operate, we are to improving energy management ● focus on giving visitors the opportunity to personally and also measuring our performance and working performance....Where not already directly experience nature (Natural Area Focus); towards setting improvement targets for all our in place, we aim to establish ● provide opportunities to experience nature in ways that business units.” robust energy management report- lead to greater understanding, appreciation and enjoy- Ⅲ “Committed to protecting the environment through ing streams; where already in ment (Interpretation); continual improvement of our environmental perfor- place, we aim to improve on the ● represent best practice for environmentally sustainable mance and prevention of pollution. All our businesses quality of reported data.” tourism (Environmental Sustainability Practice); have taken into account the effects their activities Ⅲ “Seeks to embed good environ- ● contribute directly to the conservation of natural areas have on the environment.” mental practice into our business (Contribution to Conservation); Ⅲ We will: “understand the environmental issues strategies and operations, and ● provide ongoing contributions to the local community associated with all our operations; incorporate envi- accommodate the needs of our (Benefiting Local Communities); ronmental management into everyday business local, national and international ● be sensitive to, interpret and involve the culture/s practice; comply with the relevant environmental stakeholders” existing in the area (Cultural Respect); legislation and codes of practice in the countries in Ⅲ “Another key focus will be on ● consistently meet consumer expectations (Customer which we operate; measure performance and set developing external reporting and Satisfaction); and improvement targets; work with our employees, closer engagement with our stake- ● be marketed and promoted honestly and accurately so suppliers, contractors and partners to minimize our holders, with a view to ensuring that realistic expectations are formed (Responsible impacts; encourage environmentally-friendly, and that the regular information which Marketing). where possible, local sources of products and ser- we provide on CSR is meeting their vices; encourage engagement of our businesses requirements” with local communities; and communicate regularly Ⅲ “As a basic requirement, environ- with our stakeholders on environmental issues and mental legislation in each country publicly report on our progress.” of operation will be observed” Ⅲ “Energy consumption, and the associated CO2 emis- Ⅲ “Give due regard to the respective sions, is our biggest environmental issue and we stakeholder communities in the have energy-efficiency programs in place to help local implementation of Group reduce our global impact.” Environmental Policy” Ⅲ “Using water efficiently is a key aspect of our pro- Ⅲ “Through effective senior manage- grams. Where possible, Hilton installs water saving ment participation, will ensure suf- fixtures in its new and refurbished hotel rooms.” ficient resources and information Ⅲ “Strive to minimize the waste we produce, and are made available to properly dis- where that is not possible, we aim to reuse or charge environmental duties” recycle. Our divisions manage their own waste Ⅲ “Aim for continual improvement in contracts and with the aim to reduce the quantities environmental matters through a going to landfill or incineration, are continually look- formal management structure and ing for innovative ways of reusing and recycling.” review process” Ⅲ “Environmental concerns are taken into account during the selection of products and materials for use in our premises.”

190 TOURISM SECTOR World Tourism Organization (WTO), Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. Global Code of Ethics for Tourism

