Corporate Social Responsibility in the Global Environment

Leonard M. Stern School of Business, NYU

22 February 2008

Alice Tepper MarlinCiti Distinguished Fellow in Ethics and Leadership.

andPresident

Social Accountability International

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Glass Factory: Vietnam

© SAI 2007 6

SA8000: LABOR STANDARDS

Child Labor Child labor shall not be used

Forced Labor People have the right to change jobs & shall not be forced to work

Health & Safety People must not be endangered at work

Freedom of Association

People have the right to organize & be heard at work thru collective bargaining

Discrimination Hiring, promotions and wages must be equal & fair

Discipline People must not be abused at work & musts be free from all corporal punishment

Working Hours Overtime is limited, voluntary & paid at a premium

Compensation People must earn enough to live on during a regular work week

Management System

A management system is the key to managing ongoing compliance, including requirement for a worker representative

Labor standard based on ISO systems & ILO Conventions

MANAGING CONFORMANCE

Plan, Do, Check, Act Model

Overtime Hours exceeding limit

Children hired in error

Suppliers not conforming to requirements

Health and safety concerns – use of protective gear

Wages don’t meet the Basic Needs Wage

Supervisory excesses on floor

Discrimination

Working with SAI Globally

Human Rights at Work

Gap, Inc

Solidaridad

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EFFECTIVENESS OF SA8000:2001

•Facilities Provided in the Factory•Congenial Work Environment•Bonhomie Atmosphere

EFFECTIVENESS OF SA8000:2001

2.22

3.45

6.5

01234567

Millions

2003-04 2004-05 2005-06

TurnOver

2003-042004-052005-06

BY IMPLEMENTING BY IMPLEMENTING SA8000:2001 ENABLED US SA8000:2001 ENABLED US

•TO MEET THE CODE OF TO MEET THE CODE OF CONDUCT REQUIREMENTS OF CONDUCT REQUIREMENTS OF FOLLOWING CLIENTS FOLLOWING CLIENTS LIKE………LIKE………

•CAPITAL MERCURY CAPITAL MERCURY •JACQUES MORET INC. JACQUES MORET INC. •WICKED FASHIONS INCWICKED FASHIONS INC

•TO IDOUBLE OUR SALES TO IDOUBLE OUR SALES •TO GAIN RESPECT IN THE TO GAIN RESPECT IN THE SOCIETY OF ENTREPRENEURSSOCIETY OF ENTREPRENEURS•BECOME A CORPORATE BECOME A CORPORATE CITIZENCITIZEN

Workers Committee Elections, Chai-Da

www.sa-intl.org

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