NGF’s Executive Committee Members Ms. Ang Lami Sherpa President (Represents Carpet Sector) Everest Handicraft Ms. Ramkala Khadka Mr. Ubaraj Bhandari Vice President General Secretary (Represents NGO Sector) (Represents NGO Sector) Forum for Child Concern in Nepal CCCN NGF Children attending National Childrens NGF Children celebrating Guru Purnima. Day. Mr. Dawa Sherpa Dr. Bal Gopal Baidya Treasurer Executive Member (Represents Carpet Sector) (Represents from Independent) City Carpet Industries Prefessional/Intellectual Sector Dr. Chapala Koirala Mr. Chhiring Lama Executive Member Executive Member (Represents NGO Sector) (Represents Carpet Sector) Child Development Society Chhiring Carpet Centre Udhyog GWI Board Visit at ECDC. NGF Board monitoring model house of Housing Project. Mr. Bikram Thakuri Mr. Bikal Prasad Shrestha Executive Member Executive Member (Represents Carpet Sector) (Represents NGO Sector) Designer Rugs Concern Nepal Advisors Mr. Ganesh Bhakta Shrestha Mr. Balram Gurung Former President Former General Secretary NGF SEE Graduates. NGF Children celebrating holi at Transit Home. Nepal GoodWeave Foundation Message from President It’s my great pleasure to get this opportunity to write message in ‘Annual Report of 2016’ of Nepal GoodWeave Foundation (NGF). NGF is started with the objectives to develop child labor free supply chain of carpet and other industries and nurture the market preference, support to create ethical production in social and environment aspects through expanded standards, provide preventive and alternative opportunities for children and working communities of Industries, advocate concerned stakeholders for protection of child and human rights and apply the sustainable model for organizational strengthening. The year 2016 has been a productive year for NGF to achieve significant progress in the area of quality enhance in alternative support to children, to bring the sustainable industrial environment by raising the standard of working condition of carpet industries, replication of GoodWeave model in brick industry and to enhance the livelihood of underprivileged people. More research and innovative ideas are essential to find out for the promotion of the Carpet. All these achievements have been made possible by our hard working staff on the ground, but mainly from all the donors, partners, organizations, national initiatives, and license holders and their continuous cooperation and support and for that we extend our thanks to them. I would also like to thank the editorial group, my executive board members, and the staff team for supporting this report successfully. Thank you! Ang Lami Sherpa Nepal GoodWeave Foundation Annual Progress Report 2016 1 Nepal GoodWeave Foundation Table of Contents 1. Nepal GoodWeave Foundation: An Overview 1 2. Inspection, Monitoring and Certification 4 3. Social Programs of NGF 6 i. Preventive Program 6 ii. Rehabilitation Programs 10 4. Major Activities 16 i. Training to IMC team 16 ii. Eye camp for carpet workers 16 iii. Common birthday 17 iv. Celebration of World Environment Day 18 v. Celebration of World Day against Child Labor 18 vi. Interaction program with local level stakeholders 19 vii. Children’s Day 19 viii. Distribution of Dashain gifts 20 viii. Distribution of Winter clothes 20 ix. NGF Annual Day celebration 20 x. ECD centers exchange visit 21 xi. Sharing program with NGF licensees 22 xii. Guru Purnima Celebration at Hamro Ghar 22 xiii. Training on self-awareness to NGF children 22 5. Housing and Livelihood Support Program 23 6. Better Brick-Nepal Project 24 7. NGF Children’s Views and Opinions 29 8. Annual General Meeting 2016 30 9. Child Labor Act, 2056 (2000) 31 10. Statement of Financial Position 32 Chief Editor Content and Design Proof Reading Ms Ang Lami Sherpa Mr. Sanjeev Shrestha Mr. Amrit Panthi (NGF President) (Acc. & Admin. Manager) (Project Co-ordinator) Mr. Ubaraj Bhandari Mr. Umesh Kuinkel (NGF General Secretary) (Training Officer) 2 Annual Progress Report 2016 Nepal GoodWeave Foundation Nepal GoodWeave Foundation: An Overview Background Nepal GoodWeave Foundation (formerly Nepal RugMark Foundation) is a not- for-profit non-government organization established in December 1995 as a result of collaboration among carpet entrepreneurs, child right NGOs and international development organizations; viz. United Nations Children’s Fund (UNICEF), German Agency for Technical Cooperation (GTZ), and Asian American Free Labor Institute (AAFLI). Being a country affiliate of GoodWeave International (GWI), the NGF has proven to be a viable initiative that effectively addresses child labor issues in the carpet industry of Nepal. In its more than 20 years of operation, the NGF has been able to bring more than 50% of the carpet industries to the