Ⅲ “Committed to compliance with all international, federal, state, Ⅲ “Values the environment and is committed to pro- Ⅲ All the stakeholders in tourism development should and local environmental laws and regulations applicable to the tecting and preserving environmental resources, safeguard the natural environment with a view to areas in which we operate. In places without existing legisla- preventing pollution and continually improving achieving sound, continuous and sustainable eco- tion, we will set our own corporate standards to meet our over- environmental management” nomic growth geared to satisfying equitably the needs all objective of continual improvement of our environmental Ⅲ Identifies “Significant Environmental Aspects” and aspirations of present and future generations. performance.” and sets “objectives and targets for the reduction Ⅲ All forms of tourism development that are conducive to Ⅲ “A commitment to environmental responsibility and efficiency in the use of natural resources and reduction of saving rare and precious resources, in particular water must be the accepted minimum standard for the travel industry.” nitrous oxide emissions” and energy, as well as avoiding so far as possible Ⅲ “The continual improvement of our environmental performance Ⅲ “Three basic tenets of its Environmental waste production, should be given priority and encour- in all of our operations is a high priority for everyone in the com- Management System are: (1) reduce the creation aged by national, regional and local public authorities. pany, and will be demonstrated by the implementation and main- or generation of waste; (2) recycle or reuse Ⅲ Tourism infrastructure should be designed and tourism tenance of our corporate Environmental Management System materials; and (3) properly dispose of remaining activities programmed in such a way as to protect the (“EMS”) and adhering to our environmental policy.” wastes.” natural heritage composed of ecosystems and biodi- Ⅲ “Our intention is to minimize the environmental impacts of the Ⅲ “Company aggressively pursues new technolo- versity and to preserve endangered species of wildlife; significant aspects of our activities as identified in our initial gies in order to reach the highest environmental the stakeholders in tourism development, and espe- environmental review, and to continually seek creative ways to standards” (e.g., smokeless gas turbines). cially professionals, should agree to the imposition of engage our guests, suppliers, and industry colleagues in further- Ⅲ “A culture of environmental stewardship perme- limitations or constraints on their activities when these ing their role in conservation support.” ates the fleet....Every effort is made to ensure that are exercised in particularly sensitive areas: desert, Ⅲ “On our ships, we endeavor to reduce emissions, solid waste, we are good stewards of our ocean environment polar or high mountain regions, coastal areas, tropical and effluent by the most economically viable application of the and of all the ports we visit.” forests or wetlands, propitious to the creation of nature best available technology, and by adopting the principles of pol- Ⅲ “Continues to explore prototype systems through reserves or protected areas. lution prevention. In our offices and field activities, we endeavor research and development” (e.g., a bilge-water Ⅲ Nature tourism and ecotourism are recognized as to minimize our waste, reduce our consumption, and minimize cleaning system installed fleetwide in 1998, instal- being particularly conducive to enriching and enhanc- our impacts on the places we visit. To do this, we have set envi- lation of two developmentally advanced waste ing the standing of tourism, provided they respect the ronmental objectives and targets with the goal of continually water treatment systems in 2001-2002, “Lazarus natural heritage and local populations and are in improving our environmental performance.” and Hydroxyl”) keeping with the carrying capacity of the sites. Ⅲ “Every employee is expected to perform their work in a manner Ⅲ RCCL mandates a strict chemical management compatible with our EMS and the company’s policies and program, minimizes hazardous chemicals objectives.” onboard, and maximizes waste reduction. Ⅲ “We will continually relate the environmental effects of our operations to our business objectives, and all new and proposed operations and activities will be evaluated prior to approval to assess their likely environmental impacts.”

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 191 Coalition for Environmentally Responsible Economies, Inc. Commonwealth of Australia, National British Airways p.l.c. (CERES), Principles Ecotourism Strategy

Specific Programs Ⅲ Social Audits: Conducted first one in Nigeria Ⅲ Management Commitment: “Will implement these Ⅲ “First natural ecotourism plan in the world” and Initiatives against the code of conduct in 2000, and “have Principles and sustain a process that ensures that scheduled 2 further audits — 1 in Colombia and the Board of Directors and CEO are fully informed 1 other (This process is in development stage)” about pertinent environmental issues and are fully Ⅲ Initiatives in noise reduction and in global and responsible for environmental policy. In selecting local air quality, including promoting “continu- a Board of Directors, will consider demonstrated ous descent approach,” departure noise, and environmental commitment as a factor.” noise compensation Ⅲ Joined UK Emissions Trading Scheme, 1 of only 34 organizations who successfully applied. “Climate change is a major concern to BA. We’re continuing to pursue efficiency improve- ments to reduce our overall impact. Relative to last year, both our aircraft CO2 and NO emis- sions have been reduced (9.8% and 14.2%). Ⅲ Fuel efficiency initiatives Ⅲ Waste indicator — creating the first attempt at illustrating waste per passenger for global operations Ⅲ “The re-use and recycling of certain items is actively encouraged. Over 3,200 tons of materi- als were recycled in 2001-02....There has been an increase in recycling at Heathrow of 67%.” Ⅲ Biodiversity and conservation initiatives

