SOCIAL COMPLIANCEs

A Platform for productivity

- Sustaining Competitive and Responsible Enterprises

Corporate Social Compliance (Occupational Safety and Heal )- Day 1

INTRODUCTION TO SCORE AND THE

TRAINING PROGRAMME

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What is SCORE?
Launched in 2009, the Sustaining Competitive and Responsible
Enterprises (SCORE) programme supports enterprises to strengthen
collaboration between managers and workers to:
1. Boost quality and productivity
2. Improve working conditions (like better human resource
management, better occupational safety and health systems)
3. Reduce the environmental footprint
4. Make enterprises more competitive in national and global markets
5. OSH and Social Compliances

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Countries where SCORE has been implemented

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Rationale behind SCORE
 Increasing global and local competition forces enterprises to constantly
upgrade productivity and products
 Your workforce is of central importance to productivity and
competitiveness.
 Therefore, SCORE supports
o Respect for workers’ rights
o Efficient use of available equipment and technology
o Development of a skilled workforce
o A safe and healthy workplace environment
o Participatory management practices

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SCORE training modules

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Safety and Health at Work:
A platform for productivity

By the end of the training, you will be able to:

 Identify and assess hazards and risks to safety and health
 Implement key practices and procedures to eliminate/reduce
risks:
o A Health and Safety Management System and policy
o A Joint Health and Safety Committee
o Appropriate safety standards
 Manage the day-to-day operations of a healthy/safe workplace

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Training methodology

 Two-day classroom training sessions, followed by in-factory, on-

the-job learning.
 Hands-on training that leads to action
 Enterprise Improvement Teams lead the continuous
improvement efforts and implement action plans.
 Support by local and international experts.

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Training methodology
2 day workshop led by module trainer/consultant
4 participants per enterprise from relevant departments
Module workshop
Completion of enterprise self-assessment

½ day visit by trainer/consultant

Enterprise visit 1: Identification of areas for improvement
Assessment & action planning Development of action plans by trainer and enterprise

½ day visit by trainer/consultant

Enterprise visit 2: Review of enterprise progress on action plan
Project follow up Clarification and assistance from team

½ day visit by trainer/consultant

Enterprise visit 3 Review of enterprise progress on action plan
Project follow up Expert advice on technical issues, questions and problems

½ or full day meeting where enterprises present their progress

Final progress meeting External parties invited

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Day 1: Training agenda for the module workshop
Day 1 Topic matter Activity involvement

08:30 – 10:00 -Welcome Presentation

-Participants’ Introduction Trainer and participants
-SCORE overview
- Workshop Objectives
-Programme Presentation

Session 1: Introduction to Occupational Safety and Health in Small and Medium-sized Enterprises: overview and rationale Presentation and plenary discussion

10:00 - 10:30 Coffee/Tea Break

10:30 - 12:00 Session 2: OSH Definitions and Concepts Presentation – Trainer
 
 

12:00 - 12:30 Exercise 1. Spot the Hazard Identification Group work and plenary discussion
Exercise from NSW

12:30 - 13:30 Lunch

  Session 3 Risk assessment  
13:30 – 14.30 Step 1: Presentation – Trainer
Hazard identification
14:30 - 15:00 Coffee/Tea Break
15:00 – 15:20 Factory Exercise 1: Identify Hazards at your Workplace Group work and plenary discussion

15:20 – 16:00 Step 2: Presentation – Trainer

Identify who might be harmed and how Assessment of current risk

Step 3: Presentation – Trainer

Identify and decide on the safety and health risk control measures

16:00 – 16:30 Factory Exercise 2: Identifying who is at risk and assess current level of risks at your workplace Group work and plenary discussion

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Day 2: Training agenda for the module workshop
Day 2 Topic matter Activity involvement
08:30 - 08:40 Revision of day 1 and introduction to day 2 Presentation
  Trainer and participants

08:40 – 10:00 Session 4. Hierarchy of Controls Presentation

Trainer

10:00 – 10:30 Coffee/Tea Break

10:30 – 11:00 RMG exercise All Plenary discussions
 

11:00 – 12:30 Session 5 Risk assessment the process (continued) Presentation and exercise.
Factory Exercise 3. Suggest control measures Trainer and participants
Additional Exercise on pillar drill.

