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Norwegian companies’ potential to influence on working conditions in their supply chain Gunelie Winum, Project Manager BI January 15th 2008.

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Presentation on theme: "Norwegian companies’ potential to influence on working conditions in their supply chain Gunelie Winum, Project Manager BI January 15th 2008."— Presentation transcript:

1 Norwegian companies’ potential to influence on working conditions in their supply chain Gunelie Winum, Project Manager BI January 15th 2008

2 Ethical trade (Responsible Supply Chain Managment) Partial responsibility for human rights, labour- and environmental standards at production plant level Code of Conduct based on int. accepted ILO & UN conventions as an instrument to initiate sustainable improvements Essential CR activity for merchandisers and retailers Why? CR activities in line with core activity Production of goods is part of merchandisers’ value chain High risk of exploiting working and environmental conditions in global supply chains.

3 “The only difference between me and the machine is that the machine is made of steel. I’m made of flesh and blood” 7 workers died in factory fire Guandong: fingers lost every year

4 ETI Norway – a multi stakeholder initiative Founded year 2000 by LO, HSH, Coop Norway and NCA. Membership based resource centre for CoC implementation Organisational structure: AGM  Board (7 repr.)  Secretariat (6) Financed by membership fees + project support from Norad Strategic objectives  Strengthen the awareness of and positive response to ethical trade  Strengthen ETI –N members’ work with ethical trade MSI advantages Enhance rights perspective and development aspect Org. resources benefits companies

5 Fashion/SportsSupermarkets Furniture IKEA Stokke AS Vestre AS Supermarket Suppliers Coop Norge Coop NKL ICA Norge Norgesgruppen Rema 1000 Smart Club Bama (Fruits & Veg) Chiquita (Fruits) Friele Coffeehouse (Coffee) Kjeldsberg Kaffe (Coffee) Joh. Johansson (Coffee) Lilleborg (Household) Noramix – Dilmah Te (Tea) Nidar (Chocolate & Sweets) Tine (dairy) ETI–Norway Members - Jan 2008 Footwear Alpaca Society Anouska Gresvig ASA Helly Hansen KappAhl Kristin B.M Design La Mote LilleBa Baby Nepal Productions Norrøna Sport Pashmina Redress/Russedress Russeservice Scan Trade (Umbro) Sophie Stormberg Swix Sport University Vips Varner Group Vips Flowers Mester Grønn Cosmetics Body Shop Eurosko Group Viking Footwear Accessories/Gifts/Toys Arts & Crafts Fair Trade Norge Friends Fair Trade Hokus Pokus Toys Norsk Dekor Sandvik Publisher Public Sector Other Beer Sten (natural stone) Cultura Sparebank (banking) Expresspakk (packaging) Etica.no (webshop) Manta Reiser (travel agency) Telenor (telecom) Viking Cimex (cleaning) Organisations HSH, KS, LO, Norw United Fed of Trade Unions, Norw Union of Employees, KFO, Church Aid, Norwegian Peoples Aid, GRIP, Norw Football Ass., Norw Olympic Committee & Confed of Sports, Fed of Private Owned Kindergartens, Norw Association of Heart and Lung Patients; OIKOS Hjelmeland municipality Sauda Municipality Suldal Municipality Stavanger Municipality

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7 Impact Drivers Company level High percentage of production Regular placement of orders Long-term relationship Internal/external reporting (frequent & consistent communication) Supplier level Critical mass of buyers pushing for Code compliance Capacity building/improvement resources /  Suppliers’ attitude Negative impact on working conditions  Purchasing Practices undermine CoC compliance SME advantage

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9 Challenges & Conclusions Improved labour standards Governments’ enforcement of laws and regulations More companies adopting ET practices Freedom of Association / Discrimination

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