an overview of social compliance & introduction to wrap worldwide responsible accredited...
TRANSCRIPT
![Page 1: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/1.jpg)
An Overview of Social Compliance&
Introduction to WRAP
Worldwide Responsible
Accredited Production
(WRAP)September 2015
Tanzania
![Page 2: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/2.jpg)
Agenda
• Overview of Social Compliance– Origins and Evolution– What is Sustainability?– Why do Compliance & Sustainability Matter and Have Become so Important?– The Business Case for Compliance
• An Introduction to WRAP – History / Overview– WRAP Principles– Certification Process– Monitoring Partners Selection & Controls– WRAP Training Offerings
• Benefits of WRAP Certification• Conclusion / Q&A
![Page 3: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/3.jpg)
Origins & Evolution of Social Compliance
• In the mid-to-late 1990s, US / EU brands and retailers were embarrassed by reports of worker abuse in factories making their products in Central America and Asia.
• Based on those reports, many brands and retailers wrote corporate Codes of Conduct and began auditing factories, attempting to ensure legal, ethical and humane working conditions.
• Evolving from comply-or-die models to conversations about sustainability.
![Page 4: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/4.jpg)
What is Sustainability?
• Many Definitions– Most of them context driven
• Need to Look at the Big Picture
• Our definition of choice:
Sustainability is being able to do whatever it is we are doing now, without endangering the ability of future generations to do the same.
![Page 5: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/5.jpg)
Why do Social Compliance & Sustainability Matter?
• Doing the Right Thing
• If that’s not enough - it comes down to protecting your company
– Social Compliance = Risk Management
– Sustainability = Business Continuity
![Page 6: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/6.jpg)
Why Has Social Compliance Become So Important?
• With the advent of modern technology, we now have global, instant communication.o Internet / Social Media / Smartphones
• What happens in China, Bangladesh or Vietnam now appears on CNN or BBC within minutes.
• Reputation/supply chain management are global issues, with very high stakes.o Risk Management in a Transparent World
• Greater awareness of need for sustainable manufacturing and sourcing practices.o Business Continuity in Uncertain Times
![Page 7: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/7.jpg)
Ali Enterprises-September 11, 2012
Anger and Grief Across Karachi After Fire-The New York Times
Deadly Karachi blaze was “waiting to happen”-BBC
Karachi factory fire highlights risks for workers
-Dawn.com
![Page 8: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/8.jpg)
Tazreen Fashions-November 24, 2012
Fatal Fire in Bangladesh Highlights the Dangers Facing Garment Workers
-The New York Times
Paying with Their Lives: The High Cost of Cheap Clothing
-Solidarity Center
Retailers and suppliershit by fallout from deadly Bangladesh factory fire
-CNN
![Page 9: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/9.jpg)
Rana Plaza-April 24, 2013
Building Collapse in Bangladesh Leaves Scores Dead
-The New York Times
Big Brands Face Scrutiny Over FactorySafety After Bangladesh Collapse
-Associated Press
Factory collapse A ‘wake-up call’for fashion industry
-ABC Australia
![Page 10: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/10.jpg)
Business Case for Compliance
• Protecting your organization
• Return on investment:
– Systemic approach to management
–Direct business benefits
• More efficient production– Savings include raw materials and energy costs
• Lower worker turnover
– Satisfying client requirements
![Page 11: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/11.jpg)
An Introduction to WRAP
Mission:WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane and ethical manufacturing around the world through certification and education.
