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Home » Blogs » Management & Strategy » New Report Encourages Companies to Work Directly With Factory Managers Overseas

New Report Encourages Companies to Work Directly With Factory Managers Overseas

August 6, 2008
More about:  Asia,  China,  Europe,  Latin America,  South America
According to a new report by Business for Social Responsibility, companies should work directly with factory managers overseas to equip them with skills, knowledge and systems to better address labor standards violations, environmental degradation and poor health and safety protections. The recommendation comes from the organization's report: Pilot Summary Report: Building Capabilities to Implement Corporate Social Responsibility (CSR) Management Systems at ICT Suppliers in China."
 
The report is based on recently completed pilot projects the organization says were aimed at breaking through common barriers to improving factory conditions. The project included many participants including the World Bank and the Foreign Investment Advisory Service and others.
 
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According to a new report by Business for Social Responsibility, companies should work directly with factory managers overseas to equip them with skills, knowledge and systems to better address labor standards violations, environmental degradation and poor health and safety protections. The recommendation comes from the organization's report: Pilot Summary Report: Building Capabilities to Implement Corporate Social Responsibility (CSR) Management Systems at ICT Suppliers in China."
 
The report is based on recently completed pilot projects the organization says were aimed at breaking through common barriers to improving factory conditions. The project included many participants including the World Bank and the Foreign Investment Advisory Service and others.
 
BSR says that companies can take the following steps to build capacity in their supply chains:


  • Support multiple capacity-building strategies. Approaches can include providing generic tools (such as a factory committee or worker hotline to address concerns), conducting trainings, creating supplier-support networks and implementing factory-specific projects.


  • Focus on the business case. To achieve buy-in from suppliers, identify real incentives and allow supplies to shape their own approach to CSR improvements within the factory.


  • Integrate a mentoring system into the monitoring process. Work with the supplier to identify root causes of compliance issues. This strengthens the relationship between the company and the supplier, shifting focus from immediate compliance to continuous improvement.


  • Foster ongoing dialogue among stakeholders. These include customers, suppliers, NGOs, local government and industry associations. This reinforces each group's efforts, creating the potential for a much bigger impact on everyone's CSR efforts. Moving forward, BSR will apply these lessons to other industries and countries.


 
Here's the press release on the initiative.
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