Professor Hector R RodriguezSchool of BusinessMount Ida College

Course Map – Topics Covered in Course• Society

– The Corporation and Its Stakeholders– People for the Ethical Treatment of Animals– Corporate Citizenship– The Social Responsibility of Business– The Shareholder Primacy Norm– CSR, Citizenship and Sustainability Reporting– Responsible Investing– The Community and the Corporation– Taxation and Corporate Citizenship– Corporate Philanthropy Programs– Employees and the Corporation– Managing a Diverse Workforce– Corporate Social Accountability – SA 8000

• Environment– A Balanced Look at Climate Change– Non-anthropogenic Causes of Climate Change– Sulfates, Urban Warming and Permafrost– Conventional Energy– The Kyoto Protocol– Green Building– Green Information Technology– Transportation, Electric Vehicles and the

Environment– Geo-Engineering– Carbon Capture and Storage– Renewable Energy– Solid, Toxic and Hazardous Waste– Forests, Paper and Carbon Sinks– Life Cycle Analysis– Green Chemistry– Water Use and Management– Water Pollution– Environmental Management Systems

• Activist campaigns and bad publicity• Regulatory weaknesses & effects• Cost and price pressure• Financial worthiness and insurance• Consumer preference

Driving Forces for Social Accountability

• SA8000 stands for “Social Accountability”• It is based on a set of internationally accepted standards

that participating organizations must commit to. • Standards come from ILO (International Labor

Organization) & other human rights conventions.• SA8000 has the support of major companies and

organizations over a wide spectrum of interests– Designed for independent verification– A global standard, designed for use by any company, anywhere in

the world– Has been developed with stakeholders– Is designed to take local laws and requirements into account

What is SA 8000?

1. Child labor is not permitted2. Forced labor is not permitted3. Health and safety have to be assured4. Freedom to organize and collective bargaining have to be

guaranteed 5. Discrimination is not permitted6. Disciplinary practices are not permitted7. Working hours shall not exceed 48 hrs a week, with a

maximum of 12 hrs overtime8. Remuneration shall be sufficient9. Management systems shall guarantee that the

requirements are effectively satisfied

9 Main Requirements of the Standard

• No use of child labor.• Remediation of children found to be working below legal

age and shall support such children in attending school.• Promote the education of children and young workers.

Child Labor

• No exposure of children or young workers to situations that are hazardous, unsafe, or unhealthy

• Safe working environment and adequate steps to prevent accidents and injury

• Appointment of health and safety representative

• Routine and documented health and safety trainings

• Clean bathrooms and potable water

• Sanitary food storage and dormitory facilities if applicable

Health and Safety

Health and Safety

• No running water• Inadequate hoods• Dirty walls• Distribution of smoke

throughout building • High infection risk

• Respect right of personnel to form and join trade unions of their choice

• Engagement and/or support of discrimination is prohibited

• Freedom of religious expression

• Mental, physical and verbal abuse are not allowed

Right of Association

• Written and publicly available policy that that defines social accountability and labor conditions in conformance with SA 8000 and applicable laws

• Designated representative to enforce policy• Routine managerial review and updating of policy• Written statement and documented evidence from

suppliers and subcontractors of commitment to social accountability

• Investigation of concerns regarding conformance and nonconformance and appropriate corrective action

• Communication with all interested parties

Management Systems

Elements of a Social Management System

• Companies that operate production facilities can seek to have individual facilities certified to SA8000 through audits by one of the accredited certification bodies.

• Since the SA8000 system became fully operational in 1998, there are certified facilities in 30 countries on five continents and across 22 industries.

Certification to SA8000

• Benefits for Business– Putting company values into action– Enhancing company and brand

reputation– Improving employee recruitment,

retention and performance– Better supply chain management

and performance

Benefits of Implementing SA 8000

• Benefits for Consumers and Investors– Clear and credible assurance for ethical purchasing decisions– Identification of products made ethically and companies

committed to ethical sourcing– Broad coverage of product categories and production geography.

• Fewer accidents• Enhanced opportunities to be

organized• A way to address and

improve the conditions where people work

Worker Benefits

• Increased worker awareness about core labor rights• Enhanced communication to the management• Evidence that labor rights are good for society and business• Improved business practices lead to economic growth and

new job opportunities

SA 8000 Certified Companies

Summary

• There are several forces driving social accountability• SA 8000 is a standard that provides social accountability

guidelines, including:– Child labor, – Forced labor, – Working hours, – Compensation and – Workplace safety.

• A company can get its social accountability management system certified

• Such a certification benefits the business, consumers, investors and workers.