The Electronic Industry Citizenship Coalition

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The Magic of the Partnerships

EICC Conference Oct 1-3San Francisco

Ted van der Put

IDH convenes partners in supply chains..

• Public private partnership facility

• Funded by Dutch, Swiss and Danish ODA

• Impact on MDGs1,7 and 8 and PSD

• 18 commodity chains in 50 countries

• 300 companies

• 30 international NGOs

• 130 million Euro investment capital

IDH & partners jointly innovate in

electronics and tin

IDH proposes to scale up with EICC

Content

IDH & partners, (in cooperation with Elevate and ERI) jointly innovate in accelerating improvements in electronics supply base

75 suppliers and 200.000 workers by 2015 !

…….In partnership with

Sustainability risks remain prevalent in supply chain

10+ years of auditing has not impacted hotspots

Excessive overtime >70% suppliers # Labor strikes increasing

We move from compliance to commitment..

Buyers engaging with suppliers instead of policing

Supplier management in dialogue with workers

..introduce innovative improvements..

..introduce innovative improvements..

Dialogue creates commitment Innovative solutions to factory challenges Ownership of improvements A more cooperative, committed and stable workforce More trust from workers in management

Source: IDH Workers’ survey 2012

..and analyze the business case.

In Southern China: 70,000 labor dispute cases filed by un-committed workers in 1 year >20% worker turnover in manufacturing industry

Source: INFACT 2011

…. identifying business barriers and enablers.

..linking capacity building to the business case.

Trust leads to increased production efficiency

Source: IDH Workers’ survey 2012

We convene and jointly scope intervention options in the Indonesian tin supply chain..

“New IDH Public-Private Indonesian Tin Working Group to explore how companies in the downstream supply chain can help improve

the economic, social and environmental sustainability of Indonesian tin production”

Effective partnerships follow strategy and deliver

&By sharing & using best practices..• Sharing innovative modules• Sharing business case studies• Sharing data analyses

..and by taking next steps in supporting the business case for sustainable supply chains• Set up a EICC/IDH business case

working group• Pilot enabling mechanisms

Thank you for your attention!

The Electronic Industry Citizenship Coalition

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Collaboration and the Sustainable Apparel

Coalition

Ryan YoungVice President, Higg IndexSustainable Apparel Coalition

EICC Responsible Electronics 2013Tuesday, October 1, 2013

Who is the Sustainable Apparel Coalition (SAC)?

Who We Are

For an updated list, please visit www.apparelcoalition.org/current-members

Current Members

Brands:

Retailers:

Current Members

Suppliers:

Consumer Service Companies:

Current Members

Non-Profit, Government & Academia:

Industry Affiliates:

SAC Vision

An apparel and footwear industry that produces no unnecessary

environmental harm and has a positive impact on the people and

communities associated with its activities.

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The Higg Index 1.0 was launched July 26, 2012

The Higg Index 2.0 will launch in November, 2013

Adoption

Transparency

Industry-wide Scalability

We are led by the entire value chain, not any one segment

Our mission and working groups engage all stakeholders by providing value for all stakeholders

Our Members actively participate in the SAC through formal working groups with Member Co-chairs

We proactively communicate our desire to partner wherever possible – no recreating the wheel

We are open to new collaboration opportunities – you never know where they might lead

How the SAC Collaborates

The Electronic Industry Citizenship Coalition

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u

© Social Accountability International 2013

Social Accountability International

Standards and guidance development

Stakeholder engagement and dialogue

Training and capacity building

u

Employers

• Commitment• Management

Systems • Incentives

Workers

• Rights• Voice• Impacts

Government

• Commitment• Policies• Resources• Competencies

© Social Accountability International 2011

Training and Capacity Building

Attitudes, Skills, Knowledge

u Brazil Worker Engagement ProgramSocial Fingerprint Rapid Results

Team – build the skills of a worker/manager team

Goal – meet an ambitious 100 day goal on a key OHS challenge

Process – strengthen processes so that results are sustained

SAI RRI Copyright 2013

PROCESS

GOAL

TEAM

u Social Fingerprint Rapid Results

In 100 days…

Reduced chemical exposure by 50%

Reduced injury-causing manual tray transport from 42 to 3 times per shift

100% of workers can describe their roles and responsibilities in case of fire and evacuate in under 3 minutes