192 TOURISM SECTOR Foundation for Environmental Government of Brazil, Government of Costa Rica, Education (FEE), Blue Guidelines for an Certification for Sustainable Flag Campaign Ecotourism Policy Development (CST) GREEN GLOBE 21

Ⅲ A beach can be eligible for the Blue Ⅲ Government established the Ⅲ Indirect Economic Benefits: “In order to Ⅲ GREEN GLOBE 21 is “the global Benchmarking, Flag Campaign if it is a national offi- Interministerial Ecotourism Task indirectly benefit the community, suggested Certification and Improvement system for sus- cially designed bathing area with at Force in the early 1990s, which practices are to: encourage clientele to visit tainable travel and tourism.” The 3 stages of least one sampling point for water released these guidelines, that other local businesses such as shops and the GREEN GLOBE 21 program are: quality analyses, and the beach must were officially endorsed and restaurants; promote the development of ● Affiliates: GREEN GLOBE 21 Affiliates be accessible for unannounced released by President Cardoso tours which highlight local attractions; use receive information on the GREEN GLOBE inspection by FEE. in 1995 locally grown products when possible; pro- Process, improving sustainability, reducing Ⅲ Water Quality must be in compliance Ⅲ Ministry of Environment took lead mote the sale of locally produced artifacts; costs and enhancing green market appeal. with requirements and standards such in implementing the guidelines use local arts to adorn guest rooms; pro- They have access to research findings, as those of the EU Bathing Water Ⅲ Nine Amazon states were used to mote the idea of sustainable production in product guidelines and recommended read- Directive (e.g., 500/100 ml guideline test the guidelines due to the high the local community.” ing and tips. They have use of the GREEN values for total colibacteria). biodiversity value and growing GLOBE Affiliate stamp and are listed on the tourist demand to see the Amazon GREEN GLOBE website. rain forests ● Benchmarking: Benchmarking companies Ⅲ A technical cooperation program and communities are on the second step of was developed for the Amazon the pathway towards sustainable travel and region and signed in 2000 by tourism. They are provided with tools to President Cardoso; the IDB loaned undergo the Benchmarking process. When $13.8 million to establish a frame- they successfully pass Benchmarking, they work to implement the necessary receive a Benchmarking Assessment investments in the 9 Brazilian Report, a Benchmarked Certificate, and the Amazonian states to responsibly Benchmarked Logo (without tick) and are prepare themselves to manage assisted in their progress towards certifica- selected ecotourism areas tion. They also receive greater market pro- (Proecotur) file from the GREEN GLOBE 21 website. Ⅲ Established an Inter-Ministerial ● Certifying: Certified participants have their Working Group that combines performance independently assessed. On- expertise of Ministries of Tourism, site assessments take place regularly to Environment and the agencies ensure that performance levels are main- charged with rural development, tained or improved. Successfully certified natural resources or park authority organizations receive a confidential annual Assessors’ Report, a Certified Certificate and promotional material, use of the GREEN GLOBE 21 Logo with tick and “premier pro- motion by GREEN GLOBE 21 through a Case Study, Travel Planner and Participant’s List on the website.”

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 193 Hilton Group p.l.c. InterContinental Hotels Group p.l.c. International Ecotourism Standard (IES)