![Page 12: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/12.jpg)
• Task force established by AAMA in 1996 to study the issue of “sweatshops” in offshore manufacturing and recommend an industry-wide response
• Committee sought input from brands, suppliers, NGOs, academics and governments
• Reviewed corporate, industry, multi-lateral organization codes & national laws
• WRAP incorporated in 2000 with 12-point code• Based on universally recognized min. standards
- Core ILO Conventions • Compliance to national laws, respect for local culture
History
![Page 13: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/13.jpg)
Organizational Overview• Non-profit organization (not a charity)• NOT a membership club• By charter, Board is majority non-industry• HQ in Arlington, VA, USA• 2 Regional offices– Hong Kong, SAR, and Dhaka, Bangladesh– Representatives in India, Thailand & Vietnam and representation in
Latin America
• 23 full-time staff – 11 experienced auditors / 7 accredited trainers
• Audits conducted by 3rd-party firms, as well as WRAP staff (latter mainly for quality control)
![Page 14: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/14.jpg)
Leading Independent Certification Program
• In 2014, received over 2400 applications
• As of early 2015, over 2000 facilities employing more than 1.8 million workers in over 40 countries have been certified
![Page 15: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/15.jpg)
Communication Leadership
• 7,000+ subscribers to weekly newsletter
• Website receives over 5,000 unique visitors each month, and is available in 4 languages
• Full-time local staff in 7 countries; 15 languages covered
![Page 16: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/16.jpg)
WRAP PRINCIPLES
![Page 17: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/17.jpg)
Principle 1
Compliance with Laws and Regulations – Facilities will comply with laws, codes, rules and regulations in all locations where they conduct business.
![Page 18: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/18.jpg)
Principle 2
Prohibition of Forced Labor – Facilities will not use involuntary, forced or trafficked labor.
![Page 19: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/19.jpg)
Principle 3
Prohibition of Child Labor – Facilities will not hire any employee under the age of 14, or under the age interfering with compulsory schooling, or under the minimum age established by law, whichever is greater.
![Page 20: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/20.jpg)
Principle 4
Discipline, Harassment or Abuse – Facilities will provide a work environment free of supervisory or co-worker harassment or abuse, and free of corporal punishment in any form.
![Page 21: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/21.jpg)
Principle 5
Compensation and Benefits – Facilities must pay at least the minimum wage required by law for all hours worked, including all mandated wages, overtime, allowances and benefits.
![Page 22: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/22.jpg)
Principle 6
Hours of Work – Hours worked each day, and days worked each week, shall not exceed the legal limitations of the countries in which facility is located. Facilities will provide at least one day off in every seven-day period, except as required to meet urgent business needs.
![Page 23: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/23.jpg)
Discrimination – Workers must be employed based on their abilities and paid, promoted and terminated based on their ability to do the job rather than on the basis of personal characteristics or beliefs.
Principle 7
![Page 24: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/24.jpg)
Principle 8
Health and Safety – Facilities will provide a safe and healthy work environment. Where residential housing is provided, facilities will provide safe and healthy housing.
![Page 25: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/25.jpg)
Principle 9
Freedom of Association and Collective Bargaining – Facilities will recognize and respect the right of employees to exercise their lawful rights of free association and collective bargaining.
![Page 26: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/26.jpg)
Principle 10
Environment – Facilities will comply with environmental rules, regulations and standards applicable to their operations, and will observe environmentally conscious practices in all locations where they operate.
![Page 27: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/27.jpg)
Principle 11
Customs Compliance – Facilities will comply with applicable customs laws, and in particular, will establish and maintain programs to comply with customs laws regarding illegal transshipment.
![Page 28: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/28.jpg)
Principle 12
Security – Facilities will maintain facility security procedures to guard against the introduction of non-manifested cargo into outbound shipments (i.e., drugs, explosives biohazards and /or other contraband).