12:30-13:30 Lunch
13:30 – 14:30 Session 6 OSH Management systems Presentation – Trainer
14:30 - 15:00 Coffee/Tea Break
15:00 – 16:00 Session 7 Taking action Presentation – Trainer
The Action exercise.

16:00 – 16:30 Workshop Evaluation and Suggestions All

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Safety and Health at work - Day 1

SESSION 1

INTRODUCTION TO SOCIAL
COMPLIANCES IN SMALL AND
MEDIUM-SIZED ENTERPRISES (SME):
OVERVIEW AND RATIONALE
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Session one objectives

At the end of the session, you will be able to:

1. Understand the importance of Occupational Safety and Health in

improving workers’ lives and Global Health

2. Realize the role of Small and Medium-Sized Enterprises in advancing OSH

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 What Corporate Social Responsibility?

 Goal: Corporate Social Responsibility (CSR) is a widely defined concept

that explores the responsibilities of business towards society
 in terms of: the environment; employees 'and neighbors and consumers. This
responsibility lies outside of the financial responsibilities that companies have towards
shareholders and other investors
 CSR is generally understood to be the way a company achieves a balance or integration of
economic, environmental, and social imperatives while at the same time addressing
shareholder and stakeholder expectations.
 What is it? Cont.…..

• CSR is also linked to the idea of social and environmental

sustainability; how businesses should act to ensure that their
business contributes to a future where the environment is protected
and people's basic human rights are protected, both in the short and
long term. Business' role as creators of wealth for society can
contribute but the wealth must be achieved in a sustainable way.
 What is it? Cont.…..
• CSR is often understood as commitments and activities that
extend beyond this foundation of compliance with laws.

Development that meets the needs of the

present without compromising the ability of
future generations to meet their own needs
 Why is Ethical Audit Important?
• Evidence of abusive or illegal treatment within your company or supply chain can
damage your company’s brand. Likewise, showing concern for sustainability down
the supply chain can raise your corporate reputation and polish your brand. Ethical
audits also help the companies and brands to manage social compliance risks that
could impact the company financially.
• How to conduct a social compliance audit?
• In order to ensure that your company meets standards of social compliance, it may be necessary to conduct a social
compliance audit with the following steps:
• 1. Review your company’s code of conduct and its code of ethics.
• 2. Define your company’s “stakeholders” by identifying every individual or group that is affected by the performance or
success of your business.
• 3. Identify the social needs that affect all of your company’s stakeholders, including clean streets, crime and vagrancy
reduction.
• 4. Devise a system for identifying social targets, gathering data on addressing an issue and implementing strategies to
positively affect the situation and reporting the results of those efforts.
• 5. Contract with an independent auditing firm that specializes in social responsibility programs; meet with
representatives of the audit firm to discuss your efforts and your need for an independent review.
• 6. Allow the auditor to complete the independent verification process and then compare his results with the internal
observations of the functional group leading your social responsibility effort.
• The Social Compliance Audit Report
• When a social compliance audit is finished by an ethical auditor, a report will be issued which documents the findings
and includes pictures. With this report you obtain a clear picture of whether everything is in place for your company to
all social compliance requirements.
• Our Social Compliance Audit includes evaluations of your supplier’s compliance with:
• Child labor laws
• Forced labor laws
• Discrimination laws
• Minimum wage laws
• Worker living standards
• Working hours
• Overtime wages
• Social benefits
• Safety and health
• Protection of the environment
• Other Audit Services
• Factory and supplier audits
• Energy Audits
• Enviromentl Audits
• Factory Production Control Audits
• Manufacturer Audits
• Building Safety Audit
 Many driving forces are fostering the evolution of corporate
social responsibility
• new concerns and expectations from citizens, consumers, public authorities and
investors in the context of globalization and large scale industrial change;
• social criteria are increasingly influencing the investment decisions of
individuals and institutions both as consumers and as investors;
• increased concern about the damage caused by economic activity to the
environment;
• transparency of business activities brought about by the media and modern
information and communication technologies.
 Many driving forces are fostering the evolution of corporate
social responsibility
It is a multi-faceted concept. It involves corporate philanthropy and
corporate-citizen social contracts. These are implicit contracts between
citizens and the corporates, which promulgate that corporates exist for
citizens and come with expectations. The expectations are that
corporates conduct themselves in an ethical manner, follow laws and
have end goal of betterment for the society. Some view CSR as
voluntary activity but ultimately someday it has to be quantified in law.
 The history of CSR
The debate about corporate social responsibility (CSR) began in the
early 20th century, as concerns about large corporations and their
power came to the fore. Two broad principles—charity and
stewardship—have help to shape thinking about CSR.
 ……..
Ida Tarbell’s 1904 work The History of the Standard Oil Company
helped lead to the Supreme Court’s decision to break up the
company on antitrust grounds.
Similarly, Upton Sinclair’s 1906 book The Jungle led to the passage
of the Pure Food and Drugs Act and the Meat Inspection Act by
congress.
 Arguments for CSR
The arguments for CSR tend to focus on the relationship between
power and responsibility, the need for good stakeholder relations,
and business’ desire to forestall government regulation.
(The notion of “enlightened self-interest” also fits in here.)
 Arguments against CSR
The arguments against CSR tend to focus on the economic function
of