Specific Programs Ⅲ In Europe, through measures including installing Ⅲ “Conserving for Tomorrow,” a pro- Ⅲ Best Practice Innovation: “The International Ecotourism and Initiatives energy efficient equipment and changes in opera- gram operational in 1,100 partici- Standard” encourages innovation in all performance areas (Continued ) tional procedures, Hilton International has reduced pating hotels, saves 7 million that support the principles of ecotourism. Where a product the overall energy consumption of its hotels by 16% gallons of water and 46,920 gallons significantly exceeds criteria for one or more aspects, over the last 4 years, and sought to reduce further of detergent every month, by credit towards Advanced Ecotourism Certification may be by 3% in 2002. washing sheets and towels every awarded at the time of Assessment. The key test is that the Ⅲ Hilton UK and Ireland have been carrying out three days instead of daily. aspect is truly best practice and/or is original innovation detailed energy audits of its hotels and specific Ⅲ A hotel in Mexico achieved 20% toward the principles of ecotourism.” improvements are underway. savings in energy costs by placing Ⅲ Suggested best practices include: Ⅲ In the Nordic region, the “Scandic in Society” pro- presence sensors in guestrooms ● formal assessment of environmental impacts and action gram was launched in 2001 “to establish a dialogue to control air-conditioning and taken to minimize them on the issues surrounding social responsibility. lighting. ● meeting 3 of following requirements with regard to con- Through the program, employees will develop prac- Ⅲ Hotel Inter-Continental Leipzig has struction of new buildings (excavation has been mini- tical schemes to involve staff directly in supporting reduced its overall annual energy mized; building materials have been sourced locally; their communities.” costs from DM3 million in 1993 to recycled building materials have been used as a dominant Ⅲ Scandic has reduced energy usage in its Nordic DM2 million in 2000, through a source of material; building materials are from environ- hotels by 24% from that in 1996. combination of 40 energy-saving mentally sustainable renewable resources; timber treated Ⅲ In the European region, water consumption has projects, including reminding with arsenic or copper is not used; soil and gravel used in been successfully reduced by 15% over the last guests to switch off lights and construction is free from weeds and plant diseases) 4 years. taps when not in use, and inviting ● sites of degraded lands have been rehabilitated, and a Ⅲ Ladbrokes has a successful program for paper and them to change their linens every program of re-landscaping with native, locally occurring disused computer equipment, and is looking to other day. species is implemented extend this to vending cups next year. Ⅲ Grand Inter-Continental Seoul has ● meeting at least 3 of the following measures with regard Ⅲ “Since 1995, by various methods, including a reduc- implemented a successful “wet to visual impacts (including: building forms are compati- tion in supplied packaging, Scandic has reduced the waste management” project, ble with the physical and structural landscape; height of amount of waste being sent for disposal by 40%. which resulted in an 83% improve- buildings and structures is below the tree line; roads and This provides substantial savings to the business.” ment in the levels of waste suit- tracks are screened by topographical features; car parks Ⅲ Nordic region has introduced an eco-room concept, able for use as farm feed within are not visually obtrusive; the color and reflectivity of sur- where over 97% of the materials used are the first 10 weeks. faces are compatible with the physical and cultural land- recyclable. Ⅲ Bali Inter-Continental Resort buys scape; native vegetation is retained or included in Ⅲ “Ladbrokes is looking into its procurement policies turtle eggs directly from the local landscaping to screen facilities; structures and buildings and is requesting all its suppliers to consider market (so they will not be sold as are painted in colors that do not sharply contrast or GoodCorporation accreditation. Through this, it a delicacy), hatches them, and conflict with the landscape) hopes to cascade socially and environmentally provides the baby turtles with a ● meeting at least 6 of the following measures with regard friendly policies throughout the supply chain.” safe sanctuary until they are to conserving water (including small sinks in guest rooms; strong enough to be released back low-flow shower-heads; use of treated effluent; use of into the ocean. rainwater; dual or low-flush toilets; provision of showers Ⅲ Britvic is targeting a 1% reduction rather than baths; automatic turn-off taps; water-efficient in kWh/m3 of product. gardens and dishwashers; reuse of gray water) ● with regard to noise, when natural quiet prevails for the majority of each customer’s time in natural areas ● smoking prohibited in natural areas ● other specific recommendations for such areas as Waste Minimization, Energy Efficiency, Minimal Disturbance to Wildlife; Minimal Impact Codes of Practice

194 TOURISM SECTOR World Tourism Organization (WTO), Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. Global Code of Ethics for Tourism

