1. SA8000 Capabilities

2. Presentation a. SA8000 – An overview b. The need for SA8000 c. IQNet - Global SA8000 capability d. Introduction to IQNet Ltd 2

3. a. SA8000 – An overview 3

4. What is SA8000 - Standard for the improvement of working conditions - Promotes ethical and fair treatment of workers - Incorporates international human rights conventions - Developed by Social Accountability International (SAI), now known as Social Accountability Accreditation Services (SAAS) a. SA8000 – An overview 4

5. Why have a Standard  to ensure that labour standards for workers are respected  to be transparent and use an independent verification of company practices  to avoid practices that violate human rights and avoid turning a ‘blind eye’ to suppliers which violate human rights a. SA8000 – An overview 5

6. Development of SA8000 World Conventions: Freedom of association & collective bargaining Freedom from forced labor Abolition of child labor Freedom from discrimination Also covers Fairness: Provisions for a basic living wage Definition of long working hours Health and safety in the workplace a. SA8000 – An overview 6

7. What does SA8000 cover 1. Child Labor 2. Forced Labor 3. Health & Safety 4. Freedom of Association & Right to Collective Bargaining 5. Discrimination 6. Disciplinary Practices 7. Working Hours 8. Remuneration 9. Management Systems a. SA8000 – An overview 7

8. What does SA8000 cover Supplier Sub-supplier 1 st Tier 2 nd Tier Supplier Company Supply Chain a. SA8000 – An overview 8

9. Who is involved NGOs MULTI-NATIONALS CERTIFYING BODIES CONSUMERS WORKERS UNIONS HUMAN RIGHTS GROUPS SHAREHOLDERS SUPPLY CHAIN GOVERNMENTS a. SA8000 – An overview 9

10. b. The need for SA8000 10

11. Why now Need to standardise suitable working conditions: around the world due to ‘globalisation’ because of varying codes of conduct in different industries to have a standardised certification process (assess conformity) to establish a baseline for consistency and comparison b. The need for SA8000 11

12.  Greater expansion of markets  Job shifts from developed to developing countries  Competition between countries to be low-cost producers and attract investors Impacts of globalisation: b. The need for SA8000 12

13. Effects of globalisation: Benefits : - More business opportunities - Economic growth potential Disadvantages : - Declining workplace conditions - Wages that do not support a family - Less job security - More restrictions on trade unions b. The need for SA8000 13

14. Triple Bottom Line ECONOMICENVIRONMENTAL SOCIAL SUSTAINABILITY b. The need for SA8000 14

15. Managing business risks: Excessive overtime hours Neglect of safety equipment Children hired in secret Suppliers not truthful Bully supervisors Discrimination Wages not enough to live on Injury Death Higher Reject Rate Less Productivity Buyer Boycott Brand Value I llegal b. The need for SA8000 15

16. b. The need for SA8000 Example - Child Labour  Asia Pacific region 127.3 million child workers (aged 5-14 years old)  Sub-Saharan Africa 29% of children (under 15) are sent to work  Latin America 17.4 million child workers  Industrialised & transition economies 2.5 million children are working Regional Estimates: Courtesy of 16

17. b. The need for SA8000 Courtesy of UNICEF Courtesy of ILO Example - Child Labour 17

18. b. The need for SA8000 Sialkot Pakistan Business Impact NIKE was accused of using child labour in the production of its footballs in Pakistan. OUTCOMES: - Damaged reputation - Brand devaluation - Consumer boycott 18

19. c. IQNet - Global SA8000 capability 19

20. IQNet Capabilities Global Certification : - About 20 IQNet Partners SA8000 capable - More than 60 auditors qualified - Potential coverage exceeding 50 countries Local Service Delivery : - Auditing resources locally deployed - Knowledge of local labour laws / codes - Local language capabilities (essential for worker interviews) c. IQNet - Global SA8000 capability 20

21. IQNet Capabilities Credibility and Consistency : - IQNet Partners : Leaders in their region - Key stakeholder involvement (eg UNICEF) - Auditing resources “calibrated” (global training initiative) c. IQNet - Global SA8000 capability 21

22. IQNet Certification Path c. IQNet - Global SA8000 capability IQNet SA8000 Assessment Process Application Pre-Visit Certification Audit Surveillance Audit Re-certification Audit 22

23. d. Introduction to IQNet Ltd 23

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26. Accreditation Granted 1 st May 2007

27. Contact Details Tony Di Palma Managing Director Bollwerk 31 P.O. Box CH-3001 Bern Switzerland Phone +41 31 310 24 40 Fax +41 31 310 24 49 Mobile +41 79 830 43 21 tony.dipalma@iqnet.ch www.iqnet-ltd.com