GoodWeave’s viable standards including the carpet weaving and spinning sectors. Moreover, it is largely expanding toward covering the entire carpet industry of Nepal and replicating its sustainable model into other industries. Through its multi-pronged approach along with inspection, monitoring and certification mechanisms, GoodWeave tries to maintain child labor-free environment in the Nepali carpet industry and other industries while preventing thousands Annual Progress Report 2016 1 Nepal GoodWeave Foundation of children from entering the industries. On the other hand, the NGF provides meaningful alternatives (e.g. education, rehabilitation and skills development training) to the carpet children through various programs and activities. Vision Creation of child labor-free, social, environmental and ethical production of carpet and other industries to add values globally. Mission GoodWeave ensures ethical production, reducing child labor and enhancing socio- environmental (social and environmental) aspects of carpet and other industries. Objectives The organization is started with the objectives to develop child labor-free supply chain of carpet and other industries and nurture the market preference; support to create ethical production in social and environment aspects through expanded standards; provide preventive and alternative opportunities for children and working communities of industries; advocate with concerned stakeholders for protection of child and human rights; and apply the sustainable model for organizational strengthening. Features GoodWeave has its distinguished features. GoodWeave is voluntarily licensed to carpet manufacturers/exporters in producing countries and importers/retailers in the consuming countries. GoodWeave in producing countries has an independent workplace inspection and monitoring mechanism to ensure compliance of GoodWeave criteria. The organization voluntarily certifies individual carpets with the GoodWeave label that have individual code numbers for verification. It works 2 Annual Progress Report 2016 Nepal GoodWeave Foundation to remove child laborers from workplaces and provides them with a long-term and meaningful rehabilitation with appropriate education and vocational training. It makes concerted efforts for family reintegration of the children while ensuring opportunity for continued education with continued support for schooling. The organization also carries out preventive education and other welfare programs for children and families of carpet workers. It contributes to creating clean, healthy and sustainable environment in working with community and concerned stakeholders. Rationale Nepal GoodWeave Foundation is currently working under the guideline of global strategic objectives, which are as follows: Objective 1: Leverage market influence Objective 2: Develop child labor-free supply chains Objective 3: Provide educational opportunities for children Objective 4: Ensure decent works for adults Objective 5: Promote replication of GoodWeave model Major Activities . Child labor preventive program . Inspection, monitoring and certification . Rehabilitation programs . Awareness and advocacy programs Annual Progress Report 2016 3 Nepal GoodWeave Foundation Inspection, Monitoring and Certification Inspection, Monitoring and Certification (IMC) is one of the focuses of the GoodWeave’s operation in Nepal. Independent monitoring officers and monitoring supervisors make frequent, unannounced visits to every loom operated by GoodWeave-licensed producers. The importer companies that partner with GoodWeave International make mandatory the process of license acquisition for their exporters in Nepal. The licensee/supplier is expected to declare its complete list of Level 2 and Level 3 suppliers (subcontractors) including processing, weaving and washing operations with the expectation that any and all facilities will be inspected. Regular monitoring and inspections ensure child labour-free supply chains in Nepal, while the licensed importers receive a GoodWeave label and sticks on the back of their rugs, assuring that their brand is not associated with child/bonded/trafficked labor. The process adequately demonstrates how market forces can be utilized for an issue that demands more than just a naive insistence on humanitarian activism. Besides eliminating child labor, the GoodWeave’s inspection and monitoring process also ensures that bonded and forced labor as well as other malpractices against adult workers are kept at bay. In addition to inspections, annual audits and follow-up audits are also conducted in the production units of GoodWeave- monitored supply chains. The auditing aspect helps to streamline our monitoring procedures and also incorporates worker interviews, ensuring