Professor Hector R Rodriguez

School of Business
Mount Ida College
 Course Map – Topics Covered in Course
• Society
– The Corporation and Its Stakeholders
– People for the Ethical Treatment of Animals
– Corporate Citizenship
– The Social Responsibility of Business
– The Shareholder Primacy Norm
– CSR, Citizenship and Sustainability Reporting
– Responsible Investing
– The Community and the Corporation
– Taxation and Corporate Citizenship
– Corporate Philanthropy Programs
– Employees and the Corporation
– Managing a Diverse Workforce
– Corporate Social Accountability – SA 8000
• Environment
– A Balanced Look at Climate Change
– Non-anthropogenic Causes of Climate Change
– Sulfates, Urban Warming and Permafrost
– Conventional Energy
– The Kyoto Protocol
– Green Building
– Green Information Technology
– Transportation, Electric Vehicles and the
Environment
– Geo-Engineering
– Carbon Capture and Storage
– Renewable Energy
– Solid, Toxic and Hazardous Waste
– Forests, Paper and Carbon Sinks
– Life Cycle Analysis
– Green Chemistry
– Water Use and Management
– Water Pollution
– Environmental Management Systems
 Driving Forces for Social Accountability
• Activist campaigns and bad publicity
• Regulatory weaknesses & effects
• Cost and price pressure
• Financial worthiness and insurance
• Consumer preference
 What is SA 8000?
• SA8000 stands for “Social Accountability”
• It is based on a set of internationally accepted standards
that participating organizations must commit to.
• Standards come from ILO (International Labor
Organization) & other human rights conventions.
• SA8000 has the support of major companies and
organizations over a wide spectrum of interests
– Designed for independent verification
– A global standard, designed for use by any company, anywhere in
the world
– Has been developed with stakeholders
– Is designed to take local laws and requirements into account
 9 Main Requirements of the Standard
1. Child labor is not permitted
2. Forced labor is not permitted
3. Health and safety have to be assured
4. Freedom to organize and collective bargaining have to be
guaranteed
5. Discrimination is not permitted
6. Disciplinary practices are not permitted
7. Working hours shall not exceed 48 hrs a week, with a
maximum of 12 hrs overtime
8. Remuneration shall be sufficient
9. Management systems shall guarantee that the
requirements are effectively satisfied
 Child Labor
• No use of child labor.
• Remediation of children found to be working below legal
age and shall support such children in attending school.
• Promote the education of children and young workers.
• No exposure of
children or young
workers to
situations that
are hazardous,
unsafe, or
unhealthy
 Health and Safety
• Safe working environment and
adequate steps to prevent
accidents and injury
• Appointment of health and
safety representative
• Routine and documented
health and safety trainings
• Clean bathrooms and potable
water
• Sanitary food storage and
dormitory facilities if applicable
 Health and Safety

• No running water
• Inadequate hoods
• Dirty walls
• Distribution of smoke
throughout building
• High infection risk
 Right of Association
• Respect right of
personnel to form and
join trade unions of their
choice
• Engagement and/or
support of discrimination
is prohibited
• Freedom of religious
expression
• Mental, physical and
verbal abuse are not
allowed
 Management Systems
• Written and publicly available policy that that defines
social accountability and labor conditions in conformance
with SA 8000 and applicable laws
• Designated representative to enforce policy
• Routine managerial review and updating of policy
• Written statement and documented evidence from
suppliers and subcontractors of commitment to social
accountability
• Investigation of concerns regarding conformance and
nonconformance and appropriate corrective action
• Communication with all interested parties
Elements of a Social Management System
 Certification to SA8000
• Companies that operate
production facilities can seek to
have individual facilities
certified to SA8000 through
audits by one of the accredited
certification bodies.
• Since the SA8000 system
became fully operational in
1998, there are certified
facilities in 30 countries on five
continents and across 22
industries.
 Benefits of Implementing SA 8000
• Benefits for Business
– Putting company values into action
– Enhancing company and brand
reputation
– Improving employee recruitment,
retention and performance
– Better supply chain management
and performance

• Benefits for Consumers and Investors

– Clear and credible assurance for ethical purchasing decisions
– Identification of products made ethically and companies
committed to ethical sourcing
– Broad coverage of product categories and production geography.
 Worker Benefits
• Increased worker awareness about core labor rights
• Enhanced communication to the management
• Evidence that labor rights are good for society and business
• Improved business practices lead to economic growth and
new job opportunities
• Fewer accidents
• Enhanced opportunities to be
organized
• A way to address and
improve the conditions where
people work
SA 8000 Certified Companies
 Summary
• There are several forces driving social accountability
• SA 8000 is a standard that provides social accountability
guidelines, including:
– Child labor,
– Forced labor,
– Working hours,
– Compensation and
– Workplace safety.
• A company can get its social accountability management
system certified
• Such a certification benefits the business, consumers,
investors and workers.