SA 8000: An Analysis of its Implementation in

Pharmaceutical Sector.

Priyabrata PandaLecturer in Commerce

Department of Commerce and Management Science.

Netaji Subhash Chandra Bose College, Sambalpur, Odisha, India.

Mrs Sovan MishraResearch Scholar

Ravenshaw University, Cuttack, Odisha, India.

SA 8000: An Analysis of its Implementation in

Pharmaceutical Sector.

SA 8000: An Introduction.

It is an international certification standard.

It influences organizations to develop, maintain and applysocially acceptable practices in the workplace.

It was created in 1989 by Social Accountability International(SAI), an affiliate of the Council on Economic Priorities.

The standard is based on the principle that ensuring workersrights and well being.

It focuses on healthy and sustainable workplace for all.

SA 8000: Implementation Requirements:

• The company shall not engage in or support the use of child labour.

• The company shall not engage in or support the use of forced or compulsory labour.

• The company must provide a safe and healthy workingenvironment .

• The employees must be free to form Association & shouldhave right to have Collective Bargaining.

• There should not be any discrimination regarding age, sex,

caste, creed, color, national origin, religion, disability, union

membership, political affiliation, or age.

SA 8000: Implementation Requirements(Contd.)

• The company shall not engage in or support the use of

corporal punishment, mental or physical coercion, and

verbal abuse.

• The normal working hour shall not on a regular basis exceed 48 hours.

• Remuneration should be sufficient to meet basic needs of personnel and deductions from wages are not made for disciplinary purposes.

Research Methodology:

Setting Study

Objectives.

Designing the

Sample.

Collection of Data

Analysis of Data

Outcome of Analysis

i.e., Findings.

Conclusion

Objectives of the Study:

This empirical analysis is made to reach the followingobjectives.

• To diagnose different contents of SA 8000.

• To analyse the implementation of SA 8000 among the field workers of pharmaceutical sector.

• To dig out whether the concern companies are providing the benefits of SA 8000.

• To find out whether the concern employees are aware about such standard.

Collection of Data.

Designing the Sample Fifteen Companies.

Seventy respondents.

Purposive method of sampling.

Sources of Data1) Primary Sources.

2) Secondary Sources.

Mostly primary data is used. Questionnaire method ofdata collection is used. Seventeen questions are askedthrough email, over phone and in person.

Analysis of Data.Quarries. Response.

Knowledge about SA 8000

5.7% have knowledge and 94.3% have no knowledge.

Working more than eight hour

47.1% respondents have no specific time of work though their union specifies their working time.

Working in holiday

11.4% of total employees are working in holidays.

Getting salary in time

11.5% respondents are not receiving their salary in time.

Getting adequate salary

81.5% are not satisfied with their salary.

Analysis of Data (Contd.)

90%

8.60%

84.30%

10%

78.60%

00

15.70% 15.70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Transfer Verbal Abuse Undue Influence

Suffering From Corporal Punishment

Yes

No

Can't Say

Analysis of Data (Contd.)

Caste0%

Religion0%

Age73%

Sex27%

Discrimination at Work Place.

Analysis of Data (Contd.)

71.40%

17.10%

11.50%

Freedom to join union

Alowed to join

denied to join

Can't say

Analysis of Data (Contd.)

80%

12.90% 7.10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes NO Cann't say

Healthy and Hygienic Environment

Finding and suggestion:• After conducting the case study on SA 8000 standards in pharmaceutical

sector it can be said that everyone wants a better working standard but noone knows about the global guidelines and parameter for such and theiremployer also do not disclose anything about this. The company musteducate their employees about regarding this social accountabilitystandard.

• Moreover these companies need to take steps to implement SA8000standard to improve the working life of its employees. The company mayget the benefit of SA 8000 in long run.

• SAI must take adequate steps to force these companies to implementbetter compensation to workers so that they receive remunerationsufficient to their survival.

• It is found that employees are forced to work more than eight hours evenfew are influenced to work in holidays. This practice should be checked bythe concern company and employees must be awarded with fair justice.

Finding and Suggestion(Contd.)• It is observed that few employees are not getting their salary in time. The

company must fix the time and deliver their salary in the fixed time.

• SAI must take adequate steps to force these companies to implementbetter compensation to workers so that they receive remunerationsufficient to their survival.

• It is found that transfer is an easy instrument in the hands of authority.Transfer to distance places may force the concern employee to leave theirjob. Verbal abuse and unethical influence is a matter of concern also.These factors may negate the motive of these workers.

• This empirical study finds some female medicine representatives. 22%respondents are discriminated by sex. Working in this field by femaleemployee is a challenging task indeed. In the male dominated societyfemale workers are discriminated to certain extent in this sector also. Thecompany and the authority must provide a healthy and safetyenvironment in which the female workers can work freely.

Conclusion:

No doubt SA 8000 increases the social commitments of thecompanies. It will yield to company in long run. Thecompanies should think in win-win basis to implement thesocial standard. It also enhances employee retention andreduces employee turnover. But the above study revealscertain serious facts which violate SA 8000 requirements.The employees can’t do anything about it due to fear oflosing their job. The international organisations shouldcome forward to protect the interest of these internalstakeholders. It can be noted that SA 8000 gives freedom tojoin association or union. But this study shows that fewemployees are denied to join the association. This violatesthe basics of SA 8000 which should be restrained.