Implementing Codes of Conduct

How Businesses Manage Social Performance in Global Supply Chains

Ivanka Mamic

• Publisher: Routledge
• Year: 2017
• Print ISBN: 9781874719892
• eBook ISBN: 9781351280709
• Topic: Business
• Subtopic: Business General
• Index: Business

At the start of the 21st century manufacturing is in the midst of a major transformation, with goods moving from factories in São Paulo, Ho Chi Minh and Guanzhou to the shelves of stores in New York, Hamburg and Sydney. As production of goods has become increasingly global, with an impact on workers and societies around the world, the ILO has sought to answer the challenging question: how best to implement voluntary corporate initiatives in value chains that stretch around the globe from a constantly changing supply base of factories both large and small?

In order to address growing pressures from stakeholders, a number of global companies have adopted codes of conduct with the aim of influencing the practices of their suppliers in less-developed countries and providing a baseline of expected standards. Typically, codes of conduct draw on international labour standards, setting guidelines on a range of issues, including child labour, forced labour, wages and benefits, working hours, disciplinary practices, the right to freedom of association, health and safety, and environmental practices. Notwithstanding the array of initiatives that has emerged, anecdotal evidence suggests that, in many cases, managers both at the company and supplier level have struggled and continue to struggle with the issue of how to implement their codes of conduct.

Based on interviews with hundreds of managers, activists, government officials, factory workers and workers' representatives, Implementing Codes of Conduct represents the most extensive research conducted to date into the emerging nature of corporate social responsibility and global supply chains. Its objective is to provide useful examples and lessons learned to companies, policy-makers and others interested in implementing their own code of conduct or who are actively involved in this field.

This book has broad implications for firms that are serious about seeing the social and environmental objectives expressed in their corporate codes become a reality at the supplier level – implications that stretch from the boardroom to the factory floor. The book presents a model that maps a route from the creation of a vision to its implementation at the operational level. Based on research conducted in the sports footwear, apparel and retail sectors, this book provides a detailed account of the approaches currently used by leading brands and retailers and practical suggestions for other companies to follow in addressing social pressures.

Given an increasingly clear link between corporate social responsibility and profits, this book serves as an invaluable tool in assisting those interested in balancing the complex demands of society and competitive concerns.

Appendix 1
International instruments

International Labour Office

Conventions

• Hours of Work (Industry) Convention, 1919 (No. 1)
• Weekly Rest (Industry) Convention, 1921 (No. 14)
• Minimum Wage-Fixing Machinery Convention, 1928 (No. 26)
• Forced Labour Convention, 1930 (No. 29)
• Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87)
• Right to Organise and Collective Bargaining Convention, 1949 (No. 98)
• Equal Remuneration Convention, 1951 (No. 100)
• Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
• Minimum Wage Fixing Convention, 1970 (No. 131)
• Minimum Wage Convention, 1973 (No. 138)
• Migrant Workers (Supplementary Provisions) Convention, 1975 (No. 143)
• Occupational Health and Safety Convention, 1981 (No. 155)

Other references

• Constitution of the International Labour Organization, 1919
• Declaration of Philadelphia, 1944 (Annex to the ILO Constitution)
• Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, adopted by the Governing Body of the International Labour Office at its 240th Session, Geneva, November 1977, as amended at its 279th Session, Geneva, November 2000
• Official Bulletin (Geneva: ILO, 1981), Vol. LXIV, Series A, No. 1, pp. 89-90
• Official Bulletin (Geneva: ILO, 1986). Vol. LXIX, Series A, No. 3, pp. 196-97
• Conditions of Work Digest: Working Times Around the World (Geneva: ILO, 1995)

Instruments of the United Nations

• Universal Declaration of Human Rights, adopted by UN General Assembly resolution 217 A (III) of 10 December 1948
• United Nation Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), 1981, adopted by the UN General Assembly resolution 34/180 of 18 December 1979.
• Convention on the Rights of the Child, adopted by UN General Assembly resolution 44/25 of 20 November 1989, entered into force 2 September 1990
• United Nations Global Compact, 2000

Appendix 2
Interview schedule

1. Introduction

The object of the research project is to identify and examine the management systems used by enterprises to set, communicate, implement and evaluate social objectives in the context of globalised business operations. The enquiry will consider and will seek inputs from various levels in global supply chains, from MNE headquarters, to suppliers’ regional and national offices, to factories and subcontractors. This draft interview schedule is designed to outline the questions that need to be asked of enterprises and the components of their supply chains.