![Page 29: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/29.jpg)
WRAP CERTIFICATION PROCESS
![Page 30: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/30.jpg)
• Must have management systems approach• Commitment from Top Management, with specific
individual(s) assigned compliance responsibility• Adoption, Deployment & Monitoring• Maintain supporting documentation or other relevant
evidence• Continuous education of all employees
Implementation Requirements
![Page 31: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/31.jpg)
• Application• Registration• Self Assessment• Evaluation Audit (Unannounced visit)
• Self assessment• Facility tour• Employee interviews• Management interviews• Document review
• Review of report by WRAP• Certification• Unannounced Follow-up Visits
Certification Process
![Page 32: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/32.jpg)
Application Process
• Go to www.wrapcompliance.org– Click on “Login” and enter information– Verify all information is correct– Select monitoring firm– Pay registration fee– Contact monitoring firm
![Page 33: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/33.jpg)
Certification Fees
• WRAP registration fee: US$1195 – Sets a 6-month clock ticking– WRAP typically generous in granting extensions to
facilities that have made a true effort to achieve compliance
• Additional costs: audit fees– Depends on the size of the factory (no. of
employees)
![Page 34: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/34.jpg)
WRAP Monitoring Partner Selection & Control
• Monitoring Partners accredited at organizational level
• All auditors must be individually accredited and directly trained by WRAP– Refresher training required once every 2 years
• Ongoing review:– Office visits, shadow audits & audit file reviews– WRAP staff conducting unannounced visits
at certified facilities• Big part of function of staff in regional offices
(approx. 20% of facilities in general, but 100% re-visited in Bangladesh)
![Page 35: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/35.jpg)
Social Compliance Best Practices
• Even the most progressive of approaches to auditing will not suffice if auditing is all you do– Social compliance is a two-way street
• Engagement necessary at all levels– Understanding the practical challenges faced– Being consistent with message• No “disconnect” between sourcing and compliance
– Building partnerships• Continuous improvement
– Ongoing training and education
![Page 36: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/36.jpg)
WRAP Practices
• Management systems approach to social compliance and sustainability– Engaging with facilities to build relationships
• Education is essential –WRAP Training offerings
![Page 37: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/37.jpg)
WRAP Training Offerings
• General awareness training
• Five-day lead auditor
• Two-day internal auditor
• Modular training courses
– Fire safety training
– C-TPAT training
![Page 38: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/38.jpg)
• Designed for third-party and company auditors
• Interactive training with hands-on exercises, case studies, role plays, virtual factory tours, final exam
• Widely recognized as “best in class” auditor training
• IRCA accredited
Five-day Lead Auditor Course
![Page 39: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/39.jpg)
![Page 40: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/40.jpg)
![Page 41: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/41.jpg)
Two-day Internal Auditor Course
• Designed for brand compliance managers or facility managers who are charged with compliance with customer codes of conduct and WRAP requirements
• Participatory course which includes hands-on exercises, role plays, virtual facility tour and mock audit
• IRCA accredited
![Page 42: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/42.jpg)
![Page 43: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/43.jpg)
![Page 44: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/44.jpg)
WRAP Fire Safety Training
• Started in Bangladesh, September 2011– Launched in Pakistan in 2012, China and India in
2013, and in Vietnam and Indonesia in 2014– Local language– Over 3000 people trained (in local language)
• Aimed not just at evacuation, but also prevention– Risk Assessment– Practical Demonstrations
![Page 45: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/45.jpg)
![Page 46: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/46.jpg)
![Page 47: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/47.jpg)
![Page 48: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/48.jpg)
Benefits of WRAP Certification• WRAP’s Credibility and Dependability– Clear requirements; systemic approach– Cost effective expertise– Availability of expert resources (training)
• Safer Working Conditions• Improved Worker Morale and Communications• Avoiding Audit Fatigue• Remember the Business Case for Compliance– Protecting your organization– Return on Investment
• Higher Productivity• Lower Worker Turnover
– Satisfying Client Requirements
![Page 49: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/49.jpg)
Summary
• Sustainability and social compliance certification are becoming increasingly important aspects of supply chain management in today’s global value chain.
• A properly implemented, and credibly certified (WRAP!) social compliance system serves the dual purpose of meeting buyer requirements as well as increasing worker efficiency and morale, and, thereby, productivity & profitability.
![Page 50: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/50.jpg)
Conclusion
WRAP is:• The “standard most often cited” for social
compliance certification in the textile sector. – “Making Private Standards Work For You”
2010 UNIDO Study • A respected leader in the training arena.• A highly recognized, responsive and
effective partner for supply chain social compliance management.
![Page 51: An Overview of Social Compliance & Introduction to WRAP Worldwide Responsible Accredited Production (WRAP) September 2015 Tanzania](https://reader035.vdocuments.mx/reader035/viewer/2022070412/56649e7c5503460f94b7e474/html5/thumbnails/51.jpg)
Clay E. HicksonSr. Dir. of Strategy & Bus. Dev.
Worldwide Responsible Accredited ProductionArlington, VA, USA
www.wrapcompliance.org+1-880-2883-6356+1-703-243-0970
Thank you!