Bangladesh workplace safety accord and alliance show benefits of broad participation in building sustainable supply chains

The influence of the Bangladesh building and fire safety Accord and Alliance on labour conditions in global supply chains should not be underestimated. Despite targeting only a small even if very important part of the supplier landscape, some of their approaches could useful and possible to apply also more broadly.

For obvious reasons, and rightly so, these activities have attracted a lot of attention and considerable resources. It is of course important that this does not happen at the expense of other urgent supply chain needs.

Factories, farms and fisheries in many regions and countries are affected by serious problems. Child labour is still a burning issue, from cotton fields to stone quarries. Trafficking and forced labour remains a huge problem, on construction sites, fishing vessels and in many other activities. Income levels remain far below the acceptable and a living wage seems very hard to reach.

What is often lacking is respect for workers as human beings. Traditional social divides and discrimination combine with profit interests to feed resistance against worker organising, social dialogue and collective agreements. Unless attitudes change and workers’ rights to collective representation get accepted there can be no sustainable improvement of labour conditions.

There are many countries where changes will not take place without clear messages from the outside world. Excluding any groups from efforts to improve the human rights and labour situation in global supply chains would be wrong. Business as well as unions and NGOs can all make important contributions and should all be encouraged to do their part.

Buying brands and retailers need to be seriously engaged, doing their part of implementing the UN Guidelines for Business and Human Rights.  Voluntary initiatives and codes of conduct can be useful guidelines for driving concrete action and they should not be belittled. There is much concrete capacity building and remediation going on with supplier companies, together with dedicated CSR schemes and initiatives such as SAI, ETI, FLA, BSCI and others. A professional social auditing industry can provide valuable knowledge about local situations and needs.

As a common business owned platform with a strong stakeholder representation, GSCP works for a general recognition and application of demanding social standards with a focus on bringing about real improvements to supply chain workers.

The GSCP Reference Tool for Auditing Competence wants to make sure that auditing remains credible and serious. Setting minimum professional standards, it supports buyers and their suppliers as well as the auditing industry itself. It helps schemes and initiatives ensure that they offer services at the highest industry standards. Most of all it benefits workers, ensuring that social audits lead to remediation and respect for human dignity at workplaces.

Although we should not in any way underrate the work for better supply chain conditions, we have to keep in mind the huge domestic labour markets where conditions are mostly much worse and less visible. Better labour conditions in export sectors can improve overall standards if there is a political determination.

Helping to make Bangladesh garment factories safer is important. Both programmes – Accord and Alliance – are concrete and already report on results. Initial factory audits have been completed and attention is on real improvements of safety conditions.

These projects work with a tight time schedule and we should soon start to see their real performance. Much will depend on how financing is arranged for the often necessary but also costly changes. Will the financial support commitments by brands and retailers be enough and what are the supplier companies themselves prepared to invest?

The Accord gives much influence and visibility to global trade unions and social campaigners whereas the Alliance is clearly business driven even if there is a civil society participation as well. The Accord reflects the European labour relations culture which is more social dialogue oriented, while the Alliance one is surely affected by the much more problematic US situation. Both are supported by the International Labour Organisation ILO and many consumer country governments.

One joint initiative would of course have been the most effective alternative. This was in fact the intention of the GSCP Executive and Advisory Boards when we took the first initiative and asked the German development agency GIZ to start preparing a fire safety project for Bangladesh and Pakistan. When I suggested to both boards that we should take concrete action I insisted that also IndustriALL Global Union be included.

There was also another building and fire safety initiative on the table, already for a few years. This was developed by American and European labour advocacy NGOs but had failed to attract sufficient support and participation from buyer brands and retailers. These organisations also became part of the GSCP-initiated GIZ process.

At the beginning, the common aim was a joint project. Soon events took another direction when differences emerged about whether the complaints procedure should be based on court proceedings or mediation and arbitration.

Particularly US companies were concerned that they could be challenged in court by hostile campaigners on various grounds, and did not accept this. Some labour unions and NGOs on their side did not trust that a mediation or arbitration procedure would be strong enough to ensure that buyers keep to their commitments. This was clearly affected also by the strained and often hostile labour relations climate in the United States.

At the final stages of project preparations, global union federations and advocacy NGOs took over the initiative from the less well coordinated buyer brands and retailers and began actively and publicly to assemble what is now the Accord. This lead most North American based brands and retailers to detach themselves from the process and develop and launch their own Alliance.

