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Appendix F Illustrative Examples of Business Practices
Pages 91-107

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From page 91...
... The illustrative examples have been adapted from reports by international organizations (such as the International Labour Organization, World Bank, and UNICEF) , non-governmental organizations and labor associations, and from the companies themselves (social responsibility reports and websites)
From page 92...
... 3) Changing business practices Companies may change their business organization or operations to address child or forced labor.
From page 93...
... As UNICEF states: Early calls for the elimination of child labour sometimes resulted in large numbers of young workers being summarily dismissed with no recourse to an alternative income. Since then corporate strategies to deal with child labour have evolved from a "cut and run" response to more responsible engagement with the community where child labour is present.10 When child or forced labor is found, a company faces the choice of terminating a contract with the offending supplier, or taking action to improve the working conditions.
From page 94...
... The code is based on the Universal Declaration of Human Rights and many of the International Labor Organization's (ILO) Core Conventions.16 With approximately 600 external suppliers in more than 50 countries, Levis acknowledges the gap that can exist between the Code of Conduct and the actual practice of suppliers.
From page 95...
... In 2007, Starbucks initiated a two-year pilot program to test the standards. In addition, the International Labor Rights Forum has approved of the Starbucks Cocoa Practices, which it says are in line with ILO standards on child and forced labor.19 The Starbucks guidelines set minimum requirements for participation in the program.
From page 96...
... While it is not a participant in the United Nations Global Compact, the Dress Barn Global Human Rights Policy outlines its policy on child and forced labor.23 Before doing business with a factory, the Dress Barn requires the factory to complete a questionnaire to ensure that the factory can abide by its code of conduct. The Dress Barn's Vendor Code of Conduct reads:24 Vendors must operate in full compliance with the laws of their respective countries and with all other applicable laws, rules and regulations.
From page 97...
... With this limited leverage, the company cannot force a factory's management to address international labor standards violations because the cost of losing Patagonia's business is insignificant for any large manufacturing facility. 25 Patagonia and Corporate Social Responsibility, November 2007 26 Monitoring International Labor Standards: Summary of Domestic Forums, National Research Council, 2003.
From page 98...
... First, Merck works with the Danish Institute for Human Rights to define its health-related human rights obligations. The Danish Institute is assisting Merck and 28 UNICEF UK's Child Labour Resource Guide, Executive Summary 29 Monique Oxender, Global Manager, Supply Chain Sustainability Ford Motor Company, email correspondence 30 For A More Sustainable Future, Ford Motor Company Sustainability Report 2006/7
From page 99...
... The Monsanto Human Rights Policy, established in 2006, is based on Universal Declaration of Human Rights and ILO Declaration on Fundamental Principles and Rights at Work. The Employee Guidebook 31 Merck & Co, Inc., Corporate Social Responsibility 2006-2007 Report, http://www.merck.com/corporateresponsibility/docs/cr2006-2007.pdf 32 http://www.pharmaceuticalsupplychain.org/ 33 International Labor Rights Forum, http://www.laborrights.org/stop-child-labor/foulballcampaign/pakistan 34 Reebok Human Rights Report 2005.
From page 100...
... Since 2003, Hewlett Packard has been actively involved with the United Nations Global Compact. HP used the Global Compact's nine principles to model its own human rights policies.
From page 101...
... Facing heightened and highly-critical international attention, the Uzbek government signed two ILO conventions against child labor.38 Steve Trent, Executive Director of the Environmental Justice Foundation, praised Tesco's decision to ban Uzbek cotton: "This ground-breaking move by Tesco – unprecedented from a major UK retailer – has the potential to change a multi-billion dollar industry."39 Tesco is based in the United Kingdom and is the world's third largest retailer. In a communication to its suppliers, Tesco wrote, "the use of organised and forced child labour is completely unacceptable and leads us to conclude that whilst these practices persist in Uzbekistan we cannot support the use of cotton from Uzbekistan in our textiles."40 Bon Appétit Bon Appétit is a food service company that operates 400 university and corporate cafeterias in 29 states in the United States.
From page 102...
... To accomplish this, the organization promotes a multi-stakeholder collaboration and offers services that include monitoring, remediation, training, and research. As a result of this collaboration, Gap won the Social Reporting Award for its 2003 Social Responsibility Report.
From page 103...
... 49 The Corporate Social Responsibility Newswire, "Nike Issues FY04 Corporate Responsibility Report Highlighting Multi-Stakeholder Engagement and New Levels of Transparency", April 13, 2005. 50 2007 Nike Code of Conduct, http://www.nikebiz.com/responsibility/documents/Nike_Code_of_Conduct.pdf.
From page 104...
... For each supplier, internal auditors complete a human rights questionnaire, which requires detailed information on factory compliance with the Code of Conduct. The Liz Claiborne Workplace Code of Conduct is a set of standards that "prohibits child labor, forced labor and all forms of harassment or abuse, in addition to ensuring workers are paid the minimum wage, setting limits on overtime hours and requiring employers to honor workers' rights to freedom of association and collective bargaining." The company's external monitoring is done by the Fair Labor Association.
From page 105...
... 's child welfare fund and to the Children Emancipation Society. Both organizations run child welfare programs, including schools that provide free education, monthly stipends, mid-day meals, vocational training, and health care to children.60 A quarter percent from the sale value of each Obeetee carpet is donated to this CEPC Child Welfare Fund.61 CEPC states on its web site that the "Carpet Export Promotional Council of India is an autonomous body established to promote the export of Indian made carpets.
From page 106...
... Human rights advocates criticized the suppression of workers unions on the plantations. Advocates also called for the eradication of child labor.
From page 107...
... Other Forum activities include a child labor inspection and monitoring system and encouraging banana companies to agree to labor inspections on their farms and plantations.


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