Social Responsibility Testing in ICRT Social Responsibility Testing in ICRT CI World Congress Hong Kong, May 2011 CI World Congress Hong Kong, May 2011

Guido Adriaenssens, Chief Executive OfficerGuido Adriaenssens, Chief Executive Officer

ContentContent Why and what do we do in ICRT on SR?

How do we test SR?

Key references and new SR standards & guidelines

International SR research examples

General conclusions and most common problems

Consumer interest

Why comparative testing on SRWhy comparative testing on SR

Our main mission is to inform the consumers on all criteria that can influence their choice: quality, price, durability and sustainability

More and more products make “fair trade” and ethical claims: can we assume they are correct?

What to think about the hundreds of labels and logos?

What do we do in ICRT on SR?What do we do in ICRT on SR?

ICRT Working Group with consumer organisations from Germany, The Netherlands, Belgium, Italy, Spain, Portugal, France, Austria, Denmark, Sweden, Norway and Switzerland since 2002

Internal Guidelines for joint SR research

Joint publications on jogging shoes, washing machines, toys, mobile phones, pharmaceutical industry, hotel chains, airlines, tuna, jeans …

How do we test SR in ICRT?How do we test SR in ICRT?

A number of methods available:

– Information in the public domain– Questionnaires completed by companies– Anonymous calls and letters (mystery shopping)– Company meetings or visits– Factory visits and management review– Interviewing employees and stakeholders– Peer review

Key referencesKey references

ILO conventions UN global compact ISO 26000 Guidance Standard

– Sustainable development and social responsibility– Core subjects of SR are

Organisational governance Human rights Labour practises Environment Fair operating practices Consumer issues Community involvement and development

Unique and specific approachUnique and specific approach

Validation of questionnaires:– Plant visits– Different from audits– Include subcontractors plants– Expensive exercise that no one else

does

Digital cameras- January 2010 -1Digital cameras- January 2010 -1

Partners in Germany, Belgium, Spain, Portugal, Italy, Sweden, Finland, Denmark, Norway, Switzerland, Austria, Korea, Thailand, Hong Kong

Covered 10 brands, 20 models, 11 production sites in China, Indonesia, Japan and Korea

Methodologies: – Company survey (questionnaires)– Consultation with company headquarters– Visit production factories and worker interviews – SR information on companies’ internet sites – Data checking

Digital cameras- January 2010 - Digital cameras- January 2010 - 22

Key issues: SR management focuses on environment

not social issues Lack of tranparency

Results: Nikon has strong SR engagement Sony and Canon did not allow production

site visits Fuijifilm, Kodak, Olympus and Pentax did

not cooperate

Published Article on CSR digital Published Article on CSR digital cameras cameras

in Test in January 2011in Test in January 2011

Published Article on CSR digital Published Article on CSR digital cameras cameras

in Test in January 2011in Test in January 2011

Hotel chains – March 2011 - 1Hotel chains – March 2011 - 1

Partners in Sweden, Finland, Denmark, Austria, Belgium, Spain, Portugal, Italy

Covered 10 hotel groups with 64 brands Methodologies:

– Company survey (questionnaires)– Publicly available SR information– Visits and interviews with hotel managers in 3

key tourist destinations– Headquarter validation – Data checking

Hotel chains – March 2011 - 1Hotel chains – March 2011 - 1

Key issues: Management of water and energy use, but there is a

culture of consumption and waste International key conventions adhered to, but

practical application difficult to see Wages below minimum living wage, lot of overtime

Results: Overall good cooperation Accor best overall rating Hilton average, weak on labour and socioeconomic

issues and customer engagement Riu and Iberostar overall weak

Published Article on Hotel Chains in Published Article on Hotel Chains in Test-Achats March 2011Test-Achats March 2011

Published Article on Hotel Chains in Published Article on Hotel Chains in Test Achat March 2011Test Achat March 2011

General conclusions of SR testingGeneral conclusions of SR testing

3 groups of companies

– Non responders: Some say “there is no point in participating because

we can’t even answer 10% of your questions”

– Principle collaborators: Have a global policy but it is not implemented in the field

– The positive group: They collaborate, engage and allow plant inspections

The best react to our comments and put things right

Most common problemsMost common problems Suspicious origin of ingredients Subcontracting and temporary workers Unpaid mandatory overtime, no pay slips,

too long working periods Discrimination No safety training Use of dangerous products and unhealthy

environments Poor chemical (waste) management Misuse of ethical trade labels

Consumer InterestConsumer Interest Readership surveys show that SR articles have

average to good interest rates

In recent reader surveys 35-55% of members sought ethical information and 20-25% wish to see more ethical topics

Most interest on product related information

About 3 international CSR projects per year

Careful editing needed to avoid generalisation