After this complicated process it is good that both projects seem to work reasonably well, side by side. Both are clearly there to bring about real changes in garment industry conditions. Hopefully the Bangladesh government and particularly the employers’ federation will do their part of the job to ensure safe conditions in the country’s garment industry.

Bosnian impressions of great solidarity as Norwegian Peoples Aid celebrates its 75th Anniversary

Norwegian Peoples Aid – Norsk Folkehjelp – celebrates its 75th Anniversary today. This is an impressive organisation, engaged in an extraordinary way in promoting human rights and social and economic well-being in countries that are particularly in need of global solidarity. In many ways it is very Norwegian, reflecting the deep sense of justice and solidarity so prevalent in its home country.

I say all of this because over the years, as responsible for UNI Commerce Global Union, worked so closely with our Norwegian friends, Norwegian Peoples Aid and others. This was in Bosnia and Herzegovina, where we helped to rebuild civil society after the devastating war in the 1990s, and did our best to support the reconciliation process between people in the different parts of this badly torn country.

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Mostar in Bosnia and Herzegovina suffered heavily from the war. Land mines were still all over the place when we came there for the fist time in January 1997, and relations between population groups, separated by the river, were tense. Norsk Folkehjelp did a lot for bringing back a sense of normalcy in the life of this historical town, also together with Norway’s commerce and office workers’ trade union HK.

Our work went far beyond that of an ordinary project, thanks above all to Norway’s commerce and office workers’ trade union Handel og Kontor – HKiN.

The project description will be a separate story, or rather many stories. It ranged from building up viable trade unions which are doing a remarkable job today, to bringing kids from divided Mostar to play football – soccer – in the world’s largest tournament, in Oslo. To do this in the middle of a major and bitter Norwegian airline strike, where both the pilots and the company agreed to fly in the teams for free, is something that will always stay with me as a superb expression of solidarity and responsibility.

I really don’t wonder why my friend Suleiman Hrle, at the time trade union confederation president in Sarajevo, said that they should raise a statue of HK President Sure Arntzen. This was when my friend Sture had convinced Norway’s Prime Minister Thorbjörn Jagland about the need to help the country’s workers to rebuild their union house, Dom Sindikata. It had received over 100 artillery hits during the siege of the Bosnian capital.

Sture Arntzen speaks in Sarajevo

Sture Arntzen, President of Norway’s commerce and office workers’ trade union HK, speaks at one of our first meetings with Bosnian trade unionists. Until Norway helped renovate this building badly damaged by artillery during the siege of Sarajevo, conditions for the unions and their people were pretty bad. The project that we started in 1996 was done under the banner of FIET, predecessor of UNI Global Union.

From the start, the HK engagement was a broad one. Board members and representatives from union locals got personally involved, and very broad activities developed in various parts of the country. The other Nordic countries joined in, Denmark, Finland, Iceland and Sweden.

Very remarkably, it was not only the unions but also the commerce sector employers who joined the efforts. The major project to rebuild the work of the leading commerce college in Sarajevo, destroyed completely during the war, would not have happened without the strong engagement of the CEO of Denmark’s commerce employers Sören B. Henriksen.

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Todays Dom Sindikata hosts most of the country’s trade unions, among them the commerce union. The young people that run this union are doing an impressive job under still very difficult conditions, with high unemployment and continued insecurity about the future. The support from Norway has been and still is decisive for their continued existence and success.

Still, this solidarity action was very much about Sture and his friends in HK and Norway in general. Their engagement continues, which we saw so clearly and concretely also during the terrible floods in Bosnia and Herzegovina last spring. Our friends in Sarajevo – Mersiha, Fikret, Nerma and others – traveled under difficult conditions both in the federation and the serb republic, bringing urgently needed concrete help to working people and their families.

So Norwegian Peoples Aid? They were always there, involved. Much of what was done and is done would never have been possible without their assistance.

I was so impressed of their work on mine clearing, and on them very concretely helping to build up the necessities of life in so many communities that seemed forgotten by the outside world. Nobody was too small or too insignificant to help and support for our Norwegian friends.

The 75th Anniversary of this great organisation is a good opportunity to say thank you, and to send warm congratulations to them and our Norwegian trade union friends in HK, friends with a golden heart.

SAI and SA8000 remain quality leaders in supply chain sustainability work – board meets in Palo Alto

Social Accountability International meets this week in Palo Alto in California. Hosted by IT -giant Hewlett Packard, the SAI Advisory Board will confirm major changes and improvements in the SA8000 Social Standard and its world-wide application.

