nullnullAIM-PROGRESS
RESPONSIBLE SOURCING SUPPLIER FORUM
Gurgaon, India
August 31st, 2010FORUM GOALSFORUM GOALSCommon Understanding of Responsible Sourcing
Review AIM-PROGRESS Objectives and Activities
Mutual Recognition
Tools to capture data (Sedex)
Review Scope of Responsible Sourcing Assessment
Agree on Next Steps**LOGISTICSLOGISTICSLogistics:
Location of exits, Evacuation routes & procedure
Location of rest-rooms, food & beverage, etc
Other security/ safety polices
Person(s) to see if you have any questions throughout the day
Rules of Engagement:
Strict adherence to ethical business practices, business integrity and anti-corruption principles
Absolutely NO discussions of trade agreements, pricing, customer/vendor relationships, or other
Information in this presentation was reviewed/ approved by Legal counsel. Legal counsel will be present throughout the meeting to address any questions and ensure compliance business trade laws and principles is maintainednullMORNING AGENDARegistration 10:00-11:00
Welcome & Introductions 11:00-11:15
CEO Roundtable 11:15-12:30
Lunch 12:30-13:30
Leadership Introduction 12:30-13:30
Overview of AIM-PROGRESS 13:40-14:10
What is AIM-PROGRESS?
What is Responsible Sourcing?
The Value Proposition of Collaboration
Industry Alignment & Mutual Recognition
AFTERNOON AGENDA AFTERNOON AGENDA Assessment Overview
Principles, Standards, Local Law 14:10-15:10
Requirements for Compliance at site level
Good Practice & Local Law
Overview of on-site assessment
Examples, Case Studies, Q&A
Tools to Capture Responsible Sourcing Data
Introduction to SEDEX 15:10-15:30
Registration, Sharing data, SAQs
Uploading Audits and CAPs
Wrap-Up & Questions 15:30-16:00nullRESPONSIBLE SOURCINGResponsible Sourcing :
Responsible sourcing is the process of purchasing goods & services without causing harm to, or exploiting, humans or the natural environment.
Core Responsible Sourcing Standards & Principles address :
Legal Compliance
Forced Labor
Wages and Benefits
Hours of Work
Freedom of Association
Child Labor
Discrimination
Abuse of Labor
Health and Safety
Environment
Bribery and CorruptionVALUE PROPOSITION*VALUE PROPOSITIONResponsible Sourcing…
Increases employee morale and productivity in the supply chain
Improves retention rates
Lower overtime
Fewer HSE incidents
Fewer quality incidents
Higher business performance
Is a sustainable foundation for growth
Is “the right thing to do!”
Builds & protects reputation with:
Customers, Consumers, Regulators, Wider society, Investors, Employees
SECTOR COLLABORATIONSECTOR COLLABORATIONExamples:
EICC - Electronics Industry Code of Conduct (GeSi)
WRAP - Apparel
ETI - UK based, multi stakeholder initiative
BSCI - Continental Europe retailer led
ICTI - Toy Industry
AIM-PROGRESS – FMCG sector
All are based upon the same ILO and UNGC, and all require a similar approach to implementation. AIM-PROGRESSAIM-PROGRESSGlobal forum of consumer goods companies assembled to enable & promote responsible sourcing practices
Sponsored by the Grocery Manufacturers Association (GMA) and the European Brands Association (AIM) 24 Companies
Representing > USD$ ½ Trillion annual revenue
Additional information: www.aim.be under responsible sourcing
4 PILLARS OF RESPONSIBLE SOURCING*AIM-PROGRESS MEMBERS24 FMCG Brands*AIM-PROGRESS MEMBERSAIM-PROGRESS OBJECTIVESAIM-PROGRESS OBJECTIVESTo promote responsible sourcing through common, or mutually acceptable, supply chain standards:
Labour Standards
Health and Safety
Environmental Management
Business Integrity
To increase efficiency by sharing data
“an audit for one is an audit for all”
To seek convergence with other similar initiatives *
Mitigate compliance risks in the supply chain, while minimizing duplication of effort.
nullWHAT IS AIM-PROGRESS DOING?Mutual Recognition
Benchmark company assessment protocols
Sharing best practices
Audit data exchange
Common data exchange system
Use of the Sedex system
Common assessment methods
Maximise synergies
Engaging others
Promoting Supplier Awareness
Agricultural initiatives
*nullMAXIMISING SYNERGIES*MUTUAL RECOGNITIONMUTUAL RECOGNITIONMUTUAL RECOGNITION COMMUNICATION…..*COMMON DATA EXCHANGECOMMON DATA EXCHANGE
Duplication of Work
and “Audit Fatigue”What a supplier does for one,
they can do for manyJOINT SUPPLIER TRAININGS*JOINT SUPPLIER TRAININGS2010 Objective: Reach 500+ suppliers through 4 joint supplier seminars
First joint training in Q4 2009 in Istanbul, Turkey
130 participants from 55 suppliers invited by 6 participating companies
Resulted in 35% completion rate of responsible sourcing requirements within 3 months
In-person and Web-based trainings have extend to more AIM PROGRESS membersNorth America – Q2 2010
Russia – Q2 2010Brazil – Q3 2010
China – Q4 2010SUPPLIER COMMENTSSUPPLIER COMMENTSSupplier comment on the purpose of internal responsible sourcing program:
“To earn the trust of our customers, licensing partners, suppliers, and consumers by manufacturing and purchasing quality products using ethical standards” Regina O. Edwards, J.D. MWV, Director, Global Supply Chain Compliance
Supplier comment on the benefits of Sedex:
“We get one new customer request every month for responsible sourcing data. As Sedex members all we have to do is give access to those companies to view the SAQ and audit we already completed.” *WHAT WE ARE NOT DOINGWHAT WE ARE NOT DOINGNot creating a new set of supplier codes
We build upon existing company policies
We are code “agnostic”
Not creating new audit standards
Use Mutual Recognition
Share best practices
Not sharing confidential or commercial information, nor acting jointly with individual suppliersnull QUESTIONS?**
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