Ⅲ Established the Galapagos Conservation Fund to channel dona- Ⅲ Six ships launched between 2000 and 2002 are tions from guests to priority conservation projects in Galapagos equipped with cruise industry’s first smokeless, Ⅲ Organized a community-oriented guide training program in Baja gas turbine engines. “Gas-turbine technology California, which has been providing local fishermen with inten- minimizes a ship’s environmental impact by drasti- sive training in English and ecological principles, so they can cally reducing exhaust emissions; emissions of serve as environmental leaders and guides nitrous oxides are lowered by 85% and sulfur Ⅲ Contributed to RARE’s efforts in Caribbean to preserve tropical oxides by more than 90%.” environments, including preserving unique indigenous forests Ⅲ “Each ship has an Environmental Officer assigned and parrot species to oversee environmental operations.... Environmental Officers, the stewards of our ocean protection programs, work with crew members and dozens of companies to recycle and reuse products and ensure proper disposal.” Ⅲ In 2001, the fleet conducted research in the man- agement of solid and liquid waste and eliminated hazardous waste from photo operations. Ⅲ “While U.S. and international law permit untreated gray water to be discharged virtually anywhere at sea and treated black water to be discharged four nautical miles from shore, the company’s standard is to make all discharges at least 12 nautical miles from shore.”

Chief accomplishments of 2001 include: increasing fuel efficiency through system upgrades resulting in savings of 17,500 tons in 2001 and in the first 6 months of 2003, 13,000 tons of diesel fuel; reducing exhaust emissions by optimizing engine perfor- mance; replacing Sterno with the odorless Ecofuel; re-piping photo labs to create a “closed loop” oper- ation of silver recovery units.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 195 Coalition for Environmentally Responsible Economies, Inc. Commonwealth of Australia, National British Airways p.l.c. (CERES), Principles Ecotourism Strategy

Monitoring and Ⅲ Included in Dow Jones Sustainability Index and Ⅲ Audits and Reports: “Will conduct an annual self- Ⅲ Goal to accredit ecotourism products Compliance UK FTSE4 Good Index evaluation of progress in implementing these Framework Ⅲ Use management systems such as ISO 14001 Principles. Will support the timely creation of gen- Ⅲ Use guidelines including Global Reporting erally accepted environmental audit procedures. Initiative and Association of British Insurers Will annually complete the CERES Report, which Ⅲ “Encourage specific parts of our business to will be made available to the public.” obtain certification; e.g., key facilities service providers have achieved ISO 14001”

196 TOURISM SECTOR Foundation for Environmental Government of Brazil, Government of Costa Rica, Education (FEE), Blue Guidelines for an Certification for Sustainable Flag Campaign Ecotourism Policy Development (CST) GREEN GLOBE 21

Ⅲ If a beach does not comply with the Ⅲ Plans to develop an information Ⅲ No verification or compliance mechanisms; Ⅲ Any travel company can join GREEN GLOBE 21 requirements as stated in the base and best practice information voluntary program only for a fee. Those entering the certification path European beach criteria and guidance through university research pro- will be able to use the GREEN GLOBE 21 notes, the beach cannot fly the Blue grams on issues of ethical delivery Affiliate symbol only. Flag Campaign flag. of ecotourism products, certifica- Ⅲ The “GREEN GLOBE 21” brand has become Ⅲ FEE reserves the right to refuse or tion and visitor management plans symbolic with environmental awareness, and withdraw the Blue Flag Campaign symbolizes the awareness of Agenda 21 prin- where the beach operator or local ciples with ISO-style certification. authorities are responsible for current Ⅲ The GREEN GLOBE 21 Benchmarked logo violations of national environmental (without tick) signifies companies and com- regulations, or otherwise act is dis- munities that have successfully completed the cord with the objectives and spirit of Benchmarking process. the Blue Flag Campaign. Ⅲ The GREEN GLOBE 21 Certified Logo (with tick) signifies companies and communities that have been independently assessed and passed certification.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 197 Hilton Group p.l.c. InterContinental Hotels Group p.l.c. International Ecotourism Standard (IES)