SA8000 is not only the best known social supply chain standard, but together with SAI also the most advanced major initiative. Brands and retailers and their suppliers use SA8000 to ensure that human rights are respected and proper labour conditions applied when goods and services are produced.

Alice Tepper Marlin and Robin Cornelius

Working at a SAI Advisory Board meeting in Florence, Italy in 2011. Board member Robin Cornelius at the left is the founder and chairman of Switcher, a socially and environmentally ground-breaking Swiss textile company. Here together with SAI President Alice Tepper Marlin. The Advisory board is tripartite, with representatives of business, trade unions and NGOs and independent academia.

The Standard as well as the entire SAI system does much more than verifies that International Labour Organisation ILO Standards and national labour legislation and collective agreements are respected. While social audits continue to be important and violations need to be acted on, emphasis is already on helping suppliers build social and labour management systems.

The UN Guiding Principles on Business and Human Rights require companies and other actors to apply due diligence in their activities to make sure that human rights are not violated. Core minimum labour standards are set in ILO International Labour Conventions and Recommendations.

To respect and apply these global rules, employers need to have management systems. SAI helps suppliers to build up these resources, through training and other capacity building activities. Much of it is done through SAI’s Social Fingerprint program.

The Social Fingerprint concept is especially innovative, helping workplaces to develop their social compliance with SA8000 and build up their sustainability management systems. It aims at making sure that remediation of human rights and labour conditions will lead to lasting results and a continuous growth process at workplaces, finally serving both companies and their workers.

In addition, Social Fingerprint serves the new and improved SA8000 certification  process, linking auditing and certification to remediation in a unique way, helping to build capacity and social compliance management systems.

Alice Tepper Marlin and Jan Furstenborg Helsinki 2006
With SAI President Alice Tepper Marlin at a corporate social responsibility conference that we arranged in Helsinki in 2006, together with the Finnish social partners in commerce and leading retailer Kesko.

Working in the major producer regions and countries is often complicated. Cultural, social and economic conditions are generally highly different from those in the consumer countries of the west. Finding the right balance is important, between confidence and control, and between encouraging and demanding remediation and change.

For many years, I have followed the work and activities of SAI teams, be they at headquarters in New York or out in the regions where people work in supplier factories and farms. As a typically European understatement I can say that I am really impressed. A superb combination of commitment and professionalism by the SAI people has lead to better conditions at numerous difficult workplaces.

SAI and its ground-breaking work has influenced the whole concept of corporate social responsibility, in many positive ways. Today, its multi-stakeholder approach to solving issues and helping to build up a better working life is an ‘industry standard’, also for business driven schemes. When Alice Tepper Marlin created SAI some 15 years ago there was often not even a dialogue, not to speak about concern for social supply chain matters.

To apply the SA8000 Standard and to work with SAI calls for businesses to be really committed, be they suppliers or buying brands or retailers. Of course, there must be a balance between time and expenses, and reliability and results. SAI has knowingly positioned itself at the upper end of this quality scale.

Compared with most other schemes and initiatives, SAI does lead the way. An example of this is the Business Social Compliance Initiative BSCI, which today joins together over 1,400 mainly European brands and retailers.

In a process which I actively supported and engaged in, BSCI and SAI created close links with SA8000 as the common base. The standard and the system to apply it is still very much the reference point for the Brussels based initiative and its own code and activities.

Theis week’s SAI Advisory Board meeting in Palo Alto is particularly important also in other ways. I do really regret not being able to participate this time.

Alice Tepper Marlin who created SAI and is its President has decided to retire as the organisation’s chief executive officer at the end of next year. Eileen Kaufman, her closest colleague and Co-CEO will take her retirement at the end of this year.

Eileen Kaufman

Eileen Kaufman who retires from her position as Co-CEO at the end of the year has played a central role in developing SAI into a leading initiative in the global sustainability landscape. “She has been a key leader in advancing SAI’s ambitious mission and a soul mate” says SAI founder and president Alice Tepper Marlin, acknowledging Eileen’s great contributions. Here she is at an Advisory Board meeting in 2007 in Hamburg, Germany.

Working with Alice and Eileen has always been and always is both pleasant and inspiring. Their commitment, knowledge and skills are second to none in the CSR community which I have benefited enormously from in a continuous intellectually demanding learning process.

Also with this natural generation change, both Alice and Eileen will have a lot to contribute to the continuing work of SAI, Alice being the founder hopefully continuing as President of SAI, even if in a new and different kind of a role.