90+% of workers understand how to file OHS complaints and are satisfied with how the system works

Reduce by 20% the level of absenteeism due to ergonomic injuries

SAI RRI Copyright 2013

u

© SAI 2013

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Keys to Effective Capacity Building#1 – Managing Change#2 – Improving Processes

SAI partners with Rapid Results Institute

Overcome the hurdles to change

Sustain improvements

u Keys to Effective Capacity Building#3 - Partnership between Workers and Managers

Team of workers and managers

Workers elected by peers

Worker team leader and manager team leader

© SAI 2013

35

u Worker Representative Elections

© Social Accountability International 2013

u Keys to Effective Capacity Building#4 - Partnership with Business Departments

Inside the buyers and suppliers

Cross-functional teams

Understanding and aligning incentives

© SAI 2013

37

u Keys to Effective Capacity Building#5 - Partnership with Senior Leaders

Transparency between buyers and suppliers

Senior leader and worker-manager team fully engaged

Gaining commitment from decision-makers

© SAI 2013

38

u Keys to Effective Capacity Building#6 - Partnership with Stakeholders

Buy-in and involvement of: Union representatives Industry associations

© SAI 2013

39

u Keys to Effective Capacity Building#7 - Measuring Impact

SAI and Good World Solutions – Labor Link worker surveys to measure worker awareness and project impacts

© SAI 2013

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Stay Connected

© Social Accountability International 2013

Twitter: @sa_intl

Facebook.com/socialaccountabilityinternational

LinkedIn Groups: • Social Accountability International• Social Fingerprint®

Subscribe to e-Newsletter:• www.sa-intl.org/news

The Electronic Industry Citizenship Coalition

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The Magic of Partnerships

“We can’t do it alone”

• Balancing views and objectives

• Combining strengths

• Solving localized challenges

• Tackling complex issues

• Addressing systemic issues

Partnerships = Synergy

• FLA & EICC

• Additional Examples:– Better Cotton Initiative (BCI)– Ethical Trading Initiative – Norway (IEH)– Sustainable Apparel Coalition (SAC)– China Chamber of Commerce for Import and

Export of Textiles (CCCT)

Combining Strengths

• Third Party Complaint from workers in Guatemala City

• Factory’s failure to pay severance

• FLA, Brands, Suppliers, University of Washington, the Workers Rights Consortium (WRC), and COVERCO

• Payment for 95% of affected employees

Solving Localized Challenges

• 40% of the world’s cocoa is grown in Côte d’Ivoire where children are working in sometimes deplorable conditions

• How do we eradicate child labor while addressing complex cultural and legal issues?

• Requires support from brands, suppliers, and local stakeholders

• Assessment and remediation “Action Plan”

Tackling Complex Issues

• Tragic fires continue to be a risk

• How do we create a shared understanding and change the system?

• Initiative involving companies, civil society organizations, institutions and government agencies

• Develop competencies and tools for assessing fire hazards, facilitate dialogue, & train and empower

Addressing Systemic Issues

P8. Responsible Purchasing Practices

P6. Addressing persistent and/or egregious forms of noncompliance

P9. Company Affiliate establishes & maintains relationships with labor non-governmental organizations, trade unions & other civil society institutions

• Develop a civil society outreach strategy

• Develop and maintain links to civil society organizations (CSOs)

• Engage with CSOs in the design and implementation of compliance program strategies, trainings, worker communication channels, or remediation plans.

• Consult with legally constituted unions or worker representative structures.

Principles - Calling for Partnerships

• Audit fatigue

• Working hours

• Student interns

• Greater visibility in the Supply Chain

• Understanding Workers

Looking Forward

Questions?

Bridget Scanlan, Electronics Program Manager

Fair Labor Association

bscanlan@fairlabor.org

+1 202-386-7186 (USA)

www.fairlabor.org

The Electronic Industry Citizenship Coalition

Welcomes you to

Sponsored by

Exhibitors