While impressive steps are being made down the road of compliance, future debate about responsible supply chain management must begin to centre on good relationships, not risk.
Costing child labour
A new study by the International Labour Office’s Programme on the Elimination of Child Labour claims the benefits of eliminating child labour outweigh the costs by a factor of nearly seven. The ILO estimates that some 246 million children are currently involved in child labour worldwide. Of these 179 million are exposed to the worst forms of child labour, which endanger their physical, mental and moral well-being. The report calculates that this could be eliminated and replaced by universal education by the year 2020 at an estimated total cost of $760bn. Contact ILO on &00 41 22 799 6111 (http://www.ilo.org)
gangmasters LAW
UK ministers are considering legislation to prevent the exploitation of workers by gangmasters, following the deaths of 19 Chinese cockle pickers in Morecambe Bay in early February. Home Secretary David Blunkett expressed support on February 9 for a private members bill that proposes a mandatory licensing scheme of gangmasters. However, Rural Affairs Minister Alun Michael had said that the government is still considering whether a mandatory scheme would be appropriate. While the government supports the objectives behind the bill, it feels that it is unlikely to deter criminal gangmasters. Contact Home Office on &020 7283 4676 (http://www.homeoffice.gov.uk)
Supply pains
Companies are in danger of counteracting their own ethical trading policies through ill-considered buying practices, a report by Insight Investment warns. The Buying your way into trouble? report suggests that the drive for greater efficiency and flexibility in company supply chains puts pressure on suppliers to contravene the companies’ own requirements on social, environmental and ethical matters. Contact Rachel Crossley, Insight Investment, on &020 7930 5474 (http://www.insightinvestment.com)
Closing illegal loopholes
Changes to the law will make it easier to prosecute companies who employ illegal workers, the Home Secretary David Blunkett announced on March 16. The changes, which come into effect on May 1, will also make it easier for legitimate business to keep within the law. New guidance will be issued to employers to make clear what documents they are required to see as proof of entitlement to work. A number of documents which have been exploited by forgers will no longer be a defence against prosecution for illegal employment. The government is also considering whether to increase the penalty for employing illegal workers to act as a deterrent. The regulations are part of a strategy to tackle illegal working that includes strengthened border controls to prevent illegal immigration, increased enforcement activity and action to counter the organised criminal networks that traffic illegal workers to the UK. Contact Home Office on &020 7283 4676 (http://www.homeoffice.gov.uk) [/i]
How late it was how late
Government has failed to curb the culture of late payment in business through legislation, according to a study published by Experian on February 18. The report cites figures showing that UK companies wait an average of 58 days to settle invoices, compared with 57.5 days in 1998. The survey was conducted among 229,000 companies of all sizes and across 29 industry sectors. It includes European comparisons and shows that the average delay was 10 days for France, 17 for Germany and 21 for Italy. Contact Ellen Carroll, Experian, on &0115 992 2515 (http://www.uk.experian.com)
preferred suppliers
Starbucks announced a $1m investment in a loan programme for small-scale coffee farmers on March 11. The programme, co-ordinated by the US non-profit Calvert Community Investments, will provide access to affordable credit for up to 10,000 farmers and their families.
The move forms part of the Seattle-based coffee chain’s efforts to draw more high-quality producers into its supply chain to meet its expansion plans. Central to the strategy is the company’s Preferred supplier programme, which was recently relaunched after a two-year pilot. Developed in conjunction with the US-based non-profit Conservation International, the programme provides farmers and processors with 32 criteria on quality, social, environmental and economic transparency issues. Successful applicants to the programme are rewarded with long-term contracts and a price premium for their coffee crop. Contact Megan Behrbaum, Starbucks, on &00 206 318 7310 (http://www.starbucks.com)
In brief
Gap is to join the UK-based Ethical Trading Initiative, the US retailer recently announced. It will be the third US company to join the ethical supply chain alliance, and the thirty-seventh company overall. Gap sources from around 3,000 garment factories in 50 countries. Contact Alan Marks, Gap, on &00 1 415 427 6561 (http://www.gap.com)
Toyota‘s North American manufacturing arm announced on March 4 the recipients of the company’s first ever Supplier Diversity Awards. The automobile company also announced that it is establishing joint ventures to help the development of minority business enterprises. Contact Toyota on &0845 275 5555 (http://www.toyota.com)
Chiquita‘s banana farms in Colombia, Costa Rica and Panama have been certified as compliant with the Social Accountability 8000(1) labour and human rights standard and the EUREPGAP (2) food safety standard – a first for all the countries. Contact Michael Mitchell, Chiquita, on &00 1 513 784 8959 (http://www.chiquita.com)
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