Monitoring and Ⅲ Participant in UK Business in the Environment’s Ⅲ Produced Environmental and Ⅲ Ecotourism projects that have been certified are entitled Compliance Index of Corporate Environmental Engagement Social Report 2003 to use the IES Logo (comprised of the GREEN GLOBE 21 Framework (Scored 70% in 2002) Ⅲ Piloting an Internet-based bench- logo with tick and the NEAP Ecotourism Certification (Continued ) Ⅲ Member of FTSE4 Good marking tool designed specifically logo – a dual logo) to promote their environmental Ⅲ Member of the Dow Jones Sustainability Indexes for hotels, and operated by the achievements. (DJSI World and DJSI STOXX) International Hotels Environmental Ⅲ Certification to the standard helps to: provide ecotourism Ⅲ Sponsoring organization of the International Hotels Initiative; will use this to monitor businesses with a benchmark of best practice ecotourism Environment Initiative (IHEI) energy management, fresh water principles; provide primary and secondary consumers with Ⅲ In October 2002, Hilton Nordic region (Scandic consumption, waste management, a means of recognizing genuine ecotourism product; pro- Hotels) received the prestigious IH&RA Corporate waste water quality, purchasing tect local and global environmental quality; encourage Environmental Award. programs, community relations contribution to local communities and conservation; and Ⅲ Received two “Green Apple” awards for its energy and biodiversity improvements improve profitability by being less wasteful and more program in Strasbourg and its environmental design Ⅲ Use environmental self-audits to efficient. at the Hilton in Lyon measure energy and water con- Ⅲ For a product to achieve Ecotourism Certification, it must Ⅲ In 2002, Hilton UK and Ireland won a Silver Award servation, waste management, meet 100% of the basic performance standards. It is also from ROSPA for accident prevention. They were the water quality, product purchasing, necessary for product to complete the relevant quantifica- first UK hotel company to achieve this status. indoor air quality, external air tion of benchmarking criteria, and meet the GREEN GLOBE emissions, noise, stored fuel, pes- 21 baseline standard. ticides and herbicides, and hazardous materials Ⅲ Qualified, in July 2001, for inclusion in FTSE4 Good Index, designed by FTSE to provide a series of bench- mark and tradable indices facilitat- ing investment in companies with good records of CSR Ⅲ Inaugural member of Dow Jones Sustainability Index 2001 Ⅲ Britvic’s Technical Center in Chelmsford is certified to ISO 9000/ 2001 Quality Standard, ISO 14001 Environmental Standard and OHSAS 18000 Health and Safety Standard.

198 TOURISM SECTOR World Tourism Organization (WTO), Lindblad Expeditions, Inc. Royal Caribbean Cruises Ltd. Global Code of Ethics for Tourism

Ⅲ “We will conduct regular environmental reviews and audits to Ⅲ Earned and maintained voluntary ISO 14001 certi- Ⅲ Implementation of Principles: ensure compliance with our policies and procedures. We will fication, issued by International Standards ● the public and private stakeholders in tourism actively improve our environmental performance and promote Organization, for the fleet’s Environmental development should cooperate in the implementation our conservation efforts.” Management System — first cruise line in the of these principles and monitor their effective Ⅲ UN Environment Program’s “Global 500 Roll of Honor” (2001) world to obtain this application (first tourism company so honored) Ⅲ Since 1998, have published reports detailing envi- ● the stakeholders in tourism development should Ⅲ U.S. Coast Guard William Benkert Award for excellence in ronmental policies and waste management proce- recognize the role of international institutions, marine environmental protection (only tourism company so dures (Last published report was for 2001) among which the World Tourism Organization ranks honored) Ⅲ Celebrity Cruise Line received the 2002 William first, and non-governmental organizations with Barker Award Bronze Medal, presented by the competence in the field of tourism promotion and U.S. Coast Guard for environmental excellence. development, the protection of human rights, the Ⅲ Every ship undergoes an independent audit for environment or health, with due respect for the environmental compliance in addition to the general principles of international law audits required for ISO 14001 certification. ● the same stakeholders should demonstrate their Ⅲ Ships also undergo audits of environmental sys- intention to refer any disputes concerning the appli- tems and compliance by flag administrations cation or interpretation of the Global Code of Ethics (Norway and Bahamas), port side control authori- for Tourism for conciliation to an impartial third body ties (USCG, Transport Canada, UKMCA, etc.), and known as the World Committee on Tourism Ethics Classification Societies (DNV and Lloyds Register). Ⅲ Received RCCL’s “Environmental Ship of the Year” Award. Judging is by an independent audit firm with one award for each cruise line (2) whereby each ship receives $25,000 to donate to an envi- ronmental project of its choice.