Most important is of course the difference that SAI has made for so many workers and their families in the global supply chains. The issues on the meeting table in Palo Alto – and particularly the impressive preparation work that I have observed from close up – show that SAI and the SA8000 Social Standard will continue to be both at the center and at the cutting edge when sustainability and social responsibility find their place at the core of global supply chains.

World Economic Forum report shakes up by listing income differences as the number one problem for 2015

Income inequality tops the ten biggest challenges that we face. This is not a statement by trade unions or labour advocacy organisations, but tops the major trends for 2015 identified in a fresh World Economic Forum Report.

It is a sobering experience to look at the report’s graphics on how much the share of the national incomes of the richest 1 % really has grown during the last 20 or so years.

Hardly surprising, the United States is a particularly extreme case of this inequality, but also Australia and Sweden – and some others – show results that they can hardly be proud of. It would be interesting to measure how much of this has been due to political changes in countries that have traditionally been considered as rather egalitarian welfare states.

Lack of awareness can not be the reason for failing to act on this:

“According to the 2014 Pew Global Attitudes Survey, in the seven Sub-Saharan African nations polled over 90% of respondents regard the gap between rich and poor as a big problem; in the United States, almost 80% do.”

Looking forward, the report cautions that particularly Asia and the Pacific may face a high risk of rising inequality, although this will be true also in the other parts of the world.

With its enormous convening power and influence WEF is surely making an impact by highlighting these problems. The host of the annual Davos Summit meetings points at where solutions can be found:

“We know what we need: inclusive economies in which men and women have access to decent employment, legal identification, financial services, infrastructure and social protection, as well as societies where all people can contribute and participate in global, national and local governance. It is now time for action, in order to leave no one behind and bring everyone forward with a life of dignity.”

The step to decisive action is still a long and difficult one.

Four policy areas stand out when the experts’ opinions are summarized: Redistribution, taxation, education and jobs creation.

This new reporting on income inequalities is definitely something to read and to contemplate on, as are the nine other trends that WEF lists for the next year.

The Global Social Responsibility Programme GSCP meeting at UN Headquarters in New York was a timely and concrete opportunity for business and stakeholders to discuss and plan their own contributions to dealing with this huge problem. The next months will see more concrete action being launched, hopfeully with a big relevance for many of those who are really low down on the world’s income ladders.

Social auditing in global supply chains is an essential tool for defending human rights and improving labour conditions

Demands to give up social auditing in global supply chains continue to emerge in different connections. Part of a political debate, they have not contained any realistic proposals about how to substitute these audits with other ways of gathering the information needed for improving conditions.

There have also been regular calls for opening up audit reports by making them public.

Publishing social audit results would give unions, labour advocacy organisations and others a better chance to intervene on behalf of workers when they see or feel that conditions need to be addressed.

To build up their involvement is a valid aspiration of these players and should not be brushed aside. A broad cooperation can indeed add to the impact of sustainability work where the key objectives are usually so widely shared.

More transparency could add to the relevance of social auditing as a tool that helps to protect human rights and ensure decent employment and working conditions. How to apply this so that the system continues to protect workers and others who provide confidential information to auditors is of key concern.

We can of course not forget that also the audited suppliers’ rights have to be protected, as have those of others involved. To make any changes in social auditing principles has to be approached with utmost care.

Moving from straight-forward ‘yes-or-no’ certification of labour conditions to a more nuanced and detailed audit reporting could well be one solution. Even more important is to link audit reporting directly to capacity building and remediation at supplier workplaces. After all, protecting human rights and securing decent labour conditions form the objective of all these activities.

Social Accountability International SAI has recently revised its SA8000 Social Standard and linked workplace certification directly to capacity building and remediation through its Social Fingerprint program. This is an excellent example of how creating direct and effective links between auditing, certification and remediation can be concretely and systematically approached.

There has also been much impatience among unions and others who say that they have failed to see even urgently needed changes to take place.

We have seen isolated failures of social auditing, but also some more systemic problems, sometimes unexpected until new kinds of situations have emerged. The auditing industry and the cooperating partners in the CSR community need to show that they are capable of handling these issues through more stringent rules and controls. In fact, much has been done, but not always well communicated to a broader public.

The 15 years or so of business driven and multi-stakeholder corporate social responsibility CSR activities have definitely brought improvements to supplier working conditions. Buying brands and retailers know that they must pay serious attention to the social aspects of their purchasing activities. This was not the case before Social Accountability International with its SA8000 Standard and others entered the scene.