The research will take the perspective of examining the implementation of firm social policies through the various cross-organisational processes on which such implementation depends. In examining these processes, the research will seek to:

• Document at which points in the various and primary organisational processes elements pertaining to the attainment of firm social performance objectives (SPOs) occur
• Establish who is involved at each of these points and what their responsibilities are with regard to SPOs
• Describe the context of the SPO system by defining broadly the processes within which it operates
• Establish the history of the SPO system, how it has evolved within the organisation and organisational processes, and what has driven these changes

1.1. Definitions

CSR. Corporate social responsibility.

• Management function. A grouping of tasks within an enterprise which typically oversees the operation of a system, but may not be exclusively involved in that system.
• Process. A process is a set of tasks that work to achieve an objective.
• SPOs. Social performance objectives, a set of goals covering various social and labour issues; the research project will focus on freedom of association, collective bargaining, child and forced labour, non-discrimination and equal opportunity. SPOs may also relate to working conditions, remuneration, occupational safety and health, and other aspects of HRM.
• SPO system. The object of the enquiry of the Management Systems and Decent Work research project. It includes the ways enterprises adopt, implement and evaluate social objectives.
• System. A system is a set of processes that work to achieve a set of objectives.

1.2. Objectives of first day

• Introduce the research project
• Develop a general understanding of the firm to be studied, focusing on the manner in which it organises core areas such as human resources, production, design, supply chain management
• Examine the core intra- and inter-organisational processes with regard to how these processes impact on the attainment of SPOs
• Begin a basic mapping of processes that impact on CSR, as well as the mapping of relationships between the various functional groups within the organisa-tions studied and their various external collaborators, i.e. suppliers

1.3. Organisational processes and SPO system

In examining the implementation of SPOs, the research team will be looking at cross-organisational processes, a listing of which is given below. Specifically, these are processes that are assumed, in a supply chain-based organisation, to stretch beyond the MNE corporate boundaries and in some way impact on the activities of the suppliers and the achievement of SPOs.

• First of all, can we have a copy of your SPOs (code of conduct)? How are these set out to staff and suppliers or others concerned? (For ILO, which of these cover core standards?)
• As an overview, briefly answer the following questions considering each process (these points will be covered in more detail in later sections addressing individual processes):
  • – How are these processes (listed below) organised at your firm?
  • – How does each of these processes contribute to the achievement of the SPOs?
    • - Strategy and policy development
    • - Communication
    • - Information
    • - HRM
    • - Purchasing and logistics
    • - Marketing and design
    • - Manufacturing
    • - Monitoring and performance feedback
    • - Integration
    • - Stakeholder consultation

1.4. Functional involvement in CSR

Outline the tasks that each of the following functions performs for the achievement of SPOs.

• HRM
• CSR
• Purchasing
• Supply chain
• Manufacturing
• Marketing

Have you established cross-functional teams which oversee the SPO process? Please describe them.

1.5. Process and relationship mapping

For each of the primary organisational processes and CSR, to be considered in the following sections, attempt to draw out the various relationships of those involved in the process as it relates to SPO, both within the organisation and between the corporate representatives and those external (for example, suppliers) to the organisation.

1.6. Framework of SPO system

The SPO system can be seen to incorporate four elements, closely mirroring the elements of the total quality management’s Plan–Do–Act cycle. For each of the processes considered in the following sections, consider where in the following overview of the CSR system these processes impact on SPOs.

2. CSR function

2.1. Opening questions

This type of question will be asked at the start of each interview.

• What are your professional background, experience and qualifications?
• To whom do you report? (Refer to organisational chart.)
• Do you or members of your function ever visit overseas supplier factories to discuss operational issues or compliance issues?
• If so, is this on a regular programmed basis or on a required basis?
• What would be the three to four most important performance indicators by which your performance would be evaluated and rewarded?
• What has been your experience with the SPO system at your company and what is your role in this system?
• As a general introduction, what does the CSR function do?

2.2. CSR specific questions

• Does the CSR function undertake or oversee any of the following? (Points covered in greater detail in later sections)
  • – Cross process co-...

Table of contents

• Cover
• Half Title
• Title
• Copyright
• Contents
• List of figures and tables
• Preface
• Foreword
• Chapter
• Chapter
• Chapter
• Chapter
• Chapter
• Chapter
• Chapter
• Chapter
• Glossary
• Appendix 1: International instruments
• Appendix 2: Interview schedule
• Appendix 3: Experts' comments on the interview schedule: suggested additional questions
• Appendix 4: Multi-stakeholder initiative codes of conduct
• Bibliography
• Abbreviations
• Index