business (to make products, not to solve social problems that are the

responsibility of individuals, society, and the government),

 Achieving balance
Businesses need to balance economic, legal, and social
responsibilities in order to achieve long-run success. More generally,
there is often a relationship between good social and good financial
performance.
Further, firms that are seen as acting illegitimately are likely to face
difficult relations with employees, governments, communities, and
consumers—which all have direct impacts on the top and bottom
lines.
 Achieving balance…..
One defense of the shareholder view of CSR is that shareholders
take on a unique set of risks, but other stakeholders are protected by
contractual relations with organizations. On the contrary most
stakeholders take on risk—many a times without knowing it.
One result of increasing globalization is that there are many different
voices around the world with differing views on corporate social
responsibility. What is seen as “ethical” in one country may not be in
another
• CSR is at a crossroads. After a decade of evolution, the pathway forward defies
easy prognosis. Will external events and company choices relegate CSR to a
passing fad, leading to its fading from corporate and public agendas?
• Or will CSR reach full fruition as it becomes aligned, integrated and fully
institutionalized in company strategy and operations?
• Or, alternatively, is something more transformational on the horizon as CSR
morphs into a deeper change mode, becoming a force for altering corporate
purpose at the most fundamental and systemic level?
• Virtually all large companies pursue some form of scenario planning to optimize
deployment of their financial and human capital.
• In a globalizing world where capital, technology, information and trade flow are
increasing freely across borders, prudent management requires nothing less for building
a healthy, competitive business in the 21 st century.
• In an interconnected world, companies operate not as discrete, atomistic entities, but
rather as elements of a global system characterized by complexity and rapid change. It is
the struggle to define and manage the opportunities and risks of this new world that has
fueled the emergence of CSR during the last few years, and will continue to do so in
coming decades.
• From its genesis in the early Industrial Revolution, the joint-stock corporation
took root as the heir to the private partnership organization, wherein close
owner-capitalists maintained high levels of familiarity with the workings of the
companies that they partially owned.
• As the scale of companies grew, so did the need for capital well beyond what
the original entrepreneur and close partners could provide. Thus, the idea of
passive investors purchasing equity shares emerged, and by the end of the 19th
century this would come to dominate the industrial landscape and become a
central driving force of the economic expansion of Western nations.
• This development was not warmly embraced by all. Indeed, as early as the
late 18th century, Adam Smith harbored doubts about the social
repercussions of the joint-stock company. Notwithstanding his observation
that individuals working to advance their self-interests is the surest route
to aggregate societal well-being, Smith understood the threat of business
monopoly, privilege and protection to societal interests. His concern with
business power to “intimidate the legislature” was a premonition of
contemporary corporate political influence
U.S. court decisions in the late 19th century fueled the rise of shareholder supremacy, a notion
built on the premise that shareholding entitles shareholders to be the dominant recipients of surplus
generated by corporate wealth creation. This view, while upheld in the courts, met with opposition,
even among business leaders. Henry Ford and Owen D. Young, GE’s chairman in the 1920s,
questioned the supremacy of shareholders relative to other parties that contribute to wealth
creation. Ford was sued by two shareholders for suspending dividends in favor of plant expansion.
When asked what is the purpose of his corporation, Ford responded: “To do as much good as we
can, everywhere, for everybody concerned … and incidentally to make money.” Ford lost his case
in a Michigan court. A few years later, Young rhetorically asked: “To whom do I owe my
obligations?” His answer: the company owes “a fair rate of return to shareholders” at the same
time as it serves the interests of employees, customers and the public.
Today, the received wisdom of shareholder value as the central purpose of business poses a
continuing challenge to CSR. The conflict begins with management education and is
entrenched deeply as to be the core driver of board and executive decision-making.

