1. Responsible Supply Chain Management Kristin Holter Ethical Trading Initiative, Norway BI 13 April 2005

2. Ethical Trading Initiative (ETI-N) Founded in year 2000 Membership organisation and Multi Stakeholder Partnership: Commercial enterprices, Employers’ organisations, Unions and NGOs

3. ETI Core Concepts Vision: Contribute to international trade that promotes development, human rights and the environment. “Business” idea: Enable members to meet challenges related to ethical trade.

4. Ethical trade defined Trade in which the retailer or merchandiser (i.e sourcing or buying company) assume some measure of responsibility for labour practices and environmental issues at all levels of the products supply chain.

5. ETI Ethical Standards Based on internationally recognised ILO and UN conventions No slavery or forced labour Right to join union/collective bargaining No child labour No discrimination Occupational Health and Safety (OHS) Wages/Working hours Disciplinary practices Regular employment Environment Local community

6. Internal systems -Develop Code -Plan of Action Risk Assessment -Map status -Improvement strategy Corrective Action - Customer leverage - Resources Verification - Internal - External - Sertification Step by Step Approach

7. Challenges  Small business:  Little or no customer leverage  Small resources  Long, complex and non-transparent supply chain  Agent is handling contact with producer(s)

8. Dilemma: Size matters  You are a small (2 pst) customer at a large production unit. You have presented your Code of Conduct. Apart from that – how should you contribute to improvements?

9. Dilemma: Allocation of resources  You are responsible for your firms ethical supply chain management. You have a budget. Should you prioritize expenses to documentation - inspection and control or contributing to improvements at production unit level?

10. Dilemma: Empowering the workers  You want the workers involved in improving the working conditions at the factory you are buying from. There is no union. What do you do?

11. Conclutions  No easy answers  Individual solutions to code implementation can only have limited impact. Collaboration between companies, suppliers, governments, trade unions and NGOs is essential.

12. www.etiskhandel.no