Social Fingerprint:

Measure & Improve

Social Performance

Presented at the ISSP Conference
September 22, 2011
by Craig Moss, Director Corporate
Programs & Training

Social Accountability International 2011
 Social Accountability International
Multi-stakeholder organization - established May 1997
Developed leading social compliance standard and
certification system - SA8000

Multi-industry and global

Leader in social compliance training for brands, suppliers
and auditors
Contracted by many governments and multi-national
agencies to conduct CSR awareness and supplier training
SAI Corporate Programs
Work with brands and retailers to use management
systems to drive continual improvement of social
performance in their supply chains - applicable to various
codes and standards

Published Implementing a Socially Responsible Supply

Chain

Developed Handbook for World Bank/IFC on client use of

management systems to meet PS2

Members include Carrefour, Disney, HP, Gap, Timberland,

Anvil Knitwear, Rosy Blue, General Mills, Chiquita, Gucci,
TNT, Otto Group, Billabong, etc.
Session Overview

(Really Brief) Introduction to Social Performance

Challenge: Prescription versus Judgment
Setting the Stage: Social Performance in the
Global Supply Chain

Measure & Improve: Using a Process-based

Approach

(Really Quick) Tour of Social Fingerprint

Discussion

 Introduction to
Social Performance
aka Labor Standards Performance, Social
Compliance, Labor Compliance
 SA8000: Labor Standard
Child Labor Child labor shall not be used

Forced Labor People have the right to change jobs and shall not be
forced to work
Health & Safety People must not be endangered at work

Freedom of People have the right to organize and be heard at work

Association thru collective bargaining

Discrimination Hiring, promotions and wages must be equal and fair

Discipline People must not be abused at work and free from all
corporal punishment
Working Hours Overtime is limited, voluntary and paid at a premium

Compensation People must earn enough to live on during a regular

work week
Management A management system is the key to sustainable
System compliance

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 Elements of Social Performance

" Improving social

performance requires
improvement by managers
and workers in all three Attitudes
areas

Skills Knowledge
 Social Performance in
the Global Supply Chain
 Consumer Electronics
Supply Chain

PO CONSUMER ELECTRONICS BRAND

SUPPLIER:
ASSEMBLY, QC & PACKAGING Sub-Contractor:
Sub-Contractor:
Memory
Batteries

Sub-Contractor: Sub-Contractor:
Plastic Cases Displays

Sub-Supplier: Sub-Supplier:
Wires Switches
Sub-Supplier: Sub-Supplier:
Dormitory Cleaning
Sub-Supplier: Sub-Supplier:
Connectors Cells
Sub-Supplier: Sub-Supplier:
Security Cafeteria

X X X X
Produce Meat Paper Tools Bakery
X X X X

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Socially Responsible
Supply Chain Trends
Increasing use of Strategic Suppliers

Working with suppliers to build internal capacity

More training, less auditing
All industries struggling with how to manage sub-contractors
Integrating social compliance into sourcing operations and
performance measurements

Shift from the stick to the carrot

 Prescription
versus
Judgment

Social Accountability International 2011

 Discrimination or Not?

Women at the shoe factory in India are not

allowed to perform certain production jobs after
the age of 25 since younger workers are
considered to be more efficient at this particular
task.

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 Prescription

Choice 1 Choice 2

Social Accountability International 2011

u
The Third Option

Social Accountability International 2011

 More Choices More Decisions

Social Accountability International 2011

 Prescription vs. Calibration

Social Accountability International 2011

Judgment and the Theory of
Motivated Reasoning

Our Beliefs versus New Facts

Confirmation Bias
Disconfirmation Bias
Changing Attitude is REALLY HARD

Social Accountability
International
 Measure &
Improve
Using a Process-based Approach
You Cant Improve What
You Dont Measure

Losing weight
Running a marathon

Social Accountability
International
Social Fingerprint Program Approach

Measure & Improve

Focuses on processes and management systems
not only code violations

Builds on SA8000 management systems

Analyzes system development and implementation
Supports continual improvement along any
standard, industry code or corporate code

Shapes the path and creates small steps to

improvement
 Social Fingerprint Programs

Supply Chain
Company
Management

Looks inside a Looks at how a

company at how company manages
they manage social social performance
performance in its supply chain

Typically for Typically for

suppliers brands/retailers

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Social Fingerprint Program: Uses

Self-Assessment
Internal tool to measure and improve
Risk assessment tool
Remote Independent Evaluation
Phone interview and document review
Benchmarking
Field Verification

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International
Social Fingerprint Process Categories
Company Program Supply Chain Management Program
(Supplier) (Brand/Retailer)
Management Systems Scope & Risk
Internal Social Performance Team Aggregate Score of Suppliers
Worker Involvement & Annual Improvement of Suppliers
Communication
Complaint Management & Internal Integration of Compliance
Resolution and Sourcing
Level & Type of Non-Conformance Supplier Communication &
Purchasing Practices
Progress on Corrective Actions Complaint Management & Resolution
External Stakeholder Engagement
Training & Capacity Building

Management of Suppliers &

Contractors
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Social Fingerprint Levels

1 = Little or no awareness, systems or interest

2 = Limited systems with sporadic implementation
3 = Systems in development with partial implementation
4 =
Fully developed systems with improving
implementation

5 =Mature systems, fully implemented inside and

outside company
 Mapping Social Fingerprint to
SA8000 or a Rigorous Code

Implementation Tips
Verify that policies and procedures in
Management Systems meet SA8000 or Code
Think both ways
Use the 9 Social Fingerprint categories to
tackle any individual labor code element
Use the 9 Social Fingerprint categories as a
detailed plan for a management systems audit
Social Fingerprint improvement tips can help
with corrective actions and remediation

Social Accountability International

Human resource policies and procedures
meeting the selected code or standard

Trained multi-department team that leads
the effort and includes worker
representation
Effective two-way communication
channels and joint participation
The system for handling and addressing
grievances
Severity and frequency of problems in
meeting labor standards systemic or
isolated
Effective system for addressing problems
and making changes to prevent them from
recurring
Cooperation with outside auditors and
involvement with external stakeholders to
enhance efforts to improve labor
standards
System for training on the attitude, skills
and knowledge needed to improve labor
standards - in your company and supply
chain
System for informing suppliers of labor
standard and methods for influencing
them to meet the code or standard and
improve
 Social
Fingerprint
in Action
 Comparison: 50 Suppliers in China
5
4.5
4
3.5
3
2.5
2
Self-Assessment
1.5
1 SAI Evaluation
0.5
0

Social Accountability International

 Case Study: Benefits & Results
60 vendors in one country - random survey of 23:
91% agreed or strongly agreed - online system
easy to use
100% implemented improvement tips
immediately (57% 3-5 tips; 24% implemented
6+ tips)
Improvement highlightsreporting significantly
better
Management Systems 48%
Internal Social Performance Teams 44%
Worker Involvement & Communication 35%
Progress on Corrective Actions 44%
82% agreed or strongly agreed that Social
Fingerprint was more helpful than other
social performance programs

Social Accountability International

 Social
Fingerprint
Getting
Started:
Quick Tour
 Social Accountability
International
 Social Accountability International