“If the value creation is achieved by combining the resources of both employees and
shareholders, why should the value distribution favor on the latter? Why must the mainstream
of our theory be premised on maximizing the returns to just one of these various contributors?”

In a fundamental sense, the emergence of CSR may be viewed as a modest corrective

mechanism to shareholderism. Its emphasis on stakeholder rights and participation opposes the
unrelenting focus on shareholder interests, especially those that place short-term share price
above all other goals.
Since 2000, CSR has entered yet another phase often called “integration.” This stage reflects a
maturation of the CSR idea and recognition of the inherent limits of distancing CSR from core
business strategy and operations. The leading edge is now characterized by the idea of seamlessness
— identifying and implementing actions that make CSR everyone’s business and ending its isolation
as a useful but
Dispensable add-on to “real” business activities.
This Emergence in the integration phase is actually multifaceted, and comprises of.
• Alignment with business objectives within overall company strategy
• Integration across business entities and functional areas
• Institutionalization by embedding strategies, policies, processes and systems into the fabric of the
organization
 KEY COMPONENTS
• ENVIRONMENT

• EMPLOYEES

• NEIGHBOURS AND CONSUMERS

 ENVIRONMENT
• Responsibility not to pollute where they operate

• Responsibility to make products which do not damage the

environment throughout their life cycle

• Responsibility to improve the sustainability of all their

operations
 EMPLOYEES
• Guaranteeing the right of association for all employees
• Guaranteeing the freedom to form trade unions without interference
• Guaranteeing the right to collective bargaining.
• Providing training.

• Ensuring the health and safety of employees

• Ensuring that child labour is not used in their business

 NEIGHBOURS AND CONSUMERS
• Monitoring to ensure that all operations have a positive impact upon
the local community .
• Actively seeking the views of those affected by business
operations .
• Ensuring that products are not detrimental to the interests of
consumers
 CONSUMER RIGHTS
• Companies have responsibilities to all of those who purchase their
products, regarding the safety of the product and its fitness for use
 HUMAN RIGHTS
• Companies have responsibilities to ensure that their operations
never negatively influence human rights, for example by ensuring
that
security personnel are properly trained and held accountable
 GOVERNMENTAL RELATIONS
• many companies hire public relations firms to lobby governments.
The tactics employed should be open, accountable and transparent
 CORPORATE GOVERNANCE
• As recent scandals have shown, the extent to which companies'
boards CAN govern and regulate the companies' activities is crucial
for their legitimacy and reputation
 CORPORATE GOVERNANCE
• TotalFinaElf and Premier Oil are accused of complicity in gross
human rights abuses in Myanmar/ Burma. Soldiers retained by the
companies to protect the oil pipeline allegedly force civilians to
carry heavy supplies, during which time they are frequently beaten
and left for dead. ", demonstrating the companies‘ complicity in this
use of forced labour.
EMPLOYEES