LABOR, HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS 199 Endnotes

1. CERES is a coalition of investors, environmentalist and public interest groups travel and tourism industry to follow-up on the 1992 Rio Earth Summit. In 1999, that promote corporate environmental responsibility in a number of ways, from GREEN GLOBE 21 became an independent organization that now offers a wide encouraging companies to endorse the CERES Principles, to working with range of environmental support services to its members. It is now a collective endorsing companies both on meeting their commitment and on environmental body of almost 1000 companies in over 100 countries. Membership “involves reporting through the Global Reporting Initiative, and mobilizing the network in serious commitment” and “is not an easy option for those merely wanting to innovative projects like the Sustainable Governance Project and the Green acquire a green label.” Hotel Initiative. 7. Brands include Hilton, Scandic, Livingwell, Conrad, and Ladbrokes. 2. 1994. As referenced in United Nations Environmental Programme (UNEP) 8. Brands include InterContinental Hotels, Crowne Plaza, Holiday Inn, and Britivic Report, “Ecotourism: Principles, Practices & Policies for Sustainability.” Soft Drinks. 3. An international voluntary certification scheme for beaches and marinas oper- 9. Standard is based on the Australian Nature and Ecotourism Accreditation ating since the 1980s, including areas in: Belgium, Bulgaria, Croatia, Cyprus, Program (NEAP), Agenda 21, and the Mohonk Agreement. [Agenda 21 is a Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, “blueprint for sustainable development,” approved by 178 governments at the Latvia, Lithuania, Netherlands, Norway, Portugal, Slovenia, Spain, South Africa, 1992 Rio Earth Summit. Later, in 1996, the WTTC, WTO and the Earth Council Sweden, Turkey, and the United Kingdom. together launched “Agenda 21 for the Travel and Tourism Industry: Towards 4. Endorsed and released by President Fernando Henrique Cardoso in March 1995. Environmentally Sustainable Development.”] Green Globe 21 has exclusive As referenced in UNEP Report, “Ecotourism: Principles, Practices & Policies for license for distribution and management of the International Ecotourism Sustainability.” Standard outside of Australia; Ecotourism Australia has exclusive license for 5. Managed by the Costa Rica Tourist Institute, the CST is a voluntary rating and distribution and management of the International Ecotourism Standard within evaluation program which is currently only implemented in the lodging industry, Australia. but is designed to eventually apply to all tourist businesses. Companies fill out a 10. Resolution unanimously approved by WTO General Assembly in 1999. (13th questionnaire and are given a rating based upon their answers. The system is Session; Santiago, Chile). UN Commission on Sustainable Development “designed to include a series of incentives that will increase in benefits for each endorsed concept of code, and required WTO to seek further input from private company, in direct proportion to its increased rating.” These criteria on which sector. These “reflect the key elements identified in the WTTC/World Tourism hotels are rated have been translated from the original Spanish by Foley Hoag LLP. Organization (WTO)/Earth Council interpretation of Agenda 21 for Travel & 6. Established in 1994 by World Travel & Tourism Council (WTTC) as a voluntary Tourism — the most significant sectoral adaptation of the Rio document.” environmental management certification program designed specifically for the

200 The World Bank Group • Corporate Social Responsibility Practice The CSR Practice advises developing country governments on public policy roles and instruments they can most usefully deploy to encourage corporate social responsibility.

COMPANY CODES OF CONDUCT AND INTERNATIONAL STANDARDS: AN ANALYTICAL COMPARISON

PART I OF II: Apparel, Footwear and Light Manufacturing Agribusiness Tourism

The CSR Practice is part of the Private Sector Development Vice Presidency, jointly operated by the International Finance October 2003 Corporation and the World Bank. Telephone: 202 473 7646 Facsimile: 202 522 2138 2121 Pennsylvania Avenue, NW E-mail : [email protected] Washington, DC 20433 USA Internet: www.worldbank.org/privatesector/csr