The UN Guiding Principles would not have come about without the groundwork done also by the voluntary CSR schemes and initiatives. That Harvard Professor John Ruggie and his team were able to build a consensus around the responsibility of governments and business to protect human rights at work was a remarkable achievement. What was needed was that an important part of the business community already accepted their obligation and interest to approach their supply chains with due diligence.

CSR schemes and initiatives  are surely not the only forces behind these changes. Trade unions and labour advocacy organisations have done their part, as have many others. But changing business attitudes has been closely linked with the emergence of the CSR community, including social auditors.

The social auditing system itself has been far from flawless.

There will always be situations where social audits miss even significant problems or shortcomings at audited workplaces. There can be many reasons for this, one being that these audits cannot cover all factors that affect the work situation. Structural building safety, which in a tragic way proved to be a major and serious problem in the Bangladesh garment industry, is one of those where other approaches and tools were needed and also implemented.

Shortcomings and sometimes even unacceptable performances by individual auditors and companies can of course harm the whole industry. There could be unrealistic expectations towards social auditing, often related to new and unexpected situations. Audits cannot uncover all the deficiencies at a workplace, something which should be more effectively communicated.

It is always hard to find the correct balance between audit quality and costs, an issue which will surely never disappear. How can social auditors spend enough time both on audits and reporting and still keep the paying customers on board? Here, striving for the perfect can threaten the good, and compromising quality can undermine the reliability of the whole system.

There have been individual examples of poor or insufficient internal controls. While not common, they have caused both accreditation bodies and the auditing entities themselves to tighten up their rules. The auditing industry and the CSR community as a whole are well aware of the risks and have done much to control them.

The Global Social Compliance Programme GSCP auditing guidelines which auditing companies can benchmark against through an equivalence process are useful tools for improving social audit performance. They reflect a broad consensus between business and stakeholders about how the auditing system can be kept reliable.

In many parts of the world it will take very long before we see organised workers and their trade unions engage in social dialogue and collective agreement relationships with their employers, in an atmosphere or good faith and mutual respect.

Auditing remains an important part of efforts to secure human rights at work and  improve labour conditions in global supply chains. How could brands and retailers, their suppliers, and concerned stakeholders get the information that they need for remediation and capacity building if this tool did not exist?

Instead of saying no to social audits we should continue to develop and improve these activities.

Workers, trade unions, community organisations and others need to be more involved in monitoring conditions. Buying brands and retailers need to be an active part of this work and cannot outsource their due diligence obligations to others.

Most importantly, the audits have to be effectively and properly linked to and followed up by remediation and corrective action where a need for this has been identified.

Patents on agribusiness GMO stop poor developing country farmers from saving their seeds for the next planting season

Monsanto and other agribusiness multinationals seek patents and get intellectual property rights for genetically modified seeds which they develop. Farmers are not allowed to save them from their harvests and reuse them for the next season.

What this means for the farming industry in the United States, Australia and other developed economies I will not comment on. Obviously, patent protection of some kinds would be needed. But the effect on developing countries and the poor smallholders that struggle with basic survival, often in or at the edge of the informal sector, is a real issue.

Today, 80 per cent of world cotton production uses GMO seeds. It becomes increasingly difficult to find alternatives, and public seed banks and other activities fade into the background. The only thing left is to buy new seeds every year, from these global agribusiness giants.

As the agribusiness multinationals have pushed for this increase in GMO farming, they should also take the responsibility and accept that farmers in developing regions can continue with their traditional way of saving seeds and using them again.

When I wrote my report on cotton production and Fairtrade to the German government, I could see how small farmers in developing countries were forced into a ‘modern’ economy through this increase in GMO production and frequently got into situations that they could not control.

Yes, yields increased at least in the beginning as GMO cotton was more bug resistant, but in the longer perspective this advantage seems to shrink considerably. What is left is the dependence on the multinational seed producers and their agents, and the need to come up with seed money every year, even after a failed growing season. Dependence on loan sharks, loss of land and family tragedies could be results of this, in a situation where formal financing services are limited and safety networks rare.

I started to look into this again when I read reports about farmers rising against attempts to force through this intellectual property legislation in Ghana. I did notice that already in 2009, the UN Special Rapporteur on the right to food Olivier de Schutter – whom I served with on the GSCP Advisory Board in the very beginning – submitted a very critical report on the subject. Time to pick it up again.

One can ask why seeds cannot be treated as medicine, allowing developing countries to produce generic versions also based on patented brands. At least, the farmers should have the right to harvest, save and use their seeds for the next planting season.

Another thing is then how we look at genetic modification in farming as such. I will surely touch